Labor intensity reflects the performance of the business entity. The parameter is a basic indicator used in calculations when planning activities, as well as in developing strategies focused on managing internal resources. What is labor intensity and how is it calculated?
Production efficiency indicators
general information
The labor intensity includes the time required for the implementation of the production cycle, the purpose of which is the manufacture of products or the provision of services. The basic parameter in calculating the economic indicator is labor productivity, which is determined taking into account the capabilities of each employee.
Labor intensity is the time required to produce a unit of output.
Among economists, labor intensity is often identified as output. The indicator allows you to correctly plan the production process and identify its problematic aspects that need to be optimized. Its value allows you to assess how efficiently the internal resources of the company are used, as well as to identify reserves with which it would be possible to increase production capacity.
Labor intensity units
The economic indicator of labor intensity contains two concepts: time and labor costs, from which it is easy to conclude that it is measured in man-hours. It allows you to determine how much activity can be implemented by one employee per hour of working time. Having such information, it is easy to understand how the labor intensity is measured, and to plan how many employees are needed to perform a certain amount of work, which allows you to correctly draw up a schedule of labor activity, taking into account the standards of labor costs that are relevant to the company.
To simplify settlement operations, the total parameter of man-hours is often used. It is determined by the product of the total number of employees by the time that was spent to solve the task set by the management.
Example
The labor intensity of 60 man-hours characterizes the situation in which one person can complete the task in 60 hours. The same amount of work will be completed in 30 hours by two specialists, and in 15 hours by four workers. With the help of such calculations, the time required to complete the task is determined, taking into account the available labor resources.
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How to calculate labor intensity
When calculating an economic indicator, it is necessary to take into account all production factors, since an error in the calculations can have a negative impact on the workflow. The need for calculations arises at the stage of opening a business when drawing up a business plan, as well as during the operation of production to monitor its activities and timely correct shortcomings.
Labor intensity allows you to plan for the future. The formula for calculating labor intensity is defined as the ratio of the time parameter and the quantitative indicator applied to the result of the work of a business entity.
Factors influencing the economic indicator
When calculating the economic indicator, one should take into account factors that could have an impact on production efficiency. Among them are:
- professionalism of employees;
- working conditions;
- the quality of the equipment used;
- the complexity of the technological process;
- level of process automation.
Parameter interpretation
Analysis of the labor intensity of products allows you to identify problems in the production cycle.
High labor efficiency indicators always correspond to a low labor intensity parameter. It is a dynamic value, therefore, its comprehensive assessment is recommended, taking into account data recorded for several time periods. A gradual decrease in the value of the indicator indicates that it takes less time to manufacture a unit of output. When fixing such a phenomenon, it can be judged that the enterprise has optimized the technological process or improved the professional skills of employees.
The growth of the indicator is due to the presence of problems in the company's activities. They may be related to equipment failure, the introduction of new technology, or the replacement of workers with non-professional personnel.
Analyzing the indicator, one should take into account not only the past period, but also the future. At the same time, it is necessary to compare the actual and planned production parameters. Based on the information obtained, a strategy is developed that is focused on optimizing the production process, the purpose of which is to reduce labor costs. Without analysis, it will be difficult for the manager to achieve the effective operation of the enterprise.
What affects the labor intensity
When calculating the labor intensity parameter, information must be taken from primary documents.
You will need such documentation as a time sheet for employees, as well as papers that contain information on the quantitative indicators of goods released in the past period. When making the calculation, one should take into account the skill level of employees, working conditions, the fact of using or not using innovative technologies. The quality of raw materials and the performance of the equipment used are of no small importance to the parameter.
The concept of production efficiency
The growth of the indicator indicates a decrease in the efficiency of the company. This may be due to a problematic situation with the organization of production activities or insufficient motivation in the results of the work of employees.
Tasks to be solved and guidelines for them
Labor productivity is an indicator of the economic efficiency of the employee's labor activity. Labor productivity is measured by the ratio of the amount of output (works, services performed) to the time spent on the production of products (works, services) or to the number of employees H who produced a given volume of products (performed a given volume of work or services), labor productivity is calculated by the formulas:
The output is determined by the formula:
where - the volume of products produced or work performed, rubles, m 3, pieces, tons, m 2, etc.;
Labor costs, man-years, man-months, man-days, man-shifts, man-hours.
There is an inverse relationship between production and labor intensity of products:
natural method measurement of labor productivity is used in the case of production (release) of homogeneous products.
