Labor Forecast for a Manufacturing Plant using Sage Intacct

What is a Labor Forecast for a Manufacturing Plant?

In the context of a manufacturing plant, a labor forecast serves as a vital instrument for estimating and managing employee-related expenses. It is a tool upon which plant managers and budget analysts heavily rely to project labor costs for the upcoming months. This versatile planning template not only tracks year-to-date salary expenses for each employee but also accommodates projections for potential new hires. At the template’s outset, a visual representation provides a succinct and clear overview of the expected labor expenses. Below, you’ll find an example of such a planning template.

Purpose of Labor Forecasts

Labor forecasts play an indispensable role within manufacturing companies, offering meticulous predictions of annual employee-related expenses per plant. When seamlessly integrated into the practices of the Financial Planning & Analysis (FP&A) department, these forecasts contribute significantly to refined workforce planning and more precise profit estimations. Moreover, they act as a safeguard against managers being unaware of critical insights into labor costs and their consequential impacts on plant operations.

Benefits to Users

Labor forecasts, with their comprehensive insights into anticipated employee expenses, are a driving force behind informed decision-making and heightened efficiency for business users. By furnishing a detailed breakdown of labor costs, these forecasts enable managers to allocate resources with greater precision, ensuring that budgets align harmoniously with operational requirements. Furthermore, the capacity to visualize labor expense projections through charts and data analytics equips users with a deeper understanding of how their financial resources are allocated. This newfound clarity empowers them to optimize staffing levels, strategize for future hiring needs, and make real-time adjustments, ultimately leading to more streamlined and cost-effective operations. In essence, labor forecasts arm business users with the knowledge and tools they need to steer 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.

Labor Forecast for a Manufacturing Plant using Sage Intacct

Labor Forecast for a Manufacturing Plant Example from Solver

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: 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, Acumatica, 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

Learn More About Solver CPM For Manufacturing

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: