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Method for creating productivity and labor models for material services organizations

IP.com Disclosure Number: IPCOM000006638D
Publication Date: 2002-Jan-17
Document File: 4 page(s) / 100K

Publishing Venue

The IP.com Prior Art Database

Abstract

Disclosed is a method for creating productivity and labor models for material services organizations. Benefits include improved functionality, improved quality, and improved productivity.

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Method for creating productivity and labor models for material services organizations

Disclosed is a method for creating productivity and labor models for material services organizations. Benefits include improved functionality, improved quality, and improved productivity.

Description

              The disclosed method utilizes productivity and efficiency principles to measure organizational performance and quantify resource utilization levels based on transactional volume, processing time, and allocated resources. The models provide the following functions:

•             Show users (materials services managers) how effective they are in utilizing their conventional resources

•             Indicate operational areas that are not optimized

•             Show the ratio between direct and indirect labor, identifying resources spent doing nonstandard or not valued-added activities

•             Quantify and automatically track weekly or monthly hours spent in each operational area

•             Show efficiency levels of sites and compare them to a cross-site benchmark

•             Utilize site-specific profiles to forecast future headcount requirements

•             Enable users to execute many what-if scenarios to adjust for workload and refine headcount requirements to meet special needs.

Advantages

              Conventionally, productivity has been measured by the number of activities per headcount (HC). However, that number does not reflect the actual workload because it does not differentiate activities with varying processing time. A headcount forecast model did not exist. The disclosed method is the first model to quantify and assess the operational capacity of a service industry and use to accurately forecast labor requirements.


              Last Updated:   May 14, 2001    
  Avg. Monthly Run Rate (k) @ current Productivity:   8.34       SITE NAME:   Hud    
  Monthly Run Rate (k) at Target Productivity:   10.28       Model Revision:   6    
  OVERALL SITE MONTHLY PRODUCTIVITY REPORT      
      Jan-01   Feb-01   Mar-01   Apr-01   May-01   Jun-01   Jul-01 ...