The installation of Engineered Labor Standards usually generates huge productivity gains of approximately 25 to 45% depending on the working conditions existing at the facility where they are applied.
The combination of Engineered Labor Standards and custom-designed Incentive Plans can significantly improve these productivity gains, due to the fact that the incentive plan is designed specifically for the conditions of and the people of a particular organization.
We are aware of the fact that these figures look kind of unrealistic, but this is what we experienced day-in and day-out in many facilities where we installed Engineered Labor Standards based on our“Preferred Work Methods” and on safe working procedures.
The main reason behind these absolutely stellar performances is the fact that the introduction of incentives has eliminated the tediousness involved with a repetitive job and has turned each operator into a sort of self-employed individual who can now use his new attitude and higher motivation to improve his productivity to unsuspected limits, while operating in safe conditions and maintaining the same quality output and product protection level.
This is done by focusing on the tasks at hand, using the equipment to its maximum potential within the safety rules, and totally eliminating useless motions and avoidable delays that were previously affecting performance by a significant margin.
The psychological effect of Incentive Plans is priceless, because it creates happier and highly motivated workers who are now looking forward to going to work every day and are capable of afford better things in their life, such as homes, cars, kids’ education, and many other things that were not affordable in the past.
We are great supporters of Incentive Plans for one main reason: they work!
We have seen the results of their applications in terms of dramatic operating costs reduction and much improved quality of life for the workforce. The existing jobs are more secure and the company can handle higher volumes without hiring new employees.
It is a “win-win” solution that is becoming increasingly rare in modern industries.
When it comes to a sophisticated approach to distribution and warehouse management, working with Applied Logistics was a natural. Their systematic approach saved us money and allowed us to run our distribution of nationwide products efficiently. Our partnership benefits all at Lowe's.Joseph Mabry; Executive VP of Logistics & Distribution
As one of the largest food & drug retailers in North America, Safeway Inc. is an innovative company founded on a simple value philosophy: taking care of our customers is what Applied Logistics did for us. Reliable and safe distribution and management systems allowed us to maximize our revenue.Jerry Tidwell, Sr. VP Safeway Supply Operations
Applied Logistics exemplifies the values of Snap-on. Their strong ability to demonstrate integrity, always respect the company in all situations, promote our teamwork, and listen to our inputs to suggested solutions, has made us value our partnership with Applied Logistics. Over the years our distribution, transportation and warehouse management efficiency has drastically increased due to their innovative software and management process. If you are not using it, you are simply wasting your money!Gary Henning, Operations Development