What an Overtime Piece Actually Costs, Against What the Multiplier Says

How to read this sheet

The efficiency and defect figures are yours and the whole answer moves with them - a line that does not record overtime separately from regular hours cannot use this sheet honestly, and the fix is the production board rather than an assumption typed here. The baseline is the same line on regular hours, so the premium is a comparison against your own normal running and not against a standard; a line running at 60 percent all day will show a small overtime premium because its regular hours are already poor, which is a finding about the line rather than about overtime. Rework is priced as caught in-line, which is the cheap case: a defect that reaches final audit or the customer costs several multiples more, and pricing that properly is a different sheet. The subcontract comparison assumes the outside price is real, available at the quantity and free of quality risk, and it is usually none of those at short notice - treat a block flagged dearer than subcontracting as a question rather than an instruction. Statutory overtime limits, consecutive-day rules and rest-period requirements are outside this entirely: a block that is cheap and unlawful is not a saving, and the hours compliance sheet is where that belongs. Finally, this prices overtime already worked. Deciding whether to authorise the next block needs the marginal case - the order that pays for it - not the average shown here.