realizing higher delivery productivity utilizing work measurement and real-time data

© 2012 West Monroe Partners | Reproduction and distribution without West Monroe Partners prior consent prohibited

Realizing Higher Delivery Productivity Utilizing Work Measurement and Real-Time Data

Chris MaughanProject Manager – Workforce Optimization PracticeB.S. Industrial and Systems Engineering – The Ohio State University

© 2012 West Monroe Partners | Reproduction and distribution without West Monroe Partners prior consent prohibited 2

Presentation Agenda

I. Introduction

II. Current and Future Operational Challenges in the Delivery and

Transportation Industries

III.Technology

IV.Work Measurement Applications

V. Examples of Success


Introduction


What are the key factors in a successful supply chain?

What are the major pieces of a typical supply chain?

FOCUS: Transportation, Delivery, Pickup FOCUS: Productivity

Introduction


Current and Future Operational Challenges in the Delivery and Transportation Industry


Labor Cost

Aging Workforce Higher Wages More Restrictions Cost of Healthcare and Benefits



Equipment Cost

Upgrading to better equipment Replacing aging equipment Regulatory costs Maintenance Fuel



Network Complexity

Customer Demands Innovation and Competition E-Commerce



Growth

Uncomfortably fast rates of growth E-Commerce Customer Habits



Technology


Barcode Scanning

Specific timestamp Carries data such as quantity, time, equipment ID, employee

ID, product and location data, etc. Innovation in scanning – 3D barcodes, wearable units,

paperless labeling

Technology


GPS Real-time location data Historical location data and movement Utilizing GPS for short-range

RFID Ability to track almost anything or anyone via a small chip Provides visibility and data linked to chip

Technology


Data Accessibility and Storage

Advantages• Reduction in cost to store data• Data is more easily accessible•WMS and LMS systems utilize more data inputs

Challenges• Overwhelming amount of historical data• How should it be organized?• Using the right data

Technology


Work Measurement Applications


Engineered Labor Standards

Labor Management System• Organized and accessible data is in place• Organizes and reads multiple data inputs in multiple formats• Dynamic formulas that link to data inputs• Fully customizable for true discrete calculations• Built in Reporting functions




Engineering• Traditional time studies and work measurement at elemental

level• Build fixed and variable relationships between characteristics of

work that is being performed.• Variable relationships – Key Factor–Typical: per case, per item, per stop, per day, per trip–Possible: per vehicle movement, per scan type, per…




Engineering – Cont’d• Design relationships between data inputs and engineered

elemental data• Customize LMS to integrate all data inputs and engineering

data• Output accurate process models and discrete goal times• Custom-designed productivity reports




Engineering – Cont’d• Conduct process improvement via simulation within LMS

by changing data inputs to achieve optimal outcomes•Make process-design decisions based on virtual models

then implement for real operations



Reporting, Planning, Executing

Reporting• LMS creates customizable operational reports• Utilize data to compare planned vs. actuals• Analyze trends and cross-references• Identify optimal relationships in data• Use for planning




Planning• Design more efficient routes•Model different plans in real-time to choose the optimal

setup based on data inputs• Continuous improvement capabilities• Positively impacts quality and service metrics




Executing•Monitor variance from plan at the elemental level and

address issues• “Fire fighting” can be replaced by proactive operations

management and supervision.• Link incentive pay to productivity as well as quality metrics



Examples of Success


Reduced percentage of re-handled cases from 12% to 7%. Reduced steps per case delivered from 55 to 45. Re-configured load inside trailer to decrease time at delivery

by 14%. Re-designed packaging on certain cases to reduce driver

handling time. Decreased average planned day of driver from 9.5 hours to 8.2

hours. Reduced average routes per day from 110 to 95. Increased stops per mile driven from 1.7 to 2.0.

Examples of Success

realizing higher delivery productivity utilizing work measurement and real-time data

Documents

future operational challenges

operational metrics

transportation industry5

transportation industry6

transportation industry7

cost of benefitscircle

typical supply chain

successful supply chain