What is labor intensity. Calculation of labor costs in man hours formula, what is a person hour? Average labor intensity of production formula

To optimize the production process and obtain greater benefits, it is necessary to calculate the number of man-hours spent on the production of one unit of man-hours. This indicator is used by the accounting department and the statistics department of the enterprise and indicates the duration of one person's stay at work. It can be used to calculate the total productivity of labor at a given enterprise for one unit of time.

The simplest calculation formula looks like this:

K x T = Hh, where Hh is man-hours, K is the number of workers involved in the production process, and T is the time spent on work.

K (number of employees) x T (working time) = Hh (man-hours)

Let's give an example

Let's say that 100 people are involved in the production process in a factory. We have to calculate the number of man-hours for the month of June. June has 24 business days. For an eight-hour working day, the formula would look like this:

100 (people) x (8 (hours per day) x 24 (working days)) = 19200 man-hours

• The calculation of man-hours can become more complicated if employees go off-duty, go on vacation, on a business trip, to study, or fall ill. In this case, it is necessary to calculate not full working days, but only hours actually worked.
• It often happens that employees of the enterprise work part-time, for example, mothers who use a rotating schedule or those who are hired on a four-hour work day. In this case, the calculation of man-hours is calculated specifically for each employee. The data is then summed up.
• In order for the calculation of man-hours to be accurate, it is necessary to maintain a time sheet, in which all data for each employee is entered. Time of arrival and departure from work, actual hours worked.

  Calculation of man-months

  For example, it happens that a team of workers is on site, but cannot work due to untimely delivery of materials.

• You can calculate this indicator for each permanent employee, provided that he works for a whole month for 8 hours a day. With five days of work, you get: 21 working days times eight hours \u003d 168 man-hours per day. Usually this formula is used for a normalized working day.
• If the organization employs ten people, then the total value of man-hours per day will be 80. If you multiply this value by 21 working days, then this month will come out to be 1680 man-hours.
• The total number of man-hours can be formed from the number of hours actually worked by all employees of the organization. For example, 30 man-hours. - this can be the time worked by one person in 30 hours, or two who worked 15 hours, or 3 who worked 10 hours.

The output for this period can be calculated more accurately if you subtract breaks for lunch, for waiting for the delivery of materials, for repairing equipment that has failed, for staff absenteeism for personal needs, etc. These data can be calculated exactly, or you can resort to an average value, which is practiced much more often.

Optimizing labor and increasing its productivity are fundamentally important business tasks. But it is impossible to solve them without knowing how many man-hours are spent on work. That is why it is important to learn how this indicator is calculated correctly!

Evaluating the effectiveness of labor time is a fundamentally important task. Knowing how long it will take to complete a given task can optimize your workflow and significantly increase your productivity. And in order to optimize, it is often necessary to calculate man-hours. Simple and understandable formulas, accompanied by explanations, are designed to facilitate the calculation process!

Man-hour calculation. The simplest formula

Man-hour is one of the important indicators used by the accounting department and the statistics department. It indicates the length of time employees spend at their workplaces. Also, the indicator can be used to calculate labor productivity per unit of time.

The simplest calculation formula is:

H \u003d K * T, where

• H is man-hour;
• K is the number of employees;
• T is the time spent by them at the workplace (actually spent on work).

The company has 16 employees working 8 hours. It is necessary to calculate the indicator for May 2015. Since there are 18 working days in May, the calculation will look like this: 16 * (8 * 18) = 2304 man-hours

Reporting preparation. Complicated calculations

All organizations undertake not only to submit reports to the Federal Tax Service, the Pension Fund of the Russian Federation, the FSS, but also to provide data on the number of employees and their wages to Rosstat.

What is labor intensity

To do this, the accountant of the organization fills out the P-4 form, approved by Order of Rosstat No. 407 (July 24, 2012). According to this regulatory document, the number of man-hours cannot include the time of holidays of all types, advanced training, illness, downtime and participation in strikes.

In this case, all hours worked are taken into account, including overtime (on weekends and holidays) and business trips. For example, the organization has 8 full-time employees, and 4 of them went to work during the May holidays (May 3 and 4), working for 4 hours. In this case, the calculation looks like this: 4*144 + 4*152 = 1184

Calculation for organizations with part-time employees

If the organization has employees who work full-time and part-time, then separate calculations should be carried out for them.

