Robust Production Management (RPM) Module 5: Staffing Models

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

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
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Metrilogics
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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

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

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).
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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

Metrilogics
TM
Example of a Staffing Model Template (cont.)
Insurance Example
17

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.

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Robust Production Management (RPM) Module 5: Staffing Models