How many people does it take to staff your schedule? (Part 2)

There is a short answer and a long answer to this question.  Here is a link to the short answer.

As for the long answer:

Take a look at the “short answer” in the previous blog post.  That is a good place to start.

The following should be considered to refine the number you get using the “short answer”:

  1. The cost of full-time labor matters.  How much does it cost you to pay someone for an hour of straight time?  How much does it cost you to pay for an hour of overtime?  I am not talking about “how much an employee receives.”  I’m talking about cost-to-the-company.  If you do the analysis correctly, you should find that the two costs (overtime and straight time) are within 10% of each other.  This is important because the amount of overtime you use will play a big factor in staffing levels.  For a fixed workload, the higher the overtime, the lower the staffing level you need.
  2. How much training does it take to qualify an employee for a position?  It is likely that there is a wide variance in this with regard to different positions.  Do Not use and “average”.  If you need an astrophysicist and a box stacker, an average will give you a bad number (4 years of post-graduate study for the physicist and 5 minutes for the stacker = about 2 years, on average, to train an employee).  Long training times lead to increased use of overtime and less reliance on other labor options such as temporary help.  If your workforce is staffed with highly skilled people, whose skills are easily transferable to another nearby company, then you will have to bend a more towards compensation scheduling and employee preferences for overtime so as to not lose these people.
  3. How variable is your workload?  If your workload level is flat, you will still have some fluctuations in staffing as people are on vacation or FMLA, etc.  When staffing fluctuates, you have extra staffing available or you can use overtime or you can reduce production.  Cost, degree of variability, employee preference and the nature of your operations will all play a role in determining how you staff for variability.   It’s worth noting here that the most expensive option is to over-staff or staff for peak production as this leads to frequent over-staffing which is costly. A highly variable workload tends to mean lower staffing and higher overtime.
  4. How available are alternative sources of labor? Is your workforce pro-overtime or overtime-adverse?  Is temporary or part-time labor available? If you are in Memphis and need temporary, highly skill forklift drivers, there are temp. agencies that can give you all this type of labor that you want.  However, if you need those same temporary skills in San Francisco, you may need to “grow your own.”  Can you scale back with seasonality by using shorter workweeks or voluntary layoffs?  Note: If the answer is no, the staff to the lower end and use overtime when things get busy.
  5. What about support activities?  Things like maintenance, engineering, quality shipping/receiving and administration all need to be staffed appropriately as you grow (or shrink).  There is no simple formula for how to staff these as there is often not a “straight line” relationship between staffing numbers in operations and staffing numbers for support areas.  For example, a 30% increase in operation staffing does not mean you need 30% more CFO’s.  In some areas, you may actually find that you need less support staff.  For example, maintenance struggles to fix everything on the weekend but if you go to a 24/7 schedule, maintenance can now take place any time in the week; including weekdays where it can be performed more efficiently.
  6. Are you LEAN?  It’s “old school” to think you should stockpile between cells in a value stream to ensure you never run out of product either upstream or downstream.  Instead, just-in-time is what modern operations strive for.  Many companies can maximize or throttle production using staffing alone.   This may mean you staff an area below its maximum capacity to ensure it does not outrun its value stream neighbors.
  7. What is the opportunity cost of lost time?  This must be a consideration if you are going to staff with as few people as possible.  You may save a lot of money by having fewer maintenance specialists but then you might lose even more money if you suffer downtime because you are understaffed.

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Call or text us today at (415) 858-8585 to discuss your operations and how we can help you solve your shift work problems. You can also complete our contact form and we will call you.

Covering a 12-hour Vacancy

There is no doubt that shift workers prefer 12-hour shifts over 8-hour shifts. It’s not that they like being at work for an extra four hours. They like the additional 91 days off a year.

Therein lies the problem.

With so many days off, it seems that the crew you need to get in touch with for absentee coverage is always gone.

8-hour shifts offer the following two conveniences: First, you can always ask an 8-hour person to stay over. They are already at work so contacting them simply means walking out to their work station and tapping them on the shoulder. Secondly, they are at work on 75% of the days of the year. If you need to change their schedule on a specific day, the chances are good that you just go out onto the work floor and tell them. They are probably there.

12-hour shifts have neither of these advantages. You don’t want to ask a 12-hour person to stay over for 4, 8 or even 12 hours. Also, they only work 50% of the days in the year. So, if you want to go out on the floor to tell them their schedule is changed, there is a 50/50 chance that they are on a day off and not on the floor.

The single biggest reason, by far, that companies on 12-hour schedules contact us is because of problems with absentee coverage.

People are on their days off when you need them. Your supervisor makes one call after another until someone answers their phone and is willing to come in. This is a time-consuming process that takes your most expensive asset and turns it into a telemarketer.

There is a solution.

Shiftwork Solutions and Shifthound have partnered together to develop software that greatly simplifies absentee coverage on 12-hour shifts. While it works with all types of shifts, the 12-hour schedule tends to have the biggest problem and would thus have the biggest benefit.

The program takes advantage of the overwhelming prevalence of cell phones, text messages, and the internet.

For example, if there is a last-minute opening, a supervisor can send out an overtime request to an entire crew that is scheduled off. Instead of making one call after another, everyone is notified in moments.

We know that about 20% of all shift workers will work all of the overtime they can get. If an entire crew is notified of an overtime opportunity, the positive responses should come in quickly. They can accept overtime via text messages, email or online through the Open Shift Management program.

Call or text us today at (415) 858-8585.