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In a manufacturing environment the amount of labor content in the products you produce is probably the most important metric that a manufacturing company has (at least in the US). Productivity is the metric that will usually determine if your company will succeed or fail. If you have a plant that employees 1000 employees @ $15.00 an hour your spending $120,000 per eight hour shift on labor not to mention the fringe benefits that come with that. A 5% improvement in productivity can save the company $1.5 million annually. Having said that, how can our internal control system ensure that labor is being efficiently used?
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