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RICOH manufacturing DX Practical Lab

How can we reduce man-hours?
Easy to understand procedures, ideas, and best practices.



One of the most effective ways to improve operational efficiency is to reduce man-hours. Reducing man-hours is important in any industry, but especially in the manufacturing industry, it can have a variety of effects other than to simply reduce costs.

In this section, we will introduce the multiple benefits of reducing man-hours, specific ways to proceed with man-hour reduction, and key points for successful man-hour reduction, with examples of successful cases.


What is the “reduction of man-hours”?


Reducing man-hours means reducing the number of processes involved in a job. In the manufacturing industry, it refers to improving the efficiency of processes in various ways, such as eliminating unnecessary parts of processes and integrating parts that can be integrated to reduce man-hours.

Therefore, when implementing man-hour reduction, it is important to organize the work content and adopt appropriate methods. For example, automating data entry and tabulation through the use of an ERP system will reduce the burden on personnel and enable accurate information to be visualized in real time.

It can also improve operational efficiency by strengthening coordination among departments and smoothing the flow of projects. Successfully reducing the number of man-hours worked will not only improve productivity, but also lead to benefits such as cost savings and improved quality, which will have a positive impact on overall management. In addition, by standardizing work procedures and introducing organizational methods that utilize acronyms, it is possible to create a system that allows fewer people to complete tasks.

After 2024, many companies are stepping up measures to improve the efficiency of their operations, and the need to reduce the number of work man-hours is becoming increasingly important. Any work requires appropriate planning, thorough research, and comparisons before any reduction measures can be considered.


Why is the reduction of man-hours so important?


In recent years, the reduction of man-hours has become especially important in the manufacturing industry. This is due to the declining workforce resulting from the falling birthrate and aging population, as well as the tipping point issue known as the “2025 cliff“.

The decline in the working population is partly due to the uneven popularity of different occupations and industries. Especially in the field of physical labor, there is a shortage of workers is being reported. Manufacturing is also becoming an unpopular occupation.

The “2025 cliff” is a term that appeared in the Ministry of Economy, Trade, and Industry's “DX Report: Overcoming the IT System ‘2025 Cliff’ and Full-Scale DX Deployment”. The report pointed out that as the use of digital technology advances in all industries, companies using outdated systems that cannot keep up with the times may not be able to survive in the race for survival, and that economic losses caused by the adverse effects of existing systems may swell to a maximum of 12 trillion yen per year after 2025.

To achieve the same or better results with limited corporate resources and survive in the race for survival by smoothly promoting digitalization, the reduction of man-hours is becoming more important than ever.


Advantages of reducing man-hours


By reducing the number of man-hours, multiple benefits can be expected.


Reduced cost

Cost reduction leads to higher profit margins and more competitive prices. Reducing the number of man-hours can reduce costs across multiple items at once, including the labor costs of staff involved in the process, raw material, and material costs for operating the factory line, utilities costs, labor costs for quality control, and sales management costs, including production control.

Compared to temporary cost reductions such as reducing raw material prices by changing suppliers or reducing utility costs by conserving electricity, the reduction in man-hours can be expected to have a significant and permanent cost reduction effect.


Increased productivity

Reduced man-hours will enable the production of more products with the same amount of labor, raw materials, and materials, thereby increasing supply volume.


Reduced employee workload

In addition to eliminating the labor that used to be required for the reduced processes, the reduced number of work lines will reduce the labor required for cleaning, quality control, production control, etc., all at once, reducing the chance for defective products to be produced.

Reduced employee workload reduces the incidence of errors and frees up human resources for more productive areas, such as process improvement.


Methods and procedures to reduce in factory man-hours.


We know how man-hours can be reduced, but we don't know exactly how to proceed, or where to start. Let's look at how to reduce man-hours at a factory and the steps to be taken.

The following is the procedure for reducing man-hours.


  • Grasp the current situation
  • Review the process
  • Prioritizing certain tasks
  • Clarify the scope of work for each person in charge
  • Start work with the new process
  • Verify the effectiveness

1. Grasp the current situation

The first step is to understand in detail the work processes currently being carried out at the site. it is important to understand not only the content of the procedure manual created in accordance with ISO9001, but also why the procedure is necessary. Pay attention to “work that is not described in the procedure manual but is being performed onsite,” and understand the reasons for it.


2. Review the process.

Once the current situation is understood, review the process with the “ECRS” in the following table in mind. This will maximize the effect of improvement while avoiding excessive improvement, ineffective improvement, and trouble.

Generally, the effect of review is said to be greatest for “E (elimination),” followed by “combination,” “replacement,” and “simplification,” in that order.


