Mitsubishi Motors North America Reduces Labor Expenses and Improves Productivity with Kronos Solution
Mitsubishi Motors North America, Inc. – Manufacturing Division (MMNA – Mfg.) is an automotive assembly operation located in Normal, Ill. MMNA – Mfg. is the only Mitsubishi Motors passenger car assembly plant in North America, with 2,000 employees and a current production capacity of 135,000 vehicles per year.
MMNA – Mfg. decided that it needed a workforce management system that could do more than just collect time and attendance information. It was looking for a comprehensive solution that could support and quantify daily improvements in the productivity of its workforce to ensure future competitiveness. MMNA – Mfg. selected the Workforce Central® suite and discovered that it was exactly the solution it was looking for. "A key factor in our choice of Kronos® was that we could use the standard product without customizations," recalls Andy Whaley, MMNA – Mfg.'s accounting manager.
Workforce Timekeeper™, the time and labor component of Workforce Central, gives MMNA – Mfg. the ability to deliver real-time labor data to its operating departments while maintaining the level of detail necessary for correct pay transactions. By comparing actual labor information with real-time data from the budgeting system, MMNA – Mfg.'s managers are able to identify excess headcount in various areas throughout the plant.
Having the right number of associates on the line building the vehicles has contributed to improving the plant's HPV (hours per vehicle), and MMNA – Mfg. realized a $1.3 million savings over the most recent 12-month period. For this success and for its widespread adoption of the system by all employees, which led to improved productivity, profitability, and competitiveness in the automotive industry, Kronos presented MMNA – Mfg. with a Best Practices Award. These awards are presented annually to organizations that demonstrate excellence in the application of Kronos technology.
A manual workforce management system becomes automated
Before Kronos, MMNA – Mfg. relied on a manual system for timekeeping, payroll, labor reporting, and other workforce management needs. The process was based on paper timecards, which employees used to submit their time and attendance information. These timecards were collected by supervisors, totaled and processed for payroll, and then sorted and compiled in a number of different ways to produce labor reports. MMNA – Mfg. found the entire system to be labor-intensive, time-consuming, and ineffective as a labor-reporting tool.
Whaley recalls the transformation. "We selected and installed Workforce Timekeeper along with Kronos' data collection devices. Now our employees only have to swipe their ID badges through these terminals, and their labor information is immediately captured and stored. It's fast, easy, and helps us make management decisions for each shift."
Automatic application of pay rules yields improved data accuracy
Consistent application of numerous — sometimes complex — pay rules has made things much easier for MMNA – Mfg., especially when it comes to addressing the needs of a unionized workforce. "As an automotive assembly operation, we must comply with the MMNA – Mfg./United Auto Workers (UAW) Collective Bargaining Agreement," says Whaley. "Our Kronos solution has streamlined this process and made it easier to support these requirements."
"We began by documenting all of the pay rules, including third shift maintenance, seven-day operations, and other issues like 24-hour rules," Whaley explains. "Once these rules were documented by payroll and verified by HR, we worked with our Kronos consultant to configure the pay rules to our system. With Kronos, we are assured the pay rules are applied consistently with minimal exceptions."
Improved labor data equals improved labor insight
Besides improving its timekeeping and payroll processing functions, MMNA – Mfg. wanted to improve its use of labor data for reporting purposes. One specific challenge it faced was delivering labor data and reports to the appropriate work groups — a tough job in a 2.5 million square foot facility. MMNA – Mfg. previously printed these reports by group, and supervisors picked these reports up at a central location and delivered them throughout the plant. Managers were receiving too little information too late, so it was difficult to produce timely or insightful labor reports that had much impact.
Following an upgrade from Workforce Central 3 to Workforce Central 5, MMNA – Mfg. is able to access this information through Kronos Workforce Genie® shortcuts and standard reports. This allows MMNA – Mfg.'s supervisors to receive real-time, on-demand labor reports. "By having real-time access to Kronos data, our supervisors are able to review and print these reports in their work areas," Whaley remarks. "For example, they can produce an hours report and post it for associates to review, ensuring that employees' punches are collected and associates will be paid correctly."
MMNA – Mfg. also enjoys its ability to easily generate reports on overtime hours. Managers use Workforce Timekeeper's sorting capabilities to see which employees are working overtime. A single, accessible report is quickly generated and helps management make labor better decisions. "We strive to be a lean and flexible organization, and Kronos enables us to target our cost-reduction efforts," Whaley says.
Workforce Timekeeper delivers valuable labor reports
Improved labor reporting has enabled MMNA – Mfg. to improve the way it does business and has contributed to better results. One example of this is the use of the authorized versus actual report. "It's our most effective report, and gives us an instantaneous, real-time view of how each group and section performed — actual hours versus authorized hours - for the most recently concluded shift," says Whaley.
The real-time reporting capabilities of Workforce Timekeeper help managers determine on a daily or weekly basis if they have more manpower than necessary. If this occurs, managers ask volunteers to opt out early for the day. This process saves the organization labor hours, and employees enjoy the occasional opportunity to go home early. "We can easily generate these reports each day, and they help us keep the appropriate amount of associates on the line," explains Whaley. "This has enabled us to save between $50,000 and $100,000 in labor costs each month — a major part of the overall savings we have realized with our Kronos system."
"The results are very exciting," Whaley continues. "Accountability is way up, and excess hours are way down. Workforce Timekeeper has given us the labor reporting tools we need to support operations management and continue implementing productivity improvements
With Workforce Timekeeper, MMNA – Mfg. finds itself more efficient and better able to collect, process, and use critical labor data — and this more accurate labor data has led to improved results and increased productivity. Implementing Workforce Timekeeper has enabled MMNA – Mfg. to realize these benefits and more, helping to ensure future competitiveness in the automotive industry.
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