Thursday, August 23, 2007

Scientific Approcah to Grade/Wage Fixation, Revision of Operator working in Apparel Manufacturing Sector in India

This research paper is relevant to Indian Apparel manufacturing sector.

Note: Download the files from the links available at the bottom of the post & go through the explanation for better understanding
The objective of this research paper is to
1.Grade Review Procedure for all existing operators in the factory.
2.Procedure for Fixing Grades for New operators (Experienced Category) during Recruitment.
3.System for Grade Revision of the Operators.
4.System of Skill Matrix Inventory.
5.Multi Skilling, Cross Training & Retraining.

CURRENT CLASSIFICATION OF “DIRECT LABOUR”

Operators -
Workers doing “Tailoring” job & working inline.
Example - Sewing machine operators. In line markers, Ironers & checkers (in line)
CURRENT CLASSIFICATION OF “INDIRECT LABOUR”
Non-Operator -
People doing jobs other than “Tailoring” & not working inline.
Example - All cutting section staff & workers, All Finishing section staff & workers & other staff in sewing section. (Supervisory, & managerial staff)

PROPOSED: CLASSIFICATION OF “DIRECT LABOUR” (Based on Value Addition)
Operators -
All workers, who add value to the “Product”

Examples –
Cutting section - Layers, Markers, Cutters, Fusing operators.
Sewing section - Workers doing Tailoring job
Finishing section - KB operators, Ironers, and Packers.
All Operators carrying out essential inline activities are considered to be directs.
In other words all those who are involved in the “Product Realization Process” come under “Direct Labour”

PROPOSED: CLASSIFICATION OF “INDIRECT LABOUR”
(Who do not add value to the “Product”)
Example –
Cutting section - Helpers, Sorters, Numbering & Bundling, and Checkers.
Sewing section - Helpers, Checkers.
Finishing section - Helpers, Checkers.
All staff in the Factory, workers in Stores & Fabric Warehouse.
All Operators carrying out avoidable inline activities are considered to be indirects.
I. Grade Review Procedure for all existing Operators in the factory

Objective:

  1. To obtain the existing skill matrix in the company.
  2. To scientifically evaluate, if the grading done by traditional method is proportional to the operators skill set. In other words, to find if the Operator is worth that grade.
  3. To standardize the ratio and mix of grades of operators for every line in every factory.

Proposed System:

  1. Retrieve Grade wise Operators list from the HR Dept of the Factory.
  2. Minimum 3 Months Production Data of each operator is to be retrieved.
  3. Evaluation is conducted by the Senior Industrial Engineer in the factory as per the instruction given below.
  4. Report/Documentation/Proof of tests given or data available of individual operator and the reason for Up gradation, Degradation or Disqualification, along with the data for the below listed criterion to be given.
  5. In case of non-availability of data, test has to be conducted the following way:-
    1. To Qualify to be a “A+” Grade Operator:-
      1. 5 Sewing tests are given; 5 Difficult Operations.
      2. 1 Operation on 3 Different Machines each.
      3. Rating to be done on a scale of 10 for:-
        1. Quality
        2. Machine Control
        3. Hand Eye Co-Ordination
        4. Speed/Pace Rating
    2. To Qualify to be a “A” Grade Operator:-
      1. 4 Sewing tests are given; 4 Difficult Operations.
      2. 1 Operation on 3 Different Machines each.
      3. Rating to be done on a scale of 10 for:-
        1. Quality
        2. Machine Control
        3. Hand Eye Co-Ordination
        4. Speed/Pace Rating
    1. To Qualify to be a “B” Grade Operator:-
      1. 3 Sewing tests are given; 1 Easy Operations & 2 Difficult Operations.
      2. 1 Operation on 2 Different Machines each.
      3. Rating to be done on a scale of 10 for:-
        1. Quality
        2. Machine Control
        3. Hand Eye Co-Ordination
        4. Speed/Pace Rating
    2. To Qualify to be a “C” Grade Operator:-
      1. 2 Sewing tests are given; 1 Easy Operations &1 Difficult Operations.
      2. Single Machine skills.
      3. Rating to be done on a scale of 10 for:-
        1. Quality
        2. Machine Control
        3. Hand Eye Co-Ordination
        4. Speed/Pace Rating
    3. D Grade Operators:-
      1. Workers under this category are in training.
      2. Helpers also come under this category.
  1. In Case of Availability of Data, evaluation and analysis to be carried out on the following criterions listed in step 7 and its sub steps:-
  2. Evaluation Criterions are as follows:-
    1. To Qualify to be a “A+” Grade Operator:-
      1. They should be able to do different varieties of Operations (Simple to Complex) on at least 4 different Machines.
      2. They should have an average efficiency of 65%.
      3. They should have technical skills to stitch a whole garment by themselves.
      4. They should have ability to handle folder operations.
      5. They should have knowledge of Patterns, Sewing Templates, and operating on special machines.
    2. To Qualify to be a “A” Grade Operator:-
      1. They should be able to do different varieties of Operations (Simple to Complex) on at least 4 different Machines.
      2. They should have an average efficiency of 50%.
      3. They should have technical skills to stitch a whole garment by themselves.
      4. They should have ability to handle folder operations.
    1. To Qualify to be a “B” Grade Operator:-
      1. They should be able to do different varieties of Operations (Simple to Complex) on at least 2 different Machines with average efficiency of 50%.

