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Capacity & Labour analysis is a great tool to set your priorities for OEE improvement, identify risks for meeting planned output and determine how much direct labour is needed. The C&L analysis uses two main concepts: Machine time & Manning norm. Machine time is how much time you need to do something with your line in order to produce your products - that's not just your pure production time, but also all the time lost to breakdowns, cleaning, maintenance, etc. If you compare Machine time to the Total Available time in the same period, you'll get Asset Utilisation, more about the importance of that parameter in next week's video 😉 The Manning norm comes into play after you've determined the Machine time, since you'll have to man that machine with a certain number of operators - that's your Manning norm. So Machine time x Manning norm is your total require number of Man-hours of Direct Labour. Your actual Direct Labour spend is likely to be higher - due to illness, administrative work, training, wrong personnel planning, and many other reasons. We'll cover that in the upcoming live workshop, make sure you register for that one. #continousimprovement #profitandloss #labor • Capacity & Labour analysis explained | How... 00:00 Introduction to Capacity and Labor Analysis 01:42 Linking Machine Capacity to Labor Costs 03:25 Overview of Capacity Planning 05:14 Calculating Required Machine Hours 07:11 Determining Labor Needs 08:35 Summarising Labor Requirements