Kansas City Board of Public Utilities Uses Kronos® to Reduce Labor Costs
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The Kansas City Board of Public Utilities (BPU) serves approximately 69,000 electric and 55,000 water customers in Kansas City, Kansas, providing the highest-quality electric and water services at the lowest possible cost. Its mission is to be the utility and workplace of choice while improving the quality of life in the communities it serves.
As part of an effort to update business systems and processes, BPU implemented a PeopleSoft ERP solution for financial supply chain and human capital management. After the deployment of the ERP, inadequacies in BPU's attendance data collection system and business processes became obvious. To address these concerns, BPU implemented the Kronos® Workforce Central® suite to centralize timekeeping, automate business processes, and integrate with PeopleSoft.
Coping with an outdated system
Prior to implementing PeopleSoft and Kronos solutions, BPU's business, finance, project costing, payroll, purchasing, and human resources systems were a combination of high maintenance and, in many cases, homegrown customizations. Add undocumented software routines and obsolete platforms, and BPU was challenged to meet its own business needs and respond effectively to the external business regulatory environment in which it operated.
Employee time and attendance information was managed through paper timesheets and bar code readers. Although employees punched in and out using their ID badges, this information was not used for calculating payroll. Timesheets were completed manually by timekeepers; the punch data was used only to verify that employees came and left the job location.
Automating, interfacing, updating
BPU's Kronos solution uses Workforce Timekeeper™ and Kronos 4500™ terminals to capture time and attendance data for 645 employees. The Kronos solution interfaces with PeopleSoft for payroll, attendance, and leave balances.
BPU created a project team to oversee the implementation. Made up of employees from HR, payroll, accounting, and IT, the team worked with internal stakeholders to define system functionality, keep the project on schedule, and coordinate training programs. "The implementation of this project touched our entire organization," says Diane Hoch, systems analyst/project manager. "Everyone was part of the solution, from department managers and directors to supervisors and timekeepers."
Getting users up to speed
Training programs were developed to educate the timekeepers on the new system and business processes. These training programs were developed and conducted in-house with support from the Kronos services organization. The core team received training directly from Kronos and took that training to BPU supervisors using a train-the-trainer methodology.
Training was provided to the timekeeping and payroll staff before the system went live. After three months, users were polled and asked to critique the system on its ease of use, functionality, operation, and integration with payroll. As a result, minor changes were made and additional training and “tips and tricks” were shared with users, leading to smoother operation and improved data quality as well as an increase in overall satisfaction with the solution.
Realizing significant business benefits
The Kronos solution quickly delivered added value to BPU's business operations. The utility realized a return on its investment in just nine months and after five months was on track to reduce yearly payroll by $487K, or one percent. "For the first time, complex personnel and payroll policies and union rules are being applied equally and correctly across our organization," says Hoch. "Real-time information on leave and time accrual is now delivered to our employees and managers, allowing us to reduce unauthorized leave time."
Giving credit where it's due
When asked to describe how BPU completed such a successful implementation, Hoch doesn't hesitate. "Planning, planning, planning, hard work, an effective solutions partner, and a dedicated team with a clear vision of our existing condition and what could be achieved." She also credits the project team with creating a workable project charter and design document, communicating effectively across the company, and meeting all their scheduled deadlines.
With its Kronos solution in place, BPU is well-positioned to support decision-making that will meet the changing needs of employees, enable better management of the workforce, and allow the utility to be a better steward of its payroll dollars.