For example, the company employs a director, a secretary, 2 accountants, 3 managers, and 4 employees working 3.5 hours a day. In this case, the calculations are standard: 7*144 = 1008

For the rest of the employees, the calculations are as follows: 4 * (4 * 18) \u003d 288. If one manager who finished work on May 12 was fired from the organization, then for him the calculation would look like this: 1 * (8 * 5) \u003d 40.

We hope that our examples and explanations will be useful to you!

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Labor intensity formula

The concept of labor intensity

Labor intensity is the most important economic indicator that allows you to evaluate the efficiency of using working time in the process of production or work.

The labor intensity formula shows how much labor must be applied in the manufacture of one unit of output. The coefficient of labor intensity is closely related to the concept of labor productivity (output).

How to correctly calculate man hours

There is an inversely proportional relationship between these indicators, and the greater the labor intensity of output, the lower the labor productivity of a given production operation (and vice versa).

Labor intensity formula

The formula for calculating labor intensity is as follows:

T = PB/Q

Here T is the labor intensity of manufacturing a unit of production,

PV is the labor time spent on the production of a certain quantity,

Q is the number of products produced.

The calculation according to the formula of labor intensity and labor productivity is carried out, first of all, in the process of drawing up a production plan for the next reporting period, when substantiating a business plan, and also to analyze the efficiency of using labor.

The amount of labor intensity is influenced by many different reasons, the main of which are:

• personnel qualification,
• the level of technical production equipment,
• complexity of production,
• degree of industrial automation,
• working conditions.

The procedure for calculating the complexity

The calculation according to the labor intensity formula is performed in a certain order:

• Determination of the actual costs (amount) of time worked by the workers of the enterprise for the corresponding period. The source of this information is the primary accounting documents, including the time sheet for each section (workshop). Based on this information, the total amount of man-hours for a certain calendar period of all sections of the enterprise is calculated.
• Calculation of the value of goods produced in the reporting period using primary accounting documents, the type of which depends on the specifics of the company itself. Next, they calculate the ratio of the amount of time spent, which is expressed in man-hours, to the cost of goods produced by the enterprise. As a result, the labor intensity formula will give the desired result in the form of labor intensity of products.
• After calculating the coefficient, it is necessary to analyze the data obtained by comparing the actual labor intensity with its planned value. Then the factors contributing to the occurrence of deviations are identified, analyzed and the required conclusions are determined.

Among the factors that can cause a deviation of actual indicators from planned ones, there may be qualitative changes in semi-finished products or raw materials, the qualifications of workers, etc.

Types of labor intensity

In accordance with the nature of labor costs, labor intensity can be classified into the following types:

• actual,
• Regulatory,
• Planned.

In accordance with the composition of costs, labor intensity can be:

• The technological, labor intensity formula includes the labor costs of only workers directly manufacturing products:

Ttech.=Tcorr.+Tdel.

Here Tper the labor costs of employees working on a time-based system,

labor costs of employees working on a piecework system.

• Servicing labor intensity, taking into account the working hours of employees who are engaged in servicing production.
• Production labor intensity, calculated by the formula:

T pr. = T tech. + Tobsl.

HereTtech. - technological complexity;

Tobsl. - servicing labor intensity.

• The complexity of management (T control), including the labor of specialists, technical workers, a manager, etc.
• Full labor intensity, including all types of labor intensity:

Ttot. = Ttech. + Tobsl. + T ex.

Examples of problem solving

Calculation of man-hours: formula how to calculate man-days

What is man-hours

This is a unit of work time accounting, which corresponds to one hour of work of one person.

This term is used for:

• planning working time for a particular job;
• determining the number of workers required to perform a particular process;
• filling out the form of statistical observation "P4".

When you need to find out man-hours, the calculation (the formula for P4, which is used, is given below) is carried out by employees of the personnel department. The calculation takes into account only the time of actual work. The time of holidays, sick leave, other paid or unpaid time during which the work was not performed is not taken into account.

Calculation of man-hours: formula

The algorithm is quite simple, it looks like this:

HH = HH1 + HH2 + ... + HHN, where

• HH - total hours worked;
• HH1 - how long the first employee worked;
• HH2 - how much the second worked;
• HCHN - how long the N-th worked.

Man-hours per year: calculation, formula

Sometimes it is necessary to determine the indicator for the year. In this case, a similar formula is used, but with the difference that HH1, HH2 and HHN indicate how much each employee worked per year.

This calculation includes overtime, the time that the employee spent on business trips, and also takes into account work on weekends or holidays.