OR

      1. They should be able to do different operations on one machine with average efficiency of 60%.
      2. They should have ability to handle folder operations.
    1. To Qualify to be a “C” Grade Operator:-
      1. They should be able to do different varieties of Operations (Simple to Complex) on at least 1 Machine, with an average efficiency of 50%.

OR

1. They should be able specialized in 1 operation on 1 machine, with an average efficiency of 65%.

    1. For D Operator:
      1. Workers under this category are in training.
      2. Helpers also come under this category.

Attendance Criterion for Grade Revision Process

Operator is required to attend 80% of the Factory working days. The rest 20% is given as allowance in the % as described in the below example.

Example: If factory has worked for 300 days in the year; Operator should have attended for minimum 240 days (80%); 45 Days of Authorized leave (15%); 10 Days of ESI (3%); 5 Days of Unauthorized Leave (2%).

Higher deviation in the set % would result in disqualification.

II. Procedure for Fixing Grades for New operators (Experienced Category) during Recruitment

Objective:

  1. To streamline the procedure for fixing the grade of operator during the recruitment on the basis of scientific examination of her caliber, ability & skill set.
  2. To remove subjectiveness in grade fixation of the operators & to determine the salary the operator is worth to be hired at.

Present System:

Production Manager queries the operator during the interview on the following:

  1. Years of Experience & Factories He/she have served at (With Proof).
  2. Operations he/she can perform & output he/she can provide for those operations.
  3. Makes a subjective assessment based on the answers & fixes the salary/Grade of the operator.

Proposed System:

A scientific evaluation on the skill set of the operator to be carried out by an “Experienced senior Supervisor” or “Industrial Engineer” & then advice the grade at which the operator is worth to be hired.

Methodology:

  1. IE team has to devise, decide, and standardize the methodology to be used for evaluation & recruitment of new employees to work at various positions in the production team of the factory (Floor In charge, Line Supervisor, Time Study/Work Study Engineers/Analysts, Defect Analysts, In Line QCs, Endline QCs, Operators, Checkers, and Ironers).
  2. Personnel Officer of the factory queries & verifies the operator for the following information
    1. Educational Qualification.
    2. Years of Experience & Nature of Work Handled.
    3. Factories Served for.
    4. Reason for leaving the previous employment.
    5. Salary last earned (Proof required).
  3. Forwards the candidature to the “Recruitment supervisor” or Industrial Engineer of the Factory.
  4. Industrial Engineer queries the operator for the following information
    1. Nature of work handled.
    2. Work known & quantitative/qualitative performance that he/she can give for each of those works.
  1. “Recruitment supervisor” or Industrial Engineer has to evaluate the candidates IQ level, Hand & Eye Coordination, Colour Perception, Understanding & Grasping ability of the instructions given, ability to creatively devise easy means of doing work.
  2. Industrial Engineer/recruitment Supervisor decides on the method by which the candidate is to be evaluated based on the standard recruitment methods developed by the IE Team.
  3. Instructs the candidate about the evaluation process & the time frame in which the exercises needs to be completed.
  4. Evaluates the performance of the candidate & advises the grade at which the candidate can be hired.
  5. Industrial Engineer/recruitment Supervisor has to make a report on the entire evaluation exercise carried out, attach it along with his recommendations for every candidate he evaluates and hand it to personnel officer of the factory.