With the release of a variety of products and a frequently changing assortment, output is determined in terms of labor - in standard hours or in man-hours. To do this, the volume of work is multiplied by the corresponding time standards, and the results are summarized. This method of determining the volume of products (works, services) and labor productivity is called labor method .
At cost method measurement of labor productivity the volume of products (works, services) is expressed in monetary terms. The method makes it possible to compare the contribution of each category of workers to the total volume of production (by enterprise, industry, etc.) in accordance with the share of each category.
Labor intensity - this is an indicator , characterizing the costs of living labor, expressed in working time, for the production of products, the performance of work, services.
Labor intensity indicator works is the inverse of labor productivity. The labor intensity indicator is calculated by the formula:
where T is the cost of working time;
Q - the amount of products produced.
Labor intensity is measured either in standard hours (standard days) of work, or in actual hours (man-hours, man-days) spent on production. In the first case, there will be normative labor input, in the second - actual. The ratio between them is determined by the degree of compliance with the norms:
, (2.12)
where - percentage of performance standards;
- actual labor intensity, man-hour;
- normative labor intensity, standard hours.
There is a certain relationship between indicators of labor productivity and labor intensity: the lower the labor intensity, the higher the labor productivity and, accordingly, the greater the volume of work performed. The ratio between them is determined by the formulas:
where is the percentage of labor productivity growth with a decrease in labor intensity by
Reducing labor intensity,%.
where is the percentage of labor intensity reduction with an increase in labor productivity by
Productivity growth, %.
EXAMPLES OF SOLVING TYPICAL PROBLEMS
Example 2.4
A team of workers of 5 people produced 80 parts per shift. Calculate the output of one worker of the brigade per shift and the hourly output.
The output of each worker will be:
per shift - 80: 5 = 16 (parts);
per hour -16: 8 = 2 (details).
Example 2.5
A team of workers of 5 people per shift (8 hours) produced 20 units of products BUT, for which the norm of time is 0.6 standard hours per unit, and 120 units of production AT, for which the norm of time is set to 0.25 standard hours per unit. Calculate the labor productivity (shift output) of one worker in the labor dimension.
Norm hours.
Example 2.6
If a team of five people completed the amount of work in the amount of 3,000 rubles per shift, calculate the labor productivity of each employee (output) per shift and per hour of work.
The shift output of an employee will be:
In cm \u003d 3,000: 5 \u003d 600 rubles,
respectively per hour of work:
B H \u003d 600: 8 \u003d 75 rubles.
Example 2.7
The company produced 20 units of products within a month BUT, the labor intensity of which is 0.5 man-hours, and 120 units of production AT with a labor input of 0.25 man-hours. Determine the average labor intensity of production per shift.
man-hours.
Example 2.8
If the standard labor intensity of production is 180 thousand standard hours, and the actual one is 150 thousand man-hours, determine the average production rate.
The average production rate will be equal to:
H vy = (180,000:150,000)´100% = 120%.
The norms are met by an average of 120%.
Example 2.9
As a result of the planned organizational and technical measures carried out at the enterprise, it is planned to reduce the labor intensity of Tr by 20%, by how much will labor productivity increase?
Ppt \u003d (100 x 20) / 100 - 20 \u003d 25%.
PT will increase by 25%:
if the labor productivity of the PT increases by 20%, then the labor intensity of the Tr will decrease by 16.7%:
Ptr \u003d (100 x 20) / 100 + 20 \u003d 16.7%.
Unlike a photograph of a working day, timekeeping is used to study the cost of only operational time. Depending on the purpose of timing, either the operation as a whole or individual labor methods are studied, all elements of which are constantly repeated in a certain sequence.
Timing is carried out in order to obtain the initial data:
To design time standards for hand-made and machine-made elements,
To establish the norms of operational time for the operation,
To establish time standards, accompanied by an improvement in the technological process of performing normalized work and organizing labor at the workplace,
To study and implement advanced techniques and methods of work, etc.
To design technically sound norms, timing is carried out according to labor methods. For each reception, the initial and final fixation points are set, which are the moments of the beginning and end of their execution, that is, the boundaries of the action.
The number of observations during timing is set depending on the required accuracy of the norms (permissible relative error of the arithmetic mean values of the timing series) and the coefficient of stability of the series.
Processing of the results of timing observations includes technological and mathematical analysis of timing series.
