w. frank dell ii, cmc dellmart & company modern management controls
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W. FRANK DELL II, CMCDELLMART & COMPANY
MODERN MANAGEMENT CONTROLSMODERN MANAGEMENT CONTROLS
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AGENDAAGENDA
INTRODUCTIONFOUNDATION
SYSTEMS
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ObjectivesObjectives Introduce approaches for management labor
control Provide Management foundations Describe typical control systems Identify approach issues and drivers
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Management Is DifficultManagement Is Difficult Own mind of employees Difficult to motivate
– Working for success– Pride in work– Getting by
Challenge– Getting the job done– Getting the job done right
Increase– Productivity– Service– Accuracy
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Larger Company FactorsLarger Company FactorsADVANTAGES Specialization Affordable Training Promote within Computer Systems
DISADVANTAGES Span of Control Communications Local Interest
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Computer System Computer System LimitationsLimitations Limitations in scope
– Man Vs Machine
Maintenance requirements– Changes in process or methods
Data issues– Timely collection– Accuracy– Complete (all entries every day)
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AGENDAAGENDA
INTRODUCTION
FOUNDATIONSYSTEMS
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Forces On ManagementForces On Management
Owners
Competition Government
Employees
Management
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Controls Require BalanceControls Require Balance
Assets
Employees Assets
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Basic ControlsBasic Controls Company Policies
– Mission Statement– Personnel Policies– Financial Controls
Job Description– Scope of responsibilities– Reporting relationship– Primary task description– Secondary task description
Process
Task
Method Systems
Standard Operating Procedure
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Management Management ResponsibilitiesResponsibilities Hire right people Train and educate
– Employees– Supervisors
Forecast requirements Assign and schedule employees Make employees accountable Verify work is performed correctly Follow up
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Labor Control ConceptLabor Control Concept
Standards
Planning Schedule
ProductivityPerformanceActual
Forecast
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Cost Of Store LaborCost Of Store Labor
0%
2%
4%
6%
8%
10%
12%
Russia USA
Labor
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Levels Of ControlLevels Of Control General – everyone Area – store, warehouse or department Employee groups – stocking or selecting Computer monitoring Computer controlling
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AGENDAAGENDA
INTRODUCTION
FOUNDATION
SYSTEMS
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Control SystemsControl SystemsSTORE WAREHOUSE HEADQUARTERS
Time & Attendance Time & Attendance Time & Attendance
Front End Warehouse Mgt. Promotion Mgt.
Inbound Transportation Mgt. Procurement
Service Dept. Maintenance Budgets
Process Dept.
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Time & AttendanceTime & Attendance Core computer system
– Hourly employee pay base
Records by location– Days worked– Hours worked– No shows
Identifies whose working, but not what they are doing
Not a fool proof approach
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Time & Attendance - SystemTime & Attendance - System
TimeClock
Schedule
T & ASystem
Data
Mgt.Report
LaborControl
PayrollSystem
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Store Labor OverviewStore Labor OverviewTASK DRIVER
Receiving Orders/Cases
Stocking Cases/Units
Ordering Items
Processing Pounds/Cases/Batch/Units
Service Customers/Items
Front End Customers/Items
Support
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InboundInbound Represents 15% to 20% in store labor Service and control issues
– Shelves fully stocked– Unauthorized items and product cost– Accurate store inventory
Labor scheduling– Door coverage for receiving– Dry, refrigerated and frozen stocking
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DSD Receiving - SystemDSD Receiving - System
Key/ScanSystem
ItemMaster
ReceiptAccountsPayable
Inventory
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Stocking MethodStocking MethodSTEP TIME
Push cart to aisle 11.80
Position case 2.94
Cut case 3.22
Set label gun (optional) 9.98
Price items (optional) .40
Place item on shelf 1.47
Rip and flatten cardboard 7.93
Push cart to backroom 1.78
Place cardboard in bailer 2.21
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ProcessProcess Department coverage
– Customer service
Production– Consistent method– Shrink control
Periodic Task– Clean– Straighten– Re-supply– Ordering
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Process - SystemProcess - System
ReceiptStandardCutting
Test
System ProductivityScales
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ServiceService Department coverage
– Minimum of one– Adjust to transactions
Periodic task– Clean– Straighten– Re-supply– Ordering
0 5
10:00
11:00
12:00
1:00
2:00
3:00
4:00
5:00
6:00
Labor
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Front EndFront End Represents a third to half of store labor Central customer service point Control issues
– Money– Shrink
Scanning is a minimum requirement Can be a significant labor waste
– Reassign labor during slow periods
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Front End - SystemFront End - System
POS
ItemMaster
FrondEnd
ScanData
RegisterMonitoring
LaborSchedule
Schedule
Register& Cash
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Linking Store SystemsLinking Store Systems
StoreSystem
Meat Receiving
Produce
BakeryFrontEnd
DeliService
HeadquartersPricesItemsSpace
Shipments
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Non Food Store LaborNon Food Store LaborOpen Store Assist Customers
Cover Register Build Displays
Order Put Up & Take Down Promotions
Receive Complete Headquarter Survey
Stock Price Mark/Tag
Straighten Complete Daily/Weekly Logs
Clean Close Store
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Warehouse Labor OverviewWarehouse Labor OverviewTASK DRIVER
Receiving Orders/Pallets/Cases
Put Away Pallets/Travel
Selection Trips/Cases/Travel
Replenishment Pallets/Travel
Loading Pallets
Support
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InboundInbound Issues
– Accurate inventory– Transfer inventory ownership
Vendor performance– On time delivery– Complete delivery
Operations– Door utilization– Dock congestion– Completing paperwork
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Receiving - SystemReceiving - System
PurchaseOrder Appointment Receiving
ReceivingPaperwork
PutAway
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Receiving MethodReceiving MethodSTEP TIME
Walk from office to dock 2.55
Open/close dock door .96
Set/remove dock plate 4.11
Move pallet from truck to dock 55.24
Count cases and record 8.97
Walk from dock to office 2.55
Log in delivery 4.54
Process paperwork 10.22
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Put AwayPut Away Radio Frequency standard Complete computer control
OpenClose
ScanPalletTag
DriveTo Slot
PlaceIn Slot
ScanSlot
DriveTo Dock
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SelectionSelection Represents 50% of warehouse labor Issues
– Accuracy– Productivity– Complete
New equipment– Voice recognition– Pick-To-Light
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Selection - SystemSelection - System
StoreOrder
Inventory
System
PickLabels
Scratches
Manifest
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ReplenishmentReplenishment Approaches
– Patrol– Directed
ClearSlot
Drive ToReserve
Pick &Scan
Drive ToPick Slot
Place &Scan
Drive ToNext
Pick Slot
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Transportation FactorsTransportation Factors Labor Drivers
– Stops– Kilometers– Pallets
Control– Departure Time– Arrival Time– Quantity– Paperwork
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SummarySummary Employees must be managed Clear communication required
– What work is to be done– How is work to be done– When work is to be done– How often the task is performed– Who is responsible
No substitution for good supervision
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Summary (Cont.)Summary (Cont.) Computers & Technology
– Planning & Scheduling– Tracking– Monitoring – Controlling
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W. Frank Dell II, CMC
President
DELLMART & Company
125 Hardesty Road
Stamford, CT 06903 USA
Tel: 203-968-8609
Fax: 203-968-8613
e-mail Wfdell2@msn.com
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