Defined Methods in Engineered Labor Standards

1. Defined Methods in Engineered Labor Standards Greg Melroy Manager, West Monroe Partners

2. Agenda • The System, the Process, the Problem • The Engineered Labor Standard Process • Engineering a Labor Standard • Managing with a Labor Standard • Faster, Safer, More Accurate • Questions and Comments

3. The System, the Process, the Problem Labor Standards Engineers see more than the bags and the handler

4. Labor Standards Engineers see the process and tasks • Walk 23 steps around a fuel hose from the tug to the baggage cart, open the luggage cart curtain (A42 B6 G3 A1 B0 P3 A0) • Walk 5 steps to obtain the scan gun, return to baggage cart (A10 B0 G1 A0 B0 P0 A10) • Reach and grab for the luggage, (A1 B6 G3 M3 X0 I0 A0), scan the tag (A1 B0 G1 A1 B0 P3 A0), turn the bag (A1 B6 G3 M3 X0 I0 A0), and finally place the bag (A3 B0 G0 A0 B0 P1 A0) The System, the Process, the Problem

5. We want faster, safer, more accurate, more dependable What happens if we simply build a standard on this process? Willwe achieve the desired results? Would the process we’re watching get better? The System, the Process, the Problem

6. The System, the Process, the Problem • We can easily build a standard on this process, and the employees may do well • But there will be no improvement in the system or the throughput, despite their achievements

7. So, how do we do it? How do we build and use an Engineered Labor Standard to get the most out of the system? How do we get safe, efficient, productive employees to support the overall needs of our systems and processes if an ELS alone is not the answer? The System, the Process, the Problem

8. The Engineered Labor Standard Process

9. An Engineered Labor Standard (or “ELS”) is only as good as the process for which it is built The system must first be properly dissected and optimized for efficiency Methods development and documentation followed by workforce training ensure operational success and accountability The Engineered Labor Standard Process

10. The Engineered Labor Standard Process

11. The Engineered Labor Standard Process

12. Define the Processes of the System The Engineered Labor Standard Process

13. Define the Sub Processes • Process = Baggage Handling • Unload Aircraft • Load Baggage Cart • Drive to/from Aircraft • Load Aircraft The Engineered Labor Standard Process

14. Define the Tasks of a Sub Process • Sub Process = Unload Baggage Cart • Walk from Tug to Baggage Cart 1 • Open Baggage Curtain • Obtain Scan Gun • Scan Baggage Tag • Obtain Bag • Place Bag on Belt The Engineered Labor Standard Process

15. The Engineered Labor Standard Process

16. Optimize each process Eliminate non-value added tasks Change the procedure Change the job set-up Look at the process in its entirety – can a simple methods change upstream eliminate a task later? If necessary, re-build the process from the ground (tasks) up, using the safest, most efficient job set-ups and methods The Engineered Labor Standard Process

17. The question and answer phase of the ELS process may raise as many questions as it answers The solutions developed during this phase could mean everything to success of the overall system once the ELS has been implemented The Engineered Labor Standard Process

18. Optimizing the Baggage Handler Can the tug be parked in a different position? Can the walk to the carts be shortened? Can the luggage tag be scanned before it is removed from the cart to eliminate the extra handle? What can be done upstream to improve the efficiency in this process? The Engineered Labor Standard Process

19. Optimizing the Baggage Handler Improved positioning of the tug eliminates the need to walk around the fuel hose, eliminating 10 steps(A24B6G3A1B0P3A0) Adding a holster for the scanner eliminates the need to retrieve the scan gun (A1 B0 G1 A0 B0 P0 A0) Methods change in loading eliminates the need to turn the bag allowing handler to scan the tag in the cart(A1 B0 G1 A1 B0 P3 A0)then reach and grab for the luggage (A1 B6 G3 M3 X0 I0 A0), and place the bag on the belt without turning it(A3 B0 G0 A0 B0 P1 A0) The Engineered Labor Standard Process

20. Optimizing the Baggage Handler The sum of the MOST values for the original process: 1120 TMU (40.28 sec) The sum of the MOST values once optimized: 620 TMU (22.30 sec) This is for the first bag only, remaining bags would benefit from only the tag scan and handling (original: 360 TMU, optimized: 230 TMU) At Atlanta’s Hartsfield-Jackson International Airport where Delta Airlines handles approximately 100,000 bags per day, eliminating the excess bag turn would translate into 130 fewer hours of bag handling per day The Engineered Labor Standard Process

21. The Engineered Labor Standard Process

22. Once the process has been optimized at the task level, it must be documented thoroughly to avoid any confusion during the training and follow-up phases The Engineered Labor Standard Process

23. The Engineered Labor Standard Process

24. Training, Follow-up and Demonstration Have an effective trainer Include both written and verbal communication Include demonstration in the work environment Schedule follow-up to check for understanding and ensure compliance Results should be documented The Engineered Labor Standard Process

25. Engineering the Labor Standard

26. Begin work sampling and operational observation Build elements based on the written methods and observation Engineer appropriate allowances Engineer appropriate variances for conditions Test and Validate the new ELS Engineering the Labor Standard

27. Managing with an Engineered Labor Standard

28. Front-line management people are the “keepers of the standard” 130% is as bad as 70% on the Operation Reports Recognition, re-training and accountability are continuous processes Update the ELS with changing conditions to maintain accuracy Managing with an Engineered Labor Standard

29. Faster, Safer, More Accurate

30. The Engineered Labor Standard is not the “silver bullet” to “Faster, Safer, More Accurate” An ELS is the final measuring stick for the greater Engineered Labor Standard Process Successful Engineered Labor Standards are rooted in the properly defined work processes and tasks that are enforced with proper training and follow-up Faster, Safer, More Accurate

31. Questions / Comments