ERP & MRP Planning worked example

Labor Plan Requirement with planned production units of 600 units: a worked example

This worked example runs the labor plan requirement numbers for a tougher week than the baseline: planned production units of 600 units instead of the typical 1,200 units. Estimate labor hours required from planned units, standard labor time, efficiency factor, and indirect labor multiplier.

The inputs for this scenario

  • Planned production units: 600 units (the input this scenario stresses; the baseline uses 1,200)
  • Standard labor hours per unit: 0.42 labor-hr / unit (held at the documented default)
  • Efficiency or product-mix factor: 1.08 x (held at the documented default)
  • Indirect labor multiplier: 1.15 x (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Labor requirement = planned production units × standard labor hours per unit × efficiency/product-mix factor × indirect labor multiplier.
  • Required labor hours works out to 313 hr at these inputs, and this is the headline figure for the scenario.
  • Direct labor hours before indirect multiplier works out to 272 labor-hr at these inputs.
  • Indirect labor multiplier works out to 1.15 x at these inputs.
  • Planned units × standard labor hours works out to 252 labor-hr at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where planned production units sits at 1,200 units and the headline result is 626 hr, this scenario comes in 50% below the baseline at 313 hr.
  • Use it when sizing crews, planning overtime, or checking that a production plan can be staffed before releasing it to the floor. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • Required labor hours: 313 hr (headline result)
  • Direct labor hours before indirect multiplier: 272 labor-hr
  • Indirect labor multiplier: 1.15 x
  • Planned units × standard labor hours: 252 labor-hr

Run it with your numbers

  • To rerun this with your own numbers, open the live Labor Plan Requirement calculator, set planned production units to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.