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Labor Performance LMS Features |
A. On-Demand Hosted Solution Labor Performance LMS is an on-demand program, hosted on the IMS server and accessed over the Internet. Your administrator enters data into the program online through a secure login. Your information is safeguarded and protected and available only to you.
Hosted solutions require no software installation, no hardware or complex web services infrastructure. All that is required is a web browser. Labor Performance LMS allows an enterprise to focus on creating value and sharing information, without devoting any resources to deploying or maintaining ERP or accounting software.
Organizations are gravitating toward the on-demand delivery model for all types of business applications, because it shifts the bulk of the costs and risks of traditional on-premises software from the customer to the supplier. With low starting cost, a greater implementation success rate and a greater customer satisfaction rate, the demand for on-demand services grows as businesses are increasingly asked to do more with less.
B. Labor Algorithm Engine The proprietary labor algorithm is the heart of the Labor Performance LMS system. Thousands of hours have gone into the design and modification of the algorithm in order to create the functionality of the program. There are three parts to the Labor Algorithm Engine: 1) Data Collection 2) Process Mapping 3) Labor Algorithm.
1. Data Collection The program makes recommendations about the information you need to collect and enter into the program. Your data is used to create your unique performance program. Collecting information about your current processes and historical performance will help you set your goals.
2. Process Mapping Production processes and job descriptions can be mapped and put into the software. Understanding current processes is vital to the design of the unique productivity algorithm that drives productivity. You create a flow chart of production process, work stations and measurement points and a process to collect and compile the required data.
3. Labor Algorithm Model Labor Performance LMS contains a unique algorithm that drives the Pay for Performance System. It creates a very accurate and fair performance table for the incentive program. Information is collected everyday and fed into the database. Daily reports show how well employees are performing. They show much each employee can earn based on reaching bonus hurdles created by your algorithm.
The software drives the entire program: a. The unique algorithm determines the incentives b. Bonus hurdles are determined to drive productivity c. Daily data collection and entry feeds the information into the system d. Daily reporting provides the necessary information about performance and incentives to employees and supervisors
There are dozens of specific variables for each client. Examples of variables that are client specific include: Labor Algorithm, Production Goals, Bonus Levels, Bonus Amounts, Labor Costs, Bonus Frequency, Secondary Metrics, Electronic Interface Functionality and Reports.
C. Rewards System Design Pay for Performance Bonuses motivate employees to work harder and smarter by providing daily feedback on performance and the ability to earn bonuses on a daily basis. These systems have played a key role in enabling IMS to consistently increase productivity by an average of 30%. Many companies have implemented incentive programs for their employees without seeing an adequate return on their investment of time and money. To achieve sustainable increases in productivity it is vital that the incentive system be based on criteria that the employees can directly impact and include frequent feedback, timely rewards and effective training.
1. Productivity Goals The rewards that drive improved productivity are based on Individual incentives and bonus hurdles. Our program creates strategic productivity goals called mark rates. At each mark rate there is a bonus hurdle that pays employees more money when the goals are reached. Mark rates are determined by the Productivity Algorithm based on historical and actual productivity analysis.
2. Employee Bonuses Production Goals are unique for each job and are based on a labor algorithm that takes several factors into consideration – cases, splits, picks, weight, specific processes, etc.
Employees are given the Production Goal for the container, pick slip or job order at the beginning of each assignment so that they have a goal to shoot for. At the end of the day all of the assignments they worked on are entered into the IMS software program along with the hours worked on each project. If an employee’s average performance exceeds the Production Goals for the day then he or she will earn a bonus for the day.
3. Supervisor Bonuses Supervisors are the key drivers in the success of the program. If a Supervisor is ambivalent about the program then there is very little chance that it will succeed. Supervisors need to be rewarded if the program succeeds. Supervisor bonuses should be team-based by shift in order to encourage teamwork among the supervisory team. Their bonuses should be based on two factors – the productivity level of their crew and the level of non-productive hours.
D. Daily Reporting Daily reports give employees, supervisors and managers vital performance information. Every employee will know where he or she stands on a daily basis. The Daily Production Report gives a detailed breakdown of each task completed by the employee and a summary of his or her results for the day, including bonuses earned. The Daily Performance Report lists each person’s daily results, the person’s lifetime average productivity and an adjusted goal for the employee based on length of employment.
E. Payroll Integration Our system provides payroll reports so bonuses can be integrating into a client’s payroll system.
1. Payroll Integration. We work with your accounting department to determine a reporting schedule from our software system. We calculate the bonuses for each employee and provide you with a timely report. 2. Payroll Reporting. We provide you with a digital and/or paper version of all reporting so you have it for your record.
F. Customized Reports Design Our software program produces daily reporting that provides employees, supervisors and senior management with vital productivity information. Daily Production Reports give a detailed breakdown of each task completed by the employee and a summary of his or her results for the day, including bonuses earned. Each worker can see exactly what was accomplished from the previous day’s productivity. Supervisors can acknowledge top performers quickly and reinforce positive behavior. Conversely, employees who are underachieving have the opportunity to discuss ways of improving productivity.
Reports Specific reports include: a. Daily Production Reports – gives a detailed breakdown of each task completed by the employee and a summary of his or her results for the day, including bonuses earned. b. Daily Performance Report – Lists each person’s daily results, the person’s lifetime average productivity and an adjusted goal for the employee based on length of employment. This report helps the Supervisors identify which employees are not meeting goal and adjusts standards for new hires. (See Appendix A) c. Daily Non-productive Work – This is a breakdown of all non-productive hours logged in the system. The Supervisors should be focused on minimizing these hours. d. Facility Summary Report – This report provides management with a summary of daily productivity and labor costs by shift. e. Weekly Production Reports – Same as Daily, but shows an employee’s production for the week. f. Weekly Bonus Reports – Gross and Net bonuses earned by each employee for the week. Net bonuses may be higher if there was overtime (to comply with state law) or lower if the employee had an unexcused absence or quality issue. g. Individual Productivity Reports – for any specific time period on an as needed basis for employee reviews or counseling.
G. Training and Support Training is a continuous program that provides a constant flow of support to the employees and supervisors. Supervisor and Employee training is done over a period of a few weeks. They will understand the structure of the incentive program, what the reports mean and how they earn more money.
1. Performance Coach For training and management you are assigned an Performance Coach. The Coach is also responsible for assisting you in all aspects of implementation and management of the program. The Coach is responsible for working with the Client to find ways to make the system more successful. Services are delivered through online training and teleconferencing.
2. Goal Setting We’ll show you how to complete a Pay for Performance Goal Sheet. This form will help them identify a goal that they want to work towards (Vacation, car, house, paying down debt, etc) and then calculates how long it will take them to achieve that goal if they reach the different mark rates.
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