Human Resources Sales

Implementation Strategy (Part 1)

The concept of "Sales Per Person-Hour" was first widely validated in the Japanese restaurant industry—Saizeriya achieved an industry-leading 200 yuan/hour labor efficiency through extreme standardization, becoming a global benchmark for efficiency management. However, the essence of this metric is "deploying the right number of people, at the right time, to do the right things," a underlying logic equally applicable to laser cutting, bending, welding, and painting workshops in manufacturing.

For a sheet metal fabrication company like DINGPRECISION, sales per person-hour management is not about reducing headcount, but about redefining labor from a "fixed cost" to a "strategic resource"—this is the core philosophy of the Japanese lean management system. The following systematically elaborates on the practical methods of sales per person-hour in sheet metal manufacturing from five dimensions: digital report building, system selection, skill coefficient methodology, daily closing loop, and standardization.

I. From "Product Line Management" to "Working Hours Management": Establishing Process-Level Profitability Analysis

1.1 Why Conduct "Process-Level" Profitability Analysis?

Traditional sheet metal factory management often stays at the coarse level of "whether the overall factory is profitable." However, Daikin's experience teaches us: analysis granularity must be broken down to each process and each product type to identify true profit contributors and loss black holes. [^webpage 1][^webpage 2]

For DINGPRECISION, this means establishing "process-level" profitability analysis to identify which processes (e.g., laser cutting of specific thicknesses, welding of specific materials) have sales per person-hour below thresholds, then optimize or eliminate continuously unprofitable processes, reallocating capacity to high-return processes.

1.2 How to Build Digital Reports?

To achieve process-level profitability analysis, the following core reporting system needs to be constructed:

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Among these, the FL ratio (ratio of food cost + labor cost to total revenue) is a core indicator commonly used by Japanese restaurant companies. Manufacturing can adapt this as the "ratio of material cost + labor cost to total output value." [^webpage 3][^webpage 4] The industry reference target is to keep the FL ratio below 60%; exceeding this means profit margins are severely squeezed.

1.3 What Systems Need to Be Introduced?

To support the above reporting system, DINGPRECISION needs to introduce or upgrade the following systems:

Step 1: Integrate MES (Manufacturing Execution System) with HRM (Human Resource Management System)

This is the foundational base for real-time visualization of sales per person-hour. Japanese enterprise practices show that only when "sales data" and "working hours data" are integrated can refined analysis by time period, day, and process be achieved. [^webpage 5][^webpage 6] Specifically:

• MES system provides: Output per work order, yield rate, equipment operating time

• HRM system provides: Each employee's attendance hours, overtime hours, skill level

Step 2: Deploy Professional Scheduling and Labor Management Systems

Referencing mature Japanese practices, systems like "Makasete Net" can achieve the following core functions:

• Model Scheduling: Preset standard staffing templates for different production lines and output conditions

• Skill Linkage: Automatically match positions based on employee skill levels, with system alerts when specific skill holders are insufficient

• Real-time Labor Cost Preview: Preview estimated labor costs and check if they match sales per person-hour targets at the scheduling stage

Step 3: Establish Data Dashboards and Anomaly Alert Mechanisms

Each workshop should be equipped with real-time dashboards displaying current per-person-hour output, equipment utilization rates, work-in-progress quantities, and other key indicators. When per-person-hour output falls below set thresholds, the system automatically notifies workshop directors and team leaders, requiring timely feedback on improvement measures. [^webpage 7]

II. Introducing the "Effective Work Coefficient": Quantifying Each Employee's Value

2.1 What is the "Effective Work Coefficient"?

The "Effective Work Coefficient" (実効稼働係数) is a core tool for refined scheduling in Japanese enterprises—quantifying employee skill levels numerically, so scheduling is no longer simply based on "headcount" but on "effective labor."

For DINGPRECISION, a skill matrix can be established for each operator, distinguishing three levels:

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2.2 How to Apply Coefficients for Scheduling Optimization?

Principle: Match workers with corresponding skill levels based on order difficulty—high-difficulty orders prioritize high-coefficient employees, simple orders can assign beginner-level workers.

Practical Examples:

• A batch requiring precision laser cutting (high difficulty): Prioritize scheduling advanced employees with coefficient 1.2

• A batch of standard bending (low difficulty): Flexibly arrange employees with coefficients 0.6-1.0 based on working hour requirements

Data Analysis Value: By correlating skill coefficients with quality data (first-pass yield, rework rate), the rationality of coefficient settings can be validated. For example, if a coefficient-1.2 employee's yield rate is below industry standards, their skill certification level needs review or additional training may be required.

2.3 Linking Skill Improvement to Compensation

Referencing the practice of Chao Hua Li Green Pepper Fish—adding 0.5 yuan per hour for each additional mastered position. [^webpage 8] DINGPRECISION can design a tiered wage incentive system:

• Base hourly wage: Mastering 1 equipment operation

• Each additional mastered position: Hourly wage increased by 0.5 yuan

• Full-process cross-training certification: Additional bonus, up to base hourly wage + 2 yuan

This "skills determine income" mechanism incentivizes employees to actively learn, transitioning from the traditional "one person, one role" model to a flexible multi-skilled worker system.

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