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Labor Strategy Session – Foundational Strategy,[object Object],Proven Cost Reduction,[object Object]
2,[object Object],Core Practice: Company Profile,[object Object],Founded to create flexible, low cost scheduling options for companies that don’t have traditional “9 to 5” operations,[object Object],Senior team members each have a minimum of 10 years experience successfully implementing cost savings and change management strategies,[object Object],Rapid improvement methodology with a focus on operations and labor means cost savings are achieved within a short timeline (12 – 16 weeks),[object Object],Typical savings equal 11 to 17% of total labor costs,[object Object],Implementation is done directly with the workforce ,[object Object],Heavy employee involvement means cost savings stick,[object Object],Clients are Fortune 1000,[object Object],Best Practices database with over 10 million data points,[object Object]
3,[object Object],Share Best Practices From Other Industries,[object Object],Niagara Regional,[object Object],Police Service,[object Object]
4,[object Object], 2005, Core Practice Partners LLC,[object Object],Results Oriented? It Must Be About Cost Savings!  ,[object Object]
5,[object Object],Operations,[object Object],& Labor,[object Object],Employee,[object Object],     Buy In,[object Object],Safety &,[object Object],Health,[object Object],  Implementation,[object Object],4 Key Components – To Be Successful, You Must Use All of Them,[object Object]
6,[object Object],Hidden Costs of Current Scheduling  ,[object Object],High overtime ,[object Object],High inventory levels,[object Object],Inability to staff efficiently for seasonal, monthly, weekly or daily demand,[object Object],No full time/part time/temporary employee strategy ,[object Object],Uneven skills across shifts ,[object Object],Idle labor time (overall or pockets) ,[object Object],Hard to recruit and retain good employees ,[object Object],Outdated HR policies,[object Object],Past changes have not achieved long term results ,[object Object],Consolidation or blending opportunities,[object Object],Not maximizing current capital ,[object Object],Inefficient and/or numerous startups and shutdowns ,[object Object],Poor forecasting tools,[object Object],Not meeting productivity potential/goals ,[object Object],High level of unplanned absences ,[object Object],Continued/Increasing health and safety problems ,[object Object],Hourly employees have morale issues ,[object Object],Us vs. Them employee/management mindset ,[object Object],Problems communicating to evening and night shifts ,[object Object],Inefficient vacation, lunch or break staffing  ,[object Object],Green Room time underutilized – shift change inefficiencies ,[object Object]
7,[object Object],What is a Schedule?,[object Object],FORGET ABOUT SHIFT LENGTHS AND START WITH BUSINESS DRIVERS!!,[object Object],A customer demand driven system for utilizing people and capital equipment, incorporating employee preferences, optimal HR policies, and high levels of flexibility to provide a low cost solution. ,[object Object]
8,[object Object], 2005, Core Practice Partners LLC,[object Object],Correct Policies are Critical to Success,[object Object],Shift Change Strategies	$	201,000,[object Object],Relief Staffing	$	104,000,[object Object],Absenteeism Policies	$	292,000,[object Object],Incentive Strategies	$	462,000,[object Object],Holiday Shutdowns	$	215,000,[object Object],Quality Incentives	$	126,000,[object Object],Off Shift Retention Plan	$	147,000,[object Object],Pay Differential	$	234,000,[object Object],“44th Hour”	$	615,000,[object Object],Break and Lunch Costs	$	725,000,[object Object],TOTAL	$	3,121,000,[object Object]
9,[object Object], 2005, Core Practice Partners LLC,[object Object]
10,[object Object], 2005, Core Practice Partners LLC,[object Object],Profit = 10%,[object Object],Additional ,[object Object],Profit,[object Object],Fixed Cost = 30%,[object Object],Variable Cost = 30%,[object Object],Labor = 30%,[object Object],The Profit Greater As Utilization Increases?,[object Object],Currently: 5 Day Base Schedule,[object Object],7 Day,[object Object],6 Day,[object Object],Price/Cost,[object Object],Per Unit,[object Object],100%,[object Object],Profit,[object Object],Fixed,[object Object],80%,[object Object],Cost,[object Object],60%,[object Object],Labor,[object Object],40%,[object Object],20%,[object Object],Variable,[object Object],Cost,[object Object],0%,[object Object],600,000,[object Object],500,000,[object Object],700,000,[object Object],Annual Units,[object Object]
11,[object Object],Finding The Long Term Low Cost Option,[object Object],Cost per Case,[object Object],Current,[object Object],Future,[object Object]
12,[object Object],For 100 core positions, the total annual mismatch cost = $552,000,[object Object],Cost/Week/Position (Dollars),[object Object],Weekly Operating Hours,[object Object],500,[object Object],160,[object Object],400,[object Object],140,[object Object],300,[object Object],120,[object Object],200,[object Object],Coverage Required,[object Object],Coverage Provided,[object Object],100,[object Object],Staffing Mismatch Cost,[object Object],100,[object Object],80,[object Object],0,[object Object],Jun,[object Object],Jul,[object Object],Aug,[object Object],Sep,[object Object],Oct,[object Object],Nov,[object Object],Dec,[object Object],Jan,[object Object],Feb,[object Object],Mar,[object Object],Apr,[object Object],May,[object Object],Seasonal Workload,[object Object],Staff to the Average Workload       (Average Hours of Coverage =132),[object Object], 2005, Core Practice Partners LLC,[object Object]
13,[object Object],What is your TLC (