Technological analysis is the study of the data of each time series in order to establish the feasibility of storing in them the observations of certain time measurements. So, measurements that are the result of errors of the performer, observer or caused by a violation of technology, the order of maintenance of the workplace, etc. should be excluded from the time series.
In the mathematical analysis of time series, the average length of time spent on each series is calculated and the actual stability coefficient of the time series and the work operation as a whole is determined.
Photo timing (photo accounting) is used to simultaneously determine the structure of time costs and the duration of individual elements of a production operation.
Photo timing is a combination of working day photography and timing. It differs from a photograph of a working day by a smaller division of the operation into elements, and from timekeeping in that it fixes not only the duration of operational time, but also other categories of working time costs.
Analytical - calculation methods of labor rationing provide for the calculation of norms for regulatory materials. These methods provide the necessary degree of validity of the norms at a much lower cost compared to research methods for the collection of initial information.
The standards are differentiated by types of production, types of work (locksmith, welding, machine tools, etc.) and are established for labor methods, complexes of labor methods, labor actions and labor movements. The presence of a large normative material allows us to calculate a technically justified norm of time for an operation
T \u003d T op + T about + T pt + T from + T from,
where T op- technically justified norm of operational time, T about- the norm of time for maintenance of the workplace, T Fri- the norm of time for the non-overlapping part of technological breaks, That- the norm of time for rest and personal needs, T out- the norm of preparatory - final time.
4. Labor productivity, its essence and measurement. Factors affecting labor productivity. Efficiency of accelerating labor productivity growth rates.
Labor productivity is the most important indicator of labor efficiency and the level of production and economic activity of the enterprise. The higher the productivity of labor, the lower the labor costs for the production of a unit of output or work and the lower its cost.
Labor productivity reflects the costs of total labor: living and past, embodied in the means of production. The main component in the total labor costs are the costs of living labor, which create wealth. Labor productivity is the efficiency of people's production activities, expressed as the ratio of labor costs and the amount of material goods produced. Labor productivity is measured by the quantity of products in physical, monetary or conditional terms for a certain period (hour, shift, year) or the time spent on manufacturing a unit of output.
The increase in labor productivity occurs as a result of the fact that the share of living labor costs decreases, and the share of past labor increases so that the total cost of production decreases. An increase in labor productivity is an objective economic law.
Distinguish between the productivity of social labor as a whole in the national economy, local or group in the industry, sub-sector, individual at the enterprise, in the team, at the workplace.
The productivity of social labor is determined by dividing the national income by the number of workers employed in all branches of material production.
To determine the local and individual labor productivity, indicators can be used: production output and labor intensity of products.
Production output per unit of time is determined by the formula
B=Q/T,
where Q- the volume of products produced, T- the cost of working time.
Labor intensity is calculated by the formula
t=T/Q.
When determining labor productivity, five methods are used: natural, conditionally natural, index, labor and cost.
The natural method is used where homogeneous products are produced and homogeneous work is performed. Labor productivity in this case is determined by dividing the output in natural units (tons, pieces, square meters) by the number of employees.
With a conditionally natural method, labor productivity is determined by dividing the number of conventional units of production by the number of employees. All types of products are conditionally reduced to one through reduction factors determined by the ratio of the labor intensity of individual types of products.
The essence of the index method is to determine the index of labor productivity growth by weighing labor productivity indicators for certain types of work as a percentage of the share of the contingent involved in their performance.
The measurement of labor productivity in the labor method involves the use of labor input as a measure of output. The volume of production is determined in standard hours by multiplying the volume of production in physical terms by the norm of time for the manufacture of a unit of production. The labor method requires the use of scientifically based time standards.
The cost method provides for the measurement of production and labor productivity in monetary terms. It is used for enterprises producing heterogeneous products. The complexity of the cost method lies in the choice of the most appropriate method for calculating the volume of production in monetary terms for specific conditions.
The labor productivity of employees of the railway network and branches is measured in conventional natural units - the number of ton-kilometers produced per employee of the operational contingent engaged in transportation, and is calculated by the formulas
P t networks, roads \u003d Σ (Pl) gr / H cn \u003d (Σ R gr l + K Σ R p l) / H cn,
P t dep. roads \u003d Σ (Pl) gr / H cn \u003d (Σ (R l) p + K Σ R p l) / H cn,
where Σ (Рl) gr– freight turnover, reduced ton-kilometers,
Σ Р gr l- freight turnover, tariff ton - kilometers,
Σ R p l- passenger traffic, passenger - kilometers,
To– reduction factor for passenger turnover,
H cn - average number of workers employed in transportation, people,
Σ (P l) p- cargo turnover of the railway department, operational tons - kilometers.
