Direct labor planning

Direct labor involves workforce that is directly connected to manufacturing products or providing services and can be assigned to a specific product or service.

The direct labor forecasting uses activity-based calculations and industrial engineering principles that provide standard times for activities that are required for a product or service.

That is, the production of goods or services is divided into necessary activities or tasks. These activities are performed to manufacture the goods or provide the services. In manufacturing, for example, the process of production can be divided into a set of activities. These activities are required to complete a product, such as assembling, testing, and packaging the product. The standard times to perform each of these required activities are used to calculate the required workload. Therefore, you can calculate the time effort needed to meet the forecast workload. Workforce Planning includes additional configuration tools to forecast also the number of employees needed to meet the required workload.