9.4.2.  Direct Labor

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The Guide > 9.  Operational Plans > 9.4.  Operating Cost Projections > 9.4.2.  Direct Labor

Confine these head count projections to labor and staff directly or indirectly involved in operations/production. In other words, restrict these projections to personnel involved in creating output for sale or whose numbers vary (fully or partly) with output levels. Present the head count projections for staff engaged in sales & marketing, R&D, management & administration in other subsections.

Indicate the organization structure, human resources (head counts, grades, skills, training etc.) relating to production, warehousing, distributions, maintenance, quality control, customer support etc. Where appropriate, convert part-time numbers to full-time equivalents. If practicable, specify labor productivity trends based on the projected sales volumes and head count levels.

Use simple tables to summarize and place detail in appendices. The following table could be used for a production venture.

Years to end xxMonth:  

20XX

20XX

20XX

20XX

Head count - Direct production

 

 

 

 

Head count - Indirect production

 

 

 

 

Head count - Maintenance

 

 

 

 

Head count - Utilities

 

 

 

 

Head count - Quality

 

 

 

 

Head count - Warehousing

 

 

 

 

Head count - Transport

 

 

 

 

Head count - Supervision

 

 

 

 

Head count - Management

 

 

 

 

Total head count

 

 

 

 

Total production (000 units/year)

 

 

 

 

Output/person (Units)

 

 

 

 

 

This table might be used to determine total and unit payroll costs:

 

Years to end xxMonth:

Payroll Cost
($000/person)

20XX
($000)

20XX
($000)

20XX
($000)

20XX
($000)

Direct production

 

 

 

 

 

Indirect production

 

 

 

 

 

Maintenance

 

 

 

 

 

Utilities

 

 

 

 

 

Quality

 

 

 

 

 

Warehousing

 

 

 

 

 

Transport

 

 

 

 

 

Supervision

 

 

 

 

 

Management

 

 

 

 

 

Total payroll cost

 

 

 

 

 

Total production (000 units/year)

 

 

 

 

Payroll cost/Unit ($)

 

 

 

 

 

The next table might apply to a software business.

Years to end xxMonth:  

20XX

20XX

20XX

20XX

User support

 

 

 

 

Routine product maintenance

 

 

 

 

Production & dispatch

 

 

 

 

Supervision

 

 

 

 

Management

 

 

 

 

Total head count

 

 

 

 

 

The following table summarizes shorter term head counts (for all staffing grades). It was copied and pasted directly from Exl-Plan's built-in Textual Summary Report (more information at http://www.planware.org/exldesc.htm) as a “picture”.


Table generated using Exl-Plan, business financial planner. Pasted from Exl-Plan's
Textual Summary Report  - see Using Exl-Plan with Free-Plan.

The tables above are presented for illustrative purposes. In practice, they may be more appropriately located in an appendix.

For latest information, see the Manufacturing / Operations section in the Business Plan Guide at http://www.planware.org/goperations.htm

 



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