Most of the data arrives on its own.

PEP is fed by the systems you already run: your WMS, time keeping, HR and others. Sometimes that data needs a little manual recording to fill gaps. Then the work processed is converted to standard hours using the time standards, and compared with actual payroll hours to measure operating efficiency.

Fed automatically
Warehouse management system
Time keeping
HR records
Other external systems
Minimal manual recording
Standard hoursWork processed, converted with time standards
Compared with actual payroll hoursThe true measure of operating efficiency

The right detail for each level. Not too much, not too little.

Usefulness means each level of the organization gets numbers it can act on. We mapped seven common key indexes against twelve variables that affect each index. The closer an index gets to an individual employee’s productivity, the fewer variables influence the results.

Company profit or loss
12
Top management
Cost per $1M of purchases
11
Top management
Labor cost per unit
10
Operations leadership
Units per labor hour
9
Middle managers, not employees
Standard time per unit
4
Facility and systems design
Percent “other” hours
3
Line managers, supervisors
Employee productivity (PEP’s PI)
1
Supervisors and employees

Bar length shows how many of twelve business variables move each index. From “Discussion on Various Key Indexes,” Cook & Associates.

Every number should belong to someone who can change it.