Labor cost is the largest controllable expense in warehouse and distribution and manufacturing operations. Divergence engineers the standards, systems, and incentive structures that make that cost measurable, predictable, and improvable.

Engineered Labor Standards

We develop multi-variable, predetermined times engineered labor standards for every task in your operation using MOST and MSD methodologies. Standards are fair, accurate, and built around preferred methods that protect both productivity and safety. We can also develop reasonable expectancies (RE) per customer requirements.

Flowchart Development

• Identifying “Preferred Methods”
• Multi-variable labor standards development using MSD methodology
• Measuring the work content of every task to develop a “fair day`s work”
• Machine Studies (Forklifts, Lift Trucks, Pallet Wraps, Pallet Tilt, Slip Machines, etc)
• PF&D Tolerances/Allowances Analysis & Implementation

Preferred Methods Development

• Ensure consistency in terms of quality of work and employee safety
• Achieving goals based on preferred methods and performance habits

WFM-LMS Implementation 

Implementation is where labor standards become operational reality. We configure and deploy WFM and LMS platforms, build performance reporting, and support the organizational change that makes more meaningful and lasting engagements.

Performance Goals

• Regular hours, standard- productive/direct hours, non-standard/indirect hours, %performance
• LMS Performance and Productivity Reporting Features
• Building a Performance-Based Culture in your Organization

ROI & Economical Benefits of the WFM-LMS Program

• Attractive ROI (5% – 30%) and cost reduction in terms of $/case or pallet
• Typical ROIs achieved between 8-18 months
• Anual audits to the program

Pay-per-Performance Incentive Programs

Pay-per-Performance programs create direct alignment between workforce behavior and operational outcomes. Properly designed, they improve morale, reduce turnover, and deliver 5 to 15 percent additional cost reduction on top of base LMS improvements.

Benefits of Implementation

• Up to 5% – 15% additional cost reduction
• Improved moral for your workforce (people responding to fair and attainable goals)
• Induces continuous improvement efforts
• Aligned with performance culture and LEAN initiatives