Improving labor utilization rate includes two aspects: one is to improve direct labor utilization rate; the other is to improve indirect labor utilization rate.
The key to improve the direct labor utilization rate is to cross-train the operators so that one person can be responsible for the operation of multiple machines and the operators on the production line can adapt to any work on the production line. Cross – training gives workers great flexibility to coordinate and deal with abnormal problems in the production process.
Indirect labor utilization rate is mainly to eliminate indirect labor. Point of view, from product value chain of links such as inventory, inspection, rework of manpower and material resources consumption does not increase the value of the product, so the labor is often thought of as indirect labor, if eliminate the indirect activity that doesn’t add value in the product value chain, then by the indirect activity caused by indirect costs will be significantly reduced, labor utilization also improves accordingly, to improve the utilization ratio of direct Labour measures can also improve the rate of indirect labor.