Increase Productivity

Excessive overtime is usually symptomatic of overarching productivity issues. Fusion consultants methodically analyze and track data to create systems that optimize factory operations and reduce overhead. In the factory examined below, our consultants were contracted to assist in keeping daily working hours below the legal limit by maximizing hourly output.

The data below details increases in productivity that resulted from Fusion consultants’ diligent work with the factory’s senior management. These are not guesses or estimates, but actual numbers.

95 hours per week

Factory production follows regular fluctuations in seasonal demand. One factory in Panyu was unable to keep up with heightened demand during the high season and required employees to work 95 hours a week (about 12 ½ hours a day, 7 days per week). 95-hour workweeks are not only illegal, but also inefficient as worker productivity declines significantly towards the end of the day. 95-hour workweeks also mean the factory is wasting enormous amounts of money paying overtime.

Fusion consultants compiled records of the factory's past brand orders and the time required to complete them and entered them into a database. They then assisted the factory in building a production planning system to forecast future demand so the factory could prepare itself during the low season.

Low Season – Productivity Increase of 24.14%

Output from March to April was almost the same as that of the prior year due to a delayed raw materials delivery. However, Year-over-year (YOY) comparisons show that even though output fell 17.20%, working hours fell by 33.30%, translating to a productivity increase of 24.14%. The average employee workweek was reduced from 59 hours to 51 hours.

High Season – Productivity Increase of 55.54%

From May to September, YOY comparison showed total output increased 12.44% while total working hours were reduced by 27.71%. Overall peak season productivity increased by 55.54%. Also, average worker’s hours were reduced from more than 95 hours to less than 70 hours per week. Working 70 hours per week also meant that the factory complied with the brand’s code of conduct (CoC).

From October to December, YOY comparison showed total output increased 66.32% and total working hours fell by 5.12%. Productivity saw an immense 75.34% growth.

Conclusion

Fusion assisted the factory in reducing overtime and increasing productivity. Fusion’s production planning system kept factory production on schedule and the factory was able to fill all of its commitments ahead of schedule. At the same time, the factory was able to reduce its overtime, improve its employees’ wages, and increase its profitability.