Manufacturing Overhead (MOH) and Departmental Expense Control

Abstract

Manufacturing overheads represent the cost of operations that are not directly derived from the production costs. Operations need to disperse the overhead cost between the different departments, and control their improvement in regard to the annual budget goals, on a monthly basis. Also, innovations in cost reducing projects need to bring added financial value. When the production volume grows, agility in the rotation and responsibilities of people, LEAN culture, innovation and automation, will prevent an increase in overhead costs.