It is not necessary to take into account the time when a person was on any holidays, on advanced training with a break from work, was sick, as well as downtime, participation in strikes and other cases of absence from work.

Example of calculating man-hours

So, let's give an example of man-hours of calculation, we will use the formula that was given above.

Let's say that the budget organization employs 10 people. Eight of them worked a full month with an 8-hour working day.

Formula for calculating man-hours

There are 22 business days in a month. So each of these employees worked:

22 x 8 = 176 hours

One person worked only 88 hours because he was on vacation for 11 days:

(22 - 11) x 8 \u003d 88 hours.

And another person worked 180 hours because he worked 4 hours of overtime:

(22 x 8) + 4 = 180 hours.

Thus, the total result for all employees will be:

176 x 8 + 88 + 180 = 1,676 man-hours.

What is a man-day

This is a unit of measurement of working time, corresponding to one working day of a person, regardless of the amount of time worked.

Man days are used to determine indicators such as:

• days worked;
• turnouts;
• absenteeism;
• all-day downtime.

The days worked in this case include:

• days of actual stay at work (performance of their duties at the main workplace);
• days spent on business trips;
• days when, due to forced downtime, the employee is involved in other activities of the enterprise.

All-day downtime is a period when an employee came to work, but could not start its implementation for reasons beyond his control. For example, there were no materials, the equipment was faulty, there were no spare parts. Or, if the employee was warned by the administration in advance about the situation and therefore did not show up for work.

In order to get the total turnout rate, you need to sum up the days worked and the whole day downtime.

Finally, absenteeism in this count includes:

• all types of vacations (annual and educational);
• periods of illness, issued by a sick leave;
• failure to appear in connection with the performance of state and public duties, days of blood donation and other cases permitted by law to be absent from work;
• absence from the workplace in agreement with the management without pay, for example, leave at one's own expense;
• absenteeism, i.e. absence from work without good reason.

Calculation of man-days: formula

To determine this indicator, the following formula is used:

BH \u003d ((CH1 + CH2 + ... + CHN) x KDM) / 8, where

• BH - the desired value;
• Ch1, Ch2, ChN - how long each employee worked;
• KDM - the number of calendar days in a month.

The indicator of labor intensity is used to assess the productivity of products and the efficiency of using the labor potential of the enterprise. It shows how many man-hours were spent on the production of one product. The basis for the calculation is the time sheet and primary accounting documents. When analyzing the coefficient, a comparison is made with industry averages, competitors' indicators, past years' values ​​and information from plans.

The growth of labor productivity is an important task for the management of any manufacturing company. One of the effective ways to solve it is to reduce the amount of labor costs per unit of output and optimize the use of the labor potential of the enterprise. To analyze, plan and predict this process, the indicator of labor intensity is used.

Labor intensity(Labor Intensity, LI, Te) is an indicator of economic analysis that shows how much labor was spent on the creation of one unit of output.

Reference! According to the definition from the modern economic dictionary, labor intensity is the cost of labor and time per 1 ruble of goods, works, services produced. It is proportional to labor productivity and allows you to evaluate the output per worker.
Source: Raizberg B.A., Lozovsky L.Sh., Starodubtseva E.B. Modern economic dictionary. M.: INFRA-M, 1999.

There is a wide range of factors that can influence the labor intensity of products, including the qualifications of personnel, the level of technology used, the nature of production automation, working conditions, the technical complexity of product release, etc.

The use of working personnel of different categories in production activities led to the formation of different types of labor intensity.

Reference! The total labor intensity is considered to be the total labor costs of all groups of employees of the enterprise for the creation of one unit or 1 ruble of products.

The formula for calculating the coefficient of labor intensity

Unlike financial ratios, information for the calculation of which can be gleaned from financial statements, labor intensity is calculated based on internal accounting data:

• the volume of hours spent on the production of a batch of products;
• the number of products produced.

The formula for calculating labor intensity can be represented as follows:

Te = Och / Ov, where

Och - the volume of man-hours spent on the release of the volume of products;

Ov - the volume of manufactured products (in units of production or value).

Important point! The calculation of labor intensity is calculated for each type of product separately, therefore the total amount of revenue cannot be considered as the basis for the calculation exactly, as well as the total volume of output in physical terms.

The procedure for calculating the complexity

Simple at first glance, the formula for calculating Labor Intensity can cause certain difficulties in the process of its practical application. In this regard, it makes sense to consider the step-by-step procedure for determining the Te indicator.

