Effective Utilization and Allocation of Manpower
There are two aspects of manpower: effective utilization and effective allocation. In the former, management decides the tasks and fills the available time slots. Alternatively, the time required to complete activities is measured, and the necessary manpower strength is determined. Effective utilization focuses on reducing idle hours, whether for machines or humans.
Effective Allocation of Manpower
In effective allocation, management assesses departmental needs and decides on the manpower required to achieve business results. This approach emphasizes business outcomes over individual tasks, requiring people with the right knowledge and skills. Consult with your seniors to determine their priority: manpower utilization or allocation for business results.
Since you are in the manufacturing industry, your business results depend on managing 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 operations
e) Capacity costs
f) Maintenance costs
g) Quality costs
h) Ordering cost
i) Set-up cost
j) Inspection cost
k) Rework cost
To manage these costs, it is crucial not only to utilize manpower but also to leverage their talent. Scientifically measuring these costs is a challenge.
Example: While providing consulting services to a client, I discovered their Inventory Turnover Ratio (ITR) was too low, indicating potential for improvement. When I informed the Unit Head, he immediately noted that the current Purchase Manager couldn't increase the ITR and suggested recruiting a General Manager Purchase for this task. This illustrates a change in mindset!
I hope you now understand the foundation of manpower planning.
Thanks,
Dinesh Divekar