Dinesh Divekar
Business Mentor, Consultant And Trainer
Kritarth Consulting
Spl Educators Posh Programs
Lordson Newton
Hr - Executive
Tajsateesh
Recruitment/talent Acquisition, Career Counselling
Rdsyadav
Educator, Management Consultant & Trainer
+1 Other

Good Day, I'm working as an HR - Generalist for a mid scale Fabrication industry, who offer processed steel products to Customers like BGR, BHEL, Volvo etc.

At the moment we are having a huge man power crisis between the production department and the HR Department, we have been providing the needed man power for the production and still their need for the man power only increases day by day. We couldn't arrive to a point where we have filled all the requirement for the production department.

Now it's has become a practice for the Production dept whenever there is a short fall in the production, they put the blame on us.

Now my question is: Is there any way we can calculate a production rate of a skilled person? like how much output he can give in a day. If we could arrive to an figure we would be able to manage the need of the man power in production dept.

Type of work: Welding, Grinding, Fit-up

Steel plates of an average of 70 - 80 mm each.
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Dear HR Manager<

Your Question Is: Is There Any Way We Can Calculate A Production Rate Of A Skilled Person? Like How Much Output He Can Give In A Day. If We Could Arrive To An Figure We Would Be Able To Manage The Need Of The Man Power In Production Dept.

Ans: Yes, the answer is in your Question, however, not tailor-made. Execute Rationalization of Manpower/Workforce Exercize, ex cathedra, Immediately to ascertain i) No of Persons actually needed for each Job/Task, Process, sequence of activities etc; ii) Qualification and relevant Work Experience and other Suitability ( energy, stamina, strength);
iii) Quantity (Volume) with Qaulity (product specifications) for each section/Unit of Output-wise; iv) Conditions & Hours of Work and inter alia v) Remuneration ( Rate of Pay and Scale of Pay) Once you arrive at the Standard Force No and Working Force No, you shall be in a position to Finalize the Production Incentive Schemes for various Groups. This exercise may reveal few Restrictive Work Practices & Unhelpful Work Habits in the systems.

Kritarth Consulting Team is available for further consultations, if required.

Kritarth Team
21 Feb 2016
Dear Lordson Newton,

The problem of this kind arise when workload analysis and demand analysis is not done. Therefore, you need to do this analysis first. Manpower requirement is correlated to the production demand. Have you found out this correlation for each section within the production department?

Secondly, your PPC department must be sending the production demand to Production department. In that case, sit with production and PPC, identify the ratio of manpower and demand and then try fulfilling the manpower requirement.

Going further, you need to identify whether there is optimum utilisation of the manpower. Identify the scope to improve this optimisation.

To handle problems of this kind, you also need to take assistance of the external consultants. External consultants are better for two reasons. First one is that they see as a third party. Second is that production will never listen to you even if you give best suggestions. They will mellow in front of the external consultants. For further assistance if any, feel free to contact me.

Thanks,

Dinesh Divekar


Dear Lordson Newton,
This is a typical problem faced in a manufacturing unit. You need to work with your production department and arrive at the average productivity per person.
This can be done by calculating the number of units produced in a day/shift, divided by number of operators required to produce them in a day/shift . This will give you an average productivity. Take into account the number of units you need to produce in a day/shift based on the orders, existing number of operators, average absenteeism and workout a manpower plan.
You need to also take into account your regular attrition and plan accordingly.
regards
Vineeta.
Hello Lordson Newton,

Like Dinesh Divekar & Vineeta mentioned, this situation is quite common in most manufacturing Units.

However, BEFORE implementing Dinesh Divekar's suggestion of involving external Consultants [quite often this gives a different perspective than from those internal], suggest FIRST do some comparision with similar Units in your Location--I am sure Mumbai would have many such units like your's doing similar, if not the same, activity. You would need to interact with the HR of those Units to get an accurate picture.

That will give you a benchmark on which to base your argument to convince your management to hire outside consultants to do a systematic Work Study. Quite often, managements hesitate to hire outsiders for such activities as they fail to co-relate the advantages vis-a-vis the expenses.

If you find there are Companies in similar line who are producing same or better output for lower/same staff strengths, the line you can take is clear: 'When their production is the same for x staff strength, why can't our Company do the same?'.

Once you have the data for other such manufacturing Units, you will firstly be clear yourself where YOUR Company stands in the industry you are in, w.r.t. this aspect. For all you know, the truth MAY be somewhere in-between--to what your Production Dept is saying & to what HR/Management feels it ought to be.

All the Best.

Rgds,

TS
Hello!!!
The manpower is one of the costliest resources , needs proper planning and budgetary control. Some companies have peculiar methods to do wituh budget. BK Birla group has daily budgetary monitoring and control over the manpower cost, Overtime, power, steam, water, chemicals and so many other things including daily production. Its not only required for few things, budget is needed for all those things required to achieve production, PBT, Sales as well.
Therefore, please practice with budget, review and exercise alternatives. You can have casuals, contract labours as buffer stock , apprentices, daily wagers, badlis as replacement when there is break down, project work and reduce cost due to increase in absenteeism, overtime . Whole exercise is, to align flawlessly achieve production target, PBT, QUALITY, SALES Volume aligning with HR as strategic partner in routine action plan.

RDS Yadav,
Director,
Future Instt Of Engg and MANAGEMENT TECHNOLOGY
Labour Law Adviser
navtaranghrs@gmail.com
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