Labor Cost Savings Research Articles

Progress towards development and adoption of integrated management systems against flystrike and lice in sheep

Ectoparasites of sheep, principally blowflies and lice, cost the New Zealand farming industry an estimated $60 million each year. This figure includes the cost of chemicals and labour used to treat or prevent flystrike and lice, together with the lost production. An Integrated Pest Management (IPM) trial project involving four groups of farmers (overall total 15) in four regions of New Zealand has been set up with the aim of adopting a holistic approach to managing these parasites and already early benefits have accrued to the farmers involved. Procedures were set up to reduce insecticide residues in wool by using techniques such as jetting which apply less chemical to the sheep but target it more appropriately and maintain or improve protection against flystrike and control of lice. As a consequence, savings in chemical and labour costs have been made. On two farms in particular, savings on these items ranged from $578 (27% reduction) on a property with 2000 Corriedale ewes to $3608 (52% reduction) on the other property with 8000 Romney ewes. An understanding that clean, healthy sheep, free of nematodes and dags, are less susceptible to flystrike and lice has also assisted in controlling the diseases. This paper also discusses the potential for biological control against blowfly populations, with large fly traps, sterilising baits and parasitoid wasps all being investigated. Research continues on specialist pastures such as birdsfoot trefoil (Lotus corniculatus) and sulla (Hedysarum coronarium) to evaluate the practicalities of incorporating their use in management systems for both nematode and flystrike control. Keywords: biological control, blowflies, flystrike, insecticides, IPM, lice, pasture varieties, sheep

Multiskilled Labor Utilization Strategies in Construction

Construction industry craft divisions in the United States are currently based on narrowly defined skill groupings. The steady demand for improved productivity and the shortage of skilled craft workers call into question this traditionally accepted “single-skilled” strategy. While these craft patterns are prevalent throughout the union and nonunionized sectors of the industry, they are not necessarily responsive to construction sequence or the optimal use of worker skills. Alternative labor utilization strategies may provide increased project performance and may reduce craft shortages through better utilization of the existing workforce. An analysis model is developed in this study to measure the project impact of alternative labor utilization strategies. The model is used to assess four multiskilling strategies on the construction of a $70,000,000 project. Benefits of multiskilled labor utilization strategies were demonstrated including potentially a 5–20% labor cost savings, a 35% reduction in required workforce, a 47% increase in average employment duration, and an increase in earning potential for multiskilled construction workers.

Povidone iodine gel alcohol: A 30-second, onetime application preoperative skin preparation

Background: Simplifying and shortening the skin-preparation application procedure is desirable for many reasons, which include labor-cost savings and improved suite utilization. A new formulation, PVP-I Gel Alcohol (PGA) that contains 5% PVP-I and 62% ethanol in gel form, was developed to achieve a shorter preparation time with a rapid and persistent efficacy on a broad spectrum of microorganisms and to minimize the potential for iodine irritation. Method: The test methods outlined in the Federal Register, 21 CFR Parts 333 and 369, “Tentative Final Monograph for Health-Care Antiseptic Drug Products;” Proposed Rule, 1994 (Monograph), were adapted in this study. Efficacy of PGA was evaluated, both in vitro and in vivo. The in vitro time-kill and minimum inhibition concentration tests were conducted by using 33 strains of aerobic and anaerobic gram-positive bacteria, gram-negative bacteria, yeasts, and antibiotic-resistant bacteria. In the clinical test, the inguinal and abdominal skin sites of human subjects were exposed to PGA for 30 seconds to assess the antimicrobial efficacy on normal skin flora. Betadine PVP-I scrub was tested in a 5-minute application as a control. Results: The time-kill test showed that PGA delivered a rapid antimicrobial activity—reducing greater than 3 to 8 log microorganisms in 15 seconds in all of the 33 species of microorganisms tested. Within 30 seconds, all challenge organisms were reduced below detection level. Results of the minimum inhibition concentration test showed that PGA demonstrated an equivalent activity to Betadine control under the testing conditions. In the clinical test, PGA was effective in the reduction of greater than 3 log and 2 log of normal skin flora, respectively, in inguinal and abdominal sites in a single-step 30-second application. Bacteria levels remained significantly below the baseline for 6 hours in the primary study and for 24 hours in a secondary study. These results show that the current PGA formulation with a 30-second application delivers an efficacy equivalent to Betadine scrub in a 5-minute application and that the PGA formulation has a long-lasting effect—up to 24 hours. Conclusion: The PGA formulation delivered rapid and persistent antimicrobial activity against a broad spectrum of bacteria both in vitro and in vivo. PGA is an effective skin-preparation formulation for use in a single-step 30-second application. (AJIC Am J Infect Control 1998;26:488-94)

