The Productivity Improvement
Program for Warehousing and
Transportation
A fair day’s work for a fair day’s pay
APPLIED LOGISTICS

The Productivity Improvement
Program
 What constitutes a fair measurement?
 Do you have reasonable output expectations?
 Can you identify and eliminate inefficient work activities?

What’s the best way to perform a task?
 How can you create better and safer working conditions?
APPLIED LOGISTICS

The Productivity Improvement
Program
All questions that managers must address and be able to answer if their company is to remain profitable in today’s highly competitive business environment.
The reason is simple:
Productivity is directly related to Profitability .
APPLIED LOGISTICS

The Productivity Improvement
Program is designed to help our clients to significantly reduce their operating costs and achieve their financial objectives.
The objective of The Program is to maximize productivity through a more efficient utilization of physical resources and a better control of labor costs.
APPLIED LOGISTICS

The Program
 Optimization and Standardization of Existing
Methods
 Implementation of Engineered Labor
Standards
 Installation of Proprietary Management
Reporting Software
 Employee Orientation and Communication
 Supervisory Training and Development
APPLIED LOGISTICS

The Methods Review
 Identify and establish the best and most effective way of performing work activities
 Eliminate unproductive time
 Promote a more efficient utilization of available resources
 Create safer and more attractive working conditions
 Meetings with managers, supervisors, and floor operators
APPLIED LOGISTICS

The Methods Review
(continued)
 Breaks down each task into a number of very small work elements that can be accurately measured
 Standardizes these measurable elements
 Ensures that workforce performs each task in the same, optimally efficient way

Generates work “Preferred Methods”
 Improves product layout
APPLIED LOGISTICS

The Methods Review
(continued)
Psychological aspect:
Employees’ attitude toward the PRODUCTIVITY
IMPROVEMENT PROGRAM is far more positive.
Employees’ acceptance translates in greater program effectiveness.
APPLIED LOGISTICS

The Methods Review
(continued)
Engineering Services:
Maximizes the warehouse space utilization by providing the most efficient slot configuration for each line item stored in each section.
This optimizes the order selection process while fulfilling retail store requirements.
APPLIED LOGISTICS

The Methods Review
(continued)
Direct Benefits:
Increased pick rate, improved order selector’s productivity, lower product damage, reduced replenishment, and improved store service level.
APPLIED LOGISTICS

The Engineered Labor Standards
 Individually tailored
 No pre-determined time standards
 No averages
 Greater accuracy of standard time values
 Extremely detailed documentation
 Avoidable and unavoidable delays are recorded and documented
APPLIED LOGISTICS

The Engineered Labor Standards
(continued)
 Travel and pick time are accurately calculated
 Warehouse is electronically mapped
 Computer program stores all the elemental data related to all warehouse activities
 Little or no maintenance
APPLIED LOGISTICS

The Engineered Labor Standards key-features and benefits
 Fair, reasonable, and attainable
 Accurate and statistically correct
 Based on optimum and safe working methods
 Easy to maintain
 Greatly reduce labor costs
 Improve assets and resources utilization
 Require no capital expenditure
APPLIED LOGISTICS

The Engineered Labor Standards key-features and benefits
 Provide paybacks in months, not years
 Accept incentive programs

Generate higher employees’ accountability
 Apply to all warehousing and distribution functions
APPLIED LOGISTICS

Management Reporting Software
 Accurately determines actual workload requirements for a specific time interval, delivery route, or any other critical function before production begins
 Instantly tracks shift progress in relation to time expended
 Monitors and measures the performance of each operator against the standards throughout the shift
APPLIED LOGISTICS

Management Reporting Software
(continued)
 Tracks productive time as well as time spent in non-standard and off-standard activities by reason
 Calculates and administers incentive programs targeted at increasing productivity
 Generates daily reports on several warehousing and transportation keyfunctions
APPLIED LOGISTICS

Management Reporting Software
OLEC

( O nL ine E ffectiveness C ontrol System) is a software program designed to provide managers with powerful means of scheduling manpower and controlling labor costs.
In combination with our standards calculation module, OLEC
 accomplishes all the major objectives of a Labor Management System.
APPLIED LOGISTICS

Management Reporting Software benefits expected from the utilization of OLEC

 Reduced labor costs
 Improved manpower scheduling and allocation
 More balanced workload distribution
 Real-time visibility into labor productivity
 Early identification of trends and problem areas
 More effective supervision
APPLIED LOGISTICS

Communication with Employees
 Features employee orientation sessions
 Explains in detail the program objectives, the techniques being used, and the level of participation expected from everyone

Facilitates discussing employees’ own ideas with managers and engineers
 Eliminates fear, doubts, and resistance to change
APPLIED LOGISTICS

Communication with Employees
(continued)
Employees will support the
PRODUCTIVITY
IMPROVEMENT PROGRAM if they understand it and feel part of it. For the program to succeed, management must obtain full cooperation from every participant.
APPLIED LOGISTICS

Supervisor Training
 Management must provide leadership for the program
 Training sessions on leadership, motivation, manpower scheduling, and performance monitoring


Focus on providing supervision with a basic knowledge of industrial engineering fundamentals and techniques
“Train-the-trainer” approach
APPLIED LOGISTICS

Supervisor Training
(continued)
Provides Managers and Supervisors with the know-how necessary to ensures the ongoing success of the
PRODUCTIVITY IMPROVEMENT
PROGRAM and of the standards implementation long after our engineers have left your facility.
APPLIED LOGISTICS

The Productivity Improvement
Program for Warehousing and
Transportation
This “win-win” combination of scientific work measurement, labor planning and control software, and a people-oriented approach, benefits both employees and management.
At the same time, it greatly facilitates the job of union’s agents.
APPLIED LOGISTICS

The Productivity Improvement
Program for Warehousing and
Transportation
As a result of this approach and our commitment to accuracy and fairness, our Engineered Labor
Standards are by far the most welcome among employees and trade unions anywhere.
APPLIED LOGISTICS

The Productivity Improvement
Program for Warehousing and
Transportation
The end-result is a more productive workplace and an improved working environment at all organizational levels.
The idea is to “Work smarter, not harder”
APPLIED LOGISTICS

Productivity Improvement Programs for Distribution
A fundamental point of our business philosophy is the realization that our success and that one of our clients are inextricably connected.
APPLIED LOGISTICS