Company Profile

Wellmade Motors and Development Corporation, one of the ISTIV beneficiary-firms, is engaged in machining and reconditioning of metal components and fabrication of spare parts. The company is located at Tanchan Industrial Complex, Tipolo, Mandaue City. Wellmade Motors, with a capitalization of 2 Million and total market share of 35%, is owned by Mr. Philip N. Tan who is also the President and the Chief Executive Officer.

Problems Identified

       Immediately after the conduct of ISTIV Training, management realized that personal downtime and unabated tardiness of its employees resulted to huge losses for the company.


The ISTIV Improvement Project

        The ISTIV Trainers/Facilitators of Regional Board VII conducted in Wellmade Motors the three ISTIV training courses on the following dates:

• Appreciation Course for Company Owners and Managers - November 19, 1998
• Integrated Course for Supervisors and Managers - November 25-27, 1998
•  Orientation Course for Workers - December 13, 1998
  

For their ISTIV Productivity Improvement Project, Wellmade Motors management conceptualized a tracking system which monitors each employee's tardiness and they called it " PUNCTUALITY TRACKING SYSTEM ".

        Punctuality Tracking System is a system of monitoring individual tardiness on a weekly, monthly and yearly basis. The system aims to improve the service delivery by eliminating the personal downtimes of each employee and by monitoring their accumulated tardiness on a weekly, monthly and annual basis. A Quality and Productivity Committee composed of a leader and two members, were formed to oversee the project implementation.

       The project started in January 4, 1999 in which the accumulated tardiness of each employee is deducted from weekly allowance for tardiness equivalent to fifteen (15) minutes per week for each employee. The total minimum allowance for tardiness for the year is 400 minutes.

        At the end of the year, tardiness incurred in excess of that allowed shall be meted a penalty of two pesos and fifty centavos (Php 2.50) per minute which shall then be deposited by the Systems Analyst to the Employees Welfare Fund managed by the Welfare Fund Treasurer.

       The Department Head, meanwhile, investigates the employee who has incurred tardiness for the past two consecutive weeks. The HRD Administrator encodes the monthly accumulated tardiness of each employee with year-to-date running balance in order to compare performance with year-a-go balance.

       All tardiness from January to December of the previous year are totaled for each employee every first week of January of the succeeding year. All accumulated tardiness are translated into production and revenue losses incurred for the year and posted in the Bulletin Board.

      Year end penalties are collected from the employees who exceeded the 400 minutes allowance for tardiness. Conversely, these penalties are distributed to employees who did not incur any tardiness for the year as a form of reward.

      And in the year 2003, they introduce the competency based salary structure, wherein its machinists has different levels depending on his skills and performance. Each level has corresponding salary range in which ISTIV Values and Productivity Formation is one of the requirements under Internal/External Training criteria. Also, a scheme on scheduled leaves is developed wherein sick and vacation leave of each employees is scheduled throughout the year.


Benefit Derived

1. Remarkable 14% increase in sales from 102% to 116%.

2. Drastic drop in tardiness from 403 in 1999 to 49 hours in 2000 or from 50  to 6 working days representing an improvement of 88%.

3. Reduction in the annual production losses

• Cost of unproductive labor man-hours from P14,119.58 in 1999 to P2,215.50 in 200 representing a 84.3% improvement in labor productivity
• Cost of unproductive idled machinery from P36,3307.50 in 1999 to 4,923.33 in 2000 representing a 86% improvement in machine productivity
• Profit lost on unproductive manhours from P28,239.17 in 1999 to P3,790.97 in 2000 representing a 86.6% improvement in profit

4. Weekly penalties collected were contributed to the Employee Welfare Fund (Php 50,000 to date). Said fund is used to finance company activities, such as quarterly birthday parties, 0nce-a-year picnic, and even additional death benefits to employees' immediate family. The company provide a counterpart fund equivalent to 50% of the total cost incurred.

5. Employees became more result oriented in developing various continuous improvement projects in their respective departments.

6. Shifting schedule of leave of absence addressed the problem of unforeseen simultaneous leave of absence thereby making the delivery of services on time at stake and reduced overtime by 15% which is cost saving for the company.

7. The competency based salary scheme helped the employee to go to a higher level in terms of skills and knowledge and thus provided with a higher salary pay.