Simulation of Queuing Time Losses in Automated Underground Haulage Systems

Multiple LHD systems controlled by a single operator have been demonstrated to be technically feasible by using a telecommand system to load and dump vehicles and an automatic guidance system to control travel between drawpoint and dump locations in separate production drifts. Prototype systems have been developed by several major mining companies. In this study, a discrete event model was constructed using the simulation language SLAM-II to analyse the queuing time losses inherent in both two and three vehicle systems. Queuing losses are shown to depend on both tramming distance and average travel speed (which takes into consideration haul route geometry). The study provides data to illustrate that, when evaluating the feasibilty of implementing single operator — multiple vehicle underground haulage systems, labour cost savings must be carefully balanced against capital costs and revenue losses resulting from queuing. This is of particular relevance to mines in which single operator-multiple vehicle systems are being contemplated for relatively short haulage distances.

Competitive tendering in NHS catering: a suitable policy?

Seeks to evaluate the policy of competitive tendering for ancillary services in the National Health Service, by reference to a number of case studies of catering services. Argues that the success of the policy was dependent on certain assumptions being met about the extent of competitive pressure and the potential for savings, largely labour cost savings, to be made. Shows by case studies that these conditions frequently did not occur and hence the policy was flawed. Furthermore, even where these conditions did occur, the evidence shows that a range of other factors influenced the extent to which labour cost savings could be made.

Economic Restructuring and HRM in Hong Kong

This article discusses the human resource implications of' business readjustment and advances in Hong Kong as its economy is restructured into a post-industrial centre of tertiary service industries. Corporate reforms are benchmarked against Western practices of exploring flexibilities and competitiveness which emphasize labour performance and cost savings. However, job security does not appear to have been eroded, possibly betraying an Oriental importance placed upon trust and commitment between employer and employee. As a meeting-place where Eastern and Western cultural practices interface, Hong Kong probably remains economically resilient by keeping its normative and institutional permissiveness in a hybrid mix of Western and Oriental practices.

Effects of a Multicomponent Monetary Incentive Program on the Performance of Truck Drivers

A multiple-baseline across two groups experimental design was used to examine the effects of a multicomponent individual incentive system on the performance, safety, and satisfaction of 22 truck drivers. The intervention included incentive pay, which was increased twice; individual and group feedback; and loss of incentive pay for accidents. Drivers earned points for completing various types of jobs. The primary measure was the percentage of job points earned in less time than the baseline average, which controlled for number of hours worked and miles driven. After intervention, performance increased and remained high for nearly 4 years. Accidents did not increase when the intervention occurred, and satisfaction with pay and work were not affected by it. Labor cost savings averaged more than $5,000 a month while the incentive program was in effect, and drivers' pay increased. These results add to the substantial literature on individual incentives by documenting increased productivity sustained over a long period without accompanying increases in accidents or decreases in workers' satisfaction.

