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Manpower cost controlled through installation of dynamic assessment tool

Manpower cost controlled through installation of dynamic assessment tool

Ma Foi reduced the manpower cost by 25% through systematic measurement and standardisation of effort

Situation

The client an OEM in weighment industry and also a tier 1 automotive supplier of repute, was facing high manpower costs when compared to industry benchmarks. Manpower excess was felt by the management in both manufacturing and sales & service departments, but they were not able to quantify the right headcount required for the business

Corrective Action

Ma Foi analysed in detail all the manufacturing processes across the multiple facilities of the organisation and with the sales, service and support functions. We defined the capacity of the manufacturing plants and proposed method changes to migrate from process layout to product layout, standard work combination charts and man-machine mapping tools were deployed to determine the optimal manpower requirement for production function.

For all non-positional roles the quantum of full time equivalent effort required was scientifically computed by listing the activities, mapping their frequency, time taken drivers and relevance to turnover. We accompanies the sales and service staff and ascertained the quantum of effort through quantitative modelling techniques.  A dynamic manpower assessment tool was created with revenue being the primary driver of the business, the tool would enable the organisation to project its manpower requirement across various department by simulating various business scenarios. To facilitate short term decision making we developed work load assessment tools which would be used by HR department to quantify manpower requirement in an area due to either increase or decrease of efforts.

Result

  • Projected manpower savings was 25% of the original budget
  • Installation of dynamic tools to project manpower requirements
  • Plant wise productivity measurement systems were implemented to ensure sustainability of the implementation

sandeepSandeep Dahiya,
CEO / Director
Sandeep@mafoibusinessconsulting.com
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joeJoe Prasanna
Principal Consultant
joe@mafoibusinessconsulting.com
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