Step 1. Determination of the volume of hours actually spent on production. Evaluation basis: time sheet.

Step 2 Convert hours to man-hours by multiplying the number of employees by the number of man-hours worked.

Step 3 Calculation of the cost of a batch of products based on primary accounting documents.

Step 4 Determination of labor intensity for a period of 3 to 5 years in order to identify the dynamics of the indicator.

Reference! The dynamics of labor intensity can be influenced by qualitative changes in raw materials, equipment, personnel qualifications, etc.

Standard value of the indicator

The exact normative value of the labor intensity of products does not exist due to differences in the production and technological processes of each individual enterprise. However, the indicators obtained during the calculation can be used for comparison:

• with the industry average;
• with indicators of firms-competitors;
• with planned values ​​established by the company itself;
• with figures from previous years.

Coefficient Calculation Examples

It is most convenient to consider the process of calculating the labor intensity on a practical example of 2 companies engaged in the production of brass bushings in Russia:

• Anep-Metal LLC (St. Petersburg);
• OOO Krasny Anchor (Nizhny Novgorod).

Table 2. Definition of Te for Anep-Metal LLC, in 2015-2017

	Bushing output, pcs.
	The cost of one sleeve, rub.
	LI (in kind)
	LI (in monetary terms)

Conclusion! In the period from 2015 to 2017, the labor intensity of Anep-Metal LLC products decreased. This is due to the hiring of an additional number of low-skilled workers, which provided an insignificant increase in output. Even the increase in prices did not save the situation.

Table 3. Definition of Te for Krasny Yakor LLC, in 2015-2017

	The number of production workers engaged in the production of bushings, pers.
	The number of hours spent on the production of bushings, h
	The number of AUP and ITR managing the production of bushings, pers.
	Number of hours of managerial labor spent, h
	Bushing output, pcs.
	The cost of one sleeve, rub.
	LI (in kind)
	LI (in monetary terms)

Conclusion! In the period from 2015 to 2016, Krasny Anchor applied an extensive type of growth: it ensured an increase in output by increasing the number of employees. From 2016 to 2017, its approach changed: now it began to hire fewer highly qualified employees, which allowed it to achieve a reduction in labor intensity.

Comparing two enterprises operating in the same industry, it can be noted that the labor intensity of Anep-Metal is lower than that of Krasny Anchor. However, the latter follows the path of its reduction, which makes his position more advantageous.

A detailed calculation algorithm is presented in a sample compiled on the basis of the Excel spreadsheet editor.

Reading 8 min. Views 8.5k. Published on 30.10.2017

One of the main tasks of each manufacturing enterprise is to increase the productivity of labor activity and optimize the time spent on the work process. That is why every employee of the accounting department should know how to count man-hours. In order to obtain these economic indicators, special formulas are used, which will be discussed below.

Productive use of time allocated for a specific production process - allows you to optimize the work of each employee in the enterprise. Using special formulas, you can derive the time costs that an employee will need to cope with the task.

By making such calculations, you can not only identify the efficiency of your employees, but also significantly increase the efficiency of the labor process.

This means that such an approach will increase the productivity of the enterprise. It is for this purpose that the formulas "man-hours" and "man-days" were developed in economics.

To optimize the production process and obtain greater benefits, it is necessary to calculate the number of man-hours spent on the production of one unit of man-hours

What is man-hour

First, let's look at what is man-hours? This term denotes an economic unit, which is equal to one hour of labor of the Nth employee. This unit is used to calculate the length of time or the number of employees required to carry out a specific production task.

How the calculations are made

The addition of man-hours makes it possible to assess the required financial investments to pay for the work of the company's employees. It is not uncommon for man-hours to be used to set deadlines for fulfilling obligations during the design of certain tasks, putting management under tight time constraints.

These figures are used in the preparation of reporting documentation for the tax inspectorate, the Pension Fund and institutions that carry out social and legal protection of the population. In addition, each enterprise provides detailed information on the man-hours spent to Rosstat. When compiling such documentation, the P-4 form is used, which clearly displays the calculations being carried out.

The nuances of making calculations

Let's look at examples of calculating man-hours. In order to get the required indicator, you should add up the time of work of a certain employee. It should be noted that not only the hours that were spent on the work process both on the territory of the organization and outside it are summed up. Thus, when compiling calculations of labor activity indicators, business trips, employment in a combined position (in the same enterprise), as well as overtime are taken into account.

