Case Study: Effectively managing labor standards & routings
The company is a multi-division, international hardware manufacturer.
The client had been coping with routings that had become outdated and had not been maintained with process and engineering changes. Their routings were used primarily for cost accounting purposes and had been manipulated over the years to support old incentive programs. In many cases, this did not reflect how items were actually produced on the shop floor. As a result, the client was making operating decisions based on inaccurate and obsolete data and had been operating at this disadvantage for some time. They couldn’t keep up with manual data entry due to the sheer volume of parts.
They needed to find a way to improve their line balancing and to input their labor standards into ERP.
The goal was to automate data entry to ERP, create efficient and accurate standards, and to use those standards in line balancing.
They came to EASE, Inc. because of their reputation for quality software solutions and had a proven, cost efficient solution to their problem.
The client decided Ease was the best for the job based on four clear and compelling reasons-
- Comprehensive knowledge of the industry with decades of experience.
- The strength of the Easeworks modules and the fit with their requirement.
- Ease consistently upgrades its products to take advantage of the latest programming tools and has been at the forefront of significant innovations in the industry.
- In-depth customer support on any issue.
EASE Inc. began with creating labor standards which improved line balance efficiency and provided a set of routings that supported the client’s manufacturing and cost accounting. Ease then provided software that eliminated the need for extensive manual input by automating input of labor standards. This software enabled the management team to simulate changes and evaluate line improvement ideas prior to implementing them on the shop floor. The development of all new product routings were supported as well as the creation of accurate new product cost estimates.
With EASEworks solutions installed, the client experienced a significant increase in productivity- approximately 10% across three lines. Line balancing was now much more efficient due to use of engineered standards. These improved labor standards also resulted in higher accuracy in the standards costing system which then provided management with an accurate picture of production costs. With the automated system in place efficiency and accuracy of routings and labor standards maintenance were greatly improved. As a result of this success, EASEworks has been implemented by the company at divisions globally and has continued to partner with EASE.