Warehouse labour is probably the most expensive resource in supply chain execution. Efficiency for warehouse labour is back in vogue. People in the industry are talking about the use of employee performance measures to improve their process management. So, what is employee performance measurement and what can it do for you?
The use of labour management systems (LMS) is proven to be one of the most effective tools in the drive for efficiency and supply chain excellence. A labour management system will typically provide a warehouse operation with the means to measure employee performance and attain levels of consistency in accuracy and throughput.
Employee performance measurement begins with the minutiae of task definition and applying time values to those tasks. It moves on to applying those task values to the work being carried out by employees, and finally compares this to an expected completion value for a task. The comparison then delineates into a performance value for the task.
Link this to an incented environment where employees are paid by results and, hey-presto, you have the means to increase efficiency and productivity. Tie levels of accuracy to the incentive package and, at a stroke, you have increased the opportunity for improved performance.
A Step Change From Inventory
It is true to say that most companies have by now either been through or are in the middle of, inventory optimisation . The same companies are turning their attention to the next level of supply chain efficiency – labour resources account for 35% to 65% of the supply chain cost and this is therefore a legitimate target, for efficiency measures.
Fringe, But Tangible Benefits
Probably unaccounted for, but no less applicable, are some of the fringe benefits gained through implementing labour management measures:
- Employee satisfaction:
When employees are incented through a Payment By Results (PBR) scheme they know they are able to improve their earning potential through their own efforts, and are not reliant on third parties for annual increments or bonus payments. Self empowerment through PBR is very compelling
- Employee retention:
10 to 15 years ago, the use of labour management systems and PBR schemes was more about labour reduction and the “carrot and stick” method of management.
Today, the use of employee performance measurement is more about retaining labour in a near full employment environment and shared benefits between employees and management, in a more employee-centric culture.
- Equipment
It naturally follows that along with the efficiency gains from employee performance measurement, less equipment will be needed and maintenance costs will be reduced.
AquiTec LMS – Setting The Standard
Full integration:
There are no interfaces between our LMS module and our Warehouse Management System (WMS), as these share a common database. The LMS is available across all areas of warehouse activity, including:
- Put-away, with optimised travel routing for up to 5 pallets in one lift
- Pick face replenishment, and interleaving put-away
- Picking, including optimised travelling through the pick faces
- Full and part pallet movements, also with interleaving
Mature and reliable:
Our LMS has been over 20 years in the making. It has been used in multiple industries and settings. The “off the shelf” task values have been derived from a variety of environments and are constantly being proven with our existing client base.
Direct and indirect task management:
The nested task function in our LMS means that indirect tasks can be measured and managed too.
Reporting and Goal setting:
Advanced levels of management information and reporting are easily obtained.
The LMS sets goals at task and assignment level. It informs employees of what they have to achieve at the start of a task/assignment and then tells them how they have performed after task/assignment completion.
All this and voice too:
AquiTec LMS is available in paper, Radio Frequency (RF) and Voice Recognition environments. With paper or RF there is an element of hands-on interaction with the system. With Voice Recognition, the system simply tells the employee what the goal and performance levels are. |
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