A Labor Measurement Structure for Retail Operations

Abstract

To compete effectively with the competition, retail companies like Karls need to adopt work measurement techniques to understand and plan for the correct amount of payroll. Proper allocation of payroll equates to a better sales margin and healthy bottom line. In order to improve the current work measurement process implemented at Karls, the following describes an industry and academic process to improve the quality and efficiency of their Engineered Labor Standards. Included is a summation of what other companies are doing with ELS, what tools and techniques are available to develop them, and an evaluation of each as they can be used at Karls. The result is a time study structure that gives statistical quality analysis, improved data collection methods, and formalized reports. The structure also includes new tools and software to use, which will speed up the rate at which standards are developed as well as make them more accurate. These tools include personal digital assistants and the time study software, Workstudy+. The structure also describes how to use the StandardsPro software to create standards for hypothetical jobs as well as a database of job elements to reference for re-evaluations of old processes. The final product is a new work measurement program with improved accuracy and data collection efficiency versus Karls current program. This program will allow engineers to produce more accurate standards quickly. The improved measurements will also allow managers to make better decisions. The program also supports process improvements, company benchmarking and an ability to create detailed cost benefit analysis. This program will be the base for the future of the store operations engineering department.