Worked scenario
Paid per piece, consuming our own materials
Per-piece job work rates are usually built on labour, and the consumables that erode them are counted once at agreement and never again.
3 min read
A rate is agreed covering the processing of one piece. It was built with an allowance for consumables at the time.
The allowance is never revisited
Consumable prices move. The rate does not, because renegotiating is difficult and the erosion is gradual and invisible without measurement.
Some job types are worse than others
Consumption varies with material and specification. Measured per job type, some are comfortably covered and others have quietly gone negative — and only one of those needs a conversation.
What changes
- Consumable cost per piece measured, not assumed
- Rate reviewed when consumable prices move
- Consumption per job type compared with the assumption
- Loss-making job types identified before renewal
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