Dinesh Divekar
Business Mentor, Consultant And Trainer

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Dear all,
This is santhosh from working as HR trainee in a manufacturing setup having employee strength of around 700. The management wants to study and given measures on effective utilisation of Manpower in our organization. Need your inputs. Thanks in advance.

Dear,
1. Need to assess all category.
2. Study on their task and how much time they are taking to finish the same.
3. What is the production time (i.e. per shift, per hour, per minute etc)
Once you get this data you will find definitely how you optimum utilization of manpower

Dear Santhosh,

There are two things about manpower. One is effective utilisation of manpower and another effective allocation of manpower. In the former, management decides the tasks and fills the time slots of available. Otherwise, quantum of time is measured to complete the activities and strength of the manpower is decided. Effective utilisation, focuses on curtailment of the idle hours, either of machines or of humans.

Going further, in the effective allocation of the manpower, management measures associated with the departments and then decides about the manpower to manage those ratios. Therefore, in this case, the focus is not on the people or tasks but business results. Managing business results demands people with right knowledge and right skills. Therefore, go back to your seniors and ask them what is their priority, is it manpower utilisation or manpower allocation for the business results.

Since you are from manufacturing industry, your business results would depend on management of the following costs:

a) Inventory Carrying Cost of Raw Materials

b) Work in Progress (WIP) Inventory Costs

c) Inventory Carrying Cost of Finished Goods

d) Capital costs to run the operations

e) Capacity costs

f) Maintenance costs

g) Quality costs

h) Ordering cost

i) Set up cost

k) Inspection cost

l) Rework cost

To manage the above costs, it is just not sufficient to utilise the manpower but to utilise their talent as well. In fact measuring these costs scientifically itself is a challenge.

Example: - While providing consulting services to one of the clients, I found that their Inventory Turnover Ratio (ITR) was too low and there was scope to increase it. When I brought this to the notice of Unit Head, immediately he commented that existing Purchase Manager cannot increase the ITR but he needed to recruit General Manager Purchase to handle this task. This is how change of mind set happens!

Hope you have understood what is the foundation of the manpower planning.

Thanks,

Dinesh Divekar


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