Enhancing Your Decision Process Through DLMS...

Enhancing Your Decision Process

Through

Discrete Labor Measurement Systems

Michael Forbes

Director of Warehouse, Distribution Services, Sysco Corporation

George Bishop

Managing Director, Labor Management Solutions, West Monroe

Agenda

What Are Engineered Labor Standards (“ELS”)?

How Are ELS Used In Distribution?

What is a Discrete Labor Measurement System (“DLMS”)?

How Does a DLMS Enhance Sysco’s Decision Process?

Formal Definition of Engineered Labor Standards

Standard time is the total time in which a job should be

completed at standard performance.

International Labour Office

Work Measurement is the application of techniques

designed to establish the time for a qualified worker to

carry out a specified job at a defined level of performance.

International Labour Office

It’s About Time

It Is Really About Information

Nothing more than an information system that documents

how long it should take a qualified employee working at a

normal pace to accomplish a given task, using specific

methods, and under certain conditions.

Agenda





Main Purpose Of ELS In Distribution

Workforce

Management

Engineered

Labor

Standards

“We can see and feel the waste of material things. Awkward, inefficient or ill directed movements of

men leave nothing visible or tangible behind them.”

Frederick W. Taylor

Missed Opportunities

SchedulingActivity Based

Compensation

Workforce

Management

Activity Based

Costing

Engineered

Labor

Standards

Optimize/Quantify

ProcessesSimulation Tools

Aka: Sub Optimized Resources

Agenda





Starts With The Development Of The Standards

Element . . .

Predetermined

Motion Time

System

Time Study Standard Data

Normal Time

PF & D

AllowancesStandard Time

Standardized

Process Element 3Element 2

Element 1

Major Attributes of a DLMS

� Capabilities to map the distribution

processes using discrete attributes

� Formulae driven Boolean logic

� Assignment profile (e.g.: weight, cube,

type, trailer length)

� Product characteristics (e.g.: weight,

cube, package)

� Client requirements (e.g.: palletizing

pattern, pallet type, added value

services)

� Location characteristics (e.g.: rack type,

z height, opening, state)


� Discrete travel calculation

� Equipment type specific X,Y,Z travel map

� Quickest path algorithm

� Surface and obstacle modeling (e.g.: doors, wet aisles, icy surfaces)

� Equipment specific travel parameters (e.g.: speed, acceleration)

� Configurable thresholds (e.g.: distance, weight)


� Discrete allowance calculations for Personal and Fatigue

� Calculated at the level of the elements

� Includes many variables in the calculation

�Environmental variables (e.g.: temperature, humidity, dust, wetness)

�Task constraints (e.g.: effort, posture, repetitiveness)

� Unavoidable delays based on:

� Department

� Job function

� Day and time of day

Agenda





Sysco’s Philosophy On Engineered Labor Standards

� Engineered Labor Standards is a tool to measure both:

� Associates (i.e.: receivers, order selectors, forklift operators, loaders)

� Management

� Engineered Labor Standards focus on efficient methods and

quality

� Associates are trained to be efficient and accurate

� Management is trained to remove barriers

� Engineered Labor Standards are also used to:

� Evaluate the effectiveness of training programs

� Support Activity Based Compensation plan

� Evaluate alternatives and justify new technologies and processes

The Evolution of Sysco’s Labor Measurement System

“There are always opportunities through

which people can profit handsomely if they

will only recognize and seize them.”

Jean Paul GettyDLMS

KVI System

Cases / Hour

Significant Increase Of Productivity Expectations

� DLMS well received by Union auditors

� Successfully defended in arbitration

� Significant productivity over the previous KVI based system

Job Function Average Increase

Order Selection 13%

Forklift Operators 16%

Loaders 24%

Power Of DLMS To Evaluate Alternatives

� Enables a side by side comparison of alternatives

� Results are based on real numbers void of biases, estimates,

and averages

� Compares weeks of actual assignments specific to the

distribution environment

� Ideal to compare alternatives such as:

� Double pallet jack vs triple pallet jack vs quadruple pallet jack

� Hydrogen fuel cells vs lead acid batteries

� Manual wrap vs robot wrap vs stationary wrap machines

� Adding X-aisles

� Shift schedules

� Layout options

Conclusion

� DLMS enable productivity increases beyond any other type of

labor measurement system

� Provides added credibility specially in unionized environments

� Creates total accountability from the associates through the

different levels of management

� Brings non-biased data to ROI calculations

Michael Forbes

Director of Warehouse, Distribution Services, Sysco Corporation

George Bishop

Managing Director, Labor Management Solutions, West Monroe

[email protected]

Mobile: 303.304.4714

Enhancing Your Decision Process Through DLMS...

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