The expansion of temporary help employment in the US, 1982-1992: a test of alternative economic explanations

Employment in the temporary help supply (THS) industry more than tripled in the US between 1982 and 1992. During that period, the variability and cyclical sensitivity of THS jobs, their average weekly hours and real hourly earnings were extraordinarily high. In addition, changes in temporary employment levels disproportionately affect aggregate employment flows over this period. One possible explanation of the dramatic rise and variability in THS jobs is demographic changes in the composition of the labour force towards groups believed to prefer impermanent job commitment or temporal flexibility in supplying labour services. A contrasting view considers it part of an explicit human resource strategy increasingly adopted by firms seeking greater 'numerical' or cost flexibility. This strategy may reflect an employer response to greater volatility in demand, intensifying price competition pressures in product markets and rising quasi-fixed costs incurred for permanent employees such as nonwage benefits. A two-sector model is developed that presents permanent and temporary (secondary) sectors as distinct labour market segments. Three-stage least squares estimation of non-nested models of aggregate employment in the help supply industry is conducted. The results more strongly support the hypothesizedeffect of the 'employer strategy/opportunity' set of variables in the model. Specifically, fluctuation in industrial output, intensified foreign competition, the relative magnitude of nonwage labour costs and extent of paid time-off are all positively associated with temporary employment. In addition, the diminished bargaining power of labour has allowed employers to exploit the labour cost savings of temporary hires. The only variable in a 'labour force composition' model at all positively associated with levels of temporary employment is the proportion of married women in the labour force. Implications are then drawn for public policy, given that the rapid rise in temporary jobs reflects labour input strategies adopted by employers more than a growing worker preference for such jobs.

Cefpodoxime proxetil. An appraisal of its use in antibacterial cost-containment programmes, as stepdown and abbreviated therapy in respiratory tract infections.

Cefpodoxime proxetil is an orally administered prodrug which is converted in vivo to the third generation cephalosporin cefpodoxime. Cefpodoxime has a similar spectrum of antibacterial activity to the parenteral cephalosporins ceftriaxone and cefotaxime and a long elimination half-life, which allows once- or twice-daily administration. Cefpodoxime proxetil has proven efficacy in the treatment of community-acquired pneumonia and upper respiratory tract, skin and soft tissue and urinary tract infections. It has been evaluated for use in cost-containment programmes, as stepdown (parenteral-to-oral conversion) therapy in the treatment of community-acquired pneumonia and as abbreviated therapy in upper respiratory tract infections. Substituting oral for parenteral therapy can achieve considerable savings (in acquisition, delivery and labour costs). Moreover, oral administration has advantages for the patient in terms of comfort and mobility, avoids the hazards of parenteral delivery and may allow earlier discharge from hospital, or even allow home treatment from the outset in low-risk patients. As hospitalisation is usually the major cost component in treating serious infections, considerable savings can be made in this way. Pharmacy-driven stepdown programmes in 2 US hospitals have achieved cost savings by targeting patients with community-acquired pneumonia for early conversion from intravenous ceftriaxone therapy to oral cefpodoxime proxetil. Costs were compared with those from a control group of patients who continued to receive intravenous ceftriaxone until physicians deemed that oral therapy (with various agents) was appropriate. In one study, duration of parenteral therapy in the cefpodoxime proxetil group was reduced from 6.18 to 3.82 days and duration of hospitalisation was reduced from 10.06 to 6.23 days (p < 0.02), with corresponding hospitalisation cost reductions of $US7300 per patient. However, clinical trial data relating to the efficacy of cefpodoxime proxetil as stepdown therapy in patients initially requiring parenteral antibacterials are lacking. Abbreviated (4-to 7-day) cephalosporin regimens appear to be as effective as traditional 10-day penicillin regimens in the treatment of upper respiratory tract infections. Short regimens may improve patient compliance and tolerability, thereby reducing the costs of adverse effects and treatment failures. Data from preliminary clinical studies suggest that a 5-day course of cefpodoxime proxetil is as effective as an 8-day course of amoxicillin/clavulanic acid in treating either acute otitis media or sinusitis, and as effective as a 10-day course of amoxicillin/ clavulanic acid and more effective than a 10-day course of phenoxymethyl- penicillin in the treatment of pharyngotonsillitis. Cefpodoxime proxetil tended to be better tolerated and was associated with better compliance than penicillin-based regimens. Indeed, a pharmacoeconomic study showed that a 10-day regimen of cefpodoxime proxetil was associated with lower costs for treating adverse effects and treatment failures than a 10-day regimen of amoxicillin/clavulanic acid in the treatment of acute otitis media in children. A 5-day course of cefpodoxime proxetil had a lower cost per patient treated per month free of recurrence than a 10-day course of phenoxymethylpenicillin (non-generic) or amoxicillin/clavulanic acid in the treatment of recurrent pharyngotonsillitis. Thus, evidence to date suggests that cefpodoxime proxetil has potential for use as stepdown therapy in community-acquired pneumonia and in abbreviated therapy courses in upper respiratory tract infections. These preliminary observations require confirmation in well designed studies.

