- Human Resource Planning (HRP),
- Enterprise Resource Planning (ERP),
- Manufacturing Resource Planning (MRP).
Human Resource Planning
HRP is a process that determines the level of staffing needs, which is necessary to formulate and implement management strategies. Planning is an element of the rational action of people who strive primarily to achieve their goals. The company should strive to ensure that its staff can exhaustively achieve their goals.
“Human resource planning is 'the process for ensuring that the human resource requirements of an organization are identified and plans are made for satisfying those requirements” .
Bulla and Scott (1994) also presented the reasons for engaging in HR planning:
- Planning for substantive reasons, that is, to have a practical effect by optimizing the use of resources and/or making them more flexible, acquiring and nurturing skills that take time to develop, identifying potential problems and minimizing the chances of making a bad decision.
- Planning because of the process benefits, which involves understanding the present in order to confront the future, challenging assumptions and liberating thinking, making explicit decisions that can later be challenged, standing back and providing an overview and ensuring that long-term thinking is not driven out by short-term focus.
- Planning for organizational reasons, which involves communicating plans so as to obtain support/adherence to them, linking HR plans to business plans so as to influence them, (re)gaining corporate control over operating units, and coordinat-ing and integrating organizational decision making and actions.
HR planning operations include:
- Scenario planning,
- Demand and supply forecast,
- Action planning.
“Modern organizations, regardless of the size of their operations, operate in the conditions of an ever-changing environment, which is characterized by strong competition, growing consumer requirements, political and legal changes or innovations. The effect of these changes is the need to adapt to the organization, in. in the area of personal function. One of the most important conditions for effective operation is the creation of an effective team of employees. It is a strategic resource for the development of an enterprise and is just as important as the strategy organization or management of financial resources”
Enterprise Resource Planning
What is Enterprise Resource Planning (ERP)? “Enterprise Resource Planning” is a term originally coined in 1990 by The Gartner Group to describe the next generation of Material Requirements Planning (MRP) software. The purpose was to integrate all facets of the business enterprise under one suite of software applications. The definition of ERP would be broadened to include almost any type of large integrated software package. The basic element is the database, which is usually shared by all other modules. These modules usually include the following areas:
- warehousing and inventory management,
- tracking of realized deliveries,
- production planning,
- production service,
- customer relationship management,
- human resources management (wages, human resources).
Manufacturing Resource Planning
MRP II model in relation to MRP has been extended with production capacity planning (CRP) and elements related to the sales process and supporting decision making at the levels of strategic production management. In addition to materials directly related to production, MRP II also includes auxiliary materials, human resources, money, time, fixed assets and others. Fundamental modules in an MRP II system are:
- Master production schedule (MPS),
- Item master data (technical data),
- Bill of materials (BOM) (technical data),
- Production resources data (manufacturing technical data),
- Inventories and orders (inventory control),
- Purchasing management,
- Material requirements planning (MRP),
- Shop floor control (SFC),
- Capacity planning or capacity requirements planning (CRP),
- Standard costing (cost control) and frequently also Actual or FIFO costing, and Weighted Average costing,
- Cost reporting / management (cost control).
Examples of Resource plan
- Project Personnel: This resource plan outlines the personnel needed to complete the project, such as project managers, developers, designers, testers, and customer service representatives.
- Equipment/Hardware: This resource plan outlines the hardware and equipment needed to complete the project, such as computers, software, servers, and networking equipment.
- Software: This resource plan outlines the software needed to complete the project, such as web development tools, project management software, and database software.
- Facilities: This resource plan outlines the facilities required to complete the project, such as offices, labs, and warehouses.
- Supplies: This resource plan outlines the supplies needed to complete the project, such as printing paper, stationery, and cleaning materials.
- Budget: This resource plan outlines the budget needed to complete the project, such as labor costs, materials costs, and overhead costs.
