How Can We Reduce Excess Manpower in Production Without Hurting Productivity?

Prashant Chaudhary
Dear all,

Please tell me how we can review the contractual manpower of any production unit. My target is to reduce manpower and increase productivity. Currently, we are working with excess manpower (over budget).

Please suggest and forward a flow chart to help me work efficiently.

Thank you.
zaherminkara
Dear All,

If your target is to reduce manpower and increase productivity, you should make a statistics in terms of KPI (Key Performance Indicator). There are several assessment methods for this ratio, depending on the industry you are working in and various criteria. In the following example, I used a simple analysis method just to demonstrate how it should be done.

For example, if you have 20 salesmen, and the goal for the current year is to reach $1 million of revenue, it means each staff member should contribute $50,000 to the revenue. You can compare this number to the achieved figure within the year, making the ratio (current number / achieved number) to evaluate.

I hope this short explanation will be helpful.

Regards,
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