Competitive tendering in NHS catering: a suitable policy?

Seeks to evaluate the policy of competitive tendering for ancillary services in the National Health Service, by reference to a number of case studies of catering services. Argues that the success of the policy was dependent on certain assumptions being met about the extent of competitive pressure and the potential for savings, largely labour cost savings, to be made. Shows by case studies that these conditions frequently did not occur and hence the policy was flawed. Furthermore, even where these conditions did occur, the evidence shows that a range of other factors influenced the extent to which labour cost savings could be made.

Naloxone Versus Nalbuphine Infusion for Prophylaxis of Epidural Morphine-Induced Pruritus

This randomized, double-blind study compared the efficacy of two mu-receptor antagonists, naloxone and nalbuphine, in the prophylactic management of pruritus in postcesarean section patients receiving epidural morphine. Dosages of study drugs were individualized by the use of a patient self-administration (PSA) device. All 51 patients were healthy women who received a uniform epidural anesthetic and epidural morphine (5 mg). Coded solutions were infused for 24 h, with 5-min PSA lockout times: Group A (n = 17), nalbuphine 2.5 mg/h, PSA nalbuphine 1 mg; Group B (n = 16), naloxone 50 micro gram/h, PSA saline; Group C (n = 18), naloxone 50 micro gram/h, PSA naloxone 40 micro gram. Patients were assessed for pruritus and pain every 8 h for 24 h. Both naloxone and nalbuphine provided good relief for pruritus; median pain and pruritus scores were in the none-to-mild range (0-3) for all groups at all assessment intervals. The pruritus scores of the PSA saline group were higher during the 16- to 24-h period (P < 0.05) than the scores of either group receiving mu-receptor antagonist by PSA. There was evidence of shortening of the duration of analgesia in patients receiving naloxone who required treatment for pruritus after 16 h. Patients who self-administered large doses of nalbuphine over the first 8 h also reported pain scores consistent with reversal of analgesia. The potency ratio for naloxone:nalbuphine for antagonism of the pruritic effects of epidural morphine was approximately 40:1. Intervention to treat either unrelieved pruritus or pain, respectively, was necessary in the following numbers of patients: Group A, 0/1; Group B, 1/1; Group C, 2/2. Prophylactic infusions offer the potential for labor cost savings by minimizing the need for episodic therapeutic interventions to treat pruritus. (Anesth Analg 1996;82:641-7)

Naloxone Versus Nalbuphine Infusion for Prophylaxis of Epidural Morphine-Induced Pruritus

