Labor Support Survey Summary Report
Author(s)Klein, Dr. Janice
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One of the main cost drivers in the defense aerospace industry is overhead personnel. Traditionally, labor support ratios have been used as an efficiency measure and to control overhead levels. More recently, several organizations have used labor support ratios as a basis for outsourcing and/or downsizing decisions. As a result, the Factory Operations Focus Group attempted to benchmark how member companies stand relative to one another on labor support ratio. This report outlines the survey responses and analysis and summarizes the potential factors influencing labor support ratios. It concludes with a cautionary note in how labor support ratios are used. There are multiple factors which influence labor support ratios, including a particular operation’s product-process mix and its manufacturing and workforce. Furthermore, advances in information technology and the redesign of work have obscured the distinction between touch and support jobs.
The Lean Aircraft Initiative Report Series;RP96-08-08
defense aerospace industry, Factory Operations Focus Group, labor support ratios
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