Warehouse productivity modelling using industrial engineering techniques to enable budgeting and performance enhancement

two people analysing data Textured Image

Physical logistics | Fashion & General Merchandise Retail

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

Related services

Operations improvement