Such calculations should not include:

1. Days missed by an employee due to illness.
2. Production downtime (days or hours when the employee was not engaged in his direct job duties, due to circumstances that he had no control over).
3. Time spent on vacation (vacation time at the initiative of the enterprise management is not taken into account).
4. Days off for breastfeeding mothers.

Also, those hours are not taken into account by which the working day of employees of certain organizations is reduced in accordance with the decrees prescribed in the legislation of the Russian Federation. The calculations do not take into account absenteeism and other various factors of non-appearance of personnel at the place of work.

This indicator is used by the accounting department and the statistics department of the enterprise and indicates the duration of one person's stay at work

Formulas used in the calculation

When compiling the calculation of man-hours spent, special economic formulas are used. The simplest formula for calculating labor costs in man-hours: H \u003d K * T. Let's see what this formula means. With the help of the letter "H" are denoted, man-hours. Instead of the letter “K”, the number of employees in the organization is substituted. "T" is the unit of time used in calculations. In order to simplify the calculation of labor costs, it is best to use hours as a unit of time.

Calculation example

Man-days are the days worked by the company's personnel. A man-day is considered to be worked, regardless of the actual length of the working day. That is, if the employee arrived on time and began to perform his duties in a timely manner, the man-day should be counted.

Let's look at an example of how to calculate man-hours for a month of work. An organization with thirty employees will be used as an illustrative example. The duration of one working day is eight hours. All necessary calculations will be made in September of this year. In order to get man-hours for a month, it is necessary to multiply the number of employees, the duration of one working day and the number of working days in a particular month: "30*8*21=5040".

However, when filling out the documentation sent to Rosstat, the chief accountant of the enterprise performs much more complex calculations. To obtain truthful data, it is necessary to take into account the time spent on business trips and extracurricular activities. In addition, the time interval that is not intended for accounting is subtracted.

Let's look at the same production example, but in this case, two out of thirty employees spend only four hours at their workplace. At the same time, in the example under consideration, we will take into account that one of the employees went on vacation in the middle of the working month and worked only eighteen days:

First you need to calculate man-hours, for employees who are at their workplace full time - 27 * 8 * 21 = 4536. After that, it is necessary to make separate calculations of the labor costs of employees who spend four hours daily at their workplace - 2 * 4 * 21 = 168. Then you should make a calculation for an employee who went on vacation in the middle of the working month - 144. The resulting works should be summed up, to get the result - 4536 + 168 + 144 = 4848.

The result is the sum of the labor costs of all employees of the organization for the above month.

Calculation of man-hours can become more complicated if employees are not full-time

man-day

This term is a designation of a similar quantity with man-hours. In a specific example, the unit of work time is one standard working day. When using man-days in calculations, the average length of the working day is not taken into account, even if the figures significantly exceed the eight hours established by law. It should be noted that in the economic sphere, man-hours are a more accurate unit than man-day.

How to make calculations

When making calculations according to the man-days formula, disrespectful reasons for absenteeism at the workplace are not taken into account. This means that absenteeism, absenteeism and absence from your workplace for more than three hours are considered a full-fledged pass. Let's look at how man-days are calculated. In the formulas used in the calculations that are used in accounting, it is implied to follow a clear procedure:

1. In order to get the result of the reporting month, it is necessary to multiply the number of man-hours worked by each employee by the sum of working days in the month in question.
2. The figures obtained are summed up in order to obtain the result of man-hours for the reporting month.
3. After that, the amount received is divided by eight, since according to the Labor Code, this time is a full-time working day.
4. The resulting figure falls under the "man-day" indicator.

This unit is used when calculating the indicator of temporary funds. With the help of this indicator, the number of days worked, attendances, absences and all-day downtime is determined. With the help of such values, statistics are compiled on the basis of which economic analysis is carried out. Not only certain enterprises, but also various industries are subjected to such an analysis.

Brief overview of key terms

Below we suggest that you familiarize yourself with the terms that were used in the preparation of the calculations given above.

Days worked

Days worked - the time spent by each employee on the performance of their job duties. Regardless of the actual length of the working day, a day is considered worked if the employee arrives at his workplace in a timely manner.

In addition to the above, this value is added to the time that the employee was on a business trip, was on duty or combined several positions on the territory of the enterprise.

In order for the calculation of man-hours to be accurate, it is necessary to keep a time sheet

turnouts

The term "attendance" refers to the total result of adding days worked and all-day downtime. The term is quite easy to understand.

