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Operations Focus

Operations Focus

 

A major fulfillment center in the Midwest
Experiences drastic decreases in productivity

The Challenge

The Midwest fulfillment center was a tradition-bound operation-the average service was 20+ years. Change was talked about, but with little innovative thinking. Staff engaged in "we've always done it this way" syndrome", resisting automation. There was no ownership or urgency resulting in decreased productivity and profits. The plant itself had been a manufacturing facility before it was purchased, and few improvements had been made to accommodate people.
Site supervision responded to senior management only when in crisis. New York Management operated the center via remote control.

Analysis

In the past when the numbers fell, senior New York management would begin to visit with more frequency the first sign of "trouble. It was considered too much of an inconvenience and orders could easily be issued by teleconferencing. The center became a responsibility football - passed to different functional vice presidents, each producing a series of written proposals to automate systems. All were resisted. The routine was getting old and the productivity decreases were becoming drastic.

HCp Solution

A totally different approach was presented. We held a series of joint conversations and invited everyone to attend. The goal was to automate the facility, optimize personnel resources, maximize employee input and create an environment of inclusion. Management presented the financials and the failures of prior efforts, acknowledged the sins/omissions of the past, and put forward a request to start over.

Results        

Employee focus groups were conducted to gain their insights, concerns and comments about the changes in the facility design
Shift schedules were adjusted to accommodate employee requests
A new gain-sharing program was introduced with valid productivity measures
Through the process of dialog, staff members participated in open discussions regarding the efforts to revitalize the facility
Ultimately, eleven fulfillment processes were outsourced to offshore facilities. That transition was conducted smoothly with the understanding and involvement of the workforce and no legal repercussions
Productivity improved by 20 % within the next two years