IDEA: Analyze overtime costs because its cause may be hiding other problems that cut into profits.

Analyze causes of OT because the reasons indicate numerous other problems in your company.  Perform this analysis daily so the reasons do not get lost. Find out the actual cause of your overtime on a regular basis. Daily investigation is best because it is easier to cover, one shift per person, analyze only the OT, investigate the causes and discover your supervision, production, maintenance and various supply chain management problems. The longer you wait, the less information others remember. Ask supervisors to explain their assigned workers hours over forty per week. The reasons may disclose some of the following problems such as:  1.) Missed billings opportunities when customers arrive late causing OT and are not billed for it, 2.) Employees come in to work on Saturdays or work after office hours to file or catch up work not done during the day, 3.) Machine operators are working longer hours to get the same production on older machines (need new capital justified by OT savings).  Employees should not be working overtime without getting preapproval. Working without persmission is a problem with no scrutiny of the reason or justification.