The indicators used to measure the labor productivity of employees of individual railway facilities are shown in Table 1.1.
Resource management of any enterprise is a prerequisite for the effective functioning of all systems. Reducing costs leads to a reduction in the cost of production. One of the main indicators of analysis is the labor intensity, the formula of which will reflect the picture of the state of affairs in this system of production. Based on the data obtained with its help, the financial service will be able to identify factors hindering development and eliminate them in the future. Therefore, how to calculate the labor intensity formula should be considered in more detail.
The value of the indicator of labor intensity
Labor intensity, the formula of which will be discussed in detail later, allows the financial analyst to draw a conclusion about the ratio of the cost of production resources and time. This is a measure that reveals information about how much time it took a company to produce a unit of output.
When planning, this indicator makes it possible to find the maximum permissible level of performance in specific conditions. This leads to a more efficient organization of the company's work.
The labor intensity formula allows you to evaluate the result of the work of the work team for a certain period of time. It will also be quite easy to identify how much work one worker could perform during this period.
There are several approaches to estimating labor intensity. They depend on the composition of the costs included in it. It can be complete, technological, servicing or managing production, as well as production.
Benefit of the indicator
Labor intensity, the calculation formula of which refers to labor productivity indicators, is calculated with the output indicator. But the former has a number of advantages. He is able to identify a pattern between labor costs and the volume of finished products. 
Considering the example of calculating labor intensity using a generally accepted formula, one can find ways and reserves to increase the level of labor productivity. The study of the structure of production is one of the informative approaches to studying the efficiency of the use of labor resources by a company.
By determining the value of the indicator in different shops or areas, the analyst can determine where resources are used more rationally, and where there are trends that are unfavorable for the company.
Labor intensity eliminates the impact of changes in supply volumes on the structural organization of production.
If the nomenclature is too large, then representative products are selected from the total mass of goods. They, as a rule, have a significant share in the total output.
Calculation formula
The formula for the labor intensity of labor per unit of output produced by the enterprise allows us to estimate all the costs of paying workers for the manufacture of one piece of finished products. The result obtained using this method is measured in man-hours. The formula looks like this:
Tp = Amount of time worked by all employees / Volume of products produced during this period. 
The numerator in this formula is measured in man-hours. This indicator takes part in the planning process. This process is carried out according to the factors of changes in the number of personnel of the company or the saving of working time.
Varieties of calculation
Each of the above indicators of labor intensity is determined in accordance with its economic meaning. The labor intensity of products, the calculation formula of which is discussed below, implies the total labor costs of the main and auxiliary employees of the company. It is calculated like this:
Тpr = Тtehn + Tob, where Тtehn is the labor costs of all the main workers directly involved in the production of products; Tob - the costs associated with the remuneration of service personnel. 
Total labor intensity is the most extensive category for research. It includes labor costs for all staff. It is calculated like this:
Tp = Ttech + Tob + Tu, where Tu is the cost of paying the salaries of managers, security.
Cost Savings
The labor intensity of work, the formula of which was presented above, allows analysts to find ways to save production costs. To do this, in the planning process, all factors affecting the indicator are considered, and decisions are made by managers on appropriate actions in this direction.
To improve labor intensity, a number of areas need to be explored. This will increase the efficiency of resource use. 
The management must constantly improve production technology, introduce new and reconstruct old equipment, improve the quality of raw materials, cutting, reduce energy costs.
It is necessary to optimize specialization, production management, and reduce the cost of working time. We should look for ways to select the best volume of production and expediently reduce the number of workers, reduce the amount of labor-intensive products.
Savings calculation
Labor intensity (formula), the calculation example of which allows you to correctly determine the required amount of labor, first requires you to establish its planned amount. In the planning period, the indicator is determined as follows:
RSplan = OPplan / Vfact, where OPplan is the planned quantity of production; In fact - the production of products in the reporting period. 
RP = ER∙100/(RSplan - ER), where ER is the savings in the number of workers.
This technique allows analysts to make adequate planning and find ways to optimize indicators.
Calculation example
In order to properly understand the assessment system, one should consider planned labor intensity. The calculation formula, an example of which is discussed below, will help to master this technology.
