Number of FTEs that perform the process "manage suppliers" as a percentage of process group "procure materials and services" FTEs
This measure calculates the percentage of full-time-equivalents (FTEs) who perform the process group "procure materials and services" allocated to the process "manage suppliers". The process "manage suppliers" involves developing and managing programs and policies for interacting with suppliers and measuring/improving their performance. The Process group "procure materials and services" includes [Creating a plan for procuring materials and services. Develop strategies for sourcing materials and services. Choose the most appropriate suppliers, and develop contracts with them. Order the materials and services as per the requirements. Manage relationships with suppliers.] This Supplemental Information measure is intended to help companies evaluate additional variables related to the process "Manage suppliers".
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Compute this Measure
Units for this measure are percent.
Percentage of process group "procure materials and services" FTEs who perform the process "manage suppliers"
Key Terms
To calculate the number of full-time equivalents employed during the year for each respective process or activity, you must prorate the number of employees and the hours spent performing each process/activity. Assume that a full-time worker represents 40 hours per week. Provide the average number of full-time equivalents employed during the year for each respective process. Include full-time employees, part-time employees, and temporary workers hired during peak demand periods. Allocate only the portion of the employee's time that relates to or supports the activities identified for an applicable process. Prorate management and secretarial time by estimating the level of effort in support of each activity, by process.
For example, a part-time secretary in the finance department for XYZ, Inc. charges all of his time to finance department activities. He works 20 hours per week. The secretary splits his time evenly supporting employees working in the general accounting process and the financial reporting process. Thus, his time should be allocated by process. So, if he works throughout the year and supports these two processes, his time would be split evenly as:
20hrs/40hrs = .5FTE * 50% for general accounting = .25FTE for general accounting
20hrs/40hrs = .5FTE * 50% for financial reporting = .25FTE for financial reporting
Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.