Building Blocks for Volume-Oriented Changeability in Personnel Cost Structure of Manufacturing Companies

摘要

Volatilities in global markets lead to rising importance of volume-oriented changeability (VoC) in the manufacturing industry. If the production demand is fluctuating, manufacturing companies often struggle to adapt their overhead costs, which are causing high variances in unit costs. Personnel is a main cost driver in overhead cost structure, in particular in high-wage countries. Therefore, this paper conceptualizes building blocks and analyzes impact relations for configuring VoC in personnel cost structure in production plants.