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Similar to manufacturing objectives, warehousing and distribution objectives are to minimize cost and maximize customer service.
Productivity improvement and cost reduction are the bottom line for warehousing and distribution operations. Generally, expenditures for labor are the largest single cost component of warehousing and distribution.
A critical first step for improving productivity and reducing costs is developing engineered labor standards. Engineered labor standards establish a baseline productivity measurement. They are also used to measure productivity levels in key cost areas such as: order picking, packing, shipping, receiving and put away.
Work measurement, time studies, methods engineering, and standardized work are all tools that can be used to develop work content and labor cost comparisons that help choose the best handling and storage methods.
Productivity analysis/evaluations can determine how employees spend their time and what they spend it on, as well as determine the amount of productive vs. non-productive time.
Engineered Labor Standards Development
Labor Standards are at the heart of any successful labor management environment. Calculation of Work Content and comparisons of labor costs are required when choosing the best methods for work practices. Industrial Timestudy Institute's professional industrial engineers can develop labor standards for all of your warehousing and distribution areas. Our engineers utilize the latest cutting edge data collection tools.
Standards developed by Industrial Timestudy Institute become key components for all warehousing and distribution areas:
- Labor Scheduling & Budgeting - Accurate labor standards ensure the right labor hours are generated for the operations weekly schedules and labor budgets.
- Performance Reporting - Evaluating warehouse/distribution performance against standards becomes a critical component for identifying opportunities for labor savings.
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