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way the work is supervised or managed. And the place to start with is
through planning, both tasks and processes.
There are three elements to this approach to improve labor utilization.
They can be implemented in every distribution center, are easy
to see and be implemented as quickly as tomorrow. The fi rst element
is to identify the workload cycles in your operation. That is, in every
warehouse and distribution center there are regular, predictable fl uctuations
in the work load. The fl uctuation may be by hour through
the day, or day in the week or certain days in the month; there are
always predictable peaks and valleys in workload. These fl uctuations
are usually as a result of production planning or customer order patterns
outside of your control.
The second element is to recognize that you, like every other manager,
want to maintain a constant level of staffi ng, and use a limited
amount of overtime to deal with peak requirements. The consequence
of this strategy is that there are times when your workload is less than
the staffi ng level.
By Don Benson, President
Benson & Associates
And the third element is to acknowledge that there are many important
tasks in your operation that should be done every day and
yet often are handled only when they become so big a problem that
they cannot be ignored any longer, e.g., cycle counting, pick position
replenishment, stocking packing station supplies, returns processing,
sweeping the fl oors, cleaning up the data in the computer, reslotting
pick positions, etc. Often these tasks are postponed because they are
thought to be not important because they do not directly contribute
to daily shipping or sales or the benefi ts would be small for the effort
required. And while that this point of view is partially correct, if these
tasks are not done in a timely way, the results can be disastrous.
My recommendation is that tomorrow you begin to improve the
productivity of your work force by identifying the operations support
tasks you identifi ed that could be part of a regular schedule. Then
develop a program for assigning people to perform a portion of these
tasks every week, during the normally slow hours or days in your
next regular schedule. Rather than continue to put these tasks off until
they become problems, or bring in someone else to take care of this
work every few months or so, or to make big projects out of them
once a year, that you begin to accomplish small amounts of them
every week with your regular staff. I have seen managers schedule
these support tasks for slow times on Thursday morning every week,
or from 7:00 to 8:00 every morning, or on the 1st and 2nd and 16th
and 17th of each month, during the predictability low portion of the
order demand.
Implementation of this change will bring two benefi ts to your operation
at no additional cost.
Improving
Labor
Utilization
http://www.mhia.org 15
Where does a company that isn’t
doing anything start to turn green into
gold?
WINSTON: They buy a really good book.
That was a joke, but you do have to read
up on the subject and understand how other
companies are thinking about this. At a practical
level, you start by fi guring out where
you stand. What’s your environmental footprint
up and down the value chain? Companies
with good fi nancial controls can tell you
how much money they made last month to
the penny but ask them how much energy
they used, and they can’t bring it together in
one place. Next, you can ask what are your
suppliers and your customers doing? That
will identify opportunities where you can
help them. Those are the fi rst steps. Then
you can build in metrics, you can change
peoples’ incentives and you can communicate
about this internally.
If we’re turning green into gold,
what is the business case for sustainability?
WINSTON: Well, we talk about buckets of
value creation. Reducing costs, eco-effi ciency,
and reducing resource are the big ones.
There’s also revenue creation. That’s about
innovation, creating new products, and
creating new services with a green theme.
There’s also an intangible benefi t, which is
having higher brand value, higher customer
retention, higher employee attraction and retention.
Those are hard to measure but are
included in the kind of companies that are
seeing the most value. There’s tremendous
opportunity in all of those areas. But the bottom
line is that there isn’t really a choice any
more. This isn’t an optional movement because
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