Conscientiously or not, labor is often used to compensate for inefficient business processes. Organizations and personnel are challenged to overcome poor processes with brute force and hard work, often resulting in process or system workarounds, duplication of efforts, off-system spreadsheets and redundant checks. This is why it is so important to measure and improve employee productivity, worker productivity and labor efficiency. Labor is a controllable and improvable expense for service companies, distributors and manufacturers.

Labor is a controllable and improvable expense

There are numerous ways to attack labor productivity and optimize your use of human resources. At Supply Velocity our methods are rooted in Business Intelligence, Lean Six Sigma and Supply Chain Management. We therefore use the approach of:

 

  1. Understanding the current state
  2. Identifying and eliminating non-value-added work
  3. Designing the future state
  4. Measuring performance of the work area.

Examples of ways to improve labor productivity include:

  • Workplace layout (office, warehouse, factory)
  • Business process improvement
    • Examples include:
      • Back-office processes
      • Order-to-Delivery
      • Supply Chain processes
      • New product development
    • Allocate resources to your most important customers
    • Reduce rework and ongoing sources of variation