Man-Hour Capacity Planning

Singapore Chapter

Elok Robert Tee, PMP is a Project Lead in Singapore.

A team may work on multiple and overlapping projects. The estimated time and the manner to accomplish the projects may be planned and monitored as cumulative man-hours. Different performance benchmarks may be utilized for man-hour capacity planning. A man-hour is defined as a quantifiable unit of continuous work, which can indicate performance of work (or merely time spent), and thus is normally used to charge and bill for work done. Capacity planning should consider estimates, known factors and unknown factors in determining man-hours available for acquisition and assignment of work.

Man-hour capacity may be determined for a month, a year or for any specified duration with clear start and end dates. Generally, man-hour capacity is determined from man-days available, such as when planning capacity for the start of a new year.

Man-days available for a year, of a single resource, may be determined easily: 365 days minus non-working weekend days (104 days), minus annual national holidays (10 days), and deduct planned vacation days (say 20 days). In this example: 231 man-days are available from the single resource for the year, which can be contracted outward. Assuming an average of eight hours of effort in a day is possible (about 40 work hours a week), the single resource will contribute a total of 1,848 gross man-hours for the year.

Therefore, a three-man team arguably …

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