Firms achieving less than 70% performance against their costings!
Posted by Ian
The old adage “if its not measured if not managed” is as true today as ever it was. Despite the significant investment by many companies in capital equipment in recent years, a recent survey found that less than 30% of companies actually measure their individual Job performance& profitability against their costings.
However if they did, many would find that they were achieving less then 70% performance says Ian Toomey, Managing Director of Bariant Systems Ltd. A productivity consultant with over 30 year’s industrial experience, Toomey says owner managers are often shocked when confronted with the facts.
“Small companies tend to have very fragmented systems to measure performance, often using an array of spreadsheets, written timesheets and clocks. The time delay and hassle in carrying out any kind of analysis means many companies simply don’t bother and don’t know where they stand in relation to individual employee productivity or job cost performance.
Dublin based company Bariant Systems have just launched JobScan, their Job Management Software onto the UK market aimed at small workshop environments. Already installed in over 70 workshop based Irish companies, this low cost real-time system links all job costing and processing elements into one system.
Using bar-coded jobcards and a shopfloor scanner, employees scan the job cards to capture time & wages on each process on the job. Materials used may also be scanned to the job. This provides an instant update on job progress, profitability and employee performance and it measures against the costings.
It has never been more important for companies to be able to see the profitability on a job by job basis says Toomey. Productivity increases of up to 20% have been reported by our users, as under costing, shopfloor inefficiencies, reworking and operator performance issues are immediately highlighted on the daily reports
Also the increased accuracy of costings has been a major benefit tor companies allowing them to make more informed decisions to pricing strategies.
