1. Understanding Demand Planning:
Demand planning involves allocating labor effectively to accommodate changing levels of demand. It ensures the right number of employees are scheduled for different roles at specific times, aligning with the peaks and troughs in business activity. For instance, in the hospitality sector, demand planning considers fluctuations in customer traffic during breakfast, lunch, and dinner.
2. Challenges in Demand Planning:
Forecast Accuracy: The first challenge lies in achieving accurate forecasts, providing a reliable prediction of future demand.
Building Relevant Labor Models: Once forecasts are in place, the next challenge involves creating labor models that align with the predicted demand. This includes understanding the number of employees needed for different order volumes throughout the day.
3. Optimal Demand Plan Forecast:
After forecasting demand, the focus shifts to creating different labor models for various organizational departments. These models translate into staffing forecasts, detailing the number of employees required for different roles and departments per hour. However, achieving the optimal shift pattern remains a critical step.
4. Optimizing Shift Patterns:
Shift Lengths and Start Times: Understanding different shift lengths and start times is crucial. Combining this information with labor forecasts allows for the creation of an optimized shift pattern.
Employee Allocation: The final stage involves allocating the right employees to the right shifts based on qualifications, availability, and other custom requirements.
5. Level of Accuracy in Shift Pattern Creation:
Dependence on Forecast Precision: The accuracy of shift pattern creation is directly linked to the precision of the initial demand forecasting. More accurate forecasts lead to more effective downstream processes.
6. Role of Sector in Forecasting:
Sector-Dependent Forecasting: The type of forecast used depends heavily on the sector. For example, a care home might focus on forecasting occupancy levels, while a hospitality business may forecast orders or foot traffic.
7. Common Misconceptions about Automated Demand Planning:
Role of AI and Machine Learning: One common misconception is assuming that AI and machine learning are intended to replace the role of labor planning entirely. Instead, these technologies serve as assistive intelligence, automating transactional processes while relying on human reasoning for refinement.
8. Effective Use of Technology:
Assistive Intelligence Approach: Deputy advocates for an “assistive intelligence” approach, emphasizing the collaboration between automated processes and human decision-making. While technology automates a significant portion of the manual work, human expertise remains indispensable for refining recommendations.
9. Key Strategies for Effective Workforce Management:
Visibility and Clear Solutions: Having solutions in place that provide clear visibility into changing demand levels, labor requirements, and employee availability is essential.
Balancing Automation and Human Expertise: Striking a balance between automating transactional tasks and leveraging the experience of on-the-ground managers is crucial for effective workforce management.
In conclusion, effective workforce management through changing demand levels requires a strategic blend of technology, forecasting precision, and the invaluable insights of experienced managers. By understanding the nuances of demand planning and optimizing labor models, businesses can navigate workforce challenges with resilience and cost-effectiveness.
