Auditing Labor Standard - Truck Manufacturing

[AuditKen]

I am an internal auditor and have been given the asignment of auditing our companies labor standards processes and procedures of implementation. I will be reviewing the intiation of labor standards, review and costing of the standards.

Also I would like to look at alternatives to using labor standards as a measure of the plants effeciencies, like rolled throughput yields or and other quality metrics that can be analixed.

Any suggestions on the audit process of labor standards would be greatly appreciate. Also, any ideas of alternative to using labor standards as a performance metrics for heavy duty manufacturing plants.

 

[BillPSU]

When looking at labor performance the percentage of labor to cost of goods sold is a good overall number. Breaking it down into different models becomes a matter of actual hours consumed per model if the labor can be separated. The obvious goal is to continue measuring your metrics and look for improvements. Effeciencies are hard to measure on individual standards and relate to overall effiency. Measure hours consumed versus product produced. Throughput is another good measure.

 

[AuditKen]

Thanks for the information.