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Overview:
Productivity measurement and reporting systems typically calculate the performance of individuals and teams by comparing the results of each task that is performed to the task'’ standard. The standards can be determined by any type of standards setting technique including time studies, predetermined time systems or productivity goals set by management.
Key operation statistics are saved into multi-dimensional databases of time series data for each work center or productivity area, associate, process and allocation. Performance, productivity and quality information is kept for several years. From these types of databases, pre-defined and user-defined reporting including graphing of results can be produced to track persons, department, or an entire operation over a period of time. This type of reporting can show trends, make comparisons to plans and budgets, and of course show current results.
Collecting Data::
There are numerous automated and manual methods for getting daily production data into a system. The most appropriate method depends on the physical work environment, whether there are other systems that can provide data and the amount of automation that is desired or cost justifiable.
1. Manual: writing it down and keying it in. Sometimes the only practical way of obtaining the data is to have each associate record via a log their work tasks throughout the day. These manual production logs can later be keyed into the productivity system, which will compare the activity tasks to standards of performance for each task.
2. Computer systems: WMS. Most WMS systems keep track of task and the time it takes an associate to perform the task. By integrating these systems or passing some type of flat file to the productivity system, the tasks can be compared the productivity standard and produce the performance percent.
3. Combination of systems: RF/WMS/Time keeping. Often times interfaces or feeds from a timekeeping system can feed the productivity system information such as clock-in, lunch, and clock-out time, while the RF and/or WMS system passes the task/activity information. These combinations arriving in the productivity software again make the comparisons to standards and produce percentage ratings of performance.
Roadblocks to Implementation:
There is usually some rationale why not to implement labor standards and a productivity system.
1. Many companies have embarked on engineered standards for distribution, only to find that their investment in this process delivered less than expected results. Those that do achieve benefits from the standards process often find the momentum and results realized deteriorate over time through gradual neglect of the key standards or their champion moving to a new position. To maximize benefits, companies must adopt a comprehensive productivity management system that incorporates preferred methods for specific tasks, engineered standards, and productivity management software to support dynamic goal calculations, labor planning and robust reporting. The results achieved will be more substantial and sustainable that those from standards work alone.
2. Companies that have implemented warehouse management and/or radio frequency systems already have the data collection infrastructure required to support a productivity system. Those without these systems can still benefit from productivity management through a variety of collection methods as previously discussed. Likewise, the minimal additional administrative requirements are more that offset by both the reduction in management time required to collect and analyze labor statistics and the benefits of real time access to information on productivity barriers an incipient problems that can quickly degrade productivity.
Big Wins:
Through a comprehensive approach to labor productivity, the company will realize both financial and qualitative benefits, while the associates also gain rewards.
Company Wins::
· Reduced labor costs through increased productivity.
· Improved service performance during peak and off peak times
· Reduced hiring and training costs due to lower turnover, the result of high morale and a more enriched environment (assumes pay for performance bonus structure)
· Increased quality resulting in reduced returns, incorrect shipments and internal fixes.
· More precise staff scheduling capabilities via integrated tools.
· Extended facility processing capacity
Employee Wins:
· Clearly defined, objectives and job performance expectations
· Coaching on how to achieve goals
· More frequent feedback on progress with respect to goals
· Improved communication between management and associates
· Jon enrichment through cross-training and increased responsibilities
· Increased wages (assumes bonus for outstanding productivity percentages).
There are many solutions available for productivity from tools loaded via internet, to highly sophisticated systems by some of the top WMS vendors, to systems provided by varies consulting groups. If your firm is contemplating productivity software, Navesink Logistics is happy to provide expertise to guide the process of selection.
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Navesink Logistics was honored to host an innovative event called the Business Opportunity Summit. Held in Dallas, TX during the week of August 11-13, business owners, entrepreneurs, as well as top level management of firms from California to Ohio to New Jersey gathered. The overall purpose of the summit was to bring together thought leadership on current supply chain arena events in the marketplace.
The group exchanged ideas and opportunities revolving around RFID one of the hottest topics in supply chain today. Other topics included Sunrise 2005 compliance and data synchronization. Basic supply chain activities were also reviewed, such as transportation and 3PL.
In addition to great discussion and information exchange, a new network between individuals also emerged. All in all the summit was a huge success and participants are anticipating successful business outcomes.
This years participants included Air Trace Systems, Axway, InterSoft, iSavent, Logistics Resource Management Group and of course Navesink Logistics.
Our thanks to all participants and organizers of the event.
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Introduction
