Transformers, Coils & Magnetics Manufacturing worked example

Coil Labor Cost at 58% direct labor capture factor: a worked example

Here is what the math looks like when conditions slip. We hold every other input steady and drop direct labor capture factor to 58%, then walk the calculation through step by step. Coil labor cost is the total winding, taping, lead-dressing and termination labor that goes into a batch of magnetic coils, plus the fixed setup and tooling burden spread across that batch.

The inputs for this scenario

  • Coils wound per batch: 100 units (held at the documented default)
  • Winding labor rate per coil: 45 $ / unit (held at the documented default)
  • Direct labor capture factor: 58 % (the input this scenario stresses; the baseline uses 80)
  • Fixed setup and tooling cost: 250 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Coil Labor Cost cost = quantity × rate × capture factor + fixed cost.
  • Weighted cost works out to 2,860 $ at these inputs, and this is the headline figure for the scenario.
  • Per piece value works out to 28.6 $ / piece at these inputs.
  • Captured value works out to 2,610 $ at these inputs.
  • Fixed adjustment works out to 250 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where direct labor capture factor sits at 80% and the headline result is 3,850 $, this scenario comes in 25.71% below the baseline at 2,860 $.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to direct labor capture factor, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. The capture factor is a single blended number; it will not model a learning curve where the first 20 coils on a new bobbin take far longer than the last 80.

Results at a glance

  • Weighted cost: 2,860 $ (headline result)
  • Per piece value: 28.6 $ / piece
  • Captured value: 2,610 $
  • Fixed adjustment: 250 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Coil Labor Cost calculator, set direct labor capture factor to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.