Hello Rashmi,
Greetings from Ansh | Allied Learning Solutions
The challenge you face when it comes to 'on-time-reporting' is a widely faced one in the manufacturing sector.
We recommend that the usage of penalty is a 'last ditch' effort. Simply put, it alienates your employees from the organisation that they currently serve. In essence, as a Factory or Manufacturing unit you have a large segment of your workforce that may be associated with you for a long period of time. This association may result in them being complacent toward their basic responsibilities toward the company, such as 'Coming on Time'.
One way you could deal with this immediately is by promoting a R&R (Rewards & Recognition) effort. The idea being motivation. You, by the end of the month, install a program in your company where you keep a timesheet with all employees who show more than 90% on-time reporting be eligible for some sort of a reward in cash/kind or even recognition by means of a certificate and a small memento.
On the long run, this needs to be placed as a sensitizing activity, where the employees, old or new, young or aged be made to understand that they are integral to the organisation and that they are valued. In addition to this, an introspection on 'Why do they come late?' would be of great help.
We as an organisation help with HR issues and challenges such as this. For further details you can get in touch with me on '+91 9978978359'
Regards.