Absences

The term "non-attendance" should be understood as the period of time during which a certain employee was absent from his workplace. There are many different reasons for not showing up to your workplace, both respectful and disrespectful. The only exception to this rule, cases related to production downtime.

Valid reasons - leave, maternity leave, study leave, illness and other absences permitted at the legislative level. These include performing military or civil duties. In addition, there are some personal reasons for good reasons for not showing up to your workplace. However, in this case, prior approval from the administration of the enterprise is necessary.

Sometimes this list expands significantly. Often, good reasons include labor strikes or mass absences from their workplace.

Absence from the workplace without a valid reason includes absenteeism, absence from the territory of the organization for more than three hours from the beginning of the work shift. In addition, disrespectful reasons for non-attendance include exclusion from the work process for existing objective reasons.

Production downtime

All-day downtime is a working day during which the employee does not perform his direct job duties due to the influence of various factors that he cannot influence. Such downtime includes various malfunctions of production equipment or power outages on the territory of the enterprise. At the moment, the employee can either be at his workplace or be absent, having previously notified the administration.

Evaluation of the effectiveness of labor time is a fundamentally important task

working hours

Labor hour is the time spent by an employee who does not have the necessary qualifications at a particular workplace. The number of working hours in one week is at least forty hours (assuming that the enterprise in question has a standard eight-hour working day). The calculation of payment for working hours is made in accordance with the current law specified in the Labor Code. With the help of labor hours, the remuneration of personnel who do not have the necessary qualifications is calculated.

In contact with

Resource management of any enterprise is a prerequisite for the effective functioning of all systems. Reducing costs leads to a reduction in the cost of production. One of the main indicators of analysis is the labor intensity, the formula of which will reflect the picture of the state of affairs in this system of production. Based on the data obtained with its help, the financial service will be able to identify factors hindering development and eliminate them in the future. Therefore, how to calculate the labor intensity formula should be considered in more detail.

The value of the indicator of labor intensity

Labor intensity, the formula of which will be discussed in detail later, allows the financial analyst to draw a conclusion about the ratio of the cost of production resources and time. This is a measure that reveals information about how much time it took a company to produce a unit of output.

When planning, this indicator makes it possible to find the maximum permissible level of performance in specific conditions. This leads to a more efficient organization of the company's work.

The labor intensity formula allows you to evaluate the result of the work of the work team for a certain period of time. It will also be quite easy to identify how much work one worker could perform during this period.

There are several approaches to estimating labor intensity. They depend on the composition of the costs included in it. It can be complete, technological, servicing or managing production, as well as production.

Benefit of the indicator

Labor intensity, the calculation formula of which refers to labor productivity indicators, is calculated with the output indicator. But the former has a number of advantages. He is able to identify a pattern between labor costs and the volume of finished products.

Considering the example of calculating labor intensity using a generally accepted formula, one can find ways and reserves to increase the level of labor productivity. The study of the structure of production is one of the informative approaches to studying the efficiency of the use of labor resources by a company.

By determining the value of the indicator in different shops or areas, the analyst can determine where resources are used more rationally, and where there are trends that are unfavorable for the company.

Labor intensity eliminates the impact of changes in supply volumes on the structural organization of production.

If the nomenclature is too large, then representative products are selected from the total mass of goods. They, as a rule, have a significant share in the total output.

Calculation formula

The formula for the labor intensity of labor per unit of output produced by the enterprise allows us to estimate all the costs of paying workers for the manufacture of one piece of finished products. The result obtained using this method is measured in man-hours. The formula looks like this:

Tp = Amount of time worked by all employees / Volume of products produced during this period.

The numerator in this formula is measured in man-hours. This indicator takes part in the planning process. This process is carried out according to the factors of changes in the number of personnel of the company or the saving of working time.

Varieties of calculation

Each of the above indicators of labor intensity is determined in accordance with its economic meaning. The labor intensity of products, the calculation formula of which is discussed below, implies the total labor costs of the main and auxiliary employees of the company. It is calculated like this:

Тpr = Тtehn + Tob, where Тtehn is the labor costs of all the main workers directly involved in the production of products; Tob - the costs associated with the remuneration of service personnel.

Total labor intensity is the most extensive category for research. It includes labor costs for all staff. It is calculated like this:

Tp = Ttech + Tob + Tu, where Tu is the cost of paying the salaries of managers, security.

Cost Savings

The labor intensity of work, the formula of which was presented above, allows analysts to find ways to save production costs. To do this, in the planning process, all factors affecting the indicator are considered, and decisions are made by managers on appropriate actions in this direction.

