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Case Study #21 - TK Maxx

HandPunch Cuts Labor Management By More Than 75% For Each Store Manager

May 20, 2006
"We have found the HandPunch to be very beneficial to the company as it means employee information is more accurate and staff cannot lose their means of identification.”

STATISTICS:
Industry: Retail
Application: Time & Attendance
Number of users: 3600
Number of stores: 125
Challenge: Store managers were spending too much time replacing lost cards
Solution: HandPunch®
Results: Employees are paid on time and morale has improved

"We have found the HandPunch to be very beneficial to the company as it means employee information is more accurate and staff cannot lose their means of identification," asserts Gavin Howell, Store Systems Manager for TK MAXX, the UK subsidiary of TJX Companies and nationwide chain of stores that sells fashion-wear, homewares and gifts at prices 20 to 60 percent lower than recommended retail. "It is essential that our store overheads are kept to a minimum."

In 1994, TK Maxx implemented a system to manage time, attendance and payroll administration, ensuring that staff was paid accurately and on-time, complying with Working Time Directive legislation. Employees clocked in and out of work with a personalized swipe card to begin the process.

Although the system performed admirably, TK MAXX still had several business issues to confront. Too often, employees lost swipe cards or forgot to bring them to work. Store managers were spending too much time replacing lost cards and correcting errors caused when employees failed to swipe in or out. Buddy punching was also a problem. Staff would run late for work and call friends to punch in for them, resulting in time theft and excess payroll payments.

Therefore, in 1999, TK Maxx began using the HandPunch reader from Ingersoll Rand Recognition Systems which looks at the three-dimensional size and shape of the hand. The results of over ninety hand measurements, including lengths, widths, thickness and surface areas are converted into a "template," a nine-byte mathematical representation of the hand. When a TK Maxx employee places his or her hand into the stand-alone HandPunch system, the image is compared to the template in less than one second.

Since staff cannot forget bringing their hands to work, there is no longer any need to correct punching errors. Store managers have reduced labor management administration from five hours per week to ten minutes a day. Buddy punching is impossible so time theft has been eradicated. Employees are paid on time and moral has improved.

The HandPunch system has been rolled out to all distribution centers and TK Maxx stores in the UK.

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