Labor Productivity Improvement
Labor Productivity is measured as the amount of output produced by a workforce divided by that collective labor workforce content. It can be measured in terms of units per labor hour, pounds per labor hour, or any other measurable metric per labor hour. The higher the output of that same workforce, the higher the Labor Productivity and thus the result is a lowered cost per unit.
There are several ways to achieve optimal Labor Productivity. Strategy3 assesses the entire Value Stream of a process to balance the labor content of a line, work area, or department. By identifying the Bottleneck of the process and achieving balanced labor content by work task, Strategy3 optimizes Labor Productivity so that our clients achieve optimal performance, while decreasing their cost.
Statements of Work
By optimizing Labor Productivity, Strategy3 reduced the cost per case of a client by $0.05 netting in $1,000,000 in savings over an annual shipment of 20,000,000 cases to its customers.
Through implementing streamlined manufacturing techniques, Strategy3 increased the Labor Productivity content of another manufacturer from a baseline of 52.1 lbs/man-hour to 70.6 lbs/man-hour, yielding in a 35.5% improvement.
