APPLIED LOGISTICS The Productivity Improvement Program for Warehousing and Transportation

APPLIED LOGISTICSAPPLIED LOGISTICS

The Productivity Improvement The Productivity Improvement Program for Warehousing and Program for Warehousing and

TransportationTransportation

A fair day’s work A fair day’s work forfor a fair day’s pay a fair day’s pay


The Productivity Improvement The Productivity Improvement Program Program

What constitutes a fair measurement? What constitutes a fair measurement? Do you have reasonable output expectations? Do you have reasonable output expectations? Can you identify and eliminate inefficient work Can you identify and eliminate inefficient work

activities?activities? What’s the best way to perform a task? What’s the best way to perform a task? How can you create better and safer working How can you create better and safer working

conditions?conditions?


The Productivity Improvement The Productivity Improvement ProgramProgram

All questions that managers must address and be All questions that managers must address and be able to answer if their company is to remain able to answer if their company is to remain profitable in today’s highly profitable in today’s highly competitive business competitive business environment. environment.

The reason is simple: The reason is simple: ProductivityProductivity is directly related is directly related to to ProfitabilityProfitability..


The Productivity Improvement The Productivity Improvement ProgramProgram

is designed to help our clients to significantly is designed to help our clients to significantly reduce their operating costs and achieve their reduce their operating costs and achieve their

financial objectives.financial objectives.

The objective of The objective of The ProgramThe Program is to is to maximize maximize productivityproductivity through a more efficient utilization of through a more efficient utilization of physical resources and a better control of labor physical resources and a better control of labor

costs.costs.


The ProgramThe Program

Optimization and Standardization of Existing Optimization and Standardization of Existing MethodsMethods

Implementation of Engineered Labor Implementation of Engineered Labor StandardsStandards

Installation of Proprietary Management Installation of Proprietary Management Reporting SoftwareReporting Software

Employee Orientation and CommunicationEmployee Orientation and Communication Supervisory Training and DevelopmentSupervisory Training and Development


The Methods ReviewThe Methods Review

Identify and establish the best and most Identify and establish the best and most effective way of performing work activitieseffective way of performing work activities

Eliminate unproductive timeEliminate unproductive time Promote a more efficient utilization of Promote a more efficient utilization of

available resourcesavailable resources Create safer and more attractive working Create safer and more attractive working

conditionsconditions Meetings with managers, supervisors, and Meetings with managers, supervisors, and

floor operators floor operators


The The MethodsMethods Review Review (continued)(continued)

Breaks down each task into a number of Breaks down each task into a number of very small work elements that can be very small work elements that can be accurately measuredaccurately measured

Standardizes these measurable elementsStandardizes these measurable elements Ensures that workforce performs each task Ensures that workforce performs each task

in the same, optimally efficient wayin the same, optimally efficient way Generates work “Preferred Methods”Generates work “Preferred Methods” Improves product layout Improves product layout


The Methods Review The Methods Review (continued)(continued)

Psychological aspect:Psychological aspect:

Employees’ attitude toward the Employees’ attitude toward the PRODUCTIVITY PRODUCTIVITY IMPROVEMENT PROGRAMIMPROVEMENT PROGRAM is far more positive. is far more positive.

Employees’ acceptance translates in greater Employees’ acceptance translates in greater program effectiveness.program effectiveness.


The The MethodsMethods Review Review (continued) (continued)

Engineering Services:Engineering Services:

Maximizes the warehouse space utilization by Maximizes the warehouse space utilization by providing the most efficient slot configuration for providing the most efficient slot configuration for each line item stored in each section. each line item stored in each section.

This optimizes the order selection process while This optimizes the order selection process while fulfilling retail store requirements. fulfilling retail store requirements.


The The MethodsMethods Review Review (continued)(continued)

Direct Benefits:Direct Benefits:

Increased pick rate, improved order selector’s Increased pick rate, improved order selector’s productivity, lower product damage, reduced productivity, lower product damage, reduced replenishment, and improved store service level.replenishment, and improved store service level.


The Engineered Labor StandardsThe Engineered Labor Standards

Individually tailoredIndividually tailored No pre-determined time standardsNo pre-determined time standards No averagesNo averages Greater accuracy of standard time valuesGreater accuracy of standard time values Extremely detailed documentationExtremely detailed documentation Avoidable and unavoidable delays are Avoidable and unavoidable delays are

recorded and documentedrecorded and documented


The Engineered Labor Standards The Engineered Labor Standards (continued)(continued)

Travel and pick timeTravel and pick time are are accurately accurately calculatedcalculated

Warehouse is electronically mappedWarehouse is electronically mapped Computer program stores all the elemental Computer program stores all the elemental

data related to all warehouse activitiesdata related to all warehouse activities Little or no maintenanceLittle or no maintenance


The Engineered Labor StandardsThe Engineered Labor Standardskey-features and benefitskey-features and benefits

Fair, reasonable, and attainableFair, reasonable, and attainable Accurate and statistically correctAccurate and statistically correct Based on optimum and safe workingBased on optimum and safe working methodsmethods Easy to maintainEasy to maintain Greatly reduce labor costsGreatly reduce labor costs Improve assets and resources utilizationImprove assets and resources utilization Require no capital expenditureRequire no capital expenditure


