 |
|||||||||||
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.
WoodShop Clock allows job specific, real-time status of labor 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 hours to estimated hours refines the estimating process. Find out where you were over and/or under in labor, then make adjustments.
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.
You can project potential labor overruns while the job is in progress. This creates the possibility to proactively save the job’s profits instead of becoming aware of losses after job completion.
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.
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. The information is the exact same for everyone at the same moment. This saves time because there’s only one place to check. WoodShop Clock 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.
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 (MWIDs) 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.
If you consider the fact that WoodShop Clock, 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 WoodShop Clock 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 several minutes per day, per employee.
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.
By reviewing any of the above return on investment statements the investment return of the WoodShop Clock is very quick!