#Overtime vs Waste
“Why is excessive overtime not a good thing even if the sales team declare that we still make money on these order?”.
🔑 Short term, some overtime maybe necessary. Excessive overtime has a major impact on the real cost of each unit, and on the overburden of machings and people.
🔑 No one is questioning the hard work of the sales team. However, there are many costs and waste which we cannot easily see.
🔑 We need to level out the production planning and this requires team work between Sales, Planning and Production.
🔑 The hidden wastes in excessive overtime effect many areas of the business, from #maintenance and production but also the entire value chain.
🔑 Our present management reporting systems are not sufficently designed to measure the true cost of overtime on #quality, #productivity, #motivation and availability of machines, to name a few.
🔑 #leadership in this situation needs to focus on #personaldevelopment and a #culture change in how we think, behave and work.