10TIPS
STEP-BY-STEP SOLUTIONS
by Deborah Catalano Ruriani
Getting Lean to Boost Warehouse Labor Performance
I mplementing lean principles through all facets of a warehouse operation is an effective, economi- cal way to boost labor performance. The relentless pursuit of eliminating waste transforms corporate culture, and builds a foundation for optimal performance from the warehouse floor to the cor- ner office. Tim Sroka, senior manager, lean operations for Menlo Worldwide Logistics, a third-party logistics pro- vider based in San Mateo, Calif., suggests 10 ways to encourage a shift in culture, and spark improvements in warehouse employee performance, morale, and engagement through lean principles. 1 Frequently recognize a job well done. Recognition and teamwork are critical elements of boosting ware- house labor performance. Recognizing employee efforts doesn’t require tro- phies or bonus checks. Small tokens from peers can make a difference. Some companies use card systems to instantly recognize any employee–from entry- level to leadership. Implementing a solid recognition program with incentive plans boosts morale and performance. 2 Make teamwork the rule. Create a cultural shift from the old-school, autocratic, top-down style to one that increases employee engagement
and creativity. Involve the people who perform day-to-day tasks in improving every process they touch in their work. In an atmosphere of open communica- tion, their talents and experience will lead to the best improvement ideas and they’ll feel a sense of pride and owner- ship in the new processes implemented. 3 Focus on continuous improvement utilizing “A3” thinking. Create a solid plan in A3 format–a one-page summary on legal-size paper that tells the story of a proposal or progress review at a glance. The plan motivates employ- ees to continuously review and improve existing processes, and maintains a spirit of teamwork and engagement. When everyone works together to eliminate waste and improve flow throughout the facility, the group can agilely respond to business changes as they arise. 4 Use lean tools, such as value stream mapping, to create a blueprint for improvement. Value stream mapping is the process of establishing a clear pic- ture of product and information flow. It depicts both current state and desired future state, in ways all team members can understand. The value stream map provides employees an overall view of all warehouse activities, allowing them to suggest improvements in other areas,
as well as their own. Display the map in the warehouse so that employees are able to reference improvements and bring the next steps to life. 5 Establish a visual management system. Installing prominent sta- tus-at-a-glance boards is critical to success and optimum warehouse employee performance. Just as a fan should be able to look up and quickly see the score at a ball game, an asso- ciate should be able to do the same to find out what’s happening on the ware- house floor. Clear and consistent signage makes it easier for employees to do their jobs and function effectively in all areas of the operation. One best practice is to position the status boards so that they are viewed and used in specific locations, such as Inbound or Outbound, close to the dock. The intent is to regularly track how the warehouse is doing without looking on a computer, then display the progress in “real time.” 6 Take the 5S path to workplace orga- nization. Following the 5S’s – sort, set in order, shine, standardize, and self-discipline–minimizes waste in time, motion, and travel. It also allows for the best possible utilization of available space. The 5S system means efficiency, because an employee who doesn’t have
6 Inbound Logistics • September 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND
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