What is a Report for Direct Labor Cost by Manufacturing Process?
A Report on Direct Labor Cost by Manufacturing Process holds significance as a pivotal production report, frequently employed by production and plant managers. Its primary purpose is to ascertain the comparison between actual and projected labor expenses for each distinct manufacturing process. The report boasts essential features, such as daily rates and the average engagement of team members. These statistics are presented for both individual months and cumulative year-to-date figures. Positioned at the report’s outset is a comprehensive contrast between actual results and forecasts at the plant level. A sample exemplifying this report category is provided below.
Purpose of Manufacturing Process Labor Cost Reports
Labor Cost Reports play a vital role within manufacturing enterprises, offering a dual perspective encompassing individual employees and the entire plant. These reports serve as valuable tools when integrated into effective business practices within the domain of Financial Planning & Analysis (FP&A). By doing so, companies can enhance their scrutiny of labor and processes, concurrently minimizing the risk of oversight regarding the employee expenditure facet within manufacturing processes.
Benefits to Users
The utilization of a Direct Labor Cost report by manufacturing process offers substantial advantages that empower business users to make more informed decisions and streamline their job functions. By gaining access to accurate and up-to-date data on actual versus projected labor expenses, production and plant managers can promptly identify areas of variance and allocate resources strategically. This facilitates proactive decision-making, enabling agile adjustments to production strategies and resource allocation. Additionally, the insights provided by the report’s day rates and team member utilization metrics equip managers with a comprehensive understanding of workforce productivity, allowing for targeted enhancements to efficiency. This model of reporting cultivates a culture of data-driven decision-making, fostering an environment where business users can optimize processes, control costs, and enhance overall operational efficiency.
Manufacturing Process Labor Cost Report Example
Here is an example of a Direct Labor Cost by Manufacturing Process report.
You can find hundreds of additional examples here.
Who Uses This Type of Report?
The typical users of this type of report are: CFOs, plant and production managers.
Other Reports Often Used in Conjunction with Manufacturing Process Labor Cost Reports
Progressive Financial Planning & Analysis (FP&A) Departments sometimes use several different Manufacturing Process Labor Cost Reports, along with production dashboards, profit & loss reports and other management and control tools.
Where Does the Data for Analysis Originate From?
The Actual (historical transactions) data typically comes from enterprise resource planning (ERP) systems like: Microsoft Dynamics 365 (D365) Finance, Microsoft Dynamics 365 Business Central (D365 BC), Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Acumatica, Netsuite and others.
In analyses where budgets or forecasts are used, the planning data most often originates from in-house Excel spreadsheet models or from professional corporate performance management (CPM/EPM) solutions.
What Tools are Typically used for Reporting, Planning and Dashboards?
Examples of business software used with the data and ERPs mentioned above are:
- Native ERP report writers and query tools
- Spreadsheets (for example Microsoft Excel)
- Corporate Performance Management (CPM) tools (for example Solver)
- Dashboards (for example Microsoft Power BI and Tableau)
Corporate Performance Management (CPM) Cloud Solutions and More Examples
- View 100’s of reporting, consolidations, planning, budgeting, forecasting and dashboard examples here
- Manufacturing White Paper and other industry-specific information here
- See how reports are designed in a modern report writer using a cloud-connected Excel add-in writer
- Discover how the Solver CPM solution delivers financial and operational reporting
- Discover how the Solver CPM solution delivers planning, budgeting and forecasting
- Watch demo videos of reporting, planning and dashboards
Only Solver delivers a one-day rapid deployment, including free and instant access to $100K of value available on Day 1 in the Solver Marketplace. Solver is committed to helping you with all your advanced planning and reporting needs, so you can Accelerate Better Decisions – starting now. Take a free tour of Solver for any of these ERPs: