Which roles are considered overhead in a manufacturing setting?

In a manufacturing setting, roles classified as overhead are those that do not directly contribute to the production of goods but are essential for the overall functioning and management of the organization. Legal, Human Resources (HR), and executive management roles fall into this category because they are involved in supporting the business operations, compliance, personnel management, and strategic decision-making.

Overhead costs, also known as indirect costs, are necessary for production but cannot be directly attributed to any specific product or service. For instance, legal staff manage contracts and ensure compliance with laws, HR manages employee relations and staffing, while executive management oversees the strategic direction of the company. These functions are vital for facilitating the production process but do not involve direct engagement in manufacturing activities.

In contrast, production workers and engineers are directly involved in the manufacturing process, making them direct labor instead of overhead. Quality control inspectors directly assess the products being manufactured, and sales and marketing teams actively work to sell the products, which engages them directly with the production output as well.