COST OF INEFFECTIVENESS AND INEFFECIENCY

Watch this: Cost of one second unproductive, inefficient and ineffective time


Sharing with you an article to quantify the cost of your employees inefficiency and effectiveness or muda. Try cost effectiveness (not cost reduction) and other modes of measuring labor productivity.


Question: Do you realize that your company spend a lot of money per second on unproductive per employee not only on salary but other cost stated below?

Cost per employee:

13 month pay
Vacation Pay
Sick leave Pay
SSS Management Share
Retirement Pay
Overtime Pay
Holiday Pay
Merienda Pay (30 Minutes)
Accident Pay
Electricity
Water
Building
Janitorial
Maintenance
Space
Equipment
Other Benefits

The Calculations is simple.

Title Basis ( Basic Salary per day)

R & F 364.00
Head 418.60
Foreman 481.39
Asst. Sup 553.60
Supervisor 636.64
Tech Staff 732.13
Asst. Manager 841.95
Manager 968.25
Division Manager 1,113.48
Vice President 1,280.51
President 1,472.58

Basic Daily + other cost

R & F 1,092.00
Head 1,255.80
Foreman 1,444.17
Asst. Sup 1,660.80
Supervisor 1,909.91
Tech Staff 2,196.40
Asst. Manager 2,525.86
Manager 2,904.74
Division Manager ` 3,340.45
Vice President `3,841.52
President 4,417.75


Cost per Second

R & F 0.038
Head 0.044
Foreman 0.050
Asst. Sup 0.058
Supervisor 0.066
Tech Staff 0.076
Asst. Manager 0.088
Manager 0.101
Division Manager 0.116
Vice President 0.133
President 0.153

Cost per 1,800 Secs (30 minutes unproductive time per day)

R & F 68.25
Head 78.49
Foreman 90.26
Asst. S 103.80
Supervisor 119.37
Tech Staff 137.28
Asst. Manager 157.87
Manager 181.55
Division Manager 208.78
Vice President 240.10
President 276.11

Cost per month (26 days x 30 minuts x 60 seconds)

R & F 1,774.50
Head 2,040.68
Foreman 2,346.78
Asst. Sup 2,698.79
Supervisor 3,103.61
Tech Staff 3,569.15
Asst. Manager 4,104.53
Manager 4,720.21
Division Manager 5,428.24
Vice President 6,242.47
President 7,178.84

Cost per Year of Unproductive time

R & F 21,294.00
Head 24,488.10
Foreman 28,161.32
Asst. Sup 32,385.51
Supervisor 37,243.34
Tech Staff 42,829.84
Asst. Manager 49,254.32
Manager 56,642.46
Division Manager 65,138.83
Vice President 74,909.66
President 86,146.11

Reasons how easy to spend 30 minutes of unproductive time everyday. You may add more based on your work experience:

Tardiness
Longer Merienda breaks than allowed
Any Incident or Near miss accident
Talking About Pacquiao
Tsismisan
Long time in CR
Slow computer
Lots of time in Internet
Lots of time spent on local network
Longer time during lunch
Machine Breakdown
Slow Photo Copier and Fax machine
Computer breakdown
Old system never improve
Sick while working
looking for records and files
Cellphone Texting
Longer time in Phones
Unplanned Customer Visit
Untrained Skill workers
Untrained Supervisors
Watching Telivision
Day Dreaming
Not practicing 5S
Napping
Sleeping
Drunk in work
Useless Minutes
Not touch typists but two finger typing
Slow in Math
Does know how to use powerpoint and excel effectively
Political discussion
Long Meetings
Late in meetings
Same problem not solve on time
Quarelling
Anger and Hate
Inefficient System
Ineffective System
Makes a lot of mistake in typing or encoding (like me:>))
and more!!!

I bird's eyeview? this,we have already budgetted the cost through our inefficiency and ineffectiveness.
Start measuring HR.These are management problems (shaded) and people problems
We can make your discipline and trainings cost effective

What do you think? Hmm... the dark side of HR.Let's start knowing how to use quality and productivity measurements. Measure, measure, measure and measure!!!

@twistedfly,

Nice info. Gamit gyud dah.