The question comes from a request HR to see if indirect staffing in each facilities and to see any opportunity of cutting cost. It's not a surprising question for FPA.
Put the request into some contexts. Company has 2 facilities. Facility A has revenue 100M, and 5 supply chain EE. Facility B has revenue 75M, and 5 supply chain EE. Is there any room to cut supply chain EE in facility B?
Attempt 1, use metrics of revenue per headcount.
Concern, workload for supply chain EE (raising PO for purchasing) in facility B might be high because facility B has low volume and high compared with facility A.
Attempt 2, use metrics of related activities (# of PO raised for purchasing) per headcount.
Concern, EE has little incentive to improve productivity when they are paid/measured by workload, but not top line or bottom line impact.
Attempt 3, go back to use metrics of revenue per headcount with consideration of complexity of business.
Concern, complexity of business might be difficult to quantify or no similar to compare.
Attempt 4, go back to use metrics of related activities per headcount with consideration of value added for business. i.e. pay by hour with bonus/profit sharing
Concern, hard to balance pay by value added and by work load
So, the key question is whether employer should pay employees by value added or by work load.
or finance metrics vs operation metrics.
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