Personnel cost to perform the process group "Plan for and align supply chain resources" per process group FTE

This measure calculates the amount of personnel cost per process group full-time equivalent employee (FTE) to perform the process group "plan for and align supply chain resources," which involves developing sound strategies for production; handling demand for products/services; administering master production schedules; and establishing quality standards and procedures. Personnel cost includes employee salaries/wages, bonuses, benefits, etc. This measure is part of a set of Cost Effectiveness measures that help companies understand all cost expenditures related to the process "plan for and align supply chain resources."

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure ID:
104795
Total Sample Size:
871 All Companies
Performers:
25th Median 75th
- - -
Key Performance Indicator:
No
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Compute this Measure

Units for this measure are dollars.

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Personnel cost to perform the process group "plan for and align supply chain resources" / Number of FTEs who perform the process group "plan for and align supply chain resources"

Key Terms

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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

Personnel cost is the cost associated with personnel compensation and fringe benefits of employees (i.e., those classified as FTEs which includes both full-time and salaried/hourly employees) contributing to each respective process. Personnel cost should include all of the following costs.

Employee Compensation: Includes salaries and wages, bonuses, overtime and benefits.

Fringe: Includes contributions made towards the employees' government retirement fund, workers compensation, insurance plans, savings plans, pension funds/retirement plans, and stock purchase plans. This should also include special allowances, such as relocation expenses and car allowances.

Cost effectiveness measures are those in which two related variables, one of which is the cost and one of which is the related outcome related to the expenditure are used to determine a particular metric value.

Measure Scope

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Cross Industry (7.4)

  • 4.1.1 - Develop production and materials strategies (10221)
    • 4.1.1.1 - Define manufacturing goals (10229)
    • 4.1.1.2 - Define labor and materials policies (10230)
    • 4.1.1.3 - Define outsourcing policies (10231)
    • 4.1.1.4 - Define capital expense policies (10232)
    • 4.1.1.5 - Define capacities (10233)
    • 4.1.1.6 - Define production network and supply constraints (10234)
    • 4.1.1.7 - Define production process (14193)
    • 4.1.1.8 - Define standard operating procedures (19551)
    • 4.1.1.9 - Define production workplace layout and infrastructure (14194)
  • 4.1.2 - Manage demand for products (10222)
    • 4.1.2.1 - Develop baseline demand forecasts (10235)
    • 4.1.2.2 - Collaborate demand with customers (10236)
    • 4.1.2.3 - Develop demand consensus forecast (10237)
    • 4.1.2.4 - Determine available to promise (10238)
    • 4.1.2.5 - Monitor activity against demand forecast and revise forecast (10239)
    • 4.1.2.6 - Evaluate and revise demand forecasting approach (10240)
    • 4.1.2.7 - Measure demand forecast accuracy (10241)
  • 4.1.3 - Create materials plan (10223)
    • 4.1.3.1 - Create unconstrained plan (10242)
    • 4.1.3.2 - Collaborate with supplier and contract manufacturers (10243)
    • 4.1.3.3 - Identify critical materials and supplier capacity (10244)
    • 4.1.3.4 - Monitor material specifications (10245)
    • 4.1.3.5 - Generate constrained plan (10246)
    • 4.1.3.6 - Define production balance and control (14196)
  • 4.1.4 - Create and manage master production schedule (10224)
    • 4.1.4.1 - Model production network to enable simulation and optimization (20023)
    • 4.1.4.2 - Create master production schedule (20024)
    • 4.1.4.3 - Maintain master production schedule (17041)
  • 4.1.5 - Plan distribution requirements (17042)
    • 4.1.5.1 - Maintain master data (10252)
    • 4.1.5.2 - Determine finished goods inventory requirements at destination (10253)
    • 4.1.5.3 - Determine product storage facility requirements (19555)
    • 4.1.5.4 - Calculate requirements at destination (10254)
    • 4.1.5.5 - Calculate consolidation at source (10255)
    • 4.1.5.6 - Manage collaborative replenishment planning (10256)
    • 4.1.5.7 - Calculate and optimize destination dispatch plan (10258)
    • 4.1.5.8 - Manage dispatch plan attainment (10259)
    • 4.1.5.9 - Calculate and optimize destination load plans (10260)
    • 4.1.5.10 - Manage partner load plan (10261)
    • 4.1.5.11 - Manage cost of supply (10262)
    • 4.1.5.12 - Manage capacity utilization (10263)
  • 4.1.6 - Establish distribution planning constraints (10226)
    • 4.1.6.1 - Establish distribution center layout constraints (10267)
    • 4.1.6.2 - Establish inventory management constraints (10268)
    • 4.1.6.3 - Establish transportation management constraints (10269)
    • 4.1.6.4 - Establish storage management constraints (19558)
  • 4.1.7 - Review distribution planning policies (10227)
    • 4.1.7.1 - Review distribution network (10264)
    • 4.1.7.2 - Establish sourcing relationships (10265)
    • 4.1.7.3 - Establish dynamic deployment policies (10266)
  • 4.1.8 - Develop quality standards and procedures (10368)
    • 4.1.8.1 - Establish quality targets (10371)
    • 4.1.8.2 - Develop standard testing procedures (10372)
    • 4.1.8.3 - Communicate quality specifications (10373)