OptiHR Service Overview (TWI)

“Optimizing productivity through innovation”

Workforce productivity levels destroying profits margins?Training Within Industry is a rigid workforce productivity improvement program tailored to address the challenge of excessive labour overruns, a leading contributor to Contractors profit erosion and budget overruns in the GCC.Developed during WWII, Training Within Industry (TWI) is a dynamic program using a learn-by-doing approach, teaching essential skills and understanding to Supervisors and Team leaders to ensure Organizations realise maximum benefit from this already proven productivity improvement initiative. LPP’s “J” Classes include;

JOB SAFETY (JS) JOB INSTRUCTION (JI)JOB INSTRUCTION (JI)JOB INSTRUCTION (JI) JOB RELATIONS (JR) JOB RELATIONS (JR) JOB METHOD (JM)

“Provides a systematic approach to identifying and eliminating the conditions that lead to

safety incidents.”

“Trains workers to quickly remember how to perform jobs correctly, safely and

conscientiously. Supports standard work”





“Builds and maintains positive employee relations”

“Builds and maintains positive employee relations”

“Improving the way jobs are done to support continuous productivity improvement”

KEY BENEFITS:‣ Fewer injuries‣ Fewer lost work days‣ Lower number of recordable incidents

KEY BENEFITS:‣ Reduction in defects of over 70%‣ Reduction of costs exceeding 30%‣ Increased productivity exceeding 50%‣ Increased job satisfaction‣ Improved safety‣ Culture of Change!



KEY BENEFITS:‣ Improved attendance‣ Higher employee morale‣ Improved employee retention rates

KEY BENEFITS:‣ Improved attendance‣ Higher employee morale‣ Improved employee retention rates

KEY BENEFITS:‣ Continued productivity gains‣ Increased throughput‣ Reduced work-in-progress

The “J” programs are not merely training programs, the emphasis of each program is reinforced by Consultants to support targeting of specific business processes that require improvement and remodeling.

To achieve maximum effectiveness, select supervisory staff are developed and certified as “J” Program Facilitators, ensuring your business has ability to sustain continuous productivity improvements.

The “J” programs are not merely training programs, the emphasis of each program is reinforced by Consultants to support targeting of specific business processes that require improvement and remodeling.

To achieve maximum effectiveness, select supervisory staff are developed and certified as “J” Program Facilitators, ensuring your business has ability to sustain continuous productivity improvements.

ADDITIONAL BENEFITS REALISED‣ Workforce Evaluation & Right Sizing‣ Prioritization improvement process’s

- Logistics (Plant & Materials)- Procurement- Design

‣ Improved Estimating & Costing‣ Support Reward & Recognition Strategies

“Optimizing productivity through innovation”

www.optihr.ae

TRAINING WITHIN INDUSTRY

OptiHR FZ LLC | www.optihr.ae | [email protected] | +971 4 454 9738 | P.O.Box 126732, Dubai, U.A.E | Concord Tower, Floor 6, Office 18, Dubai Media City, Dubai, United Arab Emirates



JOB INSTRUCTIONDevelop StandardTrain Workforce

PDCA - PLAN, DO, CHECK, ACTEstablish areas of measurement

JOB RELATIONSEncourage InnovationSolve people problems

JOB METHODQuestion DetailImprove Standard

PERF

ORM

ANCE

vs

ALLO

WAB

LE

+ ve

- ve

PERFORMANCE ALLOWABLE TIME

JOB METHODImprove performance from stable baseline

JOB INSTRUCTION Reduce variability with Standard Work

PDCADefine MeasurementsPLAN-DO-CHECK-ACT

CURRENT STATEVariability in standard work causing unstable performance

JOB RELATIONSImprove employee relations

JOB EVALUATION & GRADINGEstablish position heirarchy

COMPENSATION & BENEFITSImprove employment equity

PERFORMANCE MANAGEMENTDiscipline Reward Recognitiom

SUPPORING STRATEGIESEstablishment of Internal Equity amongst employees plays a crucial role in maximizing productivity improvements.


