Paul Nelson wrote:
I think I will start with the machine
number as the first digit and start with 000001 for the first employee and
work my way up from there.

This sounds like a reasonable plan. If the number is intended to obscure the identities of the employees from the third party, then a simple sequence numbering system may be a problem. It is plausible that someone could observe the order of hirings and therefore connect a given employee to a particular ID number.

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