Four Actions to Consider Before Adding Headcount

We are running forty days behind plan,” complained Jeremy the plant manager. We’ve applied lean manufacturing concepts. We’ve reduced cycle time.  We’ve maxed out overtime.  Our only hope of catching up is to add people.”

“How many?” asked the site manager.

“At least thirty full-time plant workers.”

“How long to catch up after we get the thirty on board?”

“Should be meeting schedule in about four months after all are hired.”

After considerable debate, the site manager reluctantly agreed to add thirty employees. Fast forward six months. The additional wages and benefits spiked labor costs. And the plant is still forty days behind.

An influx of new people almost always challenges quality and safety practices, teamwork suffers, meeting time increases, decisions drag out, disruptive behaviors surface, and customer and vendor coordination requires more time.

Before adding headcount, in small or large segments, consider four actions.

1. Replace inadequate producers who have been given several chances.
2. Remove support personnel who are not critical and replace with operators.
3. Eliminate bureaucratic approval processes that bog down decisions.
4. Evaluate supervisors and replace those who are not effective leaders.

Should you still think you need to add employees, be deliberate and select carefully.