MANAGERS

DIRECTORS

SUPERVSORS

OPERATIVES

LABOUR

BOARD

OPERATIVES

LABOUR

Min Mean Max

MANAGERS

DIRECTORS

SUPERVSORS

OPERATIVES

LABOUR

BOARD

OPERATIVES

LABOUR

SALA

RY

http://www.optihr.ae/%23!services/vstc1=jit






http://www.optihr.ae/%23!services/vstc1=ja








http://www.optihr.ae/%23!services/vstc1=jrt






http://www.optihr.ae/%23!services/vstc1=jmt







TRAINING WITHIN INDUSTRY @ WORK IN GCC


-16,000,000

-14,000,000

-12,000,000

-10,000,000

-8,000,000

-6,000,000

-4,000,000

-2,000,000

0

2,000,000

4,000,000

February April June August October December

3,600,0003,000,000

2,400,0001,800,000

1,200,000600,000

-15,000,000

-12,500,000

-10,000,000

-7,500,000

-5,000,000

-2,500,000

Labour Overrun Arrest (1000 Workforce)

+50.00% Budgeted Cost (Before) -12.00% Budgeted Cost (After)

January March May July September November January

Productivity - (AED) VALUE created per Labour

(AED) Value Created per Labour MVNG AVG Trend Line

Graph illustrates the net affect of budgeted labour costs to bottom line profits subsequent to TRAINING WITHIN INDUSTRY IMPLIMENTATION. (Workforce of 1000 laborers)

Graph illustrates how TRAINING WITHIN INDUSTRY has supported improvement of revenue generated per laborer for client.

IMPACT OF WORKFORCE OVERRUNS


The below table illustrates impact Labour Overruns have on projected profit margins. In this case, a 33,33% Labour Overrun on budgeted workforce of 1000 laborers completely erodes projected profits.

*FIGURES ARE TYPICAL - WILL VARY FROM PROJECT TO PROJECT















WORKFORCE (TYP): 1000.00 Labourers 1000 1330 (330) WORKFORCE OVERRUN(330) WORKFORCE OVERRUNCOST (TYP): AED2,500 per month 33.33%

Description RISK % (TYP) BUDGET COST % Difference (AED)Difference (AED) ACTUAL (AED)

Material Costs 45.00% AED 45,000,000 45.0% AED 0AED 0 AED 45,000,000

Labour Cost 30.00% AED 30,000,000 40.0% AED 10,000,000AED 10,000,000 AED 40,000,000

P&G 10.00% AED 10,000,000 10.0% AED 0AED 0 AED 10,000,000

Overhead 5.00% AED 5,000,000 5.0% AED 0AED 0 AED 5,000,000

Net Profit / Loss 10.00% AED 10,000,000 0.0% AED (10,000,000)AED (10,000,000) AED 0TOTAL 100% AED 100,000,000 100% AED 100,000,000

Cost Allowable

P&G

Material

Labour

Labour Overrun

P&G

Material

Labour

Cost Allowable

P&G

Material

Labour

Profit

P&G

Material

Labour

F"

E"

Job"Allowable"(JI)""

Job"Rela0ons"(JR)"

Job"Method"(JM)"

Job"Instruc0on"(JI)"

PROD

UCTI

VITY

REP

ORTI

NG

Establish Systems

Define Program

Monitor Productivity

Set Direction

Supervise Activities

Execute Tasks

COMPANIESCOMPANIES TRAINING WITHIN INDUSTRY

JOB EVALUATION & GRADING

COMPENSATION & BENEFITS

PERFORMANCE SCORECARD

2500 WorkforceConstruction, MEP, Coatings

55,000 WorkforceBuilding, MEP

15,000 WorkforceBuilding, Precast, MEP,

Ceilings & Partitions, Fit-Out

75,000 Workforce Building, Civil,

Manufacturing, Trading, Aviation, Plant & Equipment,

Marine, Catering

CLIENTS & EXPERIENCE


SUCCESS STORIES - TWI


PRESENTTOYOTA Toyota has been using TWI Training since 1951. It forms the foundation of their TPS (Totota Production System) which industries globally are trying to emulate.ESCO Turbine TechnologiesSyracuse credits the TWI Job Instruction Program for reducing rework by 96% in a two year period and to maintain that high level of quality since

PASTCONSOLIDATED STEEL - SHIPBUILDING18,500 workforce‣ 45% - Increase in production‣ 75% - Reduction in tool breakage‣ 78% - Reduction in training time‣ 45% - Saving in manpower‣ 69% - Reduction in scrap‣ 69% - Reduction in accidents

BOEING - B17 BOMBER33,000 workforce‣ 60% reduction in man hours per airplane.‣ Fly-a way’s went from the initial quote of 75/

mo. in 1941 to a peak of 364, one every 1.6 hours in March 1944.

‣ Initial cost of $242,000 per plane in 1940 was reduced to a final cost of $139,254 in March 1944, 42.46% in 32 months

The following data from these 600 companies leaves no doubt that TWI contributed to winning the war of production even after having to start from scratch way behind the production capacity of the warring nations that had also stockpiled the materials of war knowing in advance they would be put to use.

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OptiHR Service Overview (TWI)