Companies usually estimate work based upon man-months. If the work must be estim

Question

Companies usually estimate work based upon man-months. If the work must be estimated in man-weeks, the man-month is then converted to man-weeks. The problem is in the determination of how many man-hours per month are actually available for actual direct labor work. Your company has received a request for proposal (RFP) from one of your customers and management has decided to submit a bid. Only one department in your company will be required to perform the work and the department manager estimates that 3000 hours of direct labor will be required. Your first step is to calculate the number of hours available in a typical man-month. The Human Resources Department provides you with the following yearly history for the average employee in the company: Vacation (3 weeks) Sick days (4 days) Paid holidays (10 days) Jury duty (1 day) a. How many direct labor hours are available per month per person? b. If only one employee can be assigned to the project, what will be the duration of the effort, in months? c. If the customer wants the job completed within one year, how many employees should be assigned?

Explanation / Answer

Consider 5 days a week work and 8 hours a day as working hours.

5 days a week, for a year it will be 52x5 = 260

Vacation in days , 3x5                           = 15

Sick days                                            = 4

Paid Holidays                                      = 10

Jury Duty                                           = 1

a.

Subtracting all the vaction, sick days, paid holidays, jury duty from 260

No of days available in a year = 260 - 15 - 4- 10-1 = 230.

The hours available in a year = 230 x 8 = 1840

For month divide by 12, = 230/12 = 19.17 days in a month.

Hours available = 19.17 x 8hoursper day = 153.33 hours.

Direct hours available per month per person = 153.33.

b.

if one employee is assigned, the duration = total man hours required/ total direct hours available per month

                                                           = 3000/153.33 = 19.57 months.

c.

if the job has to complete within a year,

the number of employees required = total duration / no.of hours available for an year = 3000/1840 = 1.63

Rounding off, number of employees requiredto complete the job in a year is 2

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