To improve labor intensity, a number of areas need to be explored. This will increase the efficiency of resource use.

The management must constantly improve production technology, introduce new and reconstruct old equipment, improve the quality of raw materials, cutting, reduce energy costs.

It is necessary to optimize specialization, production management, and reduce the cost of working time. We should look for ways to select the best volume of production and expediently reduce the number of workers, reduce the amount of labor-intensive products.

Savings calculation

Labor intensity (formula), the calculation example of which allows you to correctly determine the required amount of labor, first requires you to establish its planned amount. In the planning period, the indicator is determined as follows:

RSplan = OPplan / Vfact, where OPplan is the planned quantity of production; In fact - the production of products in the reporting period.

RP = ER∙100/(RSplan - ER), where ER is the savings in the number of workers.

This technique allows analysts to make adequate planning and find ways to optimize indicators.

Calculation example

In order to properly understand the assessment system, one should consider planned labor intensity. The calculation formula, an example of which is discussed below, will help to master this technology.

The company produces soap at a cost of: shavings - 2.2 rubles, household soap - 1.0 rubles. and toilet - 1.8 rubles. In the reporting period, 95 tons of chips, 65 tons of toilet soap and 200 tons of laundry soap were produced in 170 working hours. In the planned period, the company expects to spend 160 hours on the production of finished goods. At the same time, it is assumed that 90 tons of shavings, 75 tons of toilet and 100 tons of household chips will be produced.

Sales of products in the planning and reporting period is equal to:

• Rp = 100 + 90∙2.2 + 75∙1.8 = 433.
• Rho = 200 + 1.8∙65 + 2.2∙95 = 526.

The labor intensity is equal in the base and planning period:

• To = 526:170 = 3.09.
• Tp = 433:160 = 2.71.

The improvement in labor productivity is: 3.09:2.71=1.143.

Result value

Labor intensity, the formula of which was applied above, is an informative tool for assessing labor costs and their impact on productivity in future periods. Thanks to this, the management and financial service of the enterprise can optimize the planned costs of paying employees in various fields of activity.

To analyze the effectiveness of the company's activities, labor intensity indicators will reflect changes in the performance of employees in dynamics. This allows you to determine development trends and find the deterrent factors.

Having familiarized yourself with such an indicator as labor intensity (the calculation formula is presented above), you can understand the principles for achieving an effective organization of the company's work, track its changes in dynamics and predict development in the future.

Home Accounting and Human Resources Human Resources The main function of man-hours is to determine the working productivity in one hour of time. This makes it possible to assess the potential feasibility of the work for a certain period. For the organization it is useful, both for calculating the possible costs of labor of subordinates, determining the timing of the project. Also, it helps to know the amount of labor expended. This value is even more important than the money-hour ratio. Although it is quite approximate, it still saves a lot of time. No wonder there is a saying - "time is money": the labor invested is also paid. Therefore, enterprises should be interested in optimizing the time of employees in the enterprise. This is not only the presence of an employee in the workplace, but also the possible productivity of his active work in general.

Calculation of the "man-hour" value

The maximum possible hours are defined as the maximum possible labor production by the firm's employees. In fact, hours worked are defined as hours for a certain specific task. The sum of attendances is not labor hours, but they are taken into account as the sum of all worked man-days with downtime.

The calculation formula looks like this: H \u003d K * T;

• H is man-hour;
• K is a number indicating the number of workers;
• T is the hours spent working on the task.

For example, to calculate man-hours per month in a company with 30 employees on an 8-hour work schedule, you need to use this formula to determine this: 30 * 8 * 21 = 5040. A man-hour is the number of employees multiplied by the number of hours they worked. Calculations change in the event of a worker's absence from work or part-time work.

Labor intensity formula

Labor costs are a component value in determining labor intensity. Labor intensity Labor intensity is the amount of working time spent on the production of a unit of output (performed service, work). Reducing labor intensity is an indicator of efficiency gains.
Labor intensity is inversely proportional to the indicator of labor productivity (the number of products produced per unit of working time). Therefore, an increase in labor productivity is an indicator of efficiency gains. The amount of labor intensity is influenced by many different reasons, but among them the main ones can be distinguished: the level of personnel qualification, the degree of technical equipment of production, the complexity of manufacturing goods, the degree of automation and working conditions.
Now let's move on to how labor intensity is defined.

The formula for calculating the complexity of work

Info

The categories of labor costs, labor intensity and labor productivity are often found in scientific and practical activities to express the economic performance indicators (optimization) of the decisions made. Understanding the significance of these categories for the analysis of the effectiveness of the tasks being solved in the field of technosphere safety, let us consider their substantive essence and interrelation in more detail. Labor costs What is labor costs? In economics, labor costs are understood as the number of units of personnel labor costs required to complete the work.

They are usually measured in man-hours, man-days, man-months, or man-whatever. Labor costs are planned and actual, and are used to calculate the deadlines for completing a project (conceived solution), financial costs for its implementation, and analysis of efficiency. Actual labor costs are the amount of work already completed in the project.

Labor intensity. distinguish between technological labor intensity (t), labor intensity

The Index methodology includes the expressed characteristics of each individual species, which is evaluated using a scale. Then the actual definition of all indicators is measured. The index is calculated according to the following formula: Ii=IVi+(6-Ipi). IVi is the index of significance of a quantitative parameter of the type i. Ipi is an index that corresponds to the parameter of the problematic one. The index itself can be determined on a 5-point scale, the prices of which are set individually for each organization according to the needs and complexity of the work. The labor potential itself can contain several elements of the employee's significance: qualified skills, psychophysical abilities, personal development level. Psychophysical skill highlights a person's abilities at the physical and emotional level: endurance, stress resistance, concentration.

How to calculate man-hours with explanations and examples

Labor productivity is measured by the amount of products (work performed, services rendered) produced by an employee per unit of time. Labor productivity is the reciprocal of labor intensity, measured by the amount of time spent per unit of output. Basically, three types of labor productivity are considered: Actual labor productivity; cash productivity; potential labor productivity.

Actual labor productivity (production) is inversely proportional to labor input and is determined from directly observable data using the formula: (1.38) Where is the actual output in units of this type of product (piece, ton, m3, etc.); - actual costs of living labor in units of time (man-hours, etc.).
Based on these data, it is convenient to calculate the total amount of man-hours for the calendar period for all areas of the enterprise. 2. Now let's calculate the value of the goods produced in the reporting period. To do this, we will again use the primary accounting documents.

The type of document depends on the specifics of the enterprise itself. After that, the ratio of the amount of time spent, expressed in man-hours, to the cost of goods produced by the enterprise is calculated. The result of the calculation will be the desired coefficient of labor intensity of products.

Important

Depending on what is included in the cost, the complexity can be of several types. Let's consider each of them. Technological labor intensity (Ttechn.). The calculation formula includes the labor of only those workers who directly produce goods (perform work, provide services): Тtehn.

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1 LABOR OUTPUT Labor intensity is the sum of the cost of living labor in man-hours of working time for the production of a unit of output in physical or value terms both for the entire range of output and for certain types of work and operations. The indicator of labor intensity () reflects a direct relationship between the volume of production (Q) and labor costs in man-hours of working time () according to the formula: (hours). Q Distinguish technological labor intensity (), maintenance labor intensity (), production labor intensity (management () and total labor intensity (). Technological labor intensity (), labor intensity) is determined by the labor costs of the main workers.

How to calculate the labor intensity in man hours example

Calculate the complexity of production management by adding up all the costs for managers, employees, specialists and security. After that, the resulting value is also divided by the number of products produced. 5 In order to calculate the total labor intensity, sum up all labor costs, that is, the costs of foremen, builders, carpenters, managers, specialists and other workers, and divide by the number of products produced. 6 Also distinguish labor intensity by the nature of labor costs. There are three types: planned, standard and actual labor intensity.

Normative shows the amount of labor costs within the normal range. Calculate it by multiplying the norm of time in minutes by the number of manufactured units. 7 Planned labor intensity shows the amount of labor costs per unit of output, taking into account the processing or shortcomings of the specified norms.

How to calculate the labor intensity in man hours example on a business trip

The formula for calculating labor intensity is as follows: Тр = Тз / W, (1.34) where Тр – labor intensity (man-hour / piece (ton, m3, etc.); Тз – labor costs (man-hour) – usually measured in man- hours; W is the volume of production (work performed, service produced) (pieces, tons, m3, etc.) Considering formula (3.4) in conjunction with labor costs, we can say that labor costs are a component in determining labor intensity. Calculation of labor intensity is convenient perform in the following order: 1. First, the amount of time that was worked out by the workers of the enterprise for the billing period is determined.The source of data for calculating the actual time spent can be primary accounting documentation, in particular, timesheets for each section or workshop.