From Attendance Loopholes to Management Efficiency: A Traditional Manufacturing Enterprise’s Digital Transformation Journey
A Startling Discovery in the Late Night
In the late night of March 2023, the financial director of a manufacturing enterprise noticed an abnormality while reconciling the previous month’s statements: the night-shift output was seriously inconsistent with the overtime pay expenditure. According to the attendance records, 85 employees should have been on duty for the night shift, but surveillance footage showed that the actual number of on-duty employees was less than 50.
This discovery triggered a thorough internal audit. The result was shocking: the company’s direct annual losses caused by attendance loopholes exceeded 1.8 million yuan.
Shocking Cost Loopholes
The audit report revealed four major cost loopholes:
"Ghost Employees" Devour a Fortune in Salaries
The investigation found that there were 32 "ghost employees" on the company’s staff roster. These employees only existed in the attendance system but "received" salaries as usual every month. The fraudulently claimed salaries eventually flowed into the pockets of a few managers.
Proxy Clock-Ins Are Rife, Leading to Massive Overtime Pay Losses
The traditional fingerprint clock-in system had obvious loopholes. The audit showed that some employees used fingerprint films to clock in on behalf of their colleagues, resulting in a large number of false overtime records. In the most severe case, the actual number of employees working overtime on the night shift in one workshop was only 60% of the attendance records.
Low Efficiency, Staggering Costs of Ineffective Overtime
Due to the lack of effective supervision, some employees had low efficiency during overtime hours. The audit found that the average work efficiency during overtime was only 70% of that during regular working hours, yet the enterprise had to pay 1.5 times the regular salary as overtime pay.
High Administrative Costs
The HR department spent 5 working days each month verifying attendance data and handling various attendance disputes. These hidden costs could not be ignored either.
The Transformation Journey: Leaping from Traditional to Intelligent
Faced with these shocking problems, the enterprise’s management decided to carry out a thorough reform.
Comprehensive Evaluation of the Existing System
The company first hired a professional team to conduct a comprehensive evaluation of the existing attendance system. The evaluation result was surprising: the traditional fingerprint clock-in system not only had technical loopholes but, more importantly, could not effectively connect with other of the enterprise’s management systems.
Choosing an Iris Recognition Solution
After comparing multiple options, the enterprise finally chose an intelligent attendance system based on iris recognition technology. This choice was mainly based on three considerations:
1. Iris recognition boasts extremely high accuracy, completely eliminating the possibility of proxy clock-ins and significantly reducing waiting time for clock-ins.
2. The system can achieve seamless integration with the enterprise’s existing ERP and HR systems.
3. The technical support team provides comprehensive after-sales service.
Phased Implementation and Deployment
The system deployment was divided into three phases:
Phase 1: Install iris attendance devices in key workshops.
Phase 2: Conduct data integration with existing management systems.
Phase 3: Carry out employee training and promote the use of the system.
Significant Cost Savings Achieved
One year after the new system was put into operation, the results were surprising:
Direct Costs Dropped Sharply
● Complete elimination of "ghost employees", saving 80,000 yuan in labor costs per month.
● Disappearance of false overtime, leading to a 45% reduction in overtime pay.
● Improved attendance management efficiency, with the HR department saving 4 working days each month.
Indirect Benefits Were Also Notable
● Enhanced employee satisfaction and significantly higher work enthusiasm.
● More accurate management data, providing a reliable basis for decision-making.
● Improved corporate image, becoming an industry benchmark for digital management.
Demonstration of Specific Application Scenarios
Workshop Attendance Management
In the 20,000-square-meter production workshop, workers only need to take a brief glance at the iris device to complete clock-in when they arrive at or leave work. The system automatically records attendance time and conducts correlative analysis with output data.
