Business targets
An important project to define the warehouse productivities using industrial engineering techniques to enable budgeting and performance enhancement. Based on known business characteristics and volumes of activity.
- To agree a new set of labour time standards using an industrial engineering approach for each of the warehouse activities as a basis of calculating a budget for the new financial year.
Our approach
- Site visits were conducted to observe detailed processes in each operational area at a granular level, including multiple operatives for each process. observed to identify best practice.
- Key data was analysed to identify the key metrics of the current operation.
- ‘Bottom up’ productivity modelling using MTM methodology for all processes from receipt to the point of despatch to create the standard time to complete a task or operational sequences.
- Standard times applied to the key volumetrics for the operational process to identify productivity.
- From observation provide feedback on areas for operational improvement.
Outcome
- By using Visku’s warehouse operations & industrial engineering expertise, the customer has been able to realise a 10.7% improvement in overall productivity.
- Commercial budgets between customer and logistics provider easily negotiated and agreed.
10.7% Productivity Enhancement