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Monday, May 19, 2014

IS YOUR MANUFACTURING UNIT A " COOL PLACE" TO WORK?

While having a recent focus group discussion with some of our senior managers who manage the operations, one of them told me how companies are getting too focused on technology and process innovation that they forget about the key element of a shop floor- "The People". I could not agree more to it as over and over again we see instances of factories being classified as places which require the lowest level of skills and hence needing the least attention as far as people are concerned.

But is this true and even if it is true can you do away with having the least focus on them?

There was a time when labour force at factories were taken for granted and were treated as inventories which were easily replaceable. This was predominantly done for two reasons

1) Less turnover.

2) Industrial era mindset of managers.

3) Lack of knowledge on learning retention of employees.

All these 3 points are inter related. Anyone who has run manufacturing especially in most Asian countries would admit that attrition has now become a key concern on the shop floor. I am not even going into the percentage of attrition but the cost of attrition if calculated properly ( as i have done for one of my previous employers) could be as high as a million USD per month!!!. Also manufacturing jobs are no longer seen as being "cool" by the younger generation and hence finding the candidates itself is not easy. As per recent statistics 75% of your work force by 2025 would be gen Y, so you better make your workplace "cool" enough.

Most managers who used to dominate the shop floor till some time ago used to run factories like running a military camp. Though there was and in some cases still a need to have strict discipline in factories , the younger generation who has much awareness of the world around them would not like to be treated like in a camp. After all they are not fighting a war, they are merely working for their livelihood.

Also , there was a mindset about the employees on the production floor as easily replaceable and not considered part of knowledge retention and innovation. This is gradually shifting too as we see more push for reduction of total manufacturing cost ( TMC) and other elements for companies to compete. If given a chance the workorce @ the shop floor would play a significant role in these areas.

Contrary to popular belief , my experience is that the shop floor folks are the easiest to be satisfied and their needs are sometimes very basic. Here are a few things that you may find very simple but easy to implement irrespective of any culture.

  • ·        Walk through the shop floor and make your presence felt , not just for supervision but to be with them.
  • ·        Pass on a genuine smile and greet your employees @ production floor. The higher you are at the organizational ladder the more impact it has. It doesn't cost you a dime too.
  • ·        Make an effort to talk to at least one shop floor employee a day. Ask her/ him about his work ( not questioning please), his/her family or anything that has an emotional currency.
  • ·        Celebrate small wins and make it part of your management system.
  • ·        Find ways to involve and ask them for ideas. Though many factories have employee suggestion schemes, many dont get the desired results as it is often part of a large group brainstorming , lacks follow up or they are simply resistant /scared to express ideas. Break that shell and find creative ways to involve them.
  • ·        Convert the work to passion. Work for most people get monotonous and boring when it is just done for the sake of earning a livelihood. Can you find ways to make these employees passionate about work?. It has been proven that when employees know what the end products are and how it is being used ( hopefully for something good) , they tend to get emotionally engaged rather than just getting rationally engaged with their work and the company.
  • ·        Make your shop floors look attractive. I am sure we all have heard of sweatshops. Unfortunately many still do exists and even if they are not sweatshops they resemble a boring , disconnected and tired look. For example why do most factories need to be white in colour.


There are many other variable factors involved in engaging your workforce @ shop floor/manufacturing and there is no one size fits all solution. Taking personal ownership, being creative etc in leading the engagement can make a huge difference in making your manufacturing unit a " cool place" to work at.
 reproduced from my article in evancarmichael

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