What takes the boutique consulting house of SMT Consulting half way around the world to the UK solve one of the toughest labour management problems in the country (Royal Mail)?
Why has the largest global manufacturer of pharmaceuticals called SMT to assist in managing key Quality Assurance labour resources?
SMT consulting has developed a revolutionary new supply chain discipline know as “Demand and Labour Optimisation”.
This technique has been born from 17 years of consulting combining leading edge optimisation processes and technology with a powerful change management methodology.
“Demand and Labour Optimisation is relevant to companies who employ significant numbers of people as key operatives in the value delivery system.”
“This covers a wide range of businesses, from warehousing, sorting and distribution businesses to financial services and even laboratory environments.”
“Our methodology recognises that Demand and Labour can be managed in detail, down to hourly time buckets. This is especially relevant for high velocity businesses where the time between order receipt and service delivery can be in minutes or hours.”
“The key to our process is being able to model and anticipate demand profiles and translate those into detailed human and physical resource requirements. Without this approach most business will operate wasteful rosters and have inappropriate work practices to support product or service flow.”
Many businesses view detailed demand planning and resource planning as only applicable to plant and equipment, something done in monthly or weekly buckets. Labour management remains are art of a supervisor and in the realm of an excel spread sheet.”
“We apply advanced analytical techniques employing our unique Demand Optimiser and Finite Capacity Modelling software to understand process flows under a variety of demand and resource scenarios. We take flow analysis to minutes and hours where it is necessary to deliver on time or optimise the labour requirements.”
Using this granularity SMT is able to identify constraints to either improving service, optimising costs or reducing non-value added activities (waste).”
SMT enhances this process with a change management process engaging both management at a policy level and key service delivery personnel delivering improvement from significantly changing operating behaviour. Engaging the workforce is critical component and KPI’s, process to deal with variability and Short Interval Reporting are key components of the change process.
“We hardwire in KPI’s and develop a performance to plan culture. The subtle difference to the traditional cost focused culture is our focus on throughput (the plan) as a key measure. Then we set in train processes to deal with and minimise variation to plan.”
“The amazing thing is that if we regularly achieve our hourly plan in the core value delivery system we tend to meet our weekly plan, then monthly and finally the years plans.”
“And what manager could want more than that? No surprises and a budget delivered thanks to the optimisation of key value delivery resources.”
SMT’s Demand and Labour Optimisation techniques focus on solving business problems. How can I reduce my labour costs without effecting service delivery? How can I manage my labour to achieve 100% service levels? Provide me a process where I can accurately plan my individual labour based on forecast product demand as well as run “what if scenario’s.”
SMT’s focus is on flow and throughput and underpins enterprise growth unlike the dangerous and debilitating cost focused initiatives most consulting houses offer.
“Traditional activity and cost based processes deliver nothing more than long term corporate anorexia and decline. Focusing on throughput and flow engages a business in growth and the future.”
Click here for an overview of SMT’s customised > Mail Centre supply chain offering