Engineered Labor Standards Consulting

Engineered labor standards can significantly improve productivity and minimize labor costs by pinpointing where efficiencies can be gained. Labor is the single largest expenditure in warehousing and distribution generally accounting for 50% of total operation costs. Measuring productive time versus non-productive time – meetings, system down time, and idle time between tasks – helps businesses identify where opportunities exist to improve the overall performance of their operation. Although engineered labor standards may initially be greeted with skepticism, a well-designed system will produce benefits for both labor and management.

4SIGHT engineers are highly skilled in labor standards development and can assist in defining the “right” performance measurement and planning tools for your business. Will labor standards be used for staffing purposes so work can be scheduled more accurately? Will labor standards be used as a basis for implementing performance-based incentive programs? Will labor standards be applied throughout the operation or only to specific job areas? Answers to these questions help identify the scope of the project and determine the level of analysis required to meet your unique business needs regarding a workforce management system. Implementing engineered labor standards sets clear performance expectations and provides the tools to direct, track, measure, and report employee productivity on individual and team levels.

Leveraging years of experience working with a broad range of clients, 4SIGHT will bring comprehensive knowledge of how to capture, record, validate, implement, and maintain labor standards, providing the foundation to design an effective labor standards program for our clients.