Personnel Planning in DPM

#1

Looking for some input/examples of how others are using Personnel Planning in DPM. Goal is to see what others are doing to ensure we have all considerations factored in. Possibly happen upon something I haven’t thought about.

1 - Looking for global vectors others are using
2 - Labor Standards - does anyone work with labor standards? Looking for how you are incorporating.
3 - Reporting into Financial Model. Once budgets are finalized in DPM, looking for how others use/incorporate budget/actuals/etc. with DPM into Financial models. Bonus points for sharing screenshots of reports if you can.

Thanks!

#2

Hi Emily,

DPM for Personnel Planning has been a huge upgrade to how we were budgeting and forecasting our labor and benefit costs prior to Prophix. We are a manufacturing company and some of our Global Vectors will be more aligned to that industry. Below are the vectors we currently use. As for labor standards we use actual employee data from our payroll system for all of our non-production staff (salaries, hourly rate, insurance, 401K, etc.). For our hourly employees we take an average rate of pay for the employees working on that specific line and upload a generic line ID for the number of employees that work on that line (they change lines constantly, so it was easier not to upload the actual employee data). For all other categories we also use a generic standard. In regard to reporting, we do not currently use Infoflex to upload our DPM data to our Financial Model. We download DPM to Excel and paste it into our Excel forecasting model. Once I have all of our Income Statement (including labor from DPM download) and Balance Sheet accounts updated I import all of our GL accounts into our Financial Model. (We are looking to potentially have a DPM for our forecasting as well.)

Global Vectors

  1. Workdays per Month
  2. Holiday per Month
    03A. Shift 1 Differential
    03B. Shift 2 Differential
    03C. Shift 3 Differential
    06A. Medical - EE Only
    06B. Medical - EE and Spouse
    06C. Medical - EE and Children
    06D. Medical - EE and Family
    07A. Vision - EE Only
    07B. Vision - EE and Spouse
    07C. Vision - EE and Children
    07D. Vision - EE and Family
    08A. Dental - EE Only
    08B. Dental - EE and Spouse
    08C. Dental - EE and Children
    08D. Dental - EE and Family
  3. Term Life
  4. Short Term Disability
  5. Long Term Disability
    12A. 401K - EE 1% Contribution - Company Match
    12B. 401K - EE 2% Contribution - Company Match
    12C. 401K - EE 3% Contribution - Company Match
    12D. 401K - EE 4% or more Contribution - Company Match
    13A. FICA Tax %
    13B. FICA Max Cap $
    14A. FUTA Tax %
    14B. FUTA Max Cap $
    15A. SUTA Tax %
    15B. SUTA Max Cap $
    16A. Bonus Incentive - Indirect
    16B. Bonus Incentive - Direct
  6. Temp Agency Fee
  7. Absenteeism %

Hope this helps!

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#3

Amazing! Thanks for sharing Kristina.

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#4

Follow up question. The Personnel DPM cube I inherited looks a lot like this - probably because it was created during implementation with the Prophix Team. For those of you using something like this, how are you using it and do you feel like it is providing value?

I ask because I am at a crossroads with my personnel cost modeling. I’m thinking of removing the paycode type stuff from the personnel cube and managing them in their own benefits cube, allocating benefit costs at a high level per head. Is the greater precision level by employee drivng any decision making?

#5

Also to answer the standard labor question, the way I have accomplished this is tying labor standards to the product, not the people. Product Cost - Payroll Cost = Variance. I have a dimension called “product measures” that sits in my sales cube(s). The scope of that cube covers orders, production, and shipments and imputes inventory balances. The product measures dimension includes Units, Price, standard costs, margin, etc. If you want standard labor stated in hours, standard rate, etc. this is also where it goes. You can use formulas in hidden cells in your input template to record the per unit and extended totals when users enter their unit forecast. Then import/export the production numbers only into the appropriate accounts in the financial cube. Payroll Costs come from personnel cube and product costs (labor and overhead applied) come from the sales cube. Rinse and repeat for shipments/Revenue and COGS.

The result may cause you to revisit staffing levels in the personnel cube, or production numbers in the sales cube, to manage variances.

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