This randomized, double-blind study compared the efficacy of two mu-receptor antagonists, naloxone and nalbuphine, in the prophylactic management of pruritus in postcesarean section patients receiving epidural morphine. Dosages of study drugs were individualized by the use of a patient self-administration (PSA) device. All 51 patients were healthy women who received a uniform epidural anesthetic and epidural morphine (5 mg). Coded solutions were infused for 24 h, with 5-min PSA lockout times: Group A (n = 17), nalbuphine 2.5 mg/h, PSA nalbuphine 1 mg; Group B (n = 16), naloxone 50 micrograms/hr, PSA saline; Group C (n = 18), naloxone 50 micrograms/h, PSA naloxone 40 micrograms. Patients were assessed for pruritus and pain every 8 h for 24 h. Both naloxone and nalbuphine provided good relief for pruritus; median pain and pruritus scores were in the none-to-mild range (0-3) for all groups at all assessment intervals. The pruritus scores of the PSA saline group were higher during the 16- to 24-h period (P < 0.05) than the scores of either group receiving A-receptor antagonist by PSA. There was evidence of shortening of the duration of analgesia in patients receiving naloxone who required treatment for pruritus after 16 h. Patients who self-administered large doses of nalbuphine over the first 8 h also reported pain scores consistent with reversal of analgesia. The potency ratio for naloxone:nalbuphine for antagonism of the pruritic effects of epidural morphine was approximately 40:1. Intervention to treat either unrelieved pruritus or pain, respectively, was necessary in the following numbers of patients: Group A, 0/1; Group B, 1/1; Group C, 2/2. Prophylactic infusions offer the potential for labor cost savings by minimizing the need for episodic therapeutic interventions to treat pruritus.

Is it time for computer-assisted decision making to improve the quality of food and nutrition services?

Is it time for computer-assisted decision making to improve the quality of food and nutrition services?

Estimating the reduction in labor hours due to a new technology under uncertain demand

When investing in a new machine one must estimate the reduced labor costs. In the past, this was usually done in a deterministic way, assuming that we have accurate (point) estimation of demand rates and the reduction in labor costs is proportional to the reduction in labor hours. However, if demand rates of products are known probabilistically the expected reduction in labor hours follows a probability distribution. This distribution (not just the mean value) is important because (1) it shows the effect of the uncertainty in demand on estimating the reduction in labor hours, and (2) it allows better estimation of labor cost savings when labor costs are not proportional to labor hours. Using the distribution of product demand rates this paper presents a procedure for estimating the distribution of reduction in labor hours obtained from a new machine.

Cost analysis of cefmetazole versus cefoxitin in the treatment of penetrating abdominal trauma

Cefmetazole is a new cephamycin antibiotic with a microbiologic spectrum very similar to cefoxitin. Because of its longer half-life, cefmetazole can be dosed on an every 8 hour schedule, in contrast to cefoxitin, which is usually dosed every 6 hours. The objective of this study was to determine the cost effectiveness of cefmetazole 2 gm via intravenous piggyback (IVPB) every 8 hours versus cefoxitin 2 gm IVPB every six hours in patients with perforated viscous secondary to abdominal trauma. Sixty-seven patients between 17 and 56 years of age were randomly assigned to receive either cefmetazole 2 gm IVPB every 8 hours or cefoxitin 2 gm IVPB every 6 hours in this prospective trial. The failure rate was not statistically significantly different between the two groups, with 4 of 36 patients in the cefmetazole group and 8 of 31 patients in the cefoxitin group ( P = 0.1178) designated as failures. The mean drug acquisition costs for each admission in the cefmetazole and cefoxitin groups were $203.10 and $322.09, respectively, and were significantly higher for the cefoxitin group ( P < 0.0005). There were significantly higher costs associated with the cefoxitin group for IVPB supply costs ($21.30), nursing ($22.00), pharmacy technician ($6.28), and pharmacist ($1.10) costs, as opposed to the cefmetazole group ($16.48, $17.02, $4.85, and $0.85, respectively). We found the use of cefmetazole in patients with intra-abdominal infections to be a cost-effective alternative to cefoxitin, resulting in significant savings in labor and material costs.

ECONOMIC ANALYSIS OF POST HARVEST HANDLING METHODS FOR FRESH MARKET MIXED GREENS

Several common methods of post harvest handling and pre-cooling for fresh market bunched greens (turnips, smooth and curly mustard, and collards) were evaluated. Six treatments were evaluated where greens were rehydrated and precooled using different combinations of hydrocooling, slush ice, and shoveled ice with three rehydration methods (hydrocooling, water drench, and water floating). Product temperatures were monitored and overall quality ratings were made after seven days in cold storage. Product quality after seven days was best with hydrocooling and insignificant differences in quality were recorded whether in-box ice was shoveled or slush ice. Turnips were most sensitive to degradation if precooled inadequately. Collards were the least sensitive. Economic analysis was completed using labor and ice cost differentials of selected packing and cooling methods to calculate product volume levels required to amortize relatively high costs of the hydrocooler, slush icer, and ice machine. Extremely large volume is required to fully amortize equipment acquisition costs based on labor cost savings alone. Greater cost savings per box, when comparing the cost of purchased ice to homemade ice, resulted in much lower volume requirements for full amortization. The results indicate that a producer with limited capital would benefit the most economically from acquiring an ice machine. The greatest quality benefit is gained from precooling with the hydrocooler.

What Was Driving the 1982–88 Boom In Temporary Employment?

Abstract. The level of temporary help employment rose two‐and‐a‐half fold between 1982 and 1988, was quite variable and had a disproportionately larger effect on employment flows. One conventional explanation suggests that changing demographic composition of the labor force in favor of groups preferring nontraditional employment arrangements fueled the temporary help boom. Demand‐side views emphasize the volatility in labor demand, intensified price competition and the absence of employee benefit contributions.Empirical estimation confirms that demand‐side forces predominate. Yet no labor supply variable is found to be positively associated with the extent of temporary employment. Cyclical fluctuation in output, intensified foreign competition and the magnitude of nonwage labor costs are all positively associated with temporary employment levels. The diminishing bargaining power of labor unions allows employers to exploit the labor cost savings of temporary hires, and the extent of paid time‐off and the lack of flexibility in weekly hours of work play a weak role. The findings suggest why temporary job growth accelerated in the 1980s, as more firms employed a “core‐periphery” human resource strategy. Public policy should adopt measures that attempt to limit the creation of temporary jobs to a level that accommodates the worker need for flexible annual work schedules.

Maquiladora Operations for Shipbuilding

The maquiladora program was established by the Mexican Government to encourage foreign investment and promote industrial growth. The success of the program encourages more and more participation each year. The low cost of labor in Mexico has attracted U.S. companies in all types of manufacturing with the exception of shipbuilding. With the focus on the domestic shipbuilding market over the past 25 years, U.S. shipyards have lacked the impetus to establish a maquiladora operation. The world market for shipbuilding has been steadily improving, while the U.S. domestic market has been steadily decreasing. The opportunities for U.S. shipyards to focus their strategies on the world market may not get any better. By understanding the complexities of establishing a maquiladora operation and then integrating the operation into its overall production plan, a shipbuilder can begin to realize that large labor cost savings are possible.

Transportation Outsourcing: A Survey of US Practices

The majority of the companies surveyed are outsourcing some transportation functions. The most frequently outsourced transportation functions are freight bill auditing, freight payment and transportation reports, which are basically clerical/repetitive in nature. Also, frequently outsourced are international shipping and fleet maintenance, functions that require considerable technical expertise and assets. Transportation functions of a strategic nature are usually not outsourced. The primary reasons for outsourcing are labour cost savings, specialisation, asset reduction, and expanding workload. Generally, the firms that outsourced transportation are satisfied with the service. Loss of management control is the most important reason for not outsourcing, although loss of control was not identified as a major problem area for firms who do outsource. The providers of transportation outsourcing services are relatively small corporations.

Agglomeration economies and industrial decentralization: The wage — productivity trade-offs

This paper examines the industrial location trade-offs between the productivity advantages of the metropolitan center and the lower land and the labor costs in outlying regions within the state of Sao Paulo, Brazil. The results indicate that while plant productivity is enhanced by the considerable agglomeration economies existing within metropolitan Sao Paulo, firms must pay for these benefits in high wages and land costs. Offsetting labor cost savings can be achieved by locating in outlying regions. The evidence presented in this paper suggests that market forces may lead eventually to a spontaneous decentralization of industry.