96 MANAGEMENT OF DAIRY PLANTS 



The information furnished by Form III keeps the super- 

 intendent properly informed daily. When the labor cost per 

 pound of butter increases he will make an effort to dispose of 

 some of the extra men. If other departments are operated by 

 the same firm he may be able to turn them over to other depart- 

 ments needing men at that particular time. 



At the close of the month the average daily cost of regular 

 and extra employees is figured as well as the average amount of 

 butter manufactured for the month and the average cost of 

 labor per pound of butter manufactured. A comparison 

 should be made with similar reports for the corresponding 

 month of the previous year. By noting the rate of increase or 

 decrease in amount manufactured between corresponding 

 months it will be comparatively easy to determine as to the 

 amount of labor required for the following month. 



2. Reducing Cost of Nonproductive Labor. — The cost of non- 

 productive labor should be carefully regulated and the work of 

 each employee whose labor is thus classified should be analyzed 

 and the profit to the company from the labor of the employee 

 in question should be determined as nearly as possible. Book- 

 keepers and certain clerks are indispensable, although their 

 value to the company is not readily determined. There are 

 other nonproductive employees in the office and around the 

 factory from whom a definite return is expected. Before en- 

 gaging an employee for doing nonproductive labor the following 

 points should be considered: 



1. Will the labor of this employee show direct and immediate 

 result? 



2. Will the company make any profit on such labor? 



3. Is it possible to accomphsh this work with the present 

 working force? 



4. Is the nature of the work such that the employee may be 

 engaged on a percentage basis? 



Distributing the Cost of Labor. — Productive labor is gener- 

 ally charged directly against the respective departments. The 

 nonproductive labor of an employee may be charged directly 

 if the entire time of that employee has been devoted to one 



