Causes For Labour Efficiency Variance


The causes giving rise to direct labour efficiency variance as follows:

  1. Lack of proper supervision or stricter supervision that specified.
  2. Poor working conditions
  3. Delay due to, waiting for materials tools, instructions etc. if not treated as idle time.
  4. Defective machine tools, and other equipments.
  5. Machine break down if not booked to idle time.
  6. Work on new machines requiring less tike then provided for as long as the standard is not revised.
  7. Basic inefficiency of workers due to low morale, insufficient training,  faulty instructions, incorrect scheduling of jobs etc.
  8. Use of non standard material requiring more or less operation wages.
  9. Carrying our operations not provided for and booking them as direct wages.
  10. In correct standards
  11. Wrong selection of workers, e.g. no employing the right type of man for doing the job.
  12. Increase in labour turnover.
  13. Incorrect recording of performances, i.e. time and output.
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