ABSTRACT
Generally, in low-volume plants, we have a higher percentage of overhead/staff costs because we have more indirect office work associated with each small order. Most jobs involve tasks that require both higher and lower skill levels, and this presents an excellent opportunity to separate the tasks and assign them to different people during slow times. Temporary employees that have entered the labor force through an agency are usually the first to go during slow times. While letting good temporary people go is a sacrifice, there are times when it must be done for the good of the business. When work slows down, however, the skilled operator can be assigned to unskilled tasks, and the material handler or the machine cleaner can be laid off or reassigned elsewhere. In low-volume operations, machinery that is designed for quick set-up is more critical than equipment that has fast cycle times.
