Why Tie Payroll Hours to Machine Hours?

The February 2018 digital edition of Modern Machine Shop covers topics such as machine monitoring, holemaking and tooling technology.

While there certainly is value in collecting and displaying this data gathered from machine monitoring, identifying and tracking green time is only part of the continuous improvement initiative for J&R Machine. The company uses the machine data it collects to develop a monthly productivity index: a ratio of machine green hours to the payroll hours of the person tending the machine. In essence, this metric demonstrates how well the shop uses its payroll hours compared to its machine hours. It helps shape a number of key business decisions and ultimately reveals true shop costs and profit.

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Read or download the digital edition of Modern Machine Shop’s February issue.