Driving Results With a High Performance Labor Management Program

Transcription

1 Driving Results With a High Performance Labor Management Program - Results and Challenges Presented by: Mark Kidwell OHL Steve Simmerman JDA Brian Ehlenberg 4SIGHT 2016 MHI Copyright claimed for audiovisual works and sound recordings of seminar sessions. All rights reserved.

2 Brian Ehlenberg Presenters Director Workforce Optimization Mark Kidwell Senior Director Continuous Improvement Steve Simmerman Senior Director Sales

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5 Powering the Seamless Supply Chain

6 Driving Results With a High Performance Labor Management Program Results and Challenges

7 Over 36 Million Square Feet of Warehousing Single Location Multiple Locations Transportation Management Offices VALUE-ADDED DISTRIBUTION CENTERS TRANS. MANAGEMENT 126 Total Facilities 17 Dedicated Facilities 109 Multi-Client Facilities 2 Office Locations

8 Flexible & Scalable Warehousing Solutions Operating Model Shared client operations Dedicated operations with option to transition ownership Single DC or multiple DC strategy Manual to highly automated solutions Overflow pop-ups for peak season capacity management Solutions Value-added warehousing ecommerce/efulfillment Promotion and product launches Reverse logistics Multi-channel support Store replenishment Foreign-Trade Zone

9 How We Got Here? Purchased Red Prairie Converted accounts to RedPrarie Labor Management System (LMS) Began piloting incentive programs Revisited accounts to reset standards Prior Future Access Database with Time Cards Began the development of best practices and processes

10 Key Components for OHL s Labor Solution Incentive Programs Labor Management System (LMS) Engineered Labor Standards

11 2015 Productivity Initiatives Performance Establish Engineered Labor Standards Increase Supervisory presence on the floor Hold Management accountable to improving Performance Coach up or replace low-mid performers. Indirect Identify where we spend time on nonvalue added tasks Understand and eliminate the need for these tasks Hold Management accountable to reducing indirect Reward ideas Pay for Performance Implement PFP Reward employees above 100%

12 Current state of Incentive Programs Incentive Programs LMS (Red Prairie) Engineered Labor Standards Currently have 30 pilot incentive programs grouped into 3-5 different payout scales. No automated review/approval process Bridging the gap to get to 100% performance 100%

13 Building an Engineer Labor Standards Foundation Problem Solution Results OHL wanted to implement a incentive program based on multi variable engineer labor standard. Most existing productivity measurements were based on single variable rates of cases per hour or pallets per hour. The entire engineering network review and updates needed to be completed within 6 months. Many of the single variable sites did not have a X, Y, Z map. OHL was constrained by resources

14 Building an Engineer Labor Standards Foundation Problem Solution Results OHL choose to work with external JDA WFM implementation firm, 4SIGHT Supply Chain Group Maynard Operation Sequence Technique was the ELS approach used for the entire network Allowed for multi-variable ELS Built client specific standards templates that could be applied to multiple sites Configuration consultants built warehouse location maps ahead of engineers site arrival and engineering work began Establish Keys to Success documents for all measure activity Prioritized jobs to review based on labor hours

15 Building an Engineer Labor Standards Foundation Problem Solution Results Updated or Converted to over 250 multivariable standards Provided 19 campus locations upgrades including 8 new warehouse location maps For over 20 different OHL clients In 45 different building Establish and documented a standard generation process using Maynard Operation Sequence Technique, MOST using Accenture certified resources. Enable a JDA incentive calculation enhancement supported by ELS within the JDA/RP WFM application

16 2015 Current state of LMS and Engineered Incentive Programs Standards Stats 120 accounts are on LMS Roughly 4000 users LMS (Red Prairie) Engineered Labor Standards 2015 Focus Revisiting 50-60% of accounts to reset standards Startup all new accounts on LMS day 1 Convert other sensible accounts to LMS Support Team LMS3 (Campus power user ) LMS Engineering Support Regional Productivity Director (*new) Regional Productivity Engineer (*new)

17 Cultural Change Current State Estimated Posting Productivity Daily 35% Weekly 45% None 20% Productivity Conversations Daily 30% Weekly 40% None/infrequent 30% Culture Change Status Estimate: 30%

18 Engineer Labor Standards June/July August September October Chicago 6/29 CPA 8/4 Dallas 9/7 St. Louis 10/5 Atlanta 7/13 Nash 8/24 State-Jax 9/14 Port 10/12 Columbus 7/27 Indy 8/17 EPA 9/14 KC-AIPC 10/12 Inland 8/31 KC 9/14 Mem 10/12 Sparks 9/21 State-Sa 9/21 Seattle 10/26 NJ 9/28 Cutover is complete!!! Engineering team cutover 250+ jobs in 60 accounts across 45 buildings in 10 mo.

19 LMS Indirect hours less start/end shift Sanitation 7% Training 5% VAS 9% Audit 3% CSR 10% Cycle Count 5% IC 9% Kitting 4% Other 33% Lead 15% The chart above shows the breakout of indirect hours excluding start and end-of-shift.

20 What to Remember When Implementing a Productivity Program Cultural change management process not an engineering project Focus on the key activities within the operations not trying to write standards for every job core activities that drive most of the hours (sensible, reasonable) Everything about Pay for Performance has to be positive position in a positive light to your employees Seek outside help from other providers don t go it alone

21 For More Information: Speaker Website: Speaker #2 website: Speaker #3 website: Or visit MODEX 2016 Booth 1927