How to Manage Labor without a LMS. Tom Stretar, envista, LLC & Ryan Vidmar, Schreiber Foods

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Mervyn Hampton
6 years ago
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2 How to Manage Labor without a LMS Tom Stretar, envista, LLC & Ryan Vidmar, Schreiber Foods

3 Agenda Executive Summary Labor Management Program Components People Process Technology Questions 3

4 Executive Summary "If your organization is considering operational efficiencies thru labor management initiatives, but think the only way to achieve these savings is with a labor management application - think again. envista's Labor Management Practice Leader, Tom Stretar, will present on the benefits envista has helped companies achieve by standardizing processes, providing feedback to associates, and implementing routine observations without investing in a formal labor application. Additionally, envista will present the advantages of a labor solution, the labor software marketplace and when it might be advantageous for a company to make this investment." 4

5 Visibility to Opportunity Opportunity Technology Process Foundation People 5

6 LMS Program Components People Human Capital Performance Cycle Employee Observations, Coaching, & Counseling Change Management Process Lean Philosophy Preferred Methods vs. SOP s Barriers to Productivity Engineered Labor Standards Technology Manual Tracking In-house LMS Systems Commercially available LMS Systems 6

7 People Human Capital Performance Cycle Goals Coaching Feedback Motivation 7

8 Managing People Human Capital Performance Cycle Goals Motivation Coaching Feedback 8

9 Requirements for Goals Goals Employee & Team Expectations Basis for Improvement Must be documented & agreed upon SMART 9

10 SMART Goals are Specific Measureable Attainable Realistic Time Driven 10

11 Managing People Coaching Read, Recognize & React Pre-shift Speech & Game Plan Feedback Respond Audio & Visual Must be timely Motivation Reinforce Be specific Must be timely 11

12 Managing People Employee Observations, Coaching & Counseling Preferred Methods Coaching Tips Forms used; documenting observations & recommendations Next Steps / Future Observations 12

13 Individual Coaching Tips Following the Preferred Method Observation with the employee: An Employee Coaching Session to review the observation immediately after work is completed must be conducted Recommend holding the Employee Coaching Session in a non-confrontational environment Lunch room Conference room Goals of the Coaching Session: Provide positive feedback to the employee What went well What can be improved Plan of action / next steps LISTEN to the employee Record their comments as accurately as possible Let the employee read all of the observers comments The employee and the observer should sign and date the form File the form in the designated location for future usage HR Office Operations or Supervisor Office 13

14 Documenting Observations & Recommendations 14

15 Documenting Observations & Recommendations 15

16 Summary of Options - People Opportunity Small Headcount (0-40 persons) Medium Headcount ( persons) Large Headcount (>100 persons) Goal Setting Encouraged; align business metrics with team goals Recommended; combination of team and individual goals Requirement for all associates Employee Observations Encouraged; semiannual or annual review process Recommended for labor intensive processes; i.e. picking Requirement for all DC processes Change Management Encouraged; initial and follow-up messaging Requirement for all DC process improvement projects Requirement for all DC process improvement projects 16

17 Change Management Prepare for change Manage the change Reinforce the Change Assess Readiness Define Your Strategy Prepare / Develop your change Management Team Develop your Sponsorship Model Develop change management plans Take action and implement plans Collect and analyze feedback Diagnose gaps and manage resistance Implement corrective actions and celebrate successes 17

18 Prepare for Change Assessing your readiness Organizational Culture and history Employee Sponsor Defining your strategy What are you key deliverables? How do you know if you are winning? Identify Major Stakeholders 18

19 Prepare for Change Develop a team and create buy-in Involve all employees from hourly to management Listen to the Doers Tell the story it to the entire team, clearly, and consecutively. Sponsors of the road maps Business Leaders key to deliverables and providing resources Understand the difference between Support vs Sponsoring 19

20 Manage the change Importance of direct supervisor Most influential Ensure cross shift / team alignment Training Warrant they have the correct tools Implementation Take action Follow Strategy plan 20

21 Reinforce the change Resistance management Game Changer: Persistent resistance Data Collection and feedback analysis Develop problem resolution visuals Ensure concerns are being heard Follow up individually 21

22 Reinforce the change CELEBRATE! Identify successes Recognize all employees involved Give a gift for remembrance 22

23 Process Lean Types of Lean Tools that could be used 5S Flowcharting Value Add vs. Non Value Add Fishbone Diagrams 23

24 Process 5S Sort Sustain Set Standardize Shine 24

25 Process Flowcharting 25

26 Value Add vs. NVA 26

27 Fishbone Diagram Fishbone diagram Also Called: Cause and Effect Diagram or Ishikawa Diagram The fishbone diagram identifies possible root causes for an effect or problem 27

28 Using a Fishbone Diagram Fishbone Diagramming Define the problem statement Brainstorm the possible causes of the problem Ask why the issue occurs What issue are you trying to improve? Assign them to one the 5 basic categories Keep asking why 28