Eliminate Perspectives that should be considered as a top priority. Are there any items that can be omitted from the work?
Combine Is it possible to combine multiple separate processes into one?
Rearrange Are there any processes whose efficiency could be increased in by switching the order?
Simplify Can we simplify the process?

3. Prioritizing certain tasks

To reduce man-hours, it is also important to prioritize tasks. The key points in prioritizing tasks are to sort out the “delivery date” and “level of importance” for each task.

There may be cases where the way of proceeding differs between an urgent product with an imminent delivery date and a highly important product with large orders to be delivered to major customers. For mass-produced products, the process should be optimized to avoid creating bottlenecks. Prioritizing certain tasks may reduce the number of man-hours rather than proceeding with all tasks in the same manner.


4. Clarify the scope of work for each person in charge

It is also important to clarify the scope of work for each person in charge of detailed processes. If the person who has the free hand does the work, the responsibility tends to be unclear, which leads to mistakes, and creates a wasteful process of checking who is responsible for the work each time.


5. Start work with a new process

When reviewing a process, start the work with a completely new process. By reworking the process, considering the layout of the processing machine and the transportation process, etc., without being bound by the existing work procedures, the work can be made much more efficient.


6. Verify the Effectiveness

When you start the work, you may find that the reduction effect is not as you expected. In some cases, it may be better to have done the work before the review. The reviewed process is subjected to effectiveness verification, and repeated brush-ups are made to further improve efficiency.


Ideas for reducing manhours in the factory.


Some specific ideas for reducing factory man-hours include:


Creating a manual

When a worker is making decisions based on his or her own judgment, waste may be created without him or her being aware of it. Creating a manual to standardize the most efficient procedures will lead to a reduction in man-hours.


Creating a flowchart of operations

Creating a flowchart of the workflow will make it easier to prevent bottlenecks from occurring, thereby reducing the number of man-hours involved. Bottlenecks are processes in the flow that easily become stagnant and lead to reduced productivity. It is important for workers to be aware not only of their own processes but also of the entire flow to some extent.


Introducing the System

Many excellent systems are used in the manufacturing industry to prevent defective products and reduce worker workload. Utilizing an image recognition system that prevents errors regardless of the level of proficiency can lead to a reduction in man-hours worked.

Here are some recommended systems.


RICOH SC-10A

An all-in-one system that integrates a camera, image recognition, and applications. All you need is a mouse, keyboard, and monitor. Image recognition automatically checks assembly status such as similar parts, missing parts, and work order. The system can record the serial numbers of parts, work hours, and other actual results, as well as images of work results, which is useful for work analysis and traceability. Image recognition and work instructions are linked, and the system will not proceed unless it recognizes the work to de conducted correctly.


RICOH SC-20

A similar device to the RICOH SC-10A and can be used without a mouse or keyboard by using the touch panel monitor.


Key Points for Successful Reduction of Man-hours


To succeed in reducing man-hours, first develop a cooperative framework within the company. To gain the cooperation of executives and employees, it is important to communicate the benefits of reducing man-hours and the contribution it will make to the company.


Case Studies of Successful Reduction of Man-hours


Here are some examples of companies that have reviewed their processes and succeeded in reducing man-hours.


Fujifilm Techno Products Co.

Because the company handles medical devices with strict quality standards, skilled workers had been manufacturing products for some time, but the work had become too personalized. To maintain quality while allowing relatively inexperienced personnel to work on the equipment, the company needed to create a system to reduce errors that cause defects.

To solve this problem, the RICOH SC-10A was introduced to the production line for incubator units (units that warm blood to the same temperature as body temperature) used in blood testing equipment. The system prevents work from proceeding if screws were tightened in the wrong order or if the torque was not applied, thereby eliminating work errors.

Since the work history is saved, check sheets written by operators no longer became a necessity, leading to reduced workload and paperless operation. Easily switching between work items, allowing the operator to inspect over 100 items with a single unit.

Customer usage case: Fujifilm Techno Products Co.


Ono Sokki Co.

The RICOH SC-10A was introduced into the assembly process of the O-Solution DS-5000 system, a measurement device that allows the user to select the size and measurement system by assembling units, to eliminate mistakes and personalized works.

The system is linked to a torque driver to detect whether screws are tightened at the torque value specified for each product. The system is now able to record the results of the work with images, and traceability has been established. In addition, process control of the parts that need to be made has been standardized.

Customer usage case: Ono Sokki Co.


Conclusion


As the working population continues to decline and the “2025 cliff” is approaching, reducing man-hours is an important subject for any manufacturing site. In reviewing processes, introducing a system specialized for process improvement can be expected to have a significant effect. To survive in the digital age, let's reconsider how we can make the most out of this opportunity.