“A box is a box!” Those were the infamous words a manager at one of our customer facilities stated to us years ago. No matter how hard we tried, we could not convince him that a box is not a box when it comes to employee performance standards. There are big boxes, small boxes, heavy […]
Engineered labor standards focus on all of the measurements that compose a unit of productivity for an employee. The labor standard formula is: labor standard = AX+BY+CZ + . . . Where A, B and C are the calculated coefficients done through engineering or observation and X, Y, and Z are the quantity. An example […]
A top priority for most General Managers is meeting their monthly budget. Since labor is usually the largest controllable expense for most operations, gaining visibility and control over these costs can be a crucial component in a person’s ability to succeed in that role. One approach to this challenge is to map out in detail […]
Peter Drucker is quoted as saying “You can’t manage what you can’t measure!” The world is now awash in data and measurements. The challenge is to understand which ones are important and drive the success in your business. Traditionally, when companies implement labor management, they focus on productivity and labor standards. Yes, productivity is very […]
Cost to serve is the cost analysis of all cost factors that go into the service of a customer or production of a product. This analysis enables you to accurately calculate each customer’s and product’s profitability. For most companies, between 20-40% of customers are actually unprofitable. With Cost-to-Serve, you are able to see which customers […]
Cost to Serve is becoming critical to know and manage to in today’s hyper competitive retail environment. This podcast discusses methodologies for cost to serve as well as the value that can be created from it.
Implementing a Labor Management System can be a powerful way to reduce the cost of labor at your facility, but before deciding to move forward you should have a plan on how you are going to generate and measure that ROI. When working with clients to build their business case, we ask them to give […]