29 Fishbone Diagram Example Materials Process/Methods Orders are printed late 5pm cutoff is too early Why? Why? SOP's not updated No trainer Why? Why? No standards in place Problem Statement Picking productivity is below industry average No training program No SOP's in place No PM's in place Why? Wrong equipment is being used They are from previous bldg Why? Why? People Machine Ishikawa Fishbone Diagram Cause Effect Analysis 29

30 Process Preferred Methods Definition of SOP vs. PM s Example 30

31 Definition of Warehouse Barrier What is a barrier? Anything that prevents the employees from being as productive as possible in their working environment 31

32 Definition of a PWM What is a Preferred Method? It s a training document that defines the best way to perform a task under normal operating conditions Not always the easiest or fastest way to conduct a task A requirement of an engineered labor standard 32

33 SOP s vs. Preferred Methods So what s the difference? An SOP describes what needs to be done to successfully complete a process A PM describes how to conduct the steps to successfully complete a process 33

34 SOP Case Pick with a Pallet Jack Drive to the empty pallet area and obtain two pallets to pick to Drive to the first location to obtain the ordered quantity Place the case(s) on the pallet Go to each add l location, obtain the ordered case qty. & place on the pallet Drive to the shipping dock when all cases are picked Wrap the pallets with shrink wrap Stage the pallets at the assigned shipping door Repeat the process

35 PWM Case Pick with a Pallet Jack Drive to the empty pallet area and obtain two pallets to pick to Drive to the first location to obtained the ordered quantity Park the jack one step away from the slot to be picked from Dismount the jack on the side of the aisle the pick is located Place the case(s) on the side of pallet from which it is selected from Go to each add l location, obtain the ordered case qty. & place on the pallet Move the pallet jack to the next location as follows: If the next pick is <1 bay away leave the jack stationary If the next pick is >2 but <4 bays away walk with the jack If the next pick is >4 bays away ride the jack Drive to the shipping dock when all cases are picked Wrap the pallets up to eight times with shrink wrap Stage the pallets at the assigned shipping door The pallets in the nose of the trailer should be staged nearest to dock door

36 Process Barriers to Productivity Definition Causes of 36

37 Causes of Barriers Causes Barriers are caused or influenced by internal and external factors Internally caused Externally caused The barrier is a result of an existing issue or requirement The barrier is a result of outside issues such as the manufacturer (vendor) Example: There are not enough Voice headsets for each scheduled employee on Monday Example: The packaging for the items we receive constantly changes and we are not given notice of the change 37

38 Tips about Barriers Barriers are dynamic in nature A barrier may exist when process observations are first performed and then eliminated New barriers will occur at a future date A previously eliminated barrier may reoccur at a future date Can be related to improper method usage or poor or inadequate training 38

39 Eliminating Barriers When a barrier is identified it should be eliminated If it can t be eliminated, it must be minimized as much as possible. There is a financial impact to all barriers! 39

40 Process Industrial Engineering Types of Expectations or Engineered Standards Improvement Opportunity 40

41 Types of Labor Standards Type of Standard Advantages Disadvantages Reasonable Expectation (RE s) 1. Easy to implement 1. Not suitable for Union environments Multi-Variable Stds. 1. More accurate than RE s 2. Can be used in Union facilities Discrete Stds. 1. Highly Accurate 2. Highest Savings Opp. 3. Require Minimal Maintenance 4. Recommended for incentives 1. Require periodic maintenance due to variation in business 2. Require averaging 1. Can be complex due to configuration needs 41

42 Expected DC Productivity Improvement DC Process RE s Multi-Variable Stds. Discrete Stds. Case or Piece Picking 5-8% 8-15% 15-20% Forklifts 5-8% 8-10% 10-15% VAS & Packing 2-5% 5-8% 8-12% Dock Activity (Receiving & Shipping) 2-5% 5-8% 8-12% 42

43 Top 3 Quick Win Opportunities Opportunity Small Headcount (0-40 persons) Medium Headcount ( persons) Large Headcount (>100 persons) LEAN & Barrier Elimination Encouraged; start with 5s Recommended; start with labor intensive processes for flowcharting & VA-NVA Requirement; 5s, Flowcharting, VA-NVA and barrier elimination Preferred Methods & Coaching Encouraged; minimally have defined SOP s in place Recommended for labor intensive processes; i.e. picking Requirement for all DC processes Labor Standards Recommend RE s at a minimum based on past performance Recommend a combination of RE s, with Multi-variable and/or discrete stds. Recommend a combination of RE s, with Multi-variable and/or discrete stds. 43

10 STEPS COMPANIES CAN TAKE TO IMPROVE OPERATIONAL EFFICIENCY

Luther Webb and Mark Steinkamp October 2017 10 STEPS COMPANIES CAN TAKE TO IMPROVE OPERATIONAL EFFICIENCY Presenters 1 Luther Webb Director, Operations & Solutions Consulting, Honeywell Intelligrated Luther