Human Resources Entries
Workforce Complement entries are made in the Production area.
Workforce Complement controls the number of workers employed by the company. Once production schedules are complete, the spreadsheet will display a Needed Complement. Matching the Workforce Complement to the Needed Complement ensures the company will have suffi cient workers.
Having more workers than needed drives up labor costs as workers stand around doing nothing. Having fewer workers than needed results in worker overtime, which cuts into the effi ciency of the workforce. Having signifi cantly fewer workers than necessary will result in serious production shortfalls because labor will not be available to manufacture the sensors.
Always review the Workforce Complement entry at the
bottom of the Production area after making changes to the
Production Schedule, Training Hours or TQM/Sustainability
initiatives. Serious fi nancial consequences can result if the
Workforce Complement is too low or too high.
Recruit Spend and Training Hour entries are made in the Human Resources area.
Recruit Spend allows the company to attract a higher caliber worker, which will increase the effi ciency of the workforce as measured by the Productivity Index.
Training Hours will also increase effi ciency. However Training Hours increase the Needed Complement because workers are in the classroom, not on the production lines.
Investments in Recruiting and Training raise your Productivity Index, which in turn lowers your per unit labor costs. Scheduling overtime reduces any gains to the Productivity Index. The Productivity Index cannot go below 100%. Refer to the red fl ags on the Production and Human Resources spreadsheets, which activate pop-up explanation windows, for a thorough discussion of Human Resources entries.
Figure 3.2 S-Shaped Curve