|Quoting Poitin (Reply 35):|
And please don't believe that I like the trend to "contract workers." I don't, but it is the way things are going world wide. In Japan they are called "grey workers".
As an aside, I think this trend is one of the primary drivers of near incessant road congestion in the UK..
|Quoting NAV20 (Reply 37):|
Normally, even with goodwill and cooperation on all sides, including the unions, cumulative productivity increases of 1%-2% per annum would be good going. And even that would normally be accompanied by higher, not lower, short-term costs, since increased automation would be essential, and there will be an obvious need for redundancy compensation, re-training costs etc..
Most manufacturers that I've studied ROUTINELY aim for 3% - 5% LABOUR productivity per year. c. 3% is typically routinely achievable. Two capitalised words there...
ROTUINELY because in extremis, companies tend to be far more draconian in rationalising, like moving work down the supply chain, and transferring in-house work to lower cost regions/facilities . Of course that takes political will. I've no doubt many will argue that EADS don't have the political will instead of waiting to see what happens.
LABOUR because a 5% labour productivity improvement can change your overall cost base by as little as 1.5% - 2%. Material costs and overheads are EACH typically of the same order of magnitude as labour costs in complex businesses like this. Sometimes the gain is even less, if major capital costs, material cost increases, or increases in overheads are required to achieve the labour saving..
I was fortunate to be tasked with demonstrating that to achieve the 30% OVERALL like-for-like cost reduction from Trafalgar to Astute, we could eliminate labour costs altogether and still only just meet the target.
|Quoting Ruscoe (Reply 38):|
Especially when Airbus efficiency is already quite good. The figures I have been quoting illustrate that there is not a lot of fat in Airbus. The fat is elsewhere in EADS.
I'm inclined to agree with that.
Strangely, though, studies have also shown that generally, more efficient companies tend to be better at achieving further productivity improvements than less efficient ones - it's in the behaviour....
(BTW it's also easier when throughput is increasing
A 20% improvement in LABOUR productivity in 4 years (including 2010 there...) is not impossible, but is a target at the top end of achieveable.