WF Activities_Mfg 0 pages

mi KRONOS® Workforce Activities See through the numbers IMPRVE UTILIZATION AND PRODUOTIVITY ە Reduce labor expense by identifying and trimming nonproductive paid time  Improve productivity by identifying constraints and bottlenecks Օ Grow profit margin by understanding and controlling actual labor expense Now, you can. With Workforce Activities from Kronos. Production organizations that can't accurately account for labor expense or can't control labor cost variability cannot expect to maintain profit margin on output, much less increase it. But to see and track labor expense with precision, you'll need more than error-prone clipboards and notepads. Because antiquated manual systems won't give you the visibility into your operations you need. In fact, most of today's systems fall short. Why? Because they can't capture indirect time, let alone allocate that time to output. Nor can they account for fluctuating labor expenses based on wage rates or overtime. But accurate labor costing isn't only about reconciling labor expense to output. It also demands real-time visibility into production, so you can get a better understanding of utilization and productivity. By contrast, most organizations today rely on finance-centric approaches, employing systems that capture labor expense well after the fact. These organizations, therefore, are left to rely on blended cost averages and estimated overhead to take their "best guesses" at actual labor costs. The result? A blurred picture of production costs. Fortunately, there's no need to fly blind. Because the Kronos® Workforce Activities labor-costing solution gives you the automated tools you need to reconcile all your paid time to production labor. And, at the same time, gain complete visibility into work in process (WIP). Reconcile all paid time to production labor What happens to the labor expense of paid time that's never assigned to any task, activity, or output? Where does it "go?" Could it account for your inconsistent profit margins? How would you know? The fact is, if you can't capture all your indirect time, then your actual cost of labor can't be properly allocated to production cost. And apart from having to live with inaccurate cost figures, you also have to make do with limited insight into the causes behind margin variances ٗ and guess at what corrective actions need to be taken. You need to be able to capture and allocate every minute of direct and indirect labor to production output. So you can achieve 100 percent reconciliation of paid time to production labor. With Kronos Workforce Activities, it's easy to create and track tasks for both direct and indirect labor activities (like maintenance, for example) and for related sub-tasks as well. It's similarly easy to identify labor variances and find the hidden "productivity drains"1 within your operation. What's more, you can measure actual shop floor productivity instead of using assumptions based on labor standards. And achieve highly accurate activity-based costing. So you can understand your true cost of production. Gain complete visibility into WIP How much visibility do you really have into work in process in your production organization? Especially when you consider all the tasks and sub-tasks on the production floor? Some tasks conducted by people, others by machines. Some by labor and equipment combined. And each of them with its own output, resulting in hundreds ח possibly thousands of individual status transactions. Including status information (about orders, quantities, equipment, or labor availability, for example), which is typically stored and made accessible well after the fact ח long after it's needed by your operations managers. These productivity drains are activities that could include labor, equipment, or a combination of both. They are typically nonproductive expenses that almost always go unmeasured, and they constitute a drain on utilization.