Engineered Labor Standards
What are Engineered Labor Standards?
Engineered Labor Standards and Goals are the heart of any successful labor management system or workforce optimization program. They provide the ability to compare actual performances against planned productivity, quality and overall customer service. Fair and accurate standards/goals are critical in holding both management and hourly associates accountable for their performances. They provide needed performance measurements critical to an effective coaching program and provide a solid foundation for forecasting and labor planning.
There are three major types of measurements that are used as standards or goals in a typical production environment. These include:
- Historical Goals
- Reasonable Expectancies (R.E.)
- Engineered Standards
There are appropriate uses for all three types of goals within different operational environments and over the years, Argent has utilized all three types in performance improvement programs and can assess an operation and identify the best type of measurements needed to provide fair and accurate performance feedback for each function.
Historical Goals
When Historical Goals are appropriate, Argent will work with management to collect the historical data needed to develop the goals. Historical goals are based on a single variable and existing methods within an operation.
Reasonable Expectancies
Reasonable Expectancies are similar to Engineered Labor Standards in that they are determined through direct observations and time studies and can be used to calculate the average time it should take to complete a job or group of tasks. They are generally based on a single work determinant and are therefore not as sensitive to variations in workload or seasonal influences as Engineered Labor Standards.
Engineered Standards
Engineered Standards are typically used in environments with changing volumes due to seasonal impacts or growth. When an Engineered Standard is needed to ensure fair and accurate goals have been established, Argent will either develop the standards through Time and Motion Studies or MOST, a predetermined time methodology. Data is collected through direct observations of associates in the workplace. Engineered standards are usually multi-variable allowing them to be more sensitive to fluctuations in volume and impacts of seasonal changes.
Standards and Goals are the heart of any successful labor management system or workforce optimization program. They provide the ability to compare actual performances against planned productivity, quality and overall customer service. Fair and accurate standards/goals are critical in holding both management and hourly associates accountable for their performances. They provide needed performance measurements critical to an effective coaching program and provide a solid foundation for forecasting and labor planning.
There are three major types of measurements that are used as standards or goals in a typical production environment. These include:
- Historical Goals
- Reasonable Expectancies (R.E.)
- Engineered Standards
There are appropriate uses for all three types of goals within different operational environments and over the years, Argent has utilized all three types in performance improvement programs and can assess an operation and identify the best type of measurements needed to provide fair and accurate performance feedback for each function.
When Historical Goals are appropriate, Argent will work with management to collect the historical data needed to develop the goals. Historical goals are based on a single variable and existing methods within an operation.
When a Reasonable Expectancy (R.E.) is warranted, Argent will ensure proper procedures are being followed and collect cycle-time data used to create the goal. R.E.s are typically based on one or two production variables and are fairly simple to track.
Engineered Standards are typically used in environments with changing volumes due to seasonal impacts or growth. When an Engineered Standard is needed to ensure fair and accurate goals have been established, Argent will either develop the standards through Time and Motion Studies or MOST, a predetermined time methodology. Data is collected through direct observations of associates in the workplace. Engineered standards are usually multi-variable allowing them to be more sensitive to fluctuations in volume and impacts of seasonal changes.
What does Argent Offer?
Argent engineers can develop discrete, single or multi-variable Engineered Labor Standards (which could include XYZ travel calculations) or Reasonable Expectancies to provide fair and accurate measurements needed to support your performance management strategy. The standards should include personal, fatigue and delay allowances, along with random activities encountered throughout a typical day.
If you already have existing labor standards and would like an unbiased resource to evaluate your existing program, Argent can audit your current standards to determine if they are out of tolerance and need adjustment.