CognitOps Product

Labor Productivity from CognitOps

CognitOps Product Update – March 2024

This month I want to talk about a key component to warehouse optimization: measuring labor productivity and efficiency. When warehouse supervisors think about measuring labor in their building, they want to understand the productivity and efficacy of each worker. How much did workers get done per hour? How well were they utilized? And how efficient were they in doing that work?

We deliver that insight with our Pick, Inventory and Ship Labor Performance dashboards.

Measuring Labor Productivity and Efficiency

This feature builds on the foundational data sets CognitOps Align has been ingesting to deliver more fundamental work progress visibility. Since we collect all transactions that happen in the warehouse, we can stack all the details about completed transactions on top of each other, starting with the first transaction all the way to the last completed transaction for each worker.

Applying our proprietary machine learning algorithm to that data to remove anomalies, we can create a view of how much work a worker completes and how long it takes to complete.

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Transaction Overview

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Transaction Detail

3 Essential Labor Productivity KPIs

With this feature, we’re able to give warehouse supervisors visibility to the three core labor metrics:

  • Productivity: How much did each user produce during the time they were on task and the time they were logged in doing work? This productivity measurement is important to compare raw production for each worker.
  • Utilization: For all the time working in a department, how much time did they actually spend doing work? This gives visibility into team utilization. The higher the utilization, the better the team is performing.
  • Efficiency: How effective are my workers in the tasks they perform? Efficiency compares the actual work rate for an individual against the expected work rate for a given group of tasks.
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Daily Performance by Worker

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Zone Performance

Labor Management System: Untapped Data Potential

With all the foundational data we collect on worker performance, we now have the power to deliver a “labor management system (LMS) lite” experience, with a few essential differences.

  • Predictive Analytics: LMSs provide measurement on performance and give the ability to look back and see who needs to be coached up and where there are issues with people not working. But there’s so much untapped potential in that data. That’s where we come in. We started by solving the problem of what’s happening right now. Then that real-time visibility turned into predictions and prescriptions. We leverage that data to help operate your building in real-time and then forecast what will happen in the future.
  • Dynamic Performance-Based Standards: Our standards don’t require an engineer to do a time motion study with a stopwatch, but instead use ongoing measurements to inform a dynamic standard, albeit not an engineered labor standard.
  • Area- and Zone-Level Performance: We measure at the worker level, and then we can roll up to the zone, area, and department For a specific zone in a building, we can show current productivity and how that compares to the last seven days. We can even roll up to the highest level for a single day. This provides visibility into who is underperforming and where they are underperforming.

So, if you don’t have an LMS, don’t go buy one. Or if you have an LMS and you’re not maintaining it because it’s too time consuming or you don’t have the staff to manage it, we can be your LMS (or better).

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Performance Roll Up

Coming Soon

We plan to expand labor productivity performance to deliver a metric called “Performance Pulse for Today.”

At the beginning of the day, we assess the staffing level, the scheduled workers, and other labor-based attributes to predict the expected performance pulse, which is a function of both utilization and efficiency, for the upcoming shifts. This feature will give insight into how the team is performing against expectations for the current day, so we can surface up whether you’re on track or if performance is abnormal so you can quickly adjust to meet performance KPI targets.

Expect to see more details on this (and some updates on Pick Labor Moves) in my April update.

CognitOps | The Team - Reas Macken

Author: Reas Macken Co-founder, COO & Head of Product

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Contact us to discuss how this kind of labor productivity measurement can take the place of your LMS…