Many manufacturers have excellent data about materials cost, but no idea what true labor costs are. We also see manufacturers with a highly variable labor cost that is dependent on skill of the workers or type of job. Collecting labor data has historically been expensive. We estimate the average time required for an employee to record hours, and send this to a data entry employee results in 3-6 minutes of paid time per transaction. Often, a dedicated software system is used for this tracking, requiring additional IT support and maintenance.
By embedding RFID tags into employee badges, this tracking can occur automatically without any disruption to the normal work process – a significant cost savings over manual tracking. Alternatively, a touch screen appliance that connects directly to your ERP system requires human input, but can still greatly reduce the cost of capturing this data.
Tracking systems are critical to cutting inventory costs1
Companies with tracking systems empower their workers to do their jobs better and more safely while reducing stress levels2
Automation and data collection have led to a revolution in US manufacturing efficiency1