Save labor costs, stay competitive with Kronos assessment
To reign in labor costs, Kronos Inc. announced a new Diagnostic Assessment that analyzes an organization's existing time and attendance data to uncover excess labor costs in overtime; schedule effectiveness; time that is paid but not worked; and absenteeism.
-- Manufacturing Business Technology, 6/3/2009 1:54:00 AM
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"Quotable"
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Christopher Todd, vice president of services, Kronos, says: "In this difficult economic climate, organizations are looking for ways to trim labor costs without eliminating jobs. The Kronos Diagnostic Assessment gives new value to timekeeping data, which is too often used for little other than processing hourly payroll. Now, organizations can find areas where they can reduce overtime, uncover time-clock abuse, and identify underperforming departments. In an atmosphere where every penny counts, the Diagnostic Assessment provides a quick path to meaningful reductions in labor expense." Kronos Inc. has introduced a new Diagnostic Assessment service that analyzes an organization's existing time and attendance data to uncover excess labor costs in areas such as overtime; schedule effectiveness; time that is paid but not worked; and absenteeism. This simple step to cost savings could even help companies to preserve jobs down the road, Kronos contends.
In one case, a manufacturer with 72 locations and 8,200 employees used the Kronos Diagnostic Assessment to evaluate 19 months of timekeeping history and revealed nearly $20M in potential cost savings.
The new service, called Diagnostic Assessment, can:
- Analyze an organization's existing time and attendance data to uncover excess labor costs in areas such as overtime; schedule effectiveness; time that is paid but not worked; and absenteeism.
- Find trends and outliers in each of these areas, and use the organization's own historical performance to identify root causes contributing to the excess labor expense.
- Take approximately one week to complete. At the end of the engagement, Kronos delivers a detailed report that identifies potential areas of cost savings and recommended actions to reduce labor expense and improve workforce performance.
In an actual case, a manufacturer with 72 locations and 8,200 employees used the Kronos Diagnostic Assessment to evaluate 19 months of timekeeping history and revealed:
+ $2.9M in savings with a five percent reduction in overtime labor;
+ $11.8M in savings by bringing the three highest overtime departments back to baseline;
+ $2M in savings by bringing the four worst time-clock abusing departments back to baseline; and
+ $3M in savings by bringing the seven lowest-productivity departments back to baseline.
The Diagnostic Assessment does not require deployment of any new technology. The service is performed by Kronos service professionals using the Kronos Workforce Analytics labor analytics application. Typical cost for the engagement is approximately $10,000. Kronos Diagnostic Assessment is available to existing Kronos customers.
www.kronos.com- Edited by Mark T. Hoske, MBT electronic editor, www.mbtmag.com
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