Most management teams have goals set for overtime reduction or overall
overtime each employee can work each week. Although health and safety are
always a concern, direct cost is typically the main focus of plant teams. The
belief that overtime is 50% more expensive than straight time is a myth and
many management teams haven’t been educated on true costs. Fixed costs
such as health care and vacation only count during the first 40 hours. In the
41st hour, most benefits are already paid for and the cost difference is typically
only about $1. The real target with labor costs is idle time. Idle time is the
leading cause of unnecessary overtime.

Health and safety problems from high overtime can be avoided. Most safety
experts agree that 55 hours of work each week is the breaking point between
safe and unsafe operations. Let Core Practice Partners help you find the right
overtime levels and create a safe and healthy environment. Remember,
overtime can be a cost effective tool to handle seasonal environments or
unexpected workloads, but must be managed to reasonable levels.

Contact us to learn more at Operationsmanagement@corepractice.com or call
1-866-663-7056.