Use Labor Studies to measure the time and staffing needed for recipe tasks, then apply position rates to calculate a direct labor cost per unit.
Build and check the recipe first. Create recipes that cost and sell correctly explains the yield and ingredient setup that labor results depend on.
Quick facts
Start here
- A trial’s seconds per unit are calculated as task duration × staff count ÷ yield.
- Task cost per unit uses the mean of included trial times, the selected position rate, and the labor burden multiplier.
- Mean, median, standard deviation, and included trial count help you judge how consistent the measurements are.
- The labor burden multiplier scales calculated task labor cost; it does not change the saved hourly wage rate.
- For a recipe marked as an ingredient, yield starts at one unless you enable Recipe has yield for the study.
Step 1: Set the location and position rates
Open Labor Studies and choose the location for the study. In Positions, add the job positions used for the task and enter each global hourly rate.
If wage rates vary by location, open Settings and enable Per Location Wage Rates. Then enter the location rates on each position. When a location-specific rate is missing, Farin uses that position’s global rate.
- In Settings, set the Labor burden multiplier to the factor your team uses for benefits, payroll taxes, and other indirect labor.
- Position rates and burden settings affect calculated labor costs, so review them before comparing recipes.
Step 2: Define the recipe tasks
Open Recipe Tasks, select a recipe, and add one task for each repeatable labor step you want to measure. Assign a position to every task and keep only the tasks that should contribute to the recipe’s direct labor active.
For a recipe that is normally an ingredient, turn on Recipe has yield only when you are measuring a known batch output. Otherwise, each trial uses a yield of one.
Step 3: Record representative trials
Time a task or enter a measured result
Use Start and Stop on the task timer to record a trial, or enter the measured Seconds directly. Enter the actual Yield and Staff Count, add a note if the conditions matter, and choose Add Trial.
Repeat the measurement under normal conditions. A few representative trials give a more useful mean and spread than one unusually fast or slow run.
Step 4: Review the results and keep the sample clean
For each task, compare Mean and Median seconds per unit. Standard deviation and the trial count show how much the included measurements vary. The task’s $/unit uses the mean, the assigned position rate, and the multiplier.
Exclude a trial only when it should not represent normal production, such as a run interrupted by a one-off issue. The recipe summary separates direct task labor from embedded labor and shows total labor per unit. Review the result in Cost Table alongside ingredient cost.
- If the spread is high, check that trials used the same task definition, yield basis, and staffing assumptions before changing rates.
- For batch planning after the cost review, use the dough calculator when it fits the product.