1. “Lean Thinking” to Managing Workforce
James Thomas
Country Manager – India Operations
Kronos Incorporated 1

2. The new age employee. the new work ethic
The new age employee..the new work ethic..social convergence…different attitudes…quantity over quality… how do we value? how do we manage?

5. Control

6. Obstacles to Continuous Improvement

7. “Implementing Lean concepts and principles is not a technological issue, it is primarily a management and human resource issue.”

8. Seven Wastes of Lean – Focus on Labor
Transport
Unnecessary movement of people due to unexpected events like call-ins
Inventory
More people than required for current work
Motion
Manual paper processes, such as timekeeping, leave that can be automated
Reporting system that requires individuals to check information regularly instead of automatically alerting them when action is required
Waiting
Scheduling an individual who is not available due to conflicts
Unplanned absenteeism
Insufficient skills or experience to efficiently perform a process
To help employees identify waste in today’s manufacturing environment, provide communications — via various media — with updated descriptions to make them more directly applicable to information-based processes.
This table provides an expanded Seven Wastes of Lean list that includes information- and labor-centric wastes.
By providing clear communications that describe familiar workplace situations, companies make it easier for employees to identify and eliminate waste — even in information- and labor-centric processes.

9. Seven Wastes of Lean – Focus on Labor
Overproduction
Using a person too highly skilled (at corresponding higher pay) for a specific role
Providing too much information to employees so they have to search through detail to find the data they need
Over-processing
Entering the same data multiple times into different systems
Decisions that are made, questioned, and reviewed again due to ambiguous supporting information
Defects
Payment to employees that is not intended
Expired or missing employee skills and certifications that cause quality and performance issues, safety hazards, or regulatory infractions

10. Where the Time & Money Goes
Labor Utilization
Overtime
Paid time-off errors
Unplanned absence
Time abuse
Administrative
Poor decisions
Compliance exposure
Time and cost performance variance
Quality defects
Safety incidents

11. Where the Time & Money Goes
Labor Utilization
Overtime
Paid time-off errors
Unplanned absence
Time abuse
Administrative
Poor decisions
Compliance exposure
Time and cost performance variance
Quality defects
Safety incidents

12. Wilful waste Brings Woeful wants!!

13. Lean Labor: Placing your bets
Absence Management
- Planned vs Unplanned absences
- Unmanaged absenteeism – “culture”
- “Just in case” to “Just in Time”
- Cost of Replacement

14. Lean Labor: Placing your bets
Balancing Labor & Demand
- Predictable Variability
- Controllable Unplanned Variability
- Uncontrollable Unplanned Variability

15. Once Current Operations are Optimized, Flex to Demand
Understaffing
Overstaffing
Inaccurate Planning 14 12 10 8 6 4 2
5:00 AM
7:00 AM
9:00 AM
11:00 AM
1:00 PM
3:00 PM
5:00 PM
7:00 PM
9:00 PM
11:00 PM
Headcount)
Time (Minutes)
Days of Week
Months of Year
And when labor exceeds demand, you have overstaffing, which cuts into margins and causes stores to exceed their earned labor hours.

16. The Difference: Plan Accurately
Sat
6 am
6 pm 12
Sun
Forecasted
Workload
Open
Open
Open
Open
Open
Open
Open
Open
Open
Open
Open
Open
Open
Open
Open
Sophisticated optimization algorithm converges on “best fit” coverage
Key Benefits
Control Labor Cost
Minimize over coverage

17. Lean Labor: Placing your bets
Managing the Entire workforce
- Contract management
- Field Employees/Warehouses/DCs
- Inclusivity
- Employee Morale and Retention
- Safety & Compliance

18. People are Dearer than Machines or Material!!

19. Lean Labor: Placing a Value on Workforce
Unit Labor Cost = Labor Cost
Number of Units

20. A Common Measure of Productivity ?
OLE – Overall Labor Effectiveness
Labor Availability: % effective utilization
Labor Efficiency: % potential output
Quality Performance: % of ‘good’ product per labor unit
Example: 85.8% x 95% x 96% = 78.2%

21. Overall Labor Effectiveness™ Delivers the Entire Labor Picture
What OEE does for equipment, OLE does for labor
PRODUCTIVITY
■ Individual ■ Cumulative OLE
95%
96%
78.2% Effective Labor Use
85.8%
125
Units
INR500
Contribution Margin
INR62,500
Total   

22. Modest Changes Make a Big Difference
3.2% Increase In Margin
INR2000
PRODUCTIVITY
■ Individual ■ Cumulative OLE ■ Increase
2.2%
80.3% Effective Labor Use
95%
96%
85.8%
78.2%
129
Units
INR500
Contribution Margin
INR64,500
Total

23. OLE Acts as a Benchmark Ensure one change doesn’t impact other areas
Performance vs Quality
Did the training pay off?
Is the increase in turnover hurting performance?
Is overtime being effectively used?

24. Increasing labour utilisation by 7%
Pointers…
Increasing labour utilisation by 7%

25. Visibility and Control
Pointers…
Productivity
Visibility and Control
Compliance
Workforce Quality
+ 2.7% conversion rates
Optimization increases Deli Sales
“Double-digit” productivity gains
.58% reduction in labor % to sales
25% increase in customer satisfaction
Greater consistency across stores
Minor age employee work rules
Meal, break, and key-holder coverage
Union contracts
30% reduction in turnover
$1.4m annual savings
900 applications processed in 4 days

26. The most strategic asset…People. Workforce…. Happy worker
The most strategic asset…People..Workforce….Happy worker..Engaged worker.. Innovates..Ideates..Raises the bar….Let’s focus on Workforce...Lean on them!!

27. Thank you