VAPCO

© Confederation of Indian Industry

• This is a financial measure that relates the Value added by the

company with the Cost incurred towards the people involved in the value addition process.

• This indicator should increase over time.

7. VALUE ADDED PER PERSONNEL COST (VAPCO)

© Confederation of Indian Industry

(Sales Value of Production - Variable Cost)

• VAPCO = --------------------------------------------------------------

Total Personnel Cost

• Variable Cost includes cost of raw materials, bought-out components, sub-contracted processing, consumables, power and payroll costs.

ie. (Material Cost + Payroll Cost + Energy Cost)

VAPCO is measured as a number. This is to be tracked as a month data and year-average data.

Average data is average of the month data so far.

VALUE ADDED PER PERSONNEL COST (Contd.)

© Confederation of Indian Industry

14. VALUE ADDED PER PERSON

This indicator is a measure of the motivation levelsThis indicator is a measure of the motivation levels

and therefore the contribution by the employees. and therefore the contribution by the employees.

Unit of this indicator is Rs / person.Unit of this indicator is Rs / person.

This should increase over time.This should increase over time.

(Sales Value of Production - Variable Cost) VAP = ------------------------------------------------------------

Total Number of Employees

Variable Cost includes cost of raw materials, bought-out components, sub-contracted processing, consumables, power and payroll costs.

ie. (Material Cost + Payroll Cost + Energy Cost)