Open Access Graduate Research Paper
The purpose of this research paper is to analyze the relationship between the amount of indirect labor and value added in manufacturing companies. Companies are moving manufacturing sites overseas in order to reduce cost. The cost of direct labor in countries like China is relatively lower in comparison to the cost of labor in the U.S. Edward Hill, professor at Cleveland State University's College of Urban Affairs, states that an hour of a manufacturing plant in the U.S. costs $150 versus $1 in China (Scherer, 2005). Companies are making strategic decisions based on reducing cost in order to improve profits. In other words, companies analyze the relationship between direct labor and profit in order to make those decisions. The lower a direct labor cost, the higher the profit level that a company will obtain.
Year of Submission
Master of Arts
Department of Industrial Technology
1 PDF file (63 pages)
©2005 Marcos Reynero
Reynero, Marcos, "Manufacturing Companies and the Information Age in the U.S." (2005). Graduate Research Papers. 3691.