Copyright © 2005 Metrilogics, LLC. All rights reserved.
Robust Production Management
Metrilogics
Front-line controls for b...
Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
Definition of a Staffing Model
Staffing Models enab...
Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
Key Staffing Model Variables and Calculations (cont...
Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
Key Staffing Model Variables and Calculations (cont...
Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
Example of a Staffing Model Template
Staffing Model...
Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
Example of a Staffing Model Template (cont.)
Staffi...
Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
Example of a Staffing Model Template (cont.)
Insura...
Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
About the Author
After earning his MBA degree from ...
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Robust Production Management (RPM) Module 5: Staffing Models

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Labor often represents 45% or more of a given company's annual costs, and it's the one variable that's typically the easiest one for management to adjust quickly. Still, when companies face challenging times - either due to a need to 'ramp up' or 'scale back' team resources - managers are typically most reluctant to change staffing levels. This is often out of a genuine sense of concern for team member morale - but it's also just as often due to an inability to objectively determine optimum team sizes, performance levels and costs necessary to 'get the job done.' Robust Production Management (RPM) Module 5: "Staffing Models," provides the tools, formulas, calculations, and templates that can help managers in any company - of any size or type - optimize team sizes through the use of objective data. With RPM Module 5, you no longer have to guess at the required size of your teams - you'll KNOW. "Staffing Models" is the fifth module in the Metrilogics RPM management training series - more on the way.

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Robust Production Management (RPM) Module 5: Staffing Models

  1. 1. Copyright © 2005 Metrilogics, LLC. All rights reserved. Robust Production Management Metrilogics Front-line controls for bottom-line savings. TM SM Module 5: Staffing Models By Lance Latham Senior Managing Partner
  2. 2. Copyright © 2005 Metrilogics, LLC. All rights reserved. Metrilogics TM Definition of a Staffing Model Staffing Models enable managers to incorporate all performance variables into a single objective and easy-to-use analysis and planning framework. When completed, Staffing Models provide precise crewing levels necessary to “get the job done” - without excessive operational costs or waste. Key variables accounted for within comprehensive Staffing Models include: v Task hourly capacity rates v Task volumes for a given period (monthly, quarterly, annual, etc.) v Indirect Hours by category v Actual or target Quality levels v Actual or target Productivity rates v Loaded team resource compensation 2 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/robust-production-management-rpm-module-5-staffing-models-463
  3. 3. Copyright © 2005 Metrilogics, LLC. All rights reserved. Metrilogics TM Key Staffing Model Variables and Calculations (cont.) From Module #2 (“Performance Framework”), the various types of Indirect Hours – i.e., paid time not dedicated to performing core customer work - include: v Project time v Meetings v System downtime v Classroom training v Equipment changeovers v Paid breaks v Sick time v Vacation v Holidays v PTO (if paid) v STD (if paid) v LTD (if paid) Some Indirect Time categories (e.g., system downtime, meetings, project time and classroom training) are work-related, and make up Lost Time. Other Indirect Time categories (e.g., paid breaks, sick time, vacation and holidays) are non-work related, and represent different types of Paid Time Off. 5 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/robust-production-management-rpm-module-5-staffing-models-463
  4. 4. Copyright © 2005 Metrilogics, LLC. All rights reserved. Metrilogics TM Key Staffing Model Variables and Calculations (cont.) Some variable forms of Indirect Time may apply to a subset of a given team. From a Staffing Model perspective, it is still useful to quantify the time as a percentage, although the calculation becomes a little more complicated. x 8 paid STD wks. / 52 paid wks. = 1.23% Calculate planned STD time for the team as a percentage of total annual paid team hours. As an example, assume that on average, 2 members of a 25- member team typically each take 8 weeks of paid Short Term Disability (STD) each year out of a total of 52 annual paid weeks. 25 total team members 2 team members ( ) 8 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/robust-production-management-rpm-module-5-staffing-models-463
  5. 5. Copyright © 2005 Metrilogics, LLC. All rights reserved. Metrilogics TM Example of a Staffing Model Template Staffing Model Header: Baseline data including team member count by role; loaded average annual team member salary; base period data range; target productivity and quality percentages, and standard weekly paid hours @ straight time only. Staffing Model Body: Detailed base period operational data, including tasks, hourly capacity rates and volumes; indirect fixed hours; indirect variable lost time percentages, and indirect variable paid time off percentages. Staffing Model Summary: Electronic Staffing Model template automatically provides a verbal explanation of optimum required team member staffing level, and the cost savings potential relative to current staffing (as indicated in the ‘Header’ section at top). 11 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/robust-production-management-rpm-module-5-staffing-models-463
  6. 6. Copyright © 2005 Metrilogics, LLC. All rights reserved. Metrilogics TM Example of a Staffing Model Template (cont.) Staffing Model Body (Middle Section – cont.) 9 Enter indirect variable ‘Lost Time’ information and percentages for the base period (see Step 5 in the ‘Header’ section) in the shaded cells. The white cell automatically totals the entered percentages. 10 Enter indirect variable ‘Paid Time Off’ information and percentages for the base period (see Step 5 in the ‘Header’ section) in the shaded cells. The white cell automatically totals the entered percentages. 11 Automatically totals Step 9 and Step 10 percentages. 14 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/robust-production-management-rpm-module-5-staffing-models-463
  7. 7. Copyright © 2005 Metrilogics, LLC. All rights reserved. Metrilogics TM Example of a Staffing Model Template (cont.) Insurance Example 17 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/robust-production-management-rpm-module-5-staffing-models-463
  8. 8. Copyright © 2005 Metrilogics, LLC. All rights reserved. Metrilogics TM About the Author After earning his MBA degree from the Indiana University Kelley School of Business in 1992, Lance Latham embarked on a successful career in operations management and process improvement - including roles as a hands-on operations manager, consultant and project manager in the manufacturing, warehouse / logistics, financial services and IT sectors. Regardless of company size or business arena, Lance consistently demonstrated that the same management methods that raise output quality, increase productivity and efficiency, and drive down operational costs in one environment are equally effective when applied in another. This unique set of concepts, techniques and tools – acquired through first-hand application and refinement over many years, and in various environments – led to the Metrilogics “Robust Production Management” (RPM) performance improvement and cost reduction framework. This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/robust-production-management-rpm-module-5-staffing-models-463
  9. 9. 1 Flevy (www.flevy.com) is the marketplace for premium documents. These documents can range from Business Frameworks to Financial Models to PowerPoint Templates. Flevy was founded under the principle that companies waste a lot of time and money recreating the same foundational business documents. Our vision is for Flevy to become a comprehensive knowledge base of business documents. All organizations, from startups to large enterprises, can use Flevy— whether it's to jumpstart projects, to find reference or comparison materials, or just to learn. Contact Us Please contact us with any questions you may have about our company. • General Inquiries support@flevy.com • Media/PR press@flevy.com • Billing billing@flevy.com

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