“Labor is the next critical manufacturing element to optimize in today’s demand-driven world,” says Dave Caruso, principal at David Caruso and Associates Inc. “Savvy managers have realized that their workforce can be the engine that drives supply chains and manufacturing in the quest to move to the next level of performance. Kronos is enabling manufacturers to reach operational excellence by optimizing their workforce."
Similar to Overall Equipment Effectiveness, OLE measures availability, performance, and quality. A manufacturer can improve shop floor productivity, and therefore the level of profitability, by understanding the interdependency and trade-off of these factors and managing them in real time.
OLE is designed to help manufacturers ensure that they have the person with the right skills available at the right time. OLE also accounts for labor utilization. Understanding where downtime losses are coming from and the effect that they have on production can reveal root causes, which can include machine downtime, material delays, or absenteeism that delays a line start-up.
“While almost every manufacturing organization measures availability, performance, and quality, very few are measuring the interdependencies between them,” says Gregg Gordon, global practice leader for manufacturing at Kronos. “OLE, supported by Kronos for Manufacturing, allows organizations to see how assets and employees come together to drive performance. It also provides actionable insight at all levels of the organization. The true power of OLE is its ability to demonstrate how investment in the workforce can impact overall performance, and most importantly, profitability.”
For more information, visit www.kronos.com/About/pr_new_KPI_may22.htm?rss=&ACT=&DES=
Add new comment