In the same way that many manufacturers monitor Overall Equipment Effectiveness, we believe that all manufacturing companies should be measuring and continuously improving Overall Labour Productivity.

The three main factors that affect Overall Labour Productivity are:

  1. Labour Utilisation – how much time is unaccounted or being spent on non-productive indirect activities rather than on direct productive work.
  2. Labour Performance – how much time is lost from operators or teams working at below standard times and as a result reducing output and efficiency
  3. Quality Losses – how much time is lost on reworking faulty products or completed wasted on manufacturing scarp products

Overall Labour Productivity

Try out our ROI Advisor

Continuous Labour Productivity Improvement

So how do manufacturers use Mestec data and analysis to drive their continuous productivity improvement programs?

These are just some of the many ways that Mestec customers transform labour productivity:

Optimise Labour Utilisation

Eliminate unaccounted hours:

  • Use dashboards on the shop floor to increase awareness of the cost of unaccounted time
  • Take actions to eliminate unaccounted time for all operators and production teams
  • Implement training and other actions to remedy causes of time not being booked to work

Cut down indirect activity:

  • Use real-time visibility of waiting times and other issues for supervisors to take immediate action
  • Eliminate largest causes of lost time by using analysis of recurring indirect activities
  • Drive cultural change to reduce indirect losses to highlight reasons and costs on dashboards

Optimise Labour Utilisation

Increase Labour Performance

Reduce speed losses

  • Apply the way your highest performing operators work to all other team members for each job
  • Run training to apply the best practice working of your most productive teams to other teams
  • Develop a competitive culture between teams by sharing the best production rates achieved
  • Identify process steps that are consistently taking longer than estimated and fix the issues
  • Use analytics data to improve job scheduling to ensure every operator is working at full capacity
  • Reduce standard times and update costing models as process times are progressively reduced

Increase Labour Performance

Reduce Quality Losses

Minimise time lost to rework and scrap

  • Use embedded “quality alerts” in work instructions to avoid operators repeating past quality issues
  • Identify sources of quality issues and prioritise improvement activities based on projected savings
  • Give suppliers quantified feedback when their material has caused rework or scrap production
  • Use real-time data to identify new quality issues before they cause additional wasted labour time
  • Use dashboards to track corrective actions and preventative actions to achieve rapid solutions
  • Run best practice workshops where one team or operator achieves higher quality than others

Reduce Quality Losses