MANPOWER PLANNING AND CONTROL

1. LECTUTRE # 04 COURSE- ENGINEERING MANAGEMENT CHAPTER - 05 MANPOWER PLANNING AND CONTROL COURSE INSTRUCTOR: PROF. DR. SHAHAB KHUSHNOOD MECHANICAL ENGINEERING DEPARTMENT UNIVERSITY OF ENGINEERING AND TECHNOLOGY TAXILA

2. Manpower Planning And Control • Manpower planning and control is one of the essential activities of management for the effective functioning of an organization, whether it is an engineering or non-engineering organization. • The poor management of manpower planning and control activity may be reflected in the quality of output of a company, morale of manpower employed, efficiency of the organization and so on.

3. Classification Of Published Literature On Manpower Planning And Control • A large number of publications have appeared on the topic of manpower planning and control in many forms, e.g. books, journal publications and conference papers. • Most of the published literature may be grouped into nine categories. These are as follows • Span Of Control Concerned with the supervision of manpower by one individual • Organizational Size and efficiency Concerned with the size of organization and its efficiency • Labor Stability Concerned with the manpower turnover • Manpower Planning and Forecasting Concerned with strictly planning and forecasting manpower need

4. Classification Of Published Literature On Manpower Planning And Control(cont…..) • Manpower selection and recruitment Deals with selection and recruitment of manpower • Probabilistic and stochastic models Concerned with manpower planning • Case studies These report the result of real life studies conducted in various parts of the world and within specific industries • Review articles These articles review various aspects of manpower planning and control • Miscellaneous publications Concerned with various aspects of manpower planning and control

5. Manpower Planning And Control • The objective of manpower planning may be defined as “bringing an organization’s manpower into line with the present requirement of the company and its need for a period ahead”.

6. Approaches For Manpower Planning • Manpower planning Procedure 1 • This approach divided into six steps. These steps are as follows • Review manpower operations • Identify corporate strategy • Forecast the manpower demand • Forecast the manpower supply • Reconcile demand and supply forecasts • Exercise control • Manpower planning procedure 2 • This approach has only three phases • Review of present manpower and study of external factors • Manpower resources in future • Monitoring progress results Briefly two procedures used for manpower planning which are essentially based on similar lines

7. Selective Mathematical Models • The mathematical models associated with span of control, labour stability, organization size and efficiency, and learning process are presented here • Model-1 Span of control • This model can be used to calculate • The number of persons, P to be supervised by a leader • The total number of leaders, L in an organization • Hierarchy Levels, K in an organization • Work force, Fw of an organization • The total number of leaders in a company is given by • Lt =Fw (Pk-1)/Pk (P-1)

8. Model-1 Span Of Control • If the company has one president, then the above equation reduces to Lt = (Pk-1)/ (P-1) Because Fw/Pk=0 This gives K= (log Fw) / (log P) And P=

9. Model-1 Span Of Control The following points are to be noted for this method • Span of control is the same at all levels • The organizational levels decrease as the span of control increases • It can be concluded that K is inversely proportional to logPbecause the Fw is constant

10. Model-1 Span Of Control • Example An engineering organization employs 4000 workers at the shop floor level. The number of organizational levels above the working level is equal to 20.Assume that the company has one president and the same number of people are supervised by each persons at all levels. Calculate the number of persons to be supervised by the leader. Here Fw=4000 K=8 Using formula P=(Fw)1/k =(4000)1/8 =3 persons • Each leader should supervise three persons

11. Selective mathematical Models (CONT…) • Model 2-Labour Stability This is simply an index which is used to assess the stability of the work force in an organization. This stability index, S, is defined as follows S=Ts/0.5 m t Where m denotes the number of persons employed by the organization at present Tsdenotes the presently employed persons ‘total length of service in years t denotes the time in years between the mean retirement age of employees and the mean recruitment age

12. Model 2-labour Stability • Example An electronic components manufacturer employs 400 persons. The total length of service of all persons employed by the company is 6000 years. The time between the mean retirement age and the mean recruitment age is 25 years. Calculate the value of the stability index. Here Ts=6000 years T=25 years m=400 employs Putting values in equation S=Ts/0.5 m t S=6000/ (0.5) (400) (25) =1.2 • The value of the stability index, S, is 1.2.Therefore it indicates that the company manpower is excessibly stable.

