What is a Labor Forecast for a Manufacturing Plant?
A labor forecast within the context of a manufacturing plant serves as a vital tool for estimating and controlling employee expenditures. Plant managers and budget analysts heavily rely on these forecasts to project labor costs for the upcoming months of the year. This planning template not only tracks year-to-date salary expenses for each employee but also allows for the incorporation of expected new hires. The visual representation at the top of the template offers a clear and concise overview of the predicted labor expenses. An illustrative example of such a planning template is provided below.
Purpose of Labor Forecasts
Labor forecasts hold a pivotal role in the operations of manufacturing companies, providing a meticulous prediction of annual employee expenses per plant. When integrated into the practices of the Financial Planning & Analysis (FP&A) department, these forecasts contribute to improved workforce planning and more precise profit estimations. Furthermore, they help reduce the risk of managers lacking essential insights into labor costs and their potential impacts on plant operations.
Benefits to Users
Labor forecasts, with their comprehensive insight into anticipated employee expenses, play a pivotal role in empowering stakeholders to make informed decisions and enhance efficiency in their roles. By offering a detailed breakdown of labor costs, these forecasts enable managers to allocate resources more efficiently, ensuring that budgets align with operational requirements. Additionally, the ability to visualize labor expense projections through charts and data analytics equips stakeholders with a better understanding of the allocation of financial resources. This newfound clarity enables them to optimize staffing levels, plan for future hiring needs, and adjust strategies in real-time, ultimately leading to more efficient and cost-effective plant operations. In essence, labor forecasts provide stakeholders with the knowledge and tools necessary to drive smarter decision-making and enhance overall productivity within the manufacturing plant.
Labor Forecast Example
Here is an example of a Labor Forecast for a manufacturing plant.
You can find hundreds of additional examples here.
Who Uses This Type of Planning Template?
The typical users of this type of planning template are: CFOs, plant managers, budget managers.
Other Planning Templates Often Used in Conjunction with Labor Forecasts
Progressive Financial Planning & Analysis (FP&A) Departments sometimes use several different Labor Forecasts, along with revenue forms, capex, other operating expense forms and other management and control tools.
Where Does the Data for Analysis Originate From?
The Actual (historical transactions) data typically comes from enterprise resource planning (ERP) systems like: Acumatica, Sage Intacct, Microsoft Dynamics 365 (D365) Finance, Microsoft Dynamics 365 Business Central (D365 BC), Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP, Microsoft Dynamics SL, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Netsuite and others.
In analyses where budgets or forecasts are used, the planning data most often originates from in-house Excel spreadsheet models or from professional corporate performance management (CPM/EPM) solutions.
What Tools are Typically used for Reporting, Planning and Dashboards?
Examples of business software used with the data and ERPs mentioned above are:
- Native ERP report writers and query tools
- Spreadsheets (for example Microsoft Excel)
- Corporate Performance Management (CPM) tools (for example Solver)
- Dashboards (for example Microsoft Power BI and Tableau)
Corporate Performance Management (CPM) Cloud Solutions and More Examples
- View 100’s of reporting, consolidations, planning, budgeting, forecasting and dashboard examples here
- Manufacturing White Paper and other industry-specific information here
- See how reports are designed in a modern report writer using a cloud-connected Excel add-in writer
- Discover how the Solver CPM solution delivers financial and operational reporting
- Discover how the Solver CPM solution delivers planning, budgeting and forecasting
- Watch demo videos of reporting, planning and dashboards
Only Solver delivers a one-day rapid deployment, including free and instant access to $100K of value available on Day 1 in the Solver Marketplace. Solver is committed to helping you with all your advanced planning and reporting needs, so you can Accelerate Better Decisions – starting now. Take a free tour of Solver for any of these ERPs: