Driving Employee Retention and Efficiency Gains
An automobile parts manufacturer faced challenges in paying operator incentives due to lack of accurate production and efficiency data.
Customer
Automobile Parts Manufacturer
Problem
Challenges in setting operator incentive schemes due to lack of accurate production and efficiency data.
Outcome
42% reduction in Operator attrition and 19% OEE improvement in 3 months.
About Leanworx user:
An automobile parts manufacturer with 130 CNC lathes and machining centers connected to Leanworx, with an average machine hour rate of Rs. 350.
Before Leanworx:
Operators were paid fixed salaries regardless of their actual production or efficiency. Production tracking relied on manual entries, resulting in inaccurate reporting. Use of Feed rate override led to overproduction in day shifts and underproduction in night shifts. Skilled operators and motivated individuals received the same wages as their less efficient counterparts, impacting overall factory efficiency negatively.
The Leanworx Impact
Leanworx’s automated machine operator efficiency monitoring transformed operations by providing precise, operator-specific reports for HR to shape the incentive system. This shift from fixed salaries to performance-based incentives significantly curbed employee turnover, motivating operators of all skill levels. Leanworx’s production monitoring system ensured 24/7 tracking of production and downtime, extracting accurate data directly from the machines’ electronics to eliminate manual errors. The HR department leveraged the following reports to effectively structure salaries and incentives:
● Real-time Production Monitoring: Accurate tracking of production quantities and downtimes.
● Machine Operator Efficiency Report: HR’s tool for salary and incentive determination.
The Leanworx Benefit
In just three months, the implementation of Leanworx resulted in a remarkable 42% reduction in operator attrition, a significant improvement in employee retention. Simultaneously, the Overall Equipment Efficiency (OEE) saw an impressive enhancement, achieving an 19% increase. These swift and substantial improvements underscore the impactful and transformative nature of Leanworx’s solutions in driving operational excellence.
