Access to ShopVue's labor data informs business decisions that save millions.
Renowned firearm producer Colt Manufacturing installed ShopVue to handle time and attendance for its unionized factory employees, but quickly realized the software’s ability to do more.
HOW COLT USES SHOPVUE
At a time when labor performance was suffering, Colt began using ShopVue to collect efficiency data.
ShopVue collected employees’ actual direct labor hours which managers could then compare to standards, as well as to other employees. Although many employees were working efficiently most of the time, managers now had the data to identify and address inefficient employees and processes.
“When we put in ShopVue, very few people were working at standard. When we began tracking efficiency with ShopVue, people started talking, and they realized they needed to perform to standards,” says Terry McSweeney, Colt’s Director of IT.
The result? Nearly a year after implementing ShopVue, Colt improved overall labor efficiency from 60 percent to over 90 percent.
But for Colt’s management, improving labor efficiency was just the beginning. The team then turned towards improving utilization (the percentage of time people were on direct work while clocked in as opposed to indirect tasks like cleaning and maintenance). When managers began evaluating labor utilization data using ShopVue several years ago, Colt’s labor was about 60% utilized. Today, they’ve met their goal of 80-85% utilization.
Of course, recording improved efficiency and utilization are helpful, but what do they mean for business? In Colt’s case, quite a bit.
During a recent period of increased demand, Colt leveraged its well-utilized and efficient labor force to DOUBLE production WITHOUT adding additional staff.
Today, Colt continues to use ShopVue to analyze and improve its labor force. Like many manufacturers, Colt is adapting to the recent challenging economic conditions and looking for additional ways to streamline costs.
ShopVue enables managers to identify the largest areas of overhead costs and, in some cases, eliminate or restructure positions that don’t contribute to the bottom line.
“Management has come to trust and believe in these metrics from ShopVue,” says McSweeney. And it’s that trust which has enabled Colt to use ShopVue to make informed business decisions that have increased output, cut costs, and paid for the company’s investment in ShopVue many, many times over.