- Timeframes: This resource plan outlines the timeline for completing the project, such as deadlines, milestones, and other key dates.
- Risk Management: This resource plan outlines the risk management activities necessary to complete the project, such as quality assurance, contingency plans, and mitigation plans.
Advantages of Resource plan
A resource plan is a strategy for managing resources, such as personnel, materials, and funds, in order to achieve business objectives. The advantages of having a resource plan include:
- Ensuring that resources are efficiently and effectively allocated towards specific tasks or projects. This helps to ensure that resources are not wasted or mismanaged.
- Improving project management by providing a clear roadmap and timeline for a project. This allows managers to plan more effectively and ensure that tasks are completed in a timely manner.
- Reducing costs by ensuring that resources are allocated in the most cost-effective manner. This can help to reduce overall expenses associated with a project.
- Enhancing communication between teams and departments by creating a clear plan of action. This helps to ensure that everyone is on the same page and working together towards a common goal.
- Improving productivity by providing a clear set of objectives and goals. This helps to motivate employees and encourages them to be more productive.
Limitations of Resource plan
An effective resource plan should take into consideration the limitations that may arise when allocating resources. These limitations can include:
- Time constraints – If a project is rushed, it can be difficult to allocate the necessary resources to complete the job.
- Cost – Allocating resources can be expensive and budget constraints should be taken into consideration when deciding what resources to use.
- Availability – If a key resource is not available, it can be difficult to complete the project in a timely manner.
- Scope – The scope of the project should be considered when allocating resources to ensure that the project can be completed within the given timeframe.
- Personnel – The personnel available should be considered when allocating resources. This includes their skills, experience, and availability.
- Technology – The technology available should be taken into consideration when allocating resources. This includes both hardware and software.
Introduction: Resource planning is an important part of managing a business or other organization. It involves setting objectives, determining how resources will be used to meet objectives, and assigning tasks to individual employees. The following are other approaches related to resource planning.
- Scenario Planning: Scenario planning involves creating multiple potential scenarios for future outcomes and then developing strategies to prepare for each. It can help to identify potential risks and opportunities and create a plan of action to address them.
- Capacity Planning: Capacity planning is the process of determining the available resources and activities needed to meet current and future demands. It is used to make sure that the organization has the right amount of resources to complete a project on time and within budget.
- Resource Allocation: Resource allocation is the process of assigning resources to tasks or projects. It is important to ensure that resources are used in a cost-effective and efficient manner to achieve the desired results.
- Resource Leveling: Resource leveling is the process of ensuring that resources are allocated to tasks or projects in an optimal manner. It can help to ensure that resources are being used efficiently and that deadlines are met.
Summary: Resource planning is an important part of managing a business or other organization. It involves setting objectives, determining how resources will be used to meet objectives, and assigning tasks to individual employees. Other approaches related to resource planning include scenario planning, capacity planning, resource allocation, and resource leveling. These approaches can help to ensure that resources are used effectively and efficiently to meet the desired objectives.
- Abdullah A. M. A., Ambedkar B. (2017-2018),Evolution of Enterprise Resource Planning, Marathwada University, Journal of Engineering Technology and Management Science, India, Vol. I, No. 11, p. 1-5.
- Bulla D. N. and Scott P. M. (1994). Manpower requirements forecasting: a case example, Human Resource Planning Society, New York, pp 486-487.
- Eric L. Keller (2001). “Lessons Learned”, Manufacturing Systems, New York, Vol. XVII, No. 11, p. 44-50.
- Sępek M. (2010), Przedsiębiorczości i Zarządzanie, Społeczna Wyższa Szkoła Przedsiębiorczości i Zarządzania, Łódź, Vol. XI, No. 11, p. 52–71.
- Wight O. W., (1984). Manufacturing Resource Planinnig: MRP II: Unlocking America’s Productivity Potential, John Wiley & Sons, New York, p. 43-63.
Author: Daniel Żołna