To all operations managers, you should know that if you are forecasting labour plans without the benefit of standard minute values it is very likely that you will be over-estimating your requirements by around 10-15%.
Think for a moment what this represents in pound notes and then think again about the impact on costs as you move into peak volumes over the next few months.
As well as getting a true measure of your productivity you get all kinds of ‘soft’ benefits. Things that were previously hidden to you now become visible, everyone’s individual views on operational performance can be judged against a true benchmark, you get a new insight into the potential to increase capability and KPI measures.
You have probably invested in health and safety, recruitment, training and equipment recently to support your operational plans. If you want to control costs and get a financial return on your investments you should also be thinking in terms of time and motion analysis, method study and process improvement.
This is not an outdated methodology. Businesses that are serious about wanting to know how to control labour costs always end up measuring activity. Always.
If it is part of your remit to save your business money by improving productivity and reducing the amount of temporary labour you use during peak think about work measurement first. Don’t leave it until all other options have been tried and have failed.
It really does work. It really does generate a return on investment measured in weeks and months, not years.
Call 07906 052207, use the contact form or email email@example.com now to find out how much you can save and how little it will cost you.