Operating Cost Adjustments Dialog: Labor Tab

This tab is part of the ‘Operating Cost Adjustments’ dialog of a process section; for more details, see Operating Cost Adjustments Dialog.

Variable Definitions, Ranges and Default Values

The following table shows a brief description of the variables appearing in this tab. The table also displays their default values and their generally acceptable range:

Variable	Default Value	Range

○ Include Itemized Estimate Check this box to include an itemized estimate (operating labor as defined in the process on a step-by-step basis) in the calculation of a section’s labor demand per labor type (LDT).	Yes	Yes/No
● Direct Demand (labor-hrs/yr) The effective work time of the corresponding labor type devoted to process-related activities in a section; for each operation, this corresponds to the labor amount specified through the “Labor, etc.” tab of the operation’s simulation dialog.	0.0	Positive
● Total Demand (labor-hrs/yr) The actual work time for the corresponding labor type; this is calculated by dividing the direct demand by the direct time utilization factor of that labor type.	0.0	Positive
○ Include Lumped Estimate Check this box to include a lumped estimate (additional labor defined on a lumped-time basis) in the calculation of a section’s LDT.	Yes	Yes/No
○ Labor The name of a selected labor type from the list of available labor types in the Labor Types Databank.	Operator	Any Text
○ Amount (labor-hrs/yr) A lumped estimate of additional total demand for the corresponding labor type.	1.0	Positive
○ Service The purpose of the corresponding labor type.	Undefined	Any Text

Symbol Key: ○ User-specified value (always input); ● Calculated value (always output); ◙ Sometimes input, sometimes output

Specification Choices / Comments

The following list describes the available specification choices in this tab; for more details on how these are implemented, see Labor-Dependent Cost.

•‘Include Itemized Estimate’ option...

If this option is checked, the calculation of a section’s LDT will include an itemized estimate of LDT for that section. This is calculated for each labor type as the sum of individual labor demands (based on total demand) by all operations of that section. By default, this option is checked.

•‘Include Lumped Estimate’ option...

If this option is checked, the calculation of a section’s LDT will include a lumped estimate of LDT for that section. For each labor type, this is calculated based on all labor amounts listed in the available table. In this table, each row corresponds to a dedicated labor type or service. By default, this table is initialized with five rows dedicated to five different services of the ‘Operator’ labor type (warehouse, packaging, sanitation, initiation, and other). To add a row to the table, click Create/Add New (). To delete a row from the table, click on the row number and then click Delete (). For each added row, you can specify a dedicated labor type or service and a corresponding labor amount. By default, this option is checked but all listed labor amounts are zero (resulting in zero lumped LDT).

•Labor Cost Options...

You may select among two different options for the calculation of the labor cost rate per type (LRT) (in $/labor-hour):

a) Use Lumped Rate

b) Use Detailed Rate

If the first option is selected, the lumped rate is used as the labor cost rate for each labor type. If the second option is selected, a detailed rate is calculated for each labor type based on the specified basic rate and adjustment factors (benefits factor, operating supplies factor, supervision factor, administration factor) for that labor type. This information can be viewed by clicking the Labor Cost Data () button. By default, LRT is calculated based on the second option.

For information on the section labor cost dialogs please see:

● Section Labor Cost (Based on Lumped Rate) Dialog

● Section Labor Cost (Based on Detailed Rate) Dialog