The production of Oscars is performed with direct materials and primarily by direct labor. As Joseph Petrie states in a video about Oscars, each statue “is done entirely by hand” (“How to Make,” 00:01:11-00:01:14). The main direct material used to make an Oscar is a raw metal, which is melted at first and electroplated into gold at the end (“How to Make,” 00:01:25-00:01:30, 00:01:45-00:01:54). Although Oscars are made with one material, they are produced by plenty of people who belong to several departments. Production’s direct labor includes employees from the Hand-casting, Polishing, and Graving departments and the Final Assembly (“How to Make,” 00:00:23-00:02:03). In particular, the video shows specialists who melt the metal and work with the casting, remove the parting lines, polish, engrave, bathe, and assemble each statue (“How to Make,” 00:00:27-00:02:03). Every task is done separately by experts like Loise White, who has been engraving Oscars for decades (“How to Make,” 00:01:28-00:01:36). One direct material and multiple people participate in producing the Oscar statues.
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Following that, indirect labor is also involved in the production of Oscars. Such employees are represented by those who work at R.S. Owens but do not directly partake in the production process. Therefore, the video does not portray these people, but one can presume their positions based on other workers’ tasks. For example, indirect labor can include drivers who deliver raw metals, janitors who clean the floors from parting lines, and electricians who maintain machinery like the one used to polish the statues (“How to Make”). Moreover, the production of Oscars is likely to incur some indirect manufacturing costs. For instance, these costs can comprise utilities and machine maintenance, such as additional nails or lube oil. Without indirect labor and materials, delays in the production process can occur.
“How to Make an Oscar Statue.” YouTube, uploaded by CNN Business, 2015, Web.