The Engineered Labor StandardsThe Engineered Labor Standardskey-features and benefitskey-features and benefits

Provide paybacks in months, Provide paybacks in months, notnot years years Accept incentive programsAccept incentive programs Generate higher employees’ accountabilityGenerate higher employees’ accountability Apply to all warehousing and distribution Apply to all warehousing and distribution

functionsfunctions


Management Reporting SoftwareManagement Reporting Software

Accurately determines actual workload Accurately determines actual workload requirements for a specific time interval, requirements for a specific time interval, delivery route, or any other critical function delivery route, or any other critical function before production beginsbefore production begins

Instantly tracks shift progress in relation to Instantly tracks shift progress in relation to time expendedtime expended

Monitors and measures the performance of Monitors and measures the performance of each operator against the standards each operator against the standards throughout the shiftthroughout the shift


Management Reporting Software Management Reporting Software (continued)(continued)

Tracks productive time as well as time Tracks productive time as well as time spent in non-standard and off-standard spent in non-standard and off-standard activities by reasonactivities by reason

Calculates and administers incentive Calculates and administers incentive programs targeted at increasing productivityprograms targeted at increasing productivity

Generates daily reports on several Generates daily reports on several warehousing and transportation key-warehousing and transportation key-functionsfunctions


Management Reporting SoftwareManagement Reporting Software

OLECOLEC ((OOn-n-LLine ine EEffectiveness ffectiveness CControl System)ontrol System) is a software program designed to provide is a software program designed to provide managers with powerful means of scheduling managers with powerful means of scheduling manpower and controlling labor costs. manpower and controlling labor costs. In combination with our standards calculation In combination with our standards calculation module, module, OLECOLEC accomplishes all the major accomplishes all the major objectives of a Labor Management System.objectives of a Labor Management System.


Management Reporting SoftwareManagement Reporting Software benefits expected from the utilization of OLECbenefits expected from the utilization of OLEC

Reduced labor costsReduced labor costs Improved manpower scheduling and Improved manpower scheduling and

allocationallocation More balanced workload distributionMore balanced workload distribution Real-time visibility into labor productivityReal-time visibility into labor productivity Early identification of trends and problem Early identification of trends and problem

areasareas More effective supervisionMore effective supervision


Communication with EmployeesCommunication with Employees

Features employee orientation sessionsFeatures employee orientation sessions Explains in detail the program objectives, Explains in detail the program objectives,

the techniques being used, and the level of the techniques being used, and the level of participation expected from everyoneparticipation expected from everyone

Facilitates discussing employees’ own Facilitates discussing employees’ own ideas with managers and engineersideas with managers and engineers

Eliminates fear, doubts, and resistance to Eliminates fear, doubts, and resistance to change change


Communication withCommunication with EmployeesEmployees(continued)(continued)

Employees will support the Employees will support the PRODUCTIVITY PRODUCTIVITY IMPROVEMENT PROGRAMIMPROVEMENT PROGRAM if they understand it and if they understand it and feel part of it. For the program to succeed, feel part of it. For the program to succeed, management must obtain full cooperation from management must obtain full cooperation from every participant.every participant.


Supervisor TrainingSupervisor Training

Management must provide leadership for Management must provide leadership for the programthe program

Training sessions on leadership, motivation, Training sessions on leadership, motivation, manpower scheduling, and performance manpower scheduling, and performance monitoringmonitoring

Focus on providing supervision with a basic Focus on providing supervision with a basic knowledge of industrial engineering knowledge of industrial engineering fundamentals and techniquesfundamentals and techniques

““Train-the-trainer” approachTrain-the-trainer” approach


Supervisor TrainingSupervisor Training(continued)(continued)

Provides Managers and Supervisors with the Provides Managers and Supervisors with the know-how necessary to ensures the ongoing know-how necessary to ensures the ongoing success of the success of the PRODUCTIVITY IMPROVEMENT PRODUCTIVITY IMPROVEMENT PROGRAMPROGRAM and of the standards and of the standards

implementation long after implementation long after

our engineers have left our engineers have left

your facility.your facility.




This This “win-win” combination “win-win” combination of scientific work of scientific work measurement, labor planning and control measurement, labor planning and control software, and a people-oriented approach, software, and a people-oriented approach, benefits both employees and management. benefits both employees and management.

At the same time, it greatly facilitates the job of At the same time, it greatly facilitates the job of union’s agents.union’s agents.




As a result of this approach and our commitment As a result of this approach and our commitment to accuracy and fairness, our Engineered Labor to accuracy and fairness, our Engineered Labor Standards are by far the most welcome among Standards are by far the most welcome among employees and trade unions anywhere.employees and trade unions anywhere.




The end-result is a more productive workplace The end-result is a more productive workplace and an improved working environment at all and an improved working environment at all organizational levels.organizational levels.

The idea is to The idea is to “Work smarter, not harder”“Work smarter, not harder”


APPLIED LOGISTICSAPPLIED LOGISTICSProductivity Improvement Programs for DistributionProductivity Improvement Programs for Distribution

A fundamental point of A fundamental point of our business philosophy our business philosophy is the realization that our is the realization that our success and that one of success and that one of our clients are our clients are inextricably connected.inextricably connected.

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APPLIED LOGISTICS The Productivity Improvement Program for Warehousing and Transportation