Wire Drawing & Rod Processing worked example

Labor Per Pound at 92% direct-labor utilization: a worked example in wire drawing & rod processing

What does the result look like when direct-labor utilization reaches 92%? The full calculation is worked below with real intermediate numbers. Use it when labor per pound in wire drawing and rod processing is being put through a wire drawing and rod processing weighted-cost review.

The inputs for this scenario

  • Pounds of wire drawn: 100 units (unchanged)
  • Labor rate per pound: 45 $ / unit (unchanged)
  • Direct-labor utilization: 92 % (raised for this scenario; the documented default is 80)
  • Fixed crew & setup cost: 250 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Labor Per Pound cost = quantity × rate × capture factor + fixed cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 4,390 $ for weighted cost, the number this scenario is built around.
  • At this operating point the engine returns 43.9 $ / piece for per piece value.
  • At this operating point the engine returns 4,140 $ for captured value.
  • At this operating point the engine returns 250 $ for fixed adjustment.

How this compares with the baseline

  • Against the tool's baseline example, where direct-labor utilization sits at 80% and the headline result is 3,850 $, this scenario comes in 14.03% above the baseline at 4,390 $.
  • A figure at this level is achievable when direct-labor utilization is genuinely sustained, not just peaked for a shift. Utilization is a blunt instrument — it captures idle and indirect time in one percentage but will not tell you whether the loss came from threading breaks, die changes or short runs; you still need machine data to diagnose the cause.

Results at a glance

  • Weighted cost: 4,390 $ (headline result)
  • Per piece value: 43.9 $ / piece
  • Captured value: 4,140 $
  • Fixed adjustment: 250 $

Run it with your numbers

  • Every input above is editable in the live Labor Per Pound calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.