What Is a Man-Year?
An individual-year, or person-year, is a unit of dimension for the quantity of work finished by means of a man in every single place all of the 12 months, expressed throughout the number of hours. The individual-year takes the number of hours worked by means of a man in every single place the week and multiplies it by means of 52.
Key Takeaways
- An individual-year is a unit of dimension for the quantity of work finished by means of a man in every single place all of the 12 months.
- Man-years are expressed in hours.
- A simple calculation of the number of man-hours in a 12 months is 2,080 hours, without accounting for holidays.
How Man-Years Artwork
Calculated, the man-year is also different for relatively numerous industries or organizations depending on the cheap number of hours worked each and every week, the number of weeks worked in line with 12 months, and deductions, if any, for pro holidays. The U.S. Postal Provider calculates a man-year on a easy basis: 40 hours per week x 52 weeks, or 2,080 hours. The Workplace of Keep an eye on and Funds (OMB) of the executive division devices 1,776 hours as a person-year, making an allowance for holiday time.
Calculating the man-year relies on each and every company and their own uses for the dimensions. The herbal definition of a man-year generally excludes now not best holidays, however as well as smash time in every single place the workday for lunch, 15-minute breaks, and other types of day off. Because of this, the man-year will have to best reflect precise hours worked or labored.
Calculating the Man-Year
There are two primary the explanation why an organization would perhaps calculate the man-year suitable to its staff. For one, that workforce would perhaps use the man-year at the side of product sales or worth figures as a potency metric. For example, a company would perhaps calculate a product sales in line with man-year metric and assessment it to values from previous years. By the use of figuring out the man-year metric up front, firms can then upper calculate their return in line with hour of work finished and better calculate productivity or per-person contribution towards product sales or the ultimate source of revenue metric.
The second the explanation why a company would calculate the man-year may also be for budgetary reasons. For example, an organization would perhaps calculate the entire man-years for relatively numerous places of work that it operates and allocate budgets consistent with place of work size. Or, to carry out worth comparisons for a decided on process or procedure, an organization or corporate can estimate the number of artwork hours required and divide this amount by means of a man-year to unravel the number of full-time similar (FTE) positions sought after. Contractors bidding for the process would put up their FTE estimates, and the ones estimates may also be considered for the awarding of the contract. In several instances, managers can use man-hours to calculate the quantity of personnel needed to entire a enterprise to create a contract timeline.
