Haggar Clothing
For over 75 years, the Haggar Clothing company has kept Americans in style
by designing and manufacturing its own brand of distinctive clothing. The company
has three domestic production facilities that manufacture pants, suits, shirts,
and dresses that are then sold in countless malls and retail outlets around the
world.
Keeping its customers looking good has always been the mantra of this $450
million company, but maintaining an attractive bottom line is every bit as important
in the home office in Dallas. This dedication to efficiency led to Haggar's selection
and implementation of the Kronos iSeries Central suite as its labor management
solution.
Before implementing Kronos iSeries Central, Haggar relied on a manual method
for collecting time and attendance information from its employees and for processing
its payroll. Haggar decided that it needed to change and turned to Kronos for
help.
A manual system needs upgrading
According to Ken Davis, director of Haggar's financial and retail applications
and Ron Misko, the director of information services, the company's old approach
to labor management was error-prone, cumbersome, and hopelessly outdated.
"We used to use the old standard punch card method," remembers Mr.
Davis. "The data from each hourly employee's punch card was collected and
sent in by mail each week to the payroll department at headquarters, which then
had to be calculated manually. It was very time consuming. Not to mention the
considerable payroll staff we had to maintain in order to accomplish all that."
"Plus, it was hard to keep a tight control on employees in terms of exactly
which job they were working on and when," adds Mr. Misko. "It was all
done on paper, which of course was very time consuming. Making quick adjustments
to any problem related to labor production was nearly impossible."
"We knew there was a better system out there, and we needed it,"
says Mr. Davis.
The search for an automated solution
Haggar formed a committee to create a list of requirements that the new solution
must meet. First and foremost was a streamlined payroll, including timely and
accurate labor data, but the list also stated the need for an easier way to keep
track of manufacturing operations.
After careful consideration of many other labor management solutions, it was
determined that Kronos was exactly what Haggar needed.
The benefits of Kronos iSeries Central suite
Following a relatively simple installation process, Haggar's 2,600 hourly employees
easily adapted to the new system. These employees now use bar-coded ID badges
when they start or end their shift or when they change jobs. Kronos iSeries Timekeeper,
an integral component to the Kronos iSeries Central suite, applies company-specific
pay rules to the collected labor data — automatically and consistently — and interfaces directly to payroll. The process is fast and easy, and it has led to more accurate labor data, a significant reduction in errors, and real-time savings for Haggar's managers.
And payroll has become easier too. As Mr. Misko says, "Ever since we got
the Kronos system up and running, we've noticed a huge savings in payroll processing
time. When it's time to process payroll on Monday morning, you just upload the
data to our payroll service, and they get the information in 15 minutes. The process
used to take us up to three days."
Insight into the shop floor
Kronos iSeries Central has also allowed Haggar to better understand what's happening
on the shop floor so it can manage labor better. Kronos iSeries Timekeeper features
a Workflow Alerts component that monitors the shop floor system and notifies appropriate
managers when an exception has been identified. Workflow Alerts has given Haggar
the ability to manage proactively, which gives it real-time control over labor
resources — and labor costs.
"With Kronos iSeries Timekeeper, we can now track production on the line
level. We have access to much more accurate labor information on the employees
working in our plants and distribution centers," Mr. Misko reports. "Managers
are now able to easily track what specific job they are working on and how long
it takes them to complete it."
"You really can't control something unless you have the tools to measure
it," says Mr. Misko. "We'd have a much harder time controlling production
if we didn't have a tool that delivered accurate information quickly. Kronos iSeries
Timekeeper is that tool."
So now, Haggar is able to make production adjustments much more quickly. And
as Mr. Davis says, anything that improves the process is going to increase production.
"Kronos has helped us understand our business better so we can improve
our production process. Our performance has improved, which ultimately makes our
business more successful," he says.
Improved labor data accuracy. Reduced time and errors related to payroll. Better
insight into the shop floor. Kronos iSeries Central helped Haggar overcome its
business challenges allowing it to focus on improving its business. That's a perfect
fit.
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