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Colman's of Norwich

Implementing Annual Hours at Colman’s of Norwich

The Catalyst for Change

Colman’s of Norwich is a household name and a long-established, well-respected manufacturer of mustard, sauces and condiments. Since the early nineties, a range of working-time measures have been introduced to move the company away from a high overtime, traditional working environment. The established working culture and practice was one in which employees worked at less than capacity to generate maximum overtime, and it was the new Managing Director who investigated the concept of Annual Hours as the vehicle to create the changes for a culture that encouraged employees to get the job done as quickly and efficiently as possible, sustain high productivity and maintain workforce motivation and commitment to the team and the workplace.

Methodology

Rosters were set annually, and time off was “rostered in” the shift pattern rather than holidays be conventionally taken on a first-come, first-served basis. The annual roster thus offered 1900 contracted hours, using 1732 hours as actual rostered time and leaving 168 hours in reserve to be used if required, such as at times of increased demand or labour shortage. All contracted hours were to be paid in order to encourage job completion without having to use reserve hours, thereby removing the need for overtime.

Implementation began with a pilot, with the relevant workforce consulted at all stages and preferences identified. Close negotiations took place with workers and unions regarding the setting of a new, higher pay scale and a 5% performance-related bonus package. This presented an initial cost disadvantage for the company, although the bonus element was based in team objectives and rooted in broader company measures related to safety and quality, such as use of appropriate clothing, productivity and hygiene, and therefore, the cost was balanced by an affiliated risk.

Results and Benefits

The company now demonstrates real employee commitment, flexibility and a cohesive team environment. The clocking on/off procedure was abolished, and employee absence was halved. The time spent administering payroll and overtime was no longer necessary, and management realised a time saving of 25% in the day-to-day organisation of labour. Manufacturing efficiency rose by more than a third, from 55% to 85%, and production waste reduced by half.

Teams now set their own roster patterns, call their own reserve hours and liaise directly with Planning. Job and finish is unofficially authorised so long as the weekly plan, and all other duties, have been completed to the correct quality standards. Workers are highly focused on line improvement to ensure increased performance efficiencies since they value their time away from work rather than the overtime they had previously been motivated towards in hourly pay conditions.

Peer pressure also operates to control and enhance performance, and greater autonomy has improved team spirit and created a greater sense of commitment to the production unit, the team, and the workplace. Because motivation is high, machinery is maintained more effectively, and runs more smoothly. Desire to be included in project planning and improvements means that people often come in voluntarily during their time off.

The introduction of an Annual Hours working-time system has carried this organisation through an enormous amount of change in both culture and performance. Because of the high level of skill and care used to implement, the workforce now shows a high level of trust and self-motivation, and anticipates the introduction of future changes with a positive and interested attitude.

The Role of Working Time Solutions

Throughout the process, Colman’s were supported by consultancy services provided by Jim Whittam, a Director of Working Time Solutions Limited:
“Jim enabled us to lift the fog from annual hours rostering by providing quick and accurate information. He helped to clarify the key issues and emphasised the importance of working equally with all those who were party to the change.”

Since working with Colman’s of Norwich, Working Time Solutions has been invited to work within other Unilever business units, including PG Tips Manufacture in Manchester and Unilever Ice Cream & Frozen Food, Winner of Deloitte Factory of the Year, Winner - Best Household & General Products Plant, Winner – Best Factory of East England.

To find out more about the many services available from Working Time Solutions – including consultancy, software and Lean-ER itself – then please don’t hesitate to contact us or submit an information request and we shall be happy to find out how we can help. All our solutions start with talking and listening: we look forward to beginning the conversation soon.