Wire Drawing & Rod Processing worked example

Labor Per Pound at 58% direct-labor utilization: a worked example in wire drawing & rod processing

This worked example runs the labor per pound numbers for a tougher week than the baseline: 58% direct-labor utilization instead of the typical 80%. Labor per pound is the single most-watched conversion metric on a wire drawing floor because drawn wire is sold by weight, and labor is the biggest controllable cost after raw rod.

The inputs for this scenario

  • Pounds of wire drawn: 100 units (held at the documented default)
  • Labor rate per pound: 45 $ / unit (held at the documented default)
  • Direct-labor utilization: 58 % (the input this scenario stresses; the baseline uses 80)
  • Fixed crew & setup cost: 250 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Labor Per Pound 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 utilization sits at 80% and the headline result is 3,850 $, this scenario comes in 25.71% below the baseline at 2,860 $.
  • Use it to set or check a labor standard for a wire size, to compare shift-to-shift productivity, or to cost a new job before quoting. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

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 Labor Per Pound calculator, set direct-labor utilization to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.