w. frank dell ii, cmc dellmart & company modern management controls

W. FRANK DELL II, CMCDELLMART & COMPANY

MODERN MANAGEMENT CONTROLSMODERN MANAGEMENT CONTROLS

2DELLMART & COMPANY

AGENDAAGENDA

INTRODUCTIONFOUNDATION

SYSTEMS

3DELLMART & COMPANY

ObjectivesObjectives Introduce approaches for management labor

control Provide Management foundations Describe typical control systems Identify approach issues and drivers

4DELLMART & COMPANY

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

5DELLMART & COMPANY

Larger Company FactorsLarger Company FactorsADVANTAGES Specialization Affordable Training Promote within Computer Systems

DISADVANTAGES Span of Control Communications Local Interest

6DELLMART & COMPANY

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)

7DELLMART & COMPANY

AGENDAAGENDA

INTRODUCTION

FOUNDATIONSYSTEMS

8DELLMART & COMPANY

Forces On ManagementForces On Management

Owners

Competition Government

Employees

Management

9DELLMART & COMPANY

Controls Require BalanceControls Require Balance

Assets

Employees Assets

10DELLMART & COMPANY

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


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


Labor Control ConceptLabor Control Concept

Standards

Planning Schedule

ProductivityPerformanceActual

Forecast


Cost Of Store LaborCost Of Store Labor

0%

2%

4%

6%

8%

10%

12%

Russia USA

Labor


Levels Of ControlLevels Of Control General – everyone Area – store, warehouse or department Employee groups – stocking or selecting Computer monitoring Computer controlling


AGENDAAGENDA

INTRODUCTION

FOUNDATION

SYSTEMS


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.


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


Time & Attendance - SystemTime & Attendance - System

TimeClock

Schedule

T & ASystem

Data

Mgt.Report

LaborControl

PayrollSystem


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


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


DSD Receiving - SystemDSD Receiving - System

Key/ScanSystem

ItemMaster

ReceiptAccountsPayable

Inventory


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


ProcessProcess Department coverage

– Customer service

Production– Consistent method– Shrink control

Periodic Task– Clean– Straighten– Re-supply– Ordering


Process - SystemProcess - System

ReceiptStandardCutting

Test

System ProductivityScales


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


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


Front End - SystemFront End - System

POS

ItemMaster

FrondEnd

ScanData

RegisterMonitoring

LaborSchedule

Schedule

Register& Cash


Linking Store SystemsLinking Store Systems

StoreSystem

Meat Receiving

Produce

BakeryFrontEnd

DeliService

HeadquartersPricesItemsSpace

Shipments


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


Warehouse Labor OverviewWarehouse Labor OverviewTASK DRIVER

Receiving Orders/Pallets/Cases

Put Away Pallets/Travel

Selection Trips/Cases/Travel

Replenishment Pallets/Travel

Loading Pallets

Support


InboundInbound Issues

– Accurate inventory– Transfer inventory ownership

Vendor performance– On time delivery– Complete delivery

Operations– Door utilization– Dock congestion– Completing paperwork


Receiving - SystemReceiving - System

PurchaseOrder Appointment Receiving

ReceivingPaperwork

PutAway


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


Put AwayPut Away Radio Frequency standard Complete computer control

OpenClose

ScanPalletTag

DriveTo Slot

PlaceIn Slot

ScanSlot

DriveTo Dock


SelectionSelection Represents 50% of warehouse labor Issues

– Accuracy– Productivity– Complete

New equipment– Voice recognition– Pick-To-Light


Selection - SystemSelection - System

StoreOrder

Inventory

System

PickLabels

Scratches

Manifest


ReplenishmentReplenishment Approaches

– Patrol– Directed

ClearSlot

Drive ToReserve

Pick &Scan

Drive ToPick Slot

Place &Scan

Drive ToNext

Pick Slot


Transportation FactorsTransportation Factors Labor Drivers

– Stops– Kilometers– Pallets

Control– Departure Time– Arrival Time– Quantity– Paperwork


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


Summary (Cont.)Summary (Cont.) Computers & Technology

– Planning & Scheduling– Tracking– Monitoring – Controlling


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 [email protected]

w. frank dell ii, cmc dellmart & company modern management controls

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