Overview
A large global fulfillment network engaged Butler Advisory to improve labour performance for a specific piece of machinery. This machine has a relatively fixed output, so the client was interested in more efficiently managing the operating cost of the process.
Methods
Discovery:
We collected data and observed the process to deeply understand its performance. The machine was designed to run 20 hours per day with a team of five people - two operators and three support roles.
Detailed Scenario Planning:
After deeply understanding the machine, the team, and the process, we determined that the team could be reduced to just two operators and one support role with no negative impact on output, quality, downtime, or safety. A job loading analysis showed that for most of the shifts, two of the support roles were running at about 50% capacity, while the third was needed for only 5-6 minutes per hour. As such, it was possible to combine two of the support roles into one, while eliminating the third entirely.
Pilot Test:
We ran a test of the new three-person setup. The two operators worked as normal, while the single support role was given extra training and the empowerment to call for support from the nearest department if needed.
Outcomes:
- We saved $487,000 in labour per year at the site in the first year with no increase in defects or injuries
- Engaged to assist the client in expanding this to all sites that have this machine, for a total potential savings of $22,000,000 per year
