Allan Shaw, director at Makaira Boats was using manual time sheets to record workshop staff at the end of the day. Staff recorded their time worked on each boat.
“With six workshop staff, this was costing me approximately 12 minutes per staff, per day; ceasing productive workshop work to manually fill out their time sheets” – a total of one hour, per staff member, per week.
“So six staff was costing me about six hours less productive workshop work per week, which at $80 per hour overhead cost was $480 cost per week.
“My administration staff were taking half an hour a day, 2.5 hours per week to entering all the time sheets into our costing program, which at $50 per hour was costing me $125 per week.”
Shaw says that manual time sheets were costing him $605 per week or about $30,250 per year.
He says, manual time sheets produced “information, too little, too inaccurate, too late and at too high cost”.
“Most importantly manual time sheets did not make workshop staff aware of their budgeted times of achieved times therefore did not make them work time focused and quicker on jobs.
“I adopted the technology of using pcs on the workshop floor and an engineering-based workshop productivity and scheduling software app (visit www.empowersoftare.co.nz). It’s subscription based, cost $91 per week which is $4,550 a year. So, my immediate cost savings in adopting this technology was $514 per week which was $25,700 per year.
“On cost savings alone, I adopted this technology.”
Additional benefits of this technology include: times recorded are enormously more accurate, 50-inch TVs in office and workshop present all jobs, all staff and all times in real-time, I estimate we have made a 30% reduction in our labour times and labour cost on jobs and our staff and management culture has entirely changed to be continuously time focused.
“It has been a quantum leap forward for my business using this technology.”