LSI Solutions - Predetermined Time Systems and Workforce Management

Focusing now on labor standards, there are primarilyreview, evaluation & improvement, modeling of
two different approaches utilized to develop them: (i)future processes ("what if"? analyses),
using a predetermined time system (PDTS) and (ii)easy-to-calculate ROI analyses - it is a predictive or
time study.proactive tool in this case. Whereas time study only
Newer to retail, but long valued by manufacturers, acovers what is actually seen during the study and it
PDTS epitomizes the "speed-to-value" philosophy.can only be done properly in an environment where
These systems use standard data, developed throughthe process has been previously perfected. PDTS
thousands of time and motion studies conducted duringmeasures the amount of time that should be used to
the 20th century, to reflect a predetermined time forperform a task, as opposed to the amount of time
an average worker, working at an average pace, andthat is currently being used. Do you want to know
in an average environment to perform manual workwhat you do, or what youshould do?
tasks. The final result is a solid, engineered laborSome of today's PDTS provide for the inclusion of
standard that will withstand subject matter expertwork instructions or other written information which
scrutiny and provide value to the organization in manycan be electronically linked or integrated within each
ways.standard and included in the onscreen display. Video
PDTS are a WFM Best Practiceclips of the task can also be integrated and attached
An advantage of the PDTS standard data concept isto the corresponding standard if desired. Pie charts
that a user does not have to build everything fromand "value-added" vs. "non-value-added" work
scratch; no wheel reinvention required! Micro-level data,analyses can be quickly performed and displayed in
like obtaining a small object within reach, walking onethese systems.
step, bending at the waist, pushing a button, writing a"Well, I've never heard of such a system!" you exclaim.
word, etc. is used to build higher level data elements."What's wrong with the old fashioned time study
These elements of work, such as opening aapproach?" If you're talking about a bona fide time
cardboard case with a box cutter, scanning a smallstudy that desires to be statistically valid, then you will
item, removing shrink wrap from a pallet of cases,need many sample measurements (100's at times),
affixing a label to an object, transporting a pallet usingmaking this a time consuming and costly approach
a pallet jack or forklift, stocking a shelf or peg item, or(low speed, low tech, and low value). Time study only
removing & replacing a trash can liner can all beproduces a total time for the process, losing much of
used over and over again in the application, bringingthe detailed method steps that make up the process
great speed and unmatched consistency to the laboritself. This hampers process improvement / best
standards process.practices efforts. As for maintenance, many
Higher level work standards, like stocking one case ofcompanies have found it difficult to maintain time study
hard fruit, making and serving a deli sandwich, par-bakestandards and keep them current. Often, a complete
and stocking a dozen donuts, cutting, processing &re-do of the standard is required as processes
wrapping cuts of meat, scanning and bagging items atchange. As previously mentioned, if the study is
the checkstand, tendering a credit card transaction,executed properly, "rating" of the operator is required,
and mopping one sq.ft. of tile flooring are built,which is very subjective and increases the margin of
element-by-element within the system.error (labor unions tend to frown upon this).
Another advantage is speed of implementation, sinceFurthermore, time study cannot be used proactively, as
only one properly performed sample is needed to bein developing forward-looking models or "what-if"
observed (thru direct observation or from videotape),analysis. It can only be done accurately after a
the standard can be developed rapidly. Unlike properprocess has been perfected; measuring "what was
time study, the user does not have to pace "rate" theseen", it cannot take into account an occurrence that
employee, removing much subjectivity, whilemay happen infrequently during a task. When a time
consistently producing a more accurate standard thanstudier claims "it's all in there", what they really mean is
time study. Maintenance of the system is alsothat "everything they saw is in there". I have found that
accomplished swiftly, as updates and edits are quickover time, companies lose track of what time study
and easy to perform. Learning the application is simplestandards represent, what is included in them, and
and easy, with a mere threeday training course to getbasically lose faith in them, resulting in loss of credibility
up to speed. Oh, and you don't have to be a degreedin labor measurement.
industrial engineer either; it's not that complicated. OnOf course, there is no magic bullet. A license fee is
the technical side, the labor standards reside in aattached to a PDTS, but the overall cost to fully
relational database, which can easily be linked to otherimplement is less than a statistically valid time study
systems or databases. Within the system itself, all ofapproach. Customer service and sales labor needs
the detail, or "method steps", are visible, whichprovidescannot be measured with a PDTS, since a
simplicity when reviewing contents - a person canpredetermined time for speaking, customer
"see" everything that makes up the standard, thus itengagement / communication and selling effort does
shows what is and what is not included.not exist. However, there are other "speed-to-value"
Leverage your investment via process improvementsmethods for accurately and scientifically capturing this
In addition to these inherent advantages of a PDTS,very important component of the labor model puzzle.
the scrutiny of detail facilitates other uses - processThat topic will be discussed in another paper!