Value Added Per Person
VAPP is a financial measure that relates the number of direct employees in the conversion process to add value to the product. VAPP has a direct input on the costs associated with a process and shows specifically how well people are used to transform materials into the finished product.
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Output Value (sales) - Input Cost (Material, Sub Contract, Wages)
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VAPP =
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No. of direct operators involved
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- Units : £ per person
- Data Required
- Annual sales
- Material cost
- Sub Contract cost
- Total cost of wages
- Number of employees involved
