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Project Data
Client: Fortune 500 Global Corporation specializing in Robotics, Power, Electrical Equipment & Automation Technology
Location: Northern Mississippi, USA
Timeframe: One Week
Key Project Factors: People, process and system challenges had developed throughout the facility due to lack of KPI and departmental expectations; impacting labor performance and utilization throughout the distribution operations. Without studying the activities at the elemental level, constructing multi-variable engineered standards and identifying continuous improvement opportunities, the client would have been unable to address the inefficient process and facility layout challenges negatively impacting their throughput and performance.
The Challenge
Customer demands and system changes created a shift in product volume flowing through different shipment channels; leading to a surplus of staff in various areas of the mezzanine. Current volume through the operation was projected to be 75% less than past department throughput, but layout constraints forced similar staffing to be utilized in the operation. While excessive labor staffing was the primary concern, the existing mezzanine structure was also due for costly repairs to continue operations.
The Approach
Time study and process observation quantified the overstaffing and utilization issues in the mezzanine operations. CONTINUUM initiated a program to relocate the operation and centralize the mezzanine functions to allow visibility and flexing of associates between neighboring departments.
The Results
Identification of overstaffing led to an immediate labor reduction of 50% for the PANDA activity and 33% reduction for the consolidation function previously performed on the mezzanine. The layout change and consolidation reduced the entire footprint of the operation and therefore reduced required travel for associates. This supported an overall reduction labor and increased productivity in the operation. The layout relocation also entirely eliminated the need for costly mezzanine repairs.
