Piecework Payroll Systems Enable Greater Shop Floor And Office Productivity

By Author: thomasgalvin
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To address market demands for greater product value, fashion and softgoods companies have shifted and outsourced production to the lowest-cost labor regions around the globe. Even as they move to leverage these lower costs, manufacturers are finding it challenging to achieve the acceptable productivity levels and quality standards needed to meet additional demands for faster production cycles and higher quality products. As a result, brand manufacturers and independent producers around the world are rethinking the benefits of productivity-based pay and piecework payroll systems.

Once the norm in apparel and sewn-products manufacturing, individual incentives have been replaced by some long-standing manufacturers with group incentives or other pay schemes. Thinking that their low cost labor advantage would sustain them, many emerging manufacturers ignored or failed to recognize the productivity benefits of piecework. With productivity lagging in many regions, worker incentives and piecework payroll systems are once again attracting attention around the globe.

Interestingly, ...
... shop floor control systems like industry-leader Leadtec™ were originally developed to enable sewn products manufacturers to manage collection and calculation of incentive payroll data. After more than 30-years of continuous development, Leadtec represents the state-of-the-industry in piecework payroll systems; with the proven ability to empower manufacturers to increase productivity by up to 30% and reduce excess labor costs by as much as 20%.

Using specialized operator terminals, Leadtec replaces traditional time clocks to collect all employee time and attendance data. It also tracks all employee production activity, quality performance, and off-standard time while eliminating most traditional bundle ticket handling and processing. Armed with this data, Leadtec quickly and accurately calculates gross payroll for all individual or group incentives based on established piecerates and other off-standard pay rates. Leadtec reduces non-productive operator time, supervisory and administrative tasks, and provides employees with motivational feedback on their performance throughout the shift.

Key cost savings and productivity enhancements of Leadtec piecework payroll systems include:

Reduced cost of producing bundle tickets and gum sheets

Reduced time associated with collecting production data

Reduced non-productive operator bundle handling time

Reduced operator time lost at traditional clock-in/out

Reduced operator time lost to quality issues

Reduced supervisory payroll review and approval time

Reduced piecework administration time

Reduced administrative payroll calculation time

Reduced payroll calculation errors and overpayment

Reduced gross-to-net payroll conversion (optional interface required)

While Leadtec provides measurable benefits as a piecework payroll system, significant productivity, operational, and strategic business benefits are also gained through the process visibility, production management, and cost controls offered through its broader range of shop floor control capabilities.

For more information about piecework payroll system visit our website http://www.leadtec.com/.