Test the labour assumptions behind an equipment upgrade

Topic
Idle plant and replacement projects
Reading time
3 minutes
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  1. Describe the work before assigning a saving
  2. A fictional task comparison
  3. Ask what happens to the time

A machine finishes the job sooner. That does not tell you how much staff time the business has saved. People may still prepare the work, check the output, move information between systems and deal with exceptions.

Separate elapsed process time from people's actual tasks before using a labour assumption in the replacement business case. Discuss any proposed staffing change through the proper employment and safety advice routes; this exercise does not recommend a staffing level.

Describe the work before assigning a saving

Ask the people who perform the job to identify the tasks around it. Record who does each task, whether it occurs for every item or once per batch, and what suitable evidence supports the time assumption.

Include supervision and work shifted to another department. A task removed from an operator's screen may have become a planner's responsibility. Treat that as a change in where work happens until the evidence shows otherwise.

The operator coverage guide helps distinguish competent cover from hours in a calculation. The downstream capacity review shows why faster output can create additional work elsewhere.

A fictional task comparison

Suppose an old process takes 30 minutes of elapsed time for a job. Staff spend four minutes preparing it, eight minutes attending to it and three minutes checking the result. Those selected tasks total 15 minutes.

The replacement's elapsed time is 20 minutes. Preparation takes five minutes, attendance two and checking six. The selected staff tasks total 13 minutes.

In this simplified example, elapsed time falls by ten minutes, while the recorded staff tasks fall by two. Neither total includes every possible activity. The illustration shows why the business should state the measurement boundary instead of calling a ten-minute cycle reduction a ten-minute labour saving.

Use real observations and appropriate advice for an actual decision. Do not assume all time released from a task can be removed from a shift or converted into cash savings.

Ask what happens to the time

The business may intend to use available time for another approved activity. Identify that activity and the conditions it requires. If the answer is simply "more production", check demand, product mix and supporting capacity before adding the benefit to a forecast.

At the project review, show the original assumption beside the current evidence. The output-expectation guide offers a way to discuss a gap without blaming the equipment or people before the facts are clear.

Keep the resulting operating decision connected to the surplus scope. If an older process still supports necessary work, record the specific dependency. If it is released, discuss the equipment with UK Auction Group.

The owner should finish with an explanation of which tasks changed and where the remaining work sits. That evidence can support the next business decision without turning an attractive cycle-time figure into an unsupported promise.

Idle plant and replacement projects

Sources

This guide is general information and education only. Legal, tax, employment and safety decisions may need a qualified adviser who knows your situation. Read the disclaimer.

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Send a list of what you have, where it is and your deadline. Decisions that are still open can be included.

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