Klaus Kriener
is Principal Consultant for the manufacturing industry at KUMAVISION
Time tracking is a key factor in increasing productivity and profitability. Because it enables companies, for example, to identify bottlenecks and excessive resource utilization and then to optimize their processes in order to reduce downtime and downtime. Traditionally, time recording is mainly used in production to record the working hours of employees in various work steps. This not only serves to gain a precise insight into the work progress, but is also essential for realistic scheduling and capacity planning. But time management is about more than just processing and throughput times. Because the collection, evaluation and management of all employee time data, even beyond production, is the basis for companies to maintain their competitiveness and be successful in the market in the long term. For companies in all sectors, time recording will also be mandatory from 2023. In this blog post, you will learn how you can not only meet the legal requirements with the help of modern time recording, but also identify bottlenecks, optimize processes and improve cost structures and what role business intelligence plays in this.
Farewell to the time clock
In the past, manual time recording methods such as time clocks or sheets of paper were often used in production. However, these methods were inaccurate and prone to error. In addition, it is difficult to obtain real-time information about the production progress in this way. In addition, according to the landmark judgment (1ABR 22/21) of the Federal Labor Court (BAG) of September 2022, companies with more than ten employees are obliged to document the working hours of their employees. This means that negative time management is no longer sufficient, in which the target time is automatically regarded as working time and only deviations such as illness, vacation or further training are recorded. The draft bill on the Working Hours Act (ArbZG) presented by the Federal Ministry of Labor and Social Affairs (BMAS) on April 18, 2023 also provides that Working hours are to be recorded daily and electronically. For this reason, companies in all sectors should promptly think about introducing an electronic time recording system.
One possibility for digital recording is the use of barcodes, which clearly identify each work step and are scanned by employees using a handheld device or smartphone. This approach eliminates the manual entry and transfer of working times, which minimizes sources of error, saves time and improves cooperation between departments - and meets the legal requirements for an objective, reliable and accessible time recording system. In addition, the use of barcodes makes it possible to precisely track and transparently document each work step and its duration. Because the barcode label is on production orders or other work documents that are linked to the individual work steps and contains information about the respective process step, the employee, the machine, the date and other relevant details. When scanned, this information is then automatically captured and stored in a time tracking system or database. This is where data is collected and analyzed, reports are created and working times are tracked. In addition, the data is available for other software solutions such as B. the ERP or HR system is available.
Automated time recording systems, which use the latest technologies to automatically record working hours, go one step further. For example, the presence and activities of employees at the workplace can be reliably detected using sensors such as motion detectors or infrared cameras. Another possibility is the integration of automated time recording systems with machines and systems in production. By attaching sensors to the machines, the system can independently record the beginning and end of process steps and send the data to all connected databases and software solutions for further use.
How data becomes knowledge
Knowing how long an employee needs for a work step or a task is the basis for all planning - be it in production or in other areas of the company such as logistics or accounting. Without this information, no company can operate successfully in the long term. Because only the exact documentation of the working time enables an exact post-calculation of projects as well as products. By comparing the actual working times with the planned times, deviations and inefficient processes become visible, cost structures can be optimized and savings can be realized. Inaccurate or missing time recording can therefore lead to incorrect calculations and financial losses as a result.
But how do you manage to analyze the recorded times in a meaningful way and convert them into meaningful information? This is where Business Intelligence (BI) comes into play. By using BI tools, companies can better understand the recorded times: Because only when the collected data is available, for example filtered according to various criteria, can companies recognize trends, identify patterns and uncover connections between working hours and other factors. Inefficient processes, bottlenecks and bottlenecks become visible in this way, as does optimization potential. Companies can use all this knowledge to take appropriate measures, for example to increase productivity and shorten throughput times and to make well-founded decisions for the future based on forecasts.
Dashboards also enable managers and employees to track important KPIs in real time, e.g. B. to monitor compliance with the budget and to react to deviations in good time. This is particularly relevant for project-based work to keep costs under control and ensure profitability. In order to visualize the results of time recording, BI tools such as Microsoft Power BI plus custom reports and dashboards. In this way, employees can present the collected data in an understandable and meaningful way - and thus secure the commitment of the decision-making level.
More flexibility thanks to the app
Time recording using barcodes is widespread in production. Employees in warehousing and logistics also scan labels to record their times for various work steps. In other areas of the company, however, this approach is not very practical. Because in the classic office workplace, the tasks are often less tangible and less structured, the workplaces are less demarcated and the employees can organize their tasks more flexibly. Therefore, other methods of time recording are more common here: Employees enter their working hours manually using time recording software, time recording cards or electronic time recording systems. Good to know: Even with the BAG ruling and the law that is now to follow, working time models such as trust-based working hours should continue to be possible.
Time tracking via a mobile app is a modern and flexible solution for companies that are not limited to fixed workplaces. With a time recording app, employees can record their working hours, project times, breaks and other relevant information quickly and conveniently via their smartphone or tablet. This can be done by manual input, start/stop timer or scanning of QR codes or NFC tags, depending on the provided functions of the used app. This approach enables timely and precise time recording regardless of location. Because employees can also record their times directly while on the go or in the home office - a great advantage in times of remote work, flexible working models and in classic field service. The mobile application also scores in terms of traceability and transparency: if necessary, apps can also record the employee's location during customer visits or external assignments. And the recorded times are available in real time. This allows employees and supervisors to view and check times immediately. Automatic calculations of overtime, break times or other regulations also help to minimize errors and increase the accuracy of the recorded data.
Projects at a glance: why Accurate timekeeping is essential
Time recording has always played a central role in production and manufacturing. However, other areas of the company also benefit from precise time management: For companies with project-based work structures, time recording is indispensable for tracking the progress of projects, monitoring the use of resources and analyzing the project status. It helps in evaluating project costs, determining project profitability, and identifying bottlenecks or delays in a timely manner. In addition, the time recording enables an exact billing of hours worked. Customer projects can be billed transparently and correctly, and companies have a clear overview of the working time that was spent on each client. In companies with several projects or orders at the same time, the exact recording of the working time per project is of great importance. This enables detailed cost tracking, the allocation of working time to specific projects and activities, and the assessment of the profitability of each individual project.
Accurate time tracking allows companies to determine the actual cost of each work step. This is especially important to evaluate the profitability of products or orders. The final calculation is based on the recorded times and serves as the basis for cost control and the determination of prices. Accurate time recording is therefore an important part of modern and future-oriented corporate management - regardless of the industry or work area. In addition, companies are thus complying with the legal framework, which in future will provide for electronic recording of the beginning, end and duration of the daily working hours of all employees.
