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It is generally the policy of most production managers to use as little overtime as possible, since labor costs are inflated by at least 50 percent for all overtime hours actually worked. However there are many circumstances which make the use of overtime essentially unavoidable. Regardless of what those might be, PROSPAC can be used effectively to determine the minimum overtime requirement. But knowing where (i.e., on which machines) and when to authorize overtime, so as to realize the greatest possible benefit from it, is a guessing game at best apart from PROSPAC and its scheduling "engine". More often than not too much overtime is authorized at the wrong time on the wrong machine(s). This too frequently results in a "hurry up and wait" situation where certain shop work orders are completed more quickly at one or two operations, only to wait behind the machine of some later operation. The overall result is that the shop work orders of interest finish no sooner than before, so that the extra effort and cost of the overtime is largely wasted! The ultimate reason for using overtime is for meeting customers' delivery schedules. So, with surgical precision, PROSPAC's scheduling "engine" is the natural choice to determine:
Production control is then always able to evaluate the return on investment of overtime usage, especially in terms of earlier shop work order completion schedules.
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