Chapter 13, Problem 2CQD

Summary Introduction

Interpretation:

Requirement of number of FTE staff in May through August.

Concept Introduction:

FTE is (Full time equivalent) is the number of hours a full time employee works in a stipulated time period. It shows an average hours for work.

Explanation of Solution

Variables used to calculate FTE staff are:

• Month
• Number of days in a month
• Average forecast of a month
• Percentage in product mix

Formula to be used are:

  $\text{Hours}\text{required}\text{for}\text{a}\text{product}\text{-}\text{i}\text{=}\text{Number}\text{of}\text{files}\text{for}\text{a}\text{product}\text{-}\text{i}\text{×}\text{hours}\text{per}\text{file}\text{for}\text{product}\text{-}\text{i}$

  $\text{Number}\text{of}\text{files}\text{for}\text{a}\text{product}\text{-}\text{i}\text{=}\text{Mix}\text{percent}\text{of}\text{product-}\text{i}\text{×}\text{aggregate}\text{forecast}\text{of}\text{the}\text{month}\text{.}$

  $\left(given\right).$

  $Totalrequiredhoursforthemonth=$

  ${\displaystyle \sum _{i=1}^{10}Hoursrequiredforaproduct-i}$

  $Numberofemployeesrequired=$

  $\frac{Totalrequiredhoursforthemonth}{Numberofdays\times 7}$

.

For the four-month time horizon, the mix percentages will remain the same as given.

Month	May
Working days	22
Total forecast	750
Products	Product Mix (%)	No. of files	Hours per file	Hours
1	22	165.00	3.60	594.00
2	17	127.50	2.00	255.00
3	13	97.50	1.70	165.75
4	12	90.00	5.50	495.00
5	10	75.00	4.00	300.00
6	9	67.50	3.00	202.50
7	7	52.50	2.00	105.00
8	5	37.50	2.00	75.00
9	3	22.50	1.50	33.75
10	2	15.00	4.00	60.00
Total	100	750		2286
Required # of workers	15

Month	June
Working days	20
Total forecast	825
Products	Product Mix (%)	No. of files	Hours per file	Hours
1	22	181.50	3.60	653.40
2	17	140.25	2.00	280.50
3	13	107.25	1.70	182.33
4	12	99.00	5.50	544.50
5	10	82.50	4.00	330.00
6	9	74.25	3.00	222.75
7	7	57.75	2.00	115.50
8	5	41.25	2.00	82.50
9	3	24.75	1.50	37.13
10	2	16.50	4.00	66.00
Total	100	825		2514.6
Required # of workers	18

Month	July
Working days	22
Total forecast	900
Products	Product Mix (%)	No. of files	Hours per file	Hours
1	22	198.00	3.60	712.80
2	17	153.00	2.00	306.00
3	13	117.00	1.70	198.90
4	12	108.00	5.50	594.00
5	10	90.00	4.00	360.00
6	9	81.00	3.00	243.00
7	7	63.00	2.00	126.00
8	5	45.00	2.00	90.00
9	3	27.00	1.50	40.50
10	2	18.00	4.00	72.00
Total	100	900		2743.2
Required # of workers	18

Month	July
Working days	22
Total forecast	775
Products	Product Mix (%)	No. of files	Hours per file	Hours
1	22	170.50	3.60	613.80
2	17	131.75	2.00	263.50
3	13	100.75	1.70	171.28
4	12	93.00	5.50	511.50
5	10	77.50	4.00	310.00
6	9	69.75	3.00	209.25
7	7	54.25	2.00	108.50
8	5	38.75	2.00	77.50
9	3	23.25	1.50	34.88
10	2	15.50	4.00	62.00
Total	100	775		2362.2
Required # of workers	16

In summary, the FTEs required can be written in the following table:

Month	FTE
May	15
Jun	18
Jul	18
Aug	16