Policy Decision & Management Support:

For effective implementation of the above-described procedure, it is important that the management has to make policy decision for the same to be followed at all its facilities.

III. System for Grade Revision of the Operators

Objective:

  1. To revise/upgrade the grade of the operator (Monetary Value also) on a quarterly basis, based on their performance in the quarter.
  2. Helps to develop, update & monitor skill matrix available in the company.
  3. Promotes Multi Skilling of the operators.
  4. Encourages operators to give a consistent productive output.

Methodology:

  1. List of all operators working on the floor are taken Team Wise.
  2. A format has to be complied with information, in which name of the worker, token no, present grade, designation, DOJ, experience, work area good at, are entered.
  3. One month’s (30 days) of production data of all the workers are collected well in advance. The data sheets are hand picked to ensure that those days are considered only when there was full production.
  4. A POINT TABLE has to be designed by IE, which reflects the consistency of the workers in their work.
  5. Each days’ production by each of the worker are evaluated using the POINT TABLE and are accordingly awarded points against that day’s performance.
  6. Further average of such points is taken for the entire month. Those who crossed more than 50% of work efficiency are considered eligible for up gradation.
  7. Further filtration is done by taking out a Quarter’s attendance details of each of the workers who have satisfied the above said criterion.
  8. After the approval of personnel officer, IE prepares the final list of workers eligible for grade change in consent with personnel officer.

Policy Decision & Management Support:

For effective implementation of the above-described procedure, it is important that the management has to make policy decision for the same to be followed at all its facilities.

IV. System of Skill Matrix Inventory

Objective:

  1. To develop a database of skill availability in the factory.
  2. To promote Multi Skilling of the operators.
  3. For effective work allocation during batch setting.
  4. Data prepared in this system can be used for performance appraisal of the operators
Methodology:
  1. Fix hourly target for each operation in the line.
  2. Record the operators’ hourly production against the target fixed on everyday basis.
  3. Calculate daywise efficiency of the operator.
  4. Maintain the above said records for every operator working in the factory.
  5. Monthly analyse the records to obtain the following information
    1. Operation wise operators availability & rate at which each can perform the operation
    2. Operator wise listing of skills (Operations) they have expertise & rate at which they can perform the operation.

Policy Decision & Management Support:

For effective implementation of the above-described procedure, it is important that the management has to make policy decision for the same to be followed at all its facilities.

V. Multi Skilling, Cross Training & Retraining

Objective:

  1. To develop a strong resource bank of skills within the factories.
  2. To optimally utilize the available manpower.
  3. To optimally utilize the machinery & equipments.
  4. Motivational factor, promoting personal growth, contributing to the improvement of productivity.
  5. Recruitment of manpower without exposure to Apparel Manufacturing & Training. Hence Labour at lower costs.

Methodology:

  1. Setting up a training/retraining section in every factory.
  2. Preparing a training schedule/syllabus covering all aspects of garmenting.
  3. Consistently arranging training sessions during the lean period of production (between styles) at factories.
  4. Motivating the operators to pick up more skills by considering their skill set for Appraisals/Incentives.
  5. Recognizing the operators who are consistently less efficient & retraining them at training sections.

Policy Decision & Management Support:

For effective implementation of the above-described procedure, it is important that the management has to make policy decision for setting up of training sections at every factory.

FILES FOR DOWNLOAD

Click on the below links to download respective files

  1. Proposal List Format
  2. Classification of Direct & Indirect Labour
  3. Operator Recruitment/Wage Fixation Flowchart - Non Experienced Category
  4. Operator Recruitment/Wage Fixation Flowchart - Experienced Category
  5. Operator Skill/Grade/Wage Review Slip
  6. Operator Grade/Wage Revision Format
  7. Final Approval Format