| job cost |
The cost to make a finished good, typically computed as the sum of the cost of raw materials, labor and overhead.
Example: An axle was made from one forged metal part ($1,000), required 10 hours of labor ($400) and occupied a machine for 15 hours ($300). Total job cost is $1,700. |
| labor |
A measure of the human effort involved in making product, typically measured in hours.
Example: Operator spends three labor hours polishing 100 parts. |
| labor collection | The process tracking the time employees spend working on specific orders and operations for the purpose of cost accounting. |
| labor efficiency |
A measurement of productivity by personnel, calculated as expected labor hours divided by actual labor hours.
Example: Your factory’s labor efficiency standard for an operation is 10 pieces per labor hour. If an operator completes 11 pieces in one labor hour, the labor efficiency is 110%.
See also efficiency, machine efficiency. |
| labor hours, labor time |
The amount of time ShopVue assigns to a particular operator and activity based on number of jobs worked, interruptions and breaks. Labor hours can be assigned to both direct and indirect activities.
Example: Ted Curtis works on orders 101 and 102 from 7:00 to 11:00 a.m. with a 10 minute break. ShopVue records 1:55 hours of labor time for each order. |
| labor run hours |
Labor hours spent on the productive portion of an operation.
See also labor hours, run hours. |
| labor scheduling | See workforce scheduling. |
| last job adjust |
A rule to simplify labor and attendance time balancing by allowing a few minutes of unaccounted time at the end of the day to be billed to the last job worked in the day.
Example: Operator works on a job from 1:00 to 3:25 p.m. and times out at 3:30 p.m. The job receives 2.5 hours labor as though worked from 1:00 to 3:30 p.m. |
| Lead |
A worker performing direct labor but carrying a higher level of authority. Lead operators sometimes review/approve data for other operators and assemblers. |
| lead time | 1. The span of time required to perform a process (or series of steps). 2. The time between recognizing the need for an order and receiving the finished goods. |
| lean manufacturing |
Lean manufacturing, often known simply as "Lean", is a production philosophy that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination. |
| loaded |
A workpoint status in which there is material already in the machine (as far as the software can tell). When a workpoint is loaded, it’s better to continue work on the material already present rather than to start on a different MO.
Example: Ted Curtis started a job at 7:00 a.m. and signed off of the job with the operation incomplete at 9:00 a.m. Because the operation is not complete, the workpoint is "loaded". |
| loan |
A situation in which an operator moves to an area where he doesn't usually work. Typically the operator reports to a different supervisor for the day and the area is a different department, resulting in an accounting impact.
Example: Ted Curtis usually works in Fabrication but is sent to Machining for Tuesday. |
| log in/log out | |
| logical day |
The date that is assigned to the span of time between an employee’s Time In punch to Time Out punch, for classification purposes.
Example: Ted Curtis times in at 11:00 p.m. Monday night. ShopVue classifies Ted’s pay and labor time for that shift as logical Tuesday. |
| lot tracking |
Keeping records which identify a collection of like material through stages of manufacturing. This is generally done for quality and safety reasons.
Example: Lot #100, consisting of 34 pieces cut from the raw material batch#29130, was created at the cutting machine Monday at 2:24 p.m. and then machined and heat treated all together. Later, one of the pieces is found to be defective. Management can issue a recall notice for all product in lot #100. On further analysis the problem is explained by defective raw material. All product made from batch #29130 is also recalled (and a refund from the raw material vendor is requested). |
| lunch |
An interval during which operators are not expected to be working. Lunch time is sometimes billed to the job that was started before lunch and finished after. Lunch time may be automatically computed rather than requiring operators to interact with a terminal to record lunch. |