Personnel cost of the phase 'support product manufacturing or service delivery' per $1,000 revenue

This measure calculates personnel cost (per $1,000 revenue) of the phase ‘support product manufacturing or service delivery,' which are monitored by new product/service development (NPD) personnel to collect the data that would lead directly into [new/existing product/service improvement/extension].Personnel cost refers to employee salaries/wages, bonuses, benefits, etc. This measure is part of a set of Cost Effectiveness measures that help companies understand all cost expenditures related to the process "prepare for production."

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure Id:
102968
Total Sample Size:
409 All Companies
Performers:
25th
Median
75th

Compute this Measure

Units for this measure are dollars. Lower values are better.

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Personnel cost to support product manufacturing or service delivery / (Total business entity revenue * 0.0010)

Key Terms

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Total Annual Revenue/Net Revenue

Total annual revenue is net proceeds generated from the sale of products or services. This should reflect the selling price less any allowances such as quantity, discounts, rebates and returns.
For government/non-profit organizations, please use your non-pass-through budget. If your business entity is a support unit and therefore does not directly generate revenue, then provide the revenue amount for the units you support.For insurance companies the total annual revenue is the total amount of direct written premiums, excluding net investment income.
Note: Business entity revenue needs to only include inter-company business segment revenue when the transactions between those business segments are intended to reflect an arm's length transfer price and would therefore meet the regulatory requirements for external revenue reporting.

Personnel Cost

Personnel cost is the cost associated with personnel compensation and fringe benefits of employees (i.e., those classified as FTEs which includes both full-time and salaried/hourly employees) contributing to each respective process. Personnel cost should include all of the following costs.

Employee Compensation: Includes salaries and wages, bonuses, overtime and benefits.

Fringe: Includes contributions made towards the employees' government retirement fund, workers compensation, insurance plans, savings plans, pension funds/retirement plans, and stock purchase plans. This should also include special allowances, such as relocation expenses and car allowances.

Cost Effectiveness

Cost effectiveness measures are those in which two related variables, one of which is the cost and one of which is the related outcome related to the expenditure are used to determine a particular metric value.

Measure Scope

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Cross Industry (6.1.1)

  • 2.2.3.1 - Develop and test prototype production and/or service delivery process (10098) - Creating the new manufacturing/delivery processes for the new products/services, and testing them to ensure proper functioning. Create the production/delivery process for the prototypes that have been built for the new products/services. Conduct trial-runs to test these processes and their integration with the organization's other processes.
  • 2.2.3.2 - Design and obtain necessary materials and equipment (10099) - Developing and/or sourcing the essential machinery needed for creating purpose-built processes, as well as the raw materials, to produce the new products/services. Either design the equipment and materials needed internally, or source from external vendors. Obtain the feedstock or raw materials needed to prepare the finished products, as well as the machinery - hardware and software - needed to arrange production lines, factory operations, assemblies, and manufacturing processes. Revisit the technologies that underpin the new or revised products/services in order to source the right equipment and materials.
  • 2.2.3.3 - Install and validate production process or methodology (10100) - Finalizing production process or methodology. Install and initiate the production process to manufacture the new products, using the equipment and machinery already assembled. In the case of new services, implement delivery processes and methodologies. Validate processes for the accuracy of their operation and proper functioning.
  • 2.2.3.4 - Monitor production runs (11417) - Regularly monitoring production runs of the production and/or delivery operations.
  • 2.2.3.5 - Request engineering change (11418) - Requesting changes in the production and/or delivery operations for processing the new or revised products/services. Rectify any problems identified in the manufacturing or delivery processes (through Monitor production runs [11417]). Seek changes in components, repair machinery, optimize production lines, and tweak factory assemblies through a formal notice to the concerned division, known as an engineering change order.
  • 2.2.3.6 - Manage engineering change orders (11419) - Coordinating the implementation of requests for component changes, equipment repairs, and the optimization of production/delivery processes. Oversee Request an engineering change [11418] in the production and/or delivery operations. Coordinate with the concerned divisions that will implement these changes.