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What to measure

Output per person is easy to compute and explains little. The measures that explain performance are about waiting, travel and variation โ€” and all of them are aggregate.

9 notes

Throughput and Cycle Time

Two measures that answer different questions and are routinely confused. Which to use for capacity, which for responsiveness.

Reference

Where Work Waits

Queueing usually exceeds handling by a wide margin and is invisible without timestamps. Finding it, and the fixes that follow.

Procedure

Travel and Movement

The largest controllable loss in most picking operations. Measuring it without positioning hardware, and the slotting changes that follow.

Analysis

Equipment Utilisation

Fleets are usually larger than the average suggests and short at particular hours. Measuring availability against demand rather than in aggregate.

Procedure

Exceptions and Rework

Errors are found where they surface and caused somewhere else. Tracing origin rather than detection is what makes the data actionable.

Analysis

Reading Variation

Most performance differences are ordinary variation. Reacting to noise as though it were signal produces churn and worse outcomes.

Analysis

Finding the Constraint

One stage limits the whole flow. Identifying it from queue data, and why improvements anywhere else produce nothing.

Procedure

Labour Standards, Done Properly

Expected times for tasks are legitimate planning tools and dangerous targets. What separates a standard used for staffing from a quota used on people.

Analysis

Comparing Shifts and Sites

Raw comparisons are almost always unfair. What to normalise for before concluding that one shift is better than another.

Procedure