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Executive Summary
To meet the challenges of doing more with fewer resources while remaining competitive and increasing efficiencies, many manufacturing organizations have embarked on Lean Manufacturing Initiatives that focus on eliminating all waste in the manufacturing process. During the normal course of business, even the most disciplined manufacturing firms find themselves with an overproduction of goods leading to unnecessary and costly inventory, a mismatch of demand with output levels and inefficiencies related to both the manufacturing and distribution processes. These lean manufacturing initiatives and strategies can also be effectively applied toward a manufacturers largest controllable expense - its workforce. All too often, companies do not fully recognize or utilize the skills and capabilities of their own employees. There are significant business advantages and savings inherent in having the right people with the right skills available at the right time and at the best possible cost. World-class manufacturers share a core focus on innovation, responsiveness, quality and cost effectively meeting demand. Often utilizing best-of-breed specialty solutions, these firms leverage technology for maximum efficiency and contain costs through a manufacturing process and supply chain network that ultimately serves to enhance business performance. Empowering the workforce adds strategic value by streamlining supply chain, manufacturing and customercentric processes to meet and exceed increasing customer expectations. People are critical to driving business performance and workforce optimization is a key element in maintaining competitive differentiation. Automated enterprise-class workforce and expense management solutions help manufacturers reduce payroll preparation time, improve payroll accuracy by 1-5% of gross payroll1 and optimize organizational performance, productivity and profitability. Robust workforce and expense management solution components consisting of time and attendance, business expense management and employee scheduling and optimization solutions, that are 100% Web-based, fully integrated and scalable, help manufacturing organizations meet ongoing business challenges by:
There are significant business advantages and savings inherent in having the right people with the right skills available at the right time & at the best possible cost.
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Better management of a diverse and distributed workforce Generating tighter overtime control with reduced payroll
inaccuracies
Organizations that have implemented lean manufacturing initiatives realize the value of workforce & expense automation processes in several vital areas of their operations.
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Standardize and automate workforce management processes across each plant or location
Support best-in-class corporate quality initiatives by measuring time, attendance and scheduling performance while reducing payroll inaccuracies and standardizing scheduling across business units
Streamline operations through automated scheduling Meet production demands while balancing cost control Deploy the right mix of people on fixed or rotating Focus on leveraging real-time information for better Improve employee satisfaction with schedules aligned Control scheduling variations with best practice Find the right substitute at the best cost when managing Provide support for overtime equalization by assigning
the lowest cost resource when scheduling overtime unexpected absences templates that reflect the most efficient staffing models with employees work/life preferences management decisions schedules to move orders out the door while responding to demand fluctuations and efficiency
Manufacturers can best meet production requirements and market demands through fully automated systems
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Business Expenses: Making the Second Largest Controllable Expenditure a Top Priority
After labor costs, employee business expenses are regarded as the second largest controllable expense. Expense Management Automation (EMA) solutions are increasingly recognized as critical components in controlling costs and aligning regulatory requirements with company expense policies and improving bottom line performance. Employee expenses are no longer limited to travel and entertainment costs paid by the employee and reimbursed by the company, but also include expenses and payment options from the entire range of employee discretionary expenses including office supplies, mobile phones, meetings, MRO, p-cards, corporate payment cards, fleet cards, direct vendor billing and more. Add to the mix a growing number of mobile workers, rising costs of travel, tighter government regulations and uncertain economic conditions. As a result, companies have come to realize that enterprise-wide technology solutions are no longer luxuries but necessities. Optimization of administrative and back office processes associated with employee expenses has taken on a new urgency as firms realize the need to better manage and control escalating employee business costs. Visionary companies rely on highly acceptable, user-friendly, intuitive, best-of-breed technology solutions that deliver bottom line results along with a rapid return on investment (ROI). Expense Management Automation solutions gives manufacturers the power to attack the high cost of expense processing at its source: the employees point of spend. These solutions allow automation of the entire expense reporting cycle from pre-trip authorization, expense report prepopulation, and workflow approval
EMAs are increasingly recognized as critical components in controlling costs & aligning regulatory requirements with company expense policies & improving bottom line performance.
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and report creation through to travel booking integration, audit, reimbursement, receipts management and post-payment reporting and analysis. EMA solutions handle every aspect of employee business expense processing and increases efficiencies when integrated with existing back end General Ledger systems.
(KPIs) that provide real-time visibility into the status of cost and sales metrics allowing for the most productive and cost effective staffing.
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Consider the example of a manufacturing plant that needs to run production on a Saturday. From a schedulers perspective, they need to not only identify workers who have the right skill sets but also determine who is already scheduled to work as opposed to scheduling others whose Saturday hours may result in time and a half or double time. By utilizing a software solution for this type of scheduling situation, managers can easily gauge their resource availability and consider the costs of the talent needed to ensure that production schedules are met. A dashboard view of the workforce and insight into the skill sets of the available staff enables managers to make the most effective staffing and talent management decisions. This enterprise level visibility ensures better alignment with contract requirements, worker certifications and skills and shifts schedules to meet forecasted demand, further enabling companies to meet their business objectives. A workforce management solution with scheduling optimization also eliminates errors that result from time-consuming manual processes. Along with increased accuracy from electronic data entry, a workforce scheduling solution ensures time and attendance entries are correct, reduces time theft (resulting from extended breaks, tardy arrivals and early departures) and buddy punching (when one employee clocks in for another), while enforcing adherence to business rules and facilitating compliance with government regulations, as well as with internal policies and union requirements. Since these business rules drive accruals, paid time off, time accrued towards participation in retirement programs and leave management, having them properly tracked and validated can result in greater accuracy of benefits accruals and lower payroll costs.
Technology facilitated gains can contribute to higher customer satisfaction levels, greater operational efficiencies and tighter control of labor costs for manufacturers.
Endnotes
1Trendline
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About SumTotal
SumTotal Systems, Inc. is the global leader of strategic Human Capital Management (HCM) solutions that provide organizations with a new level of visibility to help make more informed business decisions and accelerate growth. Recognized by industry analysts as the most complete solution, SumTotal provides full employee lifecycle management, including a core system of record, from a single provider for improved business intelligence. The company offers customers of all sizes and industries the most flexibility and choice with multiple purchase, configuration, and deployment options. We have increased the performance of the worlds largest organizations including Sony Electronics (NYSE: SNE), AstraZeneca (NYSE: AZN [ADR]; London: AZN), Amway (KUL:AMWAY), Seagate (NYSE: STX), Dell (NASDAQ:DELL), and Google (NASDAQ:GOOG). For more information, or to request a demo, please call +1 (866) 768-6825 (US / Canada), +1 (352) 264-2800 (international) or visit www.sumtotalsystems.com
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SumTotal Systems India Pvt. Ltd. 7th Floor Maximus Towers Building 2B, Mind Space Raheja IT Park, Cyberabad Hyderabad, AP-500081, India Phone: +91 (0) 40 6695 0000 Fax: +91 (0) 40 2311 2727 2011 SumTotal Systems, Inc. All rights reserved. SumTotal, and the SumTotal logo, are registered trademarks or trademarks of SumTotal Systems, Inc. and/or its affiliates in the United States and/or other countries. Other names may be trademarks of their respective owners. 11_0802LS
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