The Productivity Improvement Program for Warehousing and Transportation

1. The Productivity Improvement Program for Warehousing and Transportation A fair day’s work for a fair day’s pay APPLIED LOGISTICS

2. The Productivity Improvement Program • What constitutes a fair measurement? • Do you have reasonable output expectations? • Can you identify and eliminate inefficient work activities? • What’s the best way to perform a task? • How can you create better and safer working conditions? APPLIED LOGISTICS

3. The Productivity Improvement Program All questions that managers must address and be able to answer if their company is to remain profitable in today’s highly competitive business environment. The reason is simple: Productivity is directly related to Profitability. APPLIED LOGISTICS

4. The Productivity Improvement Program is designed to help our clients to significantly reduce their operating costs and achieve their financial objectives. The objective of The Program is to maximize productivity through a more efficient utilization of physical resources and a better control of labor costs. APPLIED LOGISTICS

5. The Program • Optimization and Standardization of Existing Methods • Implementation of Engineered Labor Standards • Installation of Proprietary Management Reporting Software • Employee Orientation and Communication • Supervisory Training and Development APPLIED LOGISTICS

6. The Methods Review • Identify and establish the best and most effective way of performing work activities • Eliminate unproductive time • Promote a more efficient utilization of available resources • Create safer and more attractive working conditions • Meetings with managers, supervisors, and floor operators APPLIED LOGISTICS

7. The Methods Review (continued) • Breaks down each task into a number of very small work elements that can be accurately measured • Standardizes these measurable elements • Ensures that workforce performs each task in the same, optimally efficient way • Generates work “Preferred Methods” • Improves product layout APPLIED LOGISTICS

8. The Methods Review (continued) Psychological aspect: Employees’ attitude toward the PRODUCTIVITY IMPROVEMENT PROGRAM is far more positive. Employees’ acceptance translates in greater program effectiveness. APPLIED LOGISTICS

9. The Methods Review (continued) Engineering Services: Maximizes the warehouse space utilization by providing the most efficient slot configuration for each line item stored in each section. This optimizes the order selection process while fulfilling retail store requirements. APPLIED LOGISTICS

10. The Methods Review (continued) Direct Benefits: Increased pick rate, improved order selector’s productivity, lower product damage, reduced replenishment, and improved store service level. APPLIED LOGISTICS

11. The Engineered Labor Standards • Individually tailored • No pre-determined time standards • No averages • Greater accuracy of standard time values • Extremely detailed documentation • Avoidable and unavoidable delays are recorded and documented APPLIED LOGISTICS

12. The Engineered Labor Standards (continued) • Travel and pick time are accurately calculated • Warehouse is electronically mapped • Computer program stores all the elemental data related to all warehouse activities • Little or no maintenance APPLIED LOGISTICS

13. The Engineered Labor Standardskey-features and benefits • Fair, reasonable, and attainable • Accurate and statistically correct • Based on optimum and safe workingmethods • Easy to maintain • Greatly reduce labor costs • Improve assets and resources utilization • Require no capital expenditure APPLIED LOGISTICS

14. The Engineered Labor Standardskey-features and benefits • Provide paybacks in months, not years • Accept incentive programs • Generate higher employees’ accountability • Apply to all warehousing and distribution functions APPLIED LOGISTICS

15. Management Reporting Software • Accurately determines actual workload requirements for a specific time interval, delivery route, or any other critical function before production begins • Instantly tracks shift progress in relation to time expended • Monitors and measures the performance of each operator against the standards throughout the shift APPLIED LOGISTICS

16. Management Reporting Software (continued) • Tracks productive time as well as time spent in non-standard and off-standard activities by reason • Calculates and administers incentive programs targeted at increasing productivity • Generates daily reports on several warehousing and transportation key-functions APPLIED LOGISTICS

17. Management Reporting Software OLEC (On-Line Effectiveness Control System) is a software program designed to provide managers with powerful means of scheduling manpower and controlling labor costs. In combination with our standards calculation module, OLEC accomplishes all the major objectives of a Labor Management System. APPLIED LOGISTICS

18. Management Reporting Softwarebenefits expected from the utilization of OLEC • Reduced labor costs • Improved manpower scheduling and allocation • More balanced workload distribution • Real-time visibility into labor productivity • Early identification of trends and problem areas • More effective supervision APPLIED LOGISTICS

19. Communication with Employees • Features employee orientation sessions • Explains in detail the program objectives, the techniques being used, and the level of participation expected from everyone • Facilitates discussing employees’ own ideas with managers and engineers • Eliminates fear, doubts, and resistance to change APPLIED LOGISTICS

20. Communication withEmployees(continued) Employees will support the PRODUCTIVITY IMPROVEMENT PROGRAM if they understand it and feel part of it. For the program to succeed, management must obtain full cooperation from every participant. APPLIED LOGISTICS

21. Supervisor Training • Management must provide leadership for the program • Training sessions on leadership, motivation, manpower scheduling, and performance monitoring • Focus on providing supervision with a basic knowledge of industrial engineering fundamentals and techniques • “Train-the-trainer” approach APPLIED LOGISTICS

22. Supervisor Training(continued) Provides Managers and Supervisors with the know-how necessary to ensures the ongoing success of the PRODUCTIVITY IMPROVEMENT PROGRAM and of the standards implementation long after our engineers have left your facility. APPLIED LOGISTICS

23. The Productivity Improvement Program for Warehousing and Transportation This “win-win” combination of scientific work measurement, labor planning and control software, and a people-oriented approach, benefits both employees and management. At the same time, it greatly facilitates the job of union’s agents. APPLIED LOGISTICS

24. The Productivity Improvement Program for Warehousing and Transportation As a result of this approach and our commitment to accuracy and fairness, our Engineered Labor Standards are by far the most welcome among employees and trade unions anywhere. APPLIED LOGISTICS

25. The Productivity Improvement Program for Warehousing and Transportation The end-result is a more productive workplace and an improved working environment at all organizational levels. The idea is to “Work smarter, not harder” APPLIED LOGISTICS

26. APPLIED LOGISTICSProductivity Improvement Programs for Distribution A fundamental point of our business philosophy is the realization that our success and that one of our clients are inextricably connected. APPLIED LOGISTICS