Increased Efficiency = Increased Productivity = Increased Profit

Considerations for Return on Investment (ROI)

ROI Central Core of Information

A central area for conveyance of information eliminates repetitive tasking, constant information inquiries, numerous updates, and common miscommunication. The cost savings is incurred through reduced rework and waste associated with not having current information.

The J-MOS System allows job specific, real-time status of labor and materials for all the jobs concurrently active in your business.

A distinct method of viewing and delivering information tagged with real-time updates reduces guessing and errors. Making people accountable with electronic time stamping will improve an individual’s over-all work ethic, improving their productivity.

ROI Estimating, History and Accuracy

Comparing actual job costs to your estimate refines the estimating process. Find out where you were over and/or under in labor and materials, then make adjustments.

Have immediate cost histories for materials purchased complete with the vendor it was last purchased from. Search vendors using a “material type” index for quick reference.

You will know where your “heavy” task or operation labor has occurred and/or where unanticipated labor has developed. This defines bottlenecks and/or other labor problem areas for the estimator.

ROI Proactive Monitoring

You can project potential cost overruns while the job is in progress. This creates the possibility of proactively save the job’s profits instead of becoming aware of losses after job completion.

All materials for all jobs are ordered and processed, in the same manner. This saves a tremendous amount of time by reducing duplicated efforts to order and track materials. At a glance, a project manager can see the status of every item ordered, what’s in the inventory, and what has been “pulled” and job costed to their jobs – in real-time!

By placing a time stamp of when a material order was put into the system and ordered by the purchasing agent (as well as when the material was pulled),  you will impart accountability from the top down. This will increase employee performance as well as get the job done.

All task, department, employee, job and work-order labor is monitored. Labor is very easily retrieved for job costs and analysis. This enables project management to be proactive as opposed to being reactive in these jobs.

ROI Transparency

All job information is available to all persons entrusted to use the system. The CEO, production manager, project manager, purchasing agent, foreman, team leaders, accountant, sales team and shop personnel can get information about any job in the system (I.E: finding out when materials are arriving, where a department may be over or under in labor, current or non-released shop releases, etc…). The information is the exact same for everyone at the same moment. This saves time because there’s only one place to check. The J-MOS System will reduce redundancy by deleting duplicated efforts and avoid miscommunications since everyone is looking at the same form - regardless of where their system access point is.

ROI Decrease NVA labor

Having a uniform regimen to get work orders into the shop and to order materials reduces non-value added (NVA) labor time. The time saved in menial tasks can be redirected into productive, project specific tasks and project monitoring.

Lesson the shop “down time” by tracking and acting on the down time - in real-time. Spot check what employees are working on compared to what they are actually punched into. These checks will reduce buddy-punching and “milking” labor on jobs.

By issuing regimented shop releases or work orders you will stop the “over the wall” method of getting work into the shop. This helps prevent the “end of involvement” scenarios by project and production personnel. Disappearing and wasted hours will become visible and accounted for. 

ROI NVA Example 1

If you consider the fact that J-MOS will save each employee a minimum of one or two minutes a day; the following charts will show your real costs and recoverable production hours.

$27.50 is a rounded calculation of an employee making $18.25/hr * 50% burden + overhead.

Calculation formula for 1 minute : ( (27.50/60) * Qty employees * 8hrs/day * 5 * 52 )

Below is a chart of costs incurred for 1 minute and 2 minutes, per hour, at an average cost rate of $27.50 per hour, which includes salary, burden and overhead.

 

Taking into consideration that J-MOS will significantly reduce NVA labor due to its centralized information structure and remove repetitive project management tasks; it is safe to say the bare minimum time savings would be 8 minutes per day per employee.

Using a company size of 30 employees as a basis for comparison; the J-MOS System will save each employee a minimum of 8 minutes a day making the return on investment incredibly be quick.

The next chart is an hour recovery chart, indicating the amount of actual hours that would be added to your capacity, without adding employees.

ROI NVA Example 2:  The cost of manual time sheets.  

 

If your employees are producing manual time sheets every day, you should consider this cost and its inaccuracy. Removing this NVA labor task from the shop floor by using the J-MOS System or WoodShop Clock (which includes the J-MOS TimeKeeper ) would recover these costs.

J-MOS TimeKeeper data collection is progressive and accurate. It takes a few seconds to punch out for the day or change jobs and tasks.