![]() By incorporating SKUs, splits, case weight and cube into the calculations, we were able to develop a multi-factor labor standard that could accurately and consistently predict the amount of labor required for each container of freight. Using CPH, the client was unable to have any consistency in either its productivity or labor forecast requirements because they were not using other factors present in the data to more accurately calculate the labor standard. Depending on the container mix, CPH can vary from 20 cases per labor hour to over 400. The freight mix has a dramatic impact on the time it takes to process the work. However, to manage operations daily per employee, it is not effective.Įach freight container can have from 40 cases to 20,000 cases on it depending on the type of product on the container and have as many as 100 different SKUs. Over a longer period of time, this is a reasonable metric. The industry paradigm is to look at the production metric for the workers handling the freight in terms of cases per hour (CPH). It is basically like taking apart a Rubik's cube and then reassembling it. Cross-docking is where you take imported containerized ocean freight, unload it, then reload it into outbound truck freight. One of our clients manages cross-docking operations for one of the nation's largest retailers. We’ve asked Dan Keto, a productivity expert from Easy Metrics, to provide an example to illustrate one possible multifactor productivity equation. This method is a more comprehensive measure than partial factor productivity, but it’s also harder to calculate. For example, an equation could measure the ratio of output to labor, materials, and capital. Whereas the partial factor productivity formula uses one single input, the multifactor productivity formula is the ratio of total outputs to a subset of inputs. You would divide 80,000 by 30, which equals 2,666 (meaning each employee produced $2,666 for your company per week). Let’s say your company generated $80,000 worth of goods or services in one week with 30 employees. ![]() In this case, instead of using hours as the input, you would use number of employees. You could also look at labor productivity in terms of individual employee contribution. This means that your company generates $53 per hour of work. To calculate your company’s labor productivity, you would divide 80,000 by 1,500, which equals 53. Let’s say your company generated $80,000 worth of goods or services (output) utilizing 1,500 labor hours (input). You can measure employee productivity with the labor productivity equation: total output / total input. Employee productivity has a huge impact on profits, and with a simple equation, you can track productivity per individual, team, or even department. Although you can’t control everything, you can control and measure employee performance. ![]() Many external factors can affect your organization’s productivity - the national economy, a recession, inflation, competition, etc. WorkApps Package your entire business program or project into a WorkApp in minutes.Digital asset management Manage and distribute assets, and see how they perform.Resource management Find the best project team and forecast resourcing needs.Intelligent workflows Automate business processes across systems.Governance & administration Configure and manage global controls and settings.Streamlined business apps Build easy-to-navigate business apps in minutes.Integrations Work smarter and more efficiently by sharing information across platforms.Secure request management Streamline requests, process ticketing, and more.Process management at scale Deliver consistent projects and processes at scale.Content management Organize, manage, and review content production.Workflow automation Quickly automate repetitive tasks and processes.Team collaboration Connect everyone on one collaborative platform.Smartsheet platform Learn how the Smartsheet platform for dynamic work offers a robust set of capabilities to empower everyone to manage projects, automate workflows, and rapidly build solutions at scale.
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