Objectives
Martin Bros. aimed to modernize its labor management standards and procedures to enhance the recording and management of labor costs. The company identified the need for an advanced system to monitor and assess labor performance, as their existing Standard Operating Procedures (SOPs) did not accurately reflect operational efficiencies. Their goals included optimizing the labor-management cost structure and improving the tracking of labor activities within their distribution center. Furthermore, they recognized the crucial role of front-line supervisors in the implementation process and sought to secure their buy-in to ensure effective implementation of the new standards and maintain optimal performance levels on the operational floor
Solution
In a collaborative effort, Martin Bros. and TZA embarked on a journey to enhance labor performance standards. TZA’s comprehensive evaluation and enhancement led to the development of new standardized SOPs, resulting in a 1.5% reduction in cost-per-case within three months. The implementation of ProTrack software further improved productivity and decision-making processes. To ensure a smooth transition, TZA introduced a Professional Management Training program, a comprehensive training initiative designed to equip the workforce with the necessary skills and knowledge to adapt to the new labor management standards. This program offered both classroom and on-site practical sessions, covering a range of critical topics, including labor standards, observation techniques, effective communication strategies, and change management principles.
Results
The TZA Labor Management Program, incorporating ProTrack software, engineering services, and professional management training, has not only yielded significant improvements for Martin Bros. but also set a foundation for long-term success. Productivity increased by over 12%, enabling the management of an additional 5,000 cases compared to the previous capacity. The overall labor cost-per-case distribution decreased by 10%, resulting in substantial cost savings. Overtime was reduced to an average of less than 3% weekly, further contributing to the cost reduction. Throughput increased by more than twenty-two cases per hour, demonstrating the sustainability of the implemented changes and their positive impact on the company’s bottom line