13. Selective Mathematical Models (CONT…) • Model 3-Organization size and efficiency This model is directed towards organizations which basically deal with paper study oriented tasks such as research. The total number of publications or reports, K, produced by a department or an organization annually is given by K=(240 β)/Tw + Tr β µ)

14. Model 3-organization Size And Efficiency(cont…) • β represents the total number of professional persons employed in the organization or the department • µ denotes the fraction of all publications received by the average professional person; in other words, those reports which the person in question is expected to read • Trdenotes the mean time to read one report by a professional person • Tw denotes the mean time to accomplish one report by a professional employee. This time includes the time spend on investigation, analysis, writing and so on. • It is assumed that in one year there are 240 workdays. As the number of professional persons, β,becomes very large the value of K approaches the upper limit; i.e. Kˊ=240/ µ Tr • The efficiency, E, of the organization is defined by E=K/Ko= • Where Kodenotes the number of reports which can be produced if no time was spent for reading any report.

15. Model 3-organization Size And Efficiency(cont…) • Example A consulting organization’s basic task is to conduct various types of engineering research. The company employs 500 professional persons to carry out such tasks. Each employee works eight hours per day and 240 days per year. In addition, each professional employee spends on average 2 days to read a report written by others and 25 days to write his report. The writing time incudes time spent on investigation, analysis, writing and so on. Each professional worker reads only 1/5 of the total reports received per year. Calculate the total number of reports to be produced annually by the company. • β =500 professional employee • µ=1/5 • Tr=2 days • Tw=25 days Sol: Using equation K=(240 β)/Tw + Tr β µ) =240(500)/25+2(500)(0.2) =533.33 repots per year • Therefore the company will produce approximately 533 reports annually.

16. Selective Mathematical Models (CONT…) • Model 4-The learning Curve • This model is based on the fact that the more frequently a person or a worker repeats a specified task, the more efficient that person will become .In this case the time reduction results from the learning phenomena. • The following equation is used to represent the time reduction curve Z=tfy-α Where • Z denotes the cumulative man-hours per item • Y denotes the quantity of items produced • tfdenotes the time taken to produce the first item • α represents the curve exponent

17. Model 4-the Learning Curve (Cont….) • Example In the aircraft industry it was found that if an aircraft’s first unit took 2000 man-hours to manufacture, the second unit took only 1600 man-hours (in other words , to produce two units, the time will be 3200 hours instead of 4000 hours), the forth unit absorbed 1280 man –hours, the eight unit required 1024 man-hours , the 16th unit took 819.2 man-hours and so on. It means that to double production of the airplane units it required only 80% of the previous time. For example, to produce the forth unit, it took only 80% of man hours(i.e., 1280 man-hours) of second unit (i.e.,1600 hours).Therefore in the aircraft industry the 80% learning factor is widely practiced. • To estimate the value of α for the 80% learning factor we assume that the time to produce the first unit and the second unit is given by the following equations, respectively: Z1=tfy1-α Where Z2=tfy2-α • Z1 is the time to produce first unit, y1 • Z2 is the time to produce second unit, y2 Now Z1/ Z2= y2-α/ y2-α

18. Model 4-the Learning Curve (Cont….) • To double production at 80% learning factor we let y2=2y1=2,000 man-hours, and z2=1600 man-hours in equation as follows 2000/1600=(2y1)α/y1 5/4=2α • So α=0.3219 Thus at 80% learning factor Z=tfy-0.3219 • Similarly the calculated values of α at 95%, 90%, ,85%,and 75% learning factors are 0.07,0.15,0.23 and 0.42, respectively. Thus • For 95% learning factor Z=tf y-0.07 • For 90% learning factor Z=tf y-0.15 • For 85% learning factor Z=tf y-0.23 • For 75% learning factor Z=tf y-0.42 • The plot of equation Z=tfy-α • For the various given values of α are shown as

19. Model 4-the Learning Curve (Cont….)

20. Model 4-the Learning Curve (Cont….) • Example A company is to produce 16 identical parts of an engineering system. To manufacture the first part requires 2000 man-hours. When the production of the unit is doubled, the per unit manufacturing time is reduced by 80% (i.e. the 80% of the time before doubling the production) Calculate the total number of man-hours needed to manufacture 16 parts. • Using equation Z=tfy-0.3219 = (2000) (16)-0.3219 =819.2 man hours • This means to produce 16 units, the per unit average manufacturing time will be 819.2 man-hours. Thus to manufacture 16 components, the total time, is equal to T= (819.2) (16) =13,107.2 man-hours

21. THANKS