The company produces soap at a cost of: shavings - 2.2 rubles, household soap - 1.0 rubles. and toilet - 1.8 rubles. In the reporting period, 95 tons of chips, 65 tons of toilet soap and 200 tons of laundry soap were produced in 170 working hours. In the planned period, the company expects to spend 160 hours on the production of finished goods. At the same time, it is assumed that 90 tons of shavings, 75 tons of toilet and 100 tons of household chips will be produced.
Sales of products in the planning and reporting period is equal to:
- Rp = 100 + 90∙2.2 + 75∙1.8 = 433.
- Rho = 200 + 1.8∙65 + 2.2∙95 = 526.
The labor intensity is equal in the base and planning period:
- To = 526:170 = 3.09.
- Tp = 433:160 = 2.71.
The improvement in labor productivity is: 3.09:2.71=1.143.
Result value
Labor intensity, the formula of which was applied above, is an informative tool for assessing labor costs and their impact on productivity in future periods. Thanks to this, the management and financial service of the enterprise can optimize the planned costs of paying employees in various fields of activity.
To analyze the effectiveness of the company's activities, labor intensity indicators will reflect changes in the performance of employees in dynamics. This allows you to determine development trends and find the deterrent factors.
Having familiarized yourself with such an indicator as labor intensity (the calculation formula is presented above), you can understand the principles for achieving an effective organization of the company's work, track its changes in dynamics and predict development in the future.
Labor intensity is one of the key economic indicators and allows you to give the use of working time in the production of goods or services, as well as in the performance of any work. This coefficient indicates how much labor is needed to produce one unit of output.
The concept of labor productivity is closely related to labor intensity. This term has another name - production. There is an inverse relationship between these two indicators. The greater the labor intensity of manufacturing goods, the lower at such an enterprise, and vice versa.
The calculation of the coefficient of labor intensity of labor and its productivity is carried out mainly when drawing up the next one to justify the business plan, as well as to analyze how efficiently the labor force is used. The amount of labor intensity is influenced by many different reasons, but among them the main ones can be distinguished: the level of personnel qualification, the degree of technical equipment of production, the complexity of manufacturing goods, the degree of automation and working conditions. Now let's move on to how labor intensity is defined. The formula for calculating this coefficient is as follows:
T = Pv / Kp, where
T is the complexity of manufacturing one product;
Рв - working time spent on the production of a given quantity of goods (rendering services);
Kp - the number of manufactured goods (services provided, work performed).
It is convenient to calculate the complexity in the following order:
1. First, the amount of time that was worked out by the workers of the enterprise for the billing period is determined. The source of data for calculating the actual time spent can be primary accounting documentation, in particular, timesheets for each section or workshop. Based on these data, it is convenient to calculate the total amount of man-hours for the calendar period for all areas of the enterprise.
2. Now let's calculate the value of the goods produced in the reporting period. To do this, we will again use the primary accounting documents. The type of document depends on the specifics of the enterprise itself. After that, the ratio of the amount of time spent, expressed in man-hours, to the cost of goods produced by the enterprise is calculated. The result of the calculation will be the desired coefficient of labor intensity of products.
3. After calculating the coefficient, the work does not end. After all, the data obtained must now be analyzed. To do this, compare the results of the calculation (actual labor intensity) with the planned values. Then the factors that led to the occurrence of deviations are identified, they are analyzed and the required conclusions are drawn. Such factors may be a change in the quality of semi-finished products or raw materials, staff qualifications and other reasons.
Depending on the nature of labor costs, the following types of labor intensity can be distinguished: actual, standard and planned. Since the name of each species speaks for itself, we will not consider them in detail.
Depending on what is included in the cost, the complexity can be of several types. Let's consider each of them.
- Technological complexity. The calculation formula includes the labor of only those workers who directly produce goods:
Ttechn. =Tperm.+Tsdel., where
Tpovr - labor costs of time workers;
Tsdel. - labor costs of pieceworkers.
- Service labor intensity. This indicator takes into account the working hours of employees serving production.
- Production labor intensity, the formula of which is as follows:
Tpr. = Ttech. + Tobsl, where
Ttechn. — technological complexity;
Tobsl. - the complexity of maintenance.
- The complexity of management. It includes the work of specialists, technical workers, managers, etc.
- Total labor intensity, the formula of which is:
Tpol. = Ttech. + Tobsl. + Tupr., where
Tupr. - the complexity of management.
