Manpower Requirement Calculation

Manpower requirement calculation is now a vital part of all manufacturing industry in this competitive world. Because it will help to invest your money wisely. In this article we will explain how to calculate manpower required for a manufacturing industry with example.

Please note there are two types of Manpower Direct Labour (DL) and Indirect Labour (IDL). In this article we are only dealing with DL.

What you will get from this article:

1. Watch Training Video at the end of this article.
2. Download Manpower calculation excel templates.
3. Formula to calculate manpower.
4. Manpower calculation explained with examples.
5. An opportunity to use our online manpower calculation tool.
6. Get in touch with our Manpower calculation experts.
7. Manpower Availability Factor (MAF)

Download and Practice manpower calculation

The Calculation

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The formula in the picture gives the manpower required per shift for producing n no of products per day. t is the total standard man minutes required for producing one unit. w is the working time of an employee per shift and s is the no of shifts per day. Standard times are arrived using Time and Motion Study technique.

Note: Please note that this formula is only applicable where enforced idle of the operator is not present in the operation. Enforced idle means the operator is forced to be idle due to some other reasons of his working environment. For example, some operators of the balanced assembly line will be idle to some extend, especially the operator at the operation which has the lowest cycle time, waiting for his turn. This is not avoidable because we cannot balance the assembly lines at 100% perfect.

For calculating manpower for balanced assembly line there is another method and click here to know more.

Coming back to our basic manpower calculation…

Also in this calculation it is assumed that every operator is skilled for every operation and they are ready to do all operation whenever needed. In this calculation method its assumed that operators move around workstations to do operations and to avoid the Idle time.

This calculation is applicable where product demand is varying, for constant demand we should set an balanced assembly line.

For varying demand and low volume high mix production, this is the only method to achieve higher manpower efficiency. But requires highly skilled supervision to allocate operators to the process.

And manpower allocated through this method will be the minimum possible than other method, with same cycle time.

Get Trained on Manpower requirement calculation

We will be conducting a live interactive training session on manpower requirement calculation once in a month. Learn about different methods of manpower calculation and become an expert on this topic.

Duration of the training will be 15 to 30 minutes and we will be using google meet platform for training.

This will be a great opportunity to learn manpower calculation from experts and an opportunity to clear doubts.

Don’t miss the opportunity.

If you are interested to attend the next training, click here.

We welcome candidates across the globe to attend this training. All training sessions will be conducted in English. Please ensure you are comfortable with English communication. Training will be for manufacturing industry.

Download Manpower Templates (3 nos)

Download and Practice Manpower Calculation

Choose the suitable Excel template and use it along with this article to understand manpower requirement calculation clearly.

T-001

Manpower Calculation Using Takt Time

Template No: T-001 Free

Download Free

T-002

Standard Manpower Calculation Template

Template No: T-002 Free

Download Free

T-003

Balanced Assembly Line Template

Template No: T-003 Free

Download Free

These templates are useful for takt-time based calculation, standard manpower calculation, and balanced assembly line manpower calculation.

Importance of efficiency in manpower requirement calculation

Its better to consider 85% efficiency in the manpower calculation for getting the practical results. This efficiency is accounted for loses such as power failure, material shortages, speed loses, rework, defects, etc. If efficiency of your operation is better or lower than 85% you can use that value instead of 85%.

Example of manpower calculation

Situation : A customer wants a product P at the rate of 5000 units per day. This product P have three operations A, B & C, which requires man minutes 5, 8, 6 respectively. The company works for two shifts per day and working time per employee is 420 minutes. Normal efficiency of the operations of the company is 85%.

If you don’t know what is man minutes or man hour, read this article on man hour and come back.

Lets do some calculation…

Calculation:

So in this situation this company needs 134 peoples per shift for satisfying its customer demand (268 peoples per day).

We can also calculate manpower required directly from takt time.

Manpower Availability Factor (MAF)

How will you consider the leave of employee in manpower calculation? Here comes the importance of MAF. If this is not considered, when some one took leave, there will be shortage of manpower and you will loose production.

The manpower calculation method we discussed above is exactly what needed for the production, it does not include leave or manpower availability factor.

There is a great calculation for (MAF), we will discuss in below section.

The Calculation

Let’s say total working days of the factory is 300. Please note, we will be using this 300 to calculate daily demand from annual demand.

Now, we need to calculate leave days per employee..

Say…

Casual Leave =12

Sick Leave = 10

Earned Leave = 18

Total = 40 Leaves per year.

Now, lets consider employee will take all leaves and then total working days per employee will be 300 – 40 = 260 days per Year.

Now we are ready to calculate, MAF.

MAF = (Total Working days – Leave days) / Total Working Days

= (300 – 40) / 300

= 260 / 300

= 86.67%

Now what to do with this MAF?

Required Head count = Manpower Needed / MAF

Considering our previous example,

Required headcount = 134 / 86.67%

= 155 per shift.

and 310 per day.

Now its perfect.

Note one thing, historical leave pattern is very important here, since all employees will not take all leaves. And also no of leaves per day will vary. So, this 86% is a buffer manpower for leave, so manage this effectively.

Also if you have HR system to call people whenever necessary on a day, this leave factor is not applicable.

Importance of capacity analysis in manpower planning

Please note that, if any equipment are using for these operations we need to do capacity analysis for the equipment before recruiting the peoples, otherwise if there is no enough equipment these manpower will be idle. I will explain the capacity analysis in another post. 

Manpower requirement calculation tool

We have prepared a tool for calculating the manpower required as described in this post. You only need to enter the values asked in the tool and click the ‘calculate manpower’ button. Then you can see the result. I am sharing its link below.

Click here for manpower requirement calculation tool

There is a different method to calculate manpower for office and clerical jobs. You may also refer that article.

Thank You for reading.

Still after reading this article and using our manpower calculation tool, you think you need our assistance in manpower calculation for your own organisation or for organisation you work with… we are ready to serve you as a paid service. Charge depends on the project. To know more contact us through our official WhatsApp account.

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Topics related to Manpower requirement calculation

Before you leave this page, try searching the below topics that is related to manpower requirement calculation. This will help you to explore more about this topic.

1. Manpower planning software
2. Workforce planning tools
3. Strategic workforce planning
4. Human capital management software
5. Talent acquisition software
6. Recruitment management system
7. Applicant tracking system
8. HR analytics software
9. Staffing agency software
10. Payroll software for staffing agencies

Manpower calculation for balanced assembly line with consistent demand

To know how to calculate manpower for balanced assembly line with consistent demand download the below excel file. The enforced idle come into play, while dealing with balanced assembly line. In this manufacturing lines, the work stations are close to each other and one operator takes input from the other operator and there will not be much inventory between these work stations.

So in this case, if different workstation or operator have different cycle time, enforced idle come in to play. Although we can balance the cycle time of the assembly line using line balancing technique, its not possible to achieve 100% balancing.

Every step is explained in detail with example, in the templates. Templates are available to download at the end of this article.

Looking for Custom Manpower Calculation Templates?

We have provided three types of manpower calculation Excel templates, an online web tool, and an explanation of how to calculate manpower, in this article. If you need more customized Excel templates, our development team is ready to assist you.

These custom excel templates will help you in any of your manpower requirement calculation needs and manpower planning, for long term.

Contact us, and we will create an automated Excel template tailored to your needs. Please fill the form below and our team will get back to you to support you on custom manpower requirement calculation.

Learn Manpower Calculation from this YouTube Video Tutorial

We explained the calculation in this video. Have a look.

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