Productivity management of indirect labour through variable work measurement and control

During the past several decades, the rapid expansion of service industry and the automation of manufacturing operations have gradually changed the ratio between direct and indirect labour in favour of the latter and created the need for indirect work measurement and standards. Though a few indirect work measurement and standard systems exist, much still needs to be done to refine and promote indirect work measurement and control techniques. This article develops and applies a flexible procedure for setting indirect work standards. The procedure includes six steps: establishing an accurate information system for indirect manpower planning; defining appropriate allowances; developing effective methods for measuring various types of key tasks; generating a formal engineering report after indirect work standards are established; reviewing and updating indirect labour standards and their supporting data based on analysis of historical data; and setting up a point system and/or a statistical control system whenever possible.