Productivity is a measure of the efficiency of a company’s production process. It is calculated by dividing the outputs produced by a company by the inputs used in its production process. Common inputs are labor hours, and capital and natural resources; outputs are generally measured in sales or the amount of goods and services produced. Productivity can be calculated by measuring the units produced relative to employee labor hours or by measuring a company’s net sales relative to employee labor hours.
Labor Productivity
Overall employee labor productivity is calculated by dividing the goods and services produced by the total hours the company’s employees during a certain period of time. When management is considering whether to move Fork Truck Free (FTF) or keep the status quote, there is a needed calculation of productivity if nothing is done and the quantifiable benefits of cart delivery.
The volume of fork truck statistics and metrics involved with a forklift are extensive, whether generated from OSHA or BLS (Bureau of Labor Statistics). One aspect of productivity that is often overlooked is forklift free and industrial cart delivery. Fork Truck Free stacking or unstacking in confined spaces such as trailers, containers, and racking systems improve the productivity of labor.
Manufacturing and warehouse fork truck drivers are costly. The cost of labor for a standard materials handling operation are approximately 70 to 90 percent of operating expenses (according to Bureau of Labor Statistics). In many instances warehouse managers are challenged to define and set labor standards as benchmarks to gauge productivity improvements. With real-time visibility, managers are able to bring accountability to operations, eliminate non-productive activities, and increase attention and conformity to work rules.
Fork Truck Free cart delivery allows for high-value operational improvements, including establishing and measuring true labor standards. The ability to improve work practices, manage assets for lower costs and higher productivity, establish incentive pay systems, and utilize real-time data for Six Sigma and Lean process improvements is a direct measurable impact.
Doing nothing generates a productivity loss of 50 percent. Delivery carts tugged by driverless fork trucks allow for immediate benefits with increased productivity, including more useful work per hour, less facility damage and fewer repair projects, reduction in fleet maintenance and repair costs, and a reduction in damaged goods and inventory write-offs. Companies are able to utilize accurate high-value operational data to establish and measure true labor standards, eliminate or slash overtime costs, and re-engineer work processes.
Topper Industrial is exhibiting at ProMat in Chicago at Booth #S4812 from April 8 – 11, 2019.
Topper Industrial education session is titled, “Why is Cart Delivery in High Demand?” in Theater I at 1:30 pm on Tuesday, April 9, 2019 and repeated on Wednesday, April 10, 2019 at 10:30 am in Theater E. Visit our booth at ProMat.
About Topper Industrial
For more than twenty years, Topper Industrial, (www.topperindustrial.com) has been a leading manufacturer of material handling carts and equipment solutions. Topper Industrial designs and builds industrial delivery carts, cart lifts, lifts & tilts, material handling racks, steel containers, casters, tube & joint and industrial cart parts & components. Topper Industrial specializes in services to Manufacturing, Fulfillment, Warehousing and the Distribution Sectors. Topper Industrial’s services include, but are not limited to: Design & customization, manufacturing & production, site analysis & planning and implementation justification. Topper’s material handling solutions make delivering material line side more effective through more efficient practices.
Topper Industrial is a proud member of MHI. Follow on Twitter @TopperInd or on LinkedIn.