Microsoft PowerPoint - MFS Labour Presentation.pptefficiency. • Paling Yards presentation on labour
efficiency. • Identifying and assessing opportunities for
improvements to labour efficiency. • Post workshop evaluation
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LabourLabour EfficiencyEfficiency
• What is a labour unit and why is it important? • How is labour efficiency calculated? • Income per LU v Costs per LU in the sheep
industry. • Labour efficiency benchmarks and their
relationship to profits
LabourLabour and and labourlabour related costs as a related costs as a % of total costs% of total costs
50%
Wool   Dual  purpose Prime lamb Beef
La bo ur  e ff ic ie nc y  (D SE s/ la bo ur  u ni t)
Your labour efficiency HS Average HS Top 20%
LabourLabour efficiency comparisonsefficiency comparisons
Would you like a copy of this tool?Would you like a copy of this tool?
1. Yes 2. No
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High cost High cost labourlabour isnisn’’t helpful t helpful –– but but its not the real game.its not the real game.
R2 = 0.0976
)
Income per Income per labourlabour unit is more unit is more importantimportant
R2 = 0.5635
Income ($/Labour Unit)
Key overall Key overall labourlabour efficiency efficiency benchmarksbenchmarks
• Wool flocks – 7,500 DSE/LU • Prime lamb flocks – 10,000 DSE/LU • Beef herds – 20,000 DSE/LU
Paling YardsPaling Yards
What difference does enterprise mix What difference does enterprise mix make?make?
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Plant and EquipmentPlant and Equipment
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• Shearing • Crutching • Lamb marking • Mulesing • Weaning
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Sins of OmissionSins of Omission
• Scanning (other than as diagnostic tool) • Supervision of lambing ewes • Sheep and wool sales • Field days, seminars and trade days • Committees • Going to town • Time based mob rotations
Identifying opportunities within your Identifying opportunities within your business.business.
• Repetitive (drenching) • Time consuming (stock movements) • Hard work (crutching) • Unavoidable (monitoring stock water, fencing
R&M) • Skilled (shearing) • Avoidable (high maintenance production
systems) • Of marginal value (????)
Key benchmarksKey benchmarks
0.75 days per 1000 DSEStock water maintenance 2 days per 1000 DSEFencing Maintenance
500 sheep/person/hr Weighing & drafting (sheep)
2000/person/day
Industry benchmarkOperation
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Returns from auto weigh and draftReturns from auto weigh and draft
Returns from crutching with station Returns from crutching with station labourlabour in crutching cradlesin crutching cradles
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Examples of returns found in MLA Examples of returns found in MLA case studies.case studies.
• Jetting race: 28% – 50% ROI • Shearing shed modifications: 9% - 142% • Remote sensing for monitroing water: 22% to
12%
One farm as a case studyOne farm as a case study
0%-13%$850,000Pasture renovations
11%-13%$65,000Paddock subdivisions
26%$30,000Crutching trailer
17%$20,000Wool presses
– Manage more sheep – Un-skirted fleece preparation – Geographical consolidation