Automated Shift Scheduling

Client Overview

A large manufacturing plant operating 24/7 with three daily shifts faced significant challenges in accurately and efficiently generating employee shift schedules. The manual scheduling process was time-consuming, error-prone, and resulted in frequent staffing shortages, impacting production and operational efficiency.

Challenge

The client's manual shift scheduling process, managed by a high-salaried manager, was highly inefficient. The process involved manually considering complex factors such as employee availability, PTO requests, skill sets, and shift preferences across three daily shifts. This resulted in:
  • Time-Consuming Process: A manager, with a fully burdened annual cost of $200,000, dedicated approximately one full week each month to create the schedule.
  • Frequent Staffing Shortages: Inaccurate scheduling led to frequent understaffing, particularly during peak production periods.
  • Reduced Operational Capacity: Staffing shortages directly impacted production, shipping, and maintenance speeds, leading to delays and lost revenue.
  • Employee Dissatisfaction: Inconsistent and often unfair scheduling led to decreased employee morale and increased turnover.

Solution

Tetra Labs developed and implemented a custom automated shift planning application. This solution:
  • Integrated with the client's HR and production systems to gather real-time data on employee availability, PTO, skills, and production demands.
  • Utilized advanced algorithms to automatically generate optimized shift schedules, considering all relevant factors.
  • Provided a user-friendly interface for managers to review, adjust, and approve schedules.
  • Included a mobile application for employees to view their schedules, request time off, and swap shifts.

Results

Quantifiable Outcomes:
  • Reduced Scheduling Time: The automated system reduced the manager's scheduling time from one week to approximately 4 hours per month, saving roughly 160 hours per year. This equates to approximately $16,000 in saved labor costs per year.
  • Reduced Staffing Shortages: The automated system decreased staffing shortages by an estimated 30%. Before the solution, the plant experienced an average of 15 understaffed shifts per month. After, they averaged 10.
  • Increased Production Capacity: The reduction in staffing shortages led to an estimated 5% increase in production capacity and maintenance resolution, resulting in an additional $2,500,000 in annual revenue (based on an annual revenue of $50 million).
  • Improved Maintenance Speed: Reduced down time due to better staffing allowed an estimated 10% faster maintenance turn around time. This resulted in an estimated savings of $100,000 a year in reduced down time.
  • Reduced Shipping Delays: Shipping delays were reduced by an estimated 20%, resulting in a decrease in late shipment penalties and improved customer satisfaction.
Qualitative Outcomes:
  • Improved Manager Productivity: The manager was able to focus on strategic tasks rather than administrative scheduling.
  • Increased Employee Morale: Fairer and more predictable schedules improved employee satisfaction and reduced turnover.
  • Enhanced Operational Efficiency: The automated system provided greater visibility and control over staffing, leading to improved overall operational efficiency.
  • Greater Employee Satisfaction: Employees felt that they were being treated more fairly, and their time off request were being handled more efficiently.

Conclusion

Tetra Labs' automated shift planning solution significantly improved the client's operational efficiency and reduced costs. By eliminating the time-consuming manual scheduling process and minimizing staffing shortages, the client was able to increase production capacity, improve employee morale, and achieve substantial cost savings. This case study demonstrates the power of digital transformation in optimizing complex operational processes within the manufacturing industry.
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