Standardization of Attendance for Administrative and Management Staff
In view of the flexible working hours of administrative and management positions, the enterprise implemented a precise attendance management plan. By deploying iris recognition devices in work areas, the system can accurately record the actual arrival time of managers. Especially during flexible working hours, the system automatically records real working hours, providing an accurate basis for overtime management. This method effectively solves the problems of proxy clock-ins or false overtime for administrative staff.
Overtime Efficiency Monitoring
The system automatically analyzes work efficiency during overtime hours and issues early warnings for abnormal situations. Managers can detect problems in a timely manner and make targeted improvements.
Managers’ Experience Sharing
The Financial Director’s Perspective
"Now we see real data, and we have a clear idea when making predictions. Most importantly, the annual saving of 1.8 million yuan is tangible."
The Production Plant Manager’s Experience
"The iris attendance system not only solves the attendance problem but, more importantly, makes management more standardized. Employees also feel fairness, which boosts their work enthusiasm."
Feedback from the HR Department
"Liberated from the tedious task of verifying attendance, we can focus more on employee development and training—this is what HR should really be doing."
Experience Summary: Key Factors for Successful Transformation
Top Management Attention Is a Prerequisite: The general manager of the enterprise personally led the iris recognition attendance project, ensuring the smooth progress of the reform.
Employee Recognition Is the Foundation: Through sufficient communication and training, employees were made to understand the benefits of the new iris recognition system, reducing resistance.
Professional Team Is the Guarantee: Choosing an experienced technical team ensures the quality of system implementation and subsequent services.
Continuous Optimization Is the Key: After the system was launched, continuous optimization and adjustments were made based on actual usage to ensure it delivered maximum benefits.
Industry Insights
This case provides important insights for manufacturing enterprises:
Digital Transformation Is Imperative: Traditional management methods can no longer meet the development needs of modern enterprises; digital transformation is not a choice but a must.
Stunning Input-Output Ratio: With an annual saving of 1.8 million yuan, the investment in the iris recognition system can be recovered in a very short time.
Management Upgrading Brings Comprehensive Benefits: In addition to direct cost savings, indirect benefits such as improved management efficiency and higher employee satisfaction are also crucial.
Action Guide: How Your Enterprise Can Start
● Conduct a cost audit: Assess the losses caused by loopholes in the existing attendance system, focusing on direct economic losses from issues such as proxy clock-ins and false overtime.
● Research iris recognition solutions: Compare different attendance solutions, focusing on the advantages of iris recognition systems in anti-counterfeiting, accuracy, and system compatibility.
● Formulate an implementation plan for the iris system: Develop a timeline for system deployment, including key links such as equipment installation, system integration, and employee training.
● Conduct iris recognition training: Organize employees to learn how to use the new system, help them understand the advantages of iris recognition technology, and eliminate concerns about its use.
● Establish a continuous optimization mechanism: Use the accurate data generated by the iris attendance system to continuously optimize management systems and give full play to the system’s effectiveness.
Conclusion
From an annual loss of 1.8 million yuan to an annual saving of 1.8 million yuan, the experience of this manufacturing enterprise proves one truth: digital transformation is not a cost but an investment. As a precise attendance management tool, iris recognition technology has brought tangible benefits to the enterprise.
Choosing an iris recognition attendance system means choosing a precise and efficient management method. Take action now to let your enterprise also enjoy the management dividends brought by technological innovation.
About Us
As a leading domestic biometric technology enterprise, WuHan Homsh Technology Co., Ltd. focuses on the R&D and application promotion of iris recognition technology. We have iris recognition algorithms and hardware equipment with completely independent intellectual property rights, providing professional identity authentication solutions for various industries.
Our technical team has rich experience in the digital transformation of the manufacturing industry and can provide enterprises with full-process services from demand analysis, solution design to deployment and implementation. At present, we have successfully implemented iris recognition projects in multiple fields including manufacturing, logistics, and construction.
If you want to realize the digital transformation of your enterprise, please feel free to contact us, and we will provide you with professional technical consultation and solutions.
