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Help employees meet greatexpectations

Warehouse workers dont do the same task the same way each and every

time. Observing what really happens on the floor is key to developing goodperformance standards.

E

very warehouse manager has likely heard Whatgets measured gets done. Measuring andmonitoring operations are key to managing an

efficient, productive facility. Therefore, developing andimplementing an employee performance expectationsprogram shouldnt be taken lightly.

Many warehouse managers approach labor standardsdevelopment with an assembly line mentality. Theyoften expect every task or warehouse function to berepeated the same way, each and every time. BasicallyParetos Law, the 20/80 rule, does not fit into such asimple formula. While a labor management system(LMS) is an important component in developinggood performance standards, you must first measure

employee performance.

Three Approaches

Create a macro standard using historical records.Thosemight include the number of locations visited, thenumber of cartons created, and the number of unitspicked to fill the average order. With that information,the system determines the average number of picks perhour or shift per employee. The LMS then determineshow many operators will be needed to pick orders onthe next shift.

Create master standards data using published standards.In this approach, every task is comprised of discretemovements, such as picking up a product and puttingit on a pallet. Over the years, industry has compiledaccepted standards for how long all of those shouldtake. The sum of those movements makes up the basis

by Tom Tanel

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for master standards data.

Create discrete or engineered labor standards. Anengineered labor standard breaks down each processinto its component parts. Through time/motion studiesand work sampling, an industrial engineer determines

how long on average it takes workers to complete eachcomponent of the task safely with a built-in personnelfatigue and delay factor (PF&D).

Common Mistakes

It is impossible to create accurate expectations by makingperformance fit predetermined standards withoutconsidering the variables and their combinations. Forexample, in a grocery warehouse 125 cases per houras a picking standard does not take into considerationwhether it is in the dry, refrigerated or frozen storage

areas. Or for that matter whether its a full pallet pickor a mixed rainbow pallet pick. Expectations mustbe based on an apples-to-apples comparison in thewarehouse.

Another mistake many managers make is using averagesto create expectations. An average is merely a statisticalaberration that does not occur in the real world.

Using averages often meanslowering standards, because just

a few poor or high performers

can skew the results

Some managers mistakenly believe that if everyemployee is surpassing the standards, it is a sign thatthe facility is operating at high productivity. Its actually

an indication that they need to re-evaluate theirexpectations and the standard.

Finally, remember that productivity comprises twoareas: efficiency and effectiveness. Efficiency is doingthings with the least wasted effort, while effectivenessis doing the right things or doing the things that yieldresults. You cant measure productivity without lookingat both.

The Right Expectations

Which should I work on first: efficiency or effectiveness ?

In theory and practice, the best answer is to improve

your effectiveness first. Its much better to aim at theresult than to worry about the process. Too often we getbogged down in the means and lose sight of the end.

Take these steps to develop performance standards andexpectations :

Determine if you can measure the task throughoutthe facility. If you cant, you should not be using it asa performance standard. Unit load degradation is agood indicator that you cannot measure a specific taskthroughout the warehouse. For example, if you receiveinventory by pallet, store it by case, but ship it by piece,the product has to be handled in three different ways inthe facility.

Beware of technical or confusing expressions. Ratherthan terms like cost ratios, use more common physical

terms such as lines, orders, SKUs, unit loads, etc. Also,avoid mixing different businesses, such as cases andbroken case picks or LTL and FTL receipts. Once youmeasure actual performance against a standard, put itin a meaningful way.

Perform a standards study. You should clearlycommunicate the purpose and methods of the studyto all employees. Implementing performance standardsand expectations without explaining the reasons forthe change can create unnecessary tension and anxietyamong those who are going to be affected. If possible,allow employees to be involved in the process, includingwork sampling and measuring.

If your workforce is unionized, you should also explainyour plans to the union.To be successful, you need thesupport of everyone involved.

Seek employee involvement and gain their support.Whether union or non-union, advise employees of thereasons for the program, and describe what, when,and how this will be accomplished. Ask for theirinput. Discuss the results with employees, as well asfirst line supervisors and verify the findings. Did your

measurements represent normal and typical activities?A performance measurement program depends onaccurate expectations. Using abnormal conditions tocreate a baseline for expectations will undermine theentire effort.

Create a range of performance expectations, not a singlethreshold. Every employee is different, and expectingidentical performance from each is unreasonable. Thisonly discourages those employees who cant reachthe standards, while encouraging the best performersto underachieve. Also, employees are more likely to

support and buy into the performance expectationsif they understand that there is a range of acceptableperformance.

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44 Logistics and Supply Chain World | September 2012

Set up and monitor a pilot program. Are yourexpectations reasonable? If not, a pilot program shouldquickly identify any errors in your original conclusions.It is much better to discover the problem on a smallscale before you implement the expectations across theentire warehouse.

Provide constant, positive feedback. Most employeeswill not meet the new performance expectationsovernight. Look for incremental improvements, andreward good performance. Remember, people soonforget about monetary rewards do not undervaluepraise and recognition. It costs little, but has a muchmore lasting effect.

Develop a method to monitor employee performancegraphically, instead of in spreadsheet tables.This way,you can actually see trends and resolve issues before

they become real problems.

Communicate results of the team, not the individual.Posting individual results can have a negative impact.The workers on the floor can tell you who the mostproductive employees are and who the least productiveare without looking at posted results. It only causesdissension and resentment among co-workers. Asmall group, through productivity gain sharing has abetter chance of achieving success as a whole than anindividual does. Only communicate individual results inprivate meetings or communications.

Deal with employees who fail to meet expectations.These employees come in two types: those who cantand those who wont. In either case, you must identifywhich type an employee is and find a way to helphim or her reach the expected level. Employees who

cant meet expectations can usually be coached. Try toachieve improvements incrementally. People who wontmeet the expectations need to be counseled. Dont askwhat they dislike; ask them why they dislike it. This willeliminate their opportunity to merely gripe and forcethem to discuss exactly what it is about the standards

that they find unreasonable. Listen to their argumentsthey may have valid points.

Use performance management appraisal anddevelopment. Performance reviews help supervisorsfeel more honest in their relationships with theirsubordinates and feel better about themselves intheir supervisory roles. Subordinates are assured clearunderstanding of whats expected from them, their ownpersonal strengths and areas for development, and asolid sense of their relationship with their supervisor.

Avoiding performance issues ultimately decreasesmorale, decreases management credibility, decreasesthe organizations overall effectiveness and wastes moreof managements time to do what isnt being doneproperly.

To measure your people effectively, identify metricsthat are appropriate for your organization and that willimprove the warehouses performance.

About the Author :

Tom Tanel is president and CEO ofCATTAN Services Group Inc. (www.cattan.com), a logistics advisory,counseling, and training firm inCollege Station, Texas.

New World, New Rules, New Ideas

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