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Services
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| These
are obvious direct costs
that should be included
in all cost analysis for
an oil change. The several
hidden costs that must be
considered while analyzing
the cost of an oil change
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The
total time it takes to change
the oil. |
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The
total time the machine is
not in operation. |
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All
the paper work and pursuits
involved plus tracking,
verifying and inspection
costs. |
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| Cost
of labour should include
the human resources
needed to support
the labour. |
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This has been estimated
at 1.5 times the hourly
rate for the total
number of hours needed
to change the oil. |
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Indirect
activities such as wait
time, travel time and tool
and material collection,
which can all cost 2 - 8
times the normal “
wrench” time. |
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Supervisory tasks (work
order, and monitoring) add
another 20% to labour costs. |
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Cost
of rags, gloves, filters,
sampling material |
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New oil overheads, inventory
and storage areas. Purchasing
department activities
for purchase oil.bids,
credits, checks, payments
etc.
At
the end of major oil change,
with all there often overlooked
overhead costs, a change
(at $ 5 per gallon) with
two hours of labour and
a purchase order to receive
would cost $ 988.70.
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Technical Services. site design and maintained by Mod Graphics |
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