Impact of COVID-19 on Manufacturing Overhead Cost: A Case of an Electronic OEM Company in Guangdong, China

Abstract

This research analyzes the data of the manufacturing overhead costs (MOHC) of a plant in an electronic OEM company (located in Guangdong, China) during and after the COVID-19 pandemic. A paired t-test and a multiple variable regression analysis are conducted. MOHC and other indications are visualized by time sequence diagrams to facilitate the identification of the difference between mid- and post-pandemic. Through diving deeper into the effect of COVID-19 on the MOHC, Unit MOHC, and shipment, the overall influence of COVID-19 on the entire electronic OEM industry can be inferred. It is concluded that COVID-19 has influenced MOHC, Unit MOHC, shipment, and employee size, which may bring forth a paradigm-shifting experience on how people view the influence of COVID-19 on the entire electronic OEM industry and pave the way for further research afterward. This paper fills the research gap by focusing on one plant in one company, avoiding the difference in MOHC among different companies and plants.