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Project Data
Client: Fortune 500 Global Corporation specializing in Robotics, Power, Electrical Equipment & Automation Technology
Location: Northern Mississippi, USA
Timeframe: One Week
Key Project Factors: People, process and system challenges had developed throughout the facility due to lack of KPI and departmental expectations; impacting labor performance and utilization throughout the distribution operations. Without studying the activities at the elemental level, constructing multi-variable engineered standards and identifying continuous improvement opportunities, the client would have been unable to address the inefficient process and facility layout challenges negatively impacting their throughput and performance.
The Challenge
Variations in product volume between shifts and waves required large amounts of physical labor to be maintained in the fluid loading operation. This required excessive labor to be kept in the operation to load cases onto outbound trailers to meet order demands. Product was handled multiple times due to inefficient transport system from the shipping lanes to the inside of the trailer. Large volume also created an excess staffing increase.
The Approach
Time study and observation quantified the excess staffing and underutilization of the loading team. Research and implementation of a new transportation system to get cases inside the trailer using new low-cost equipment further reduced labor demands in the operation. It also eliminated unnecessary handling of each case allowing the reallocation of labor to other departments.
The Results
The poor processes and excess staffing created utilization issues and hindered Associates from effectively sustaining work due to congestion in the trailers. An immediate labor reduction of 33% was realized through standard evaluation and process improvement. Once the new equipment was installed in this operation, there was additional labor savings generated through elimination of work steps. This resulted in an overall staffing reduction of 67% for the floor loading operation across two shifts.
