A sound measurement framework is something every manufacturer would like to have. Yet today, most measurement systems focus on machinery effectiveness or production output.
Manufacturers measure time and attendance carefully, but beyond that, few have a method of understanding the effective use of their workforce. This white paper will provide a description of Overall Labor Effectiveness (OLE) and discuss how to use it as a tool to improve the overall effectiveness of the labour force.
Optimising workforce performance requires new insight. Attaining that insight requires companies to establish methods of quantifying, diagnosing, and ultimately predicting the performance of their workforce. That insight can be provided by Overall Labour Effectiveness (OLE).
Simply put, OLE is the analysis of the cumulative effect three workforce factors have on productive output:
- Availability: the percentage of time the workforce spends making effective contributions
- Performance: amount of product delivered over the defined time period
- Quality: the percentage of perfect or saleable product produced
OLE helps manufacturers develop a highly motivated, effective workforce by helping them identify where people need better processes, materials, training, or indirect support. It’s a productivity tool for managers that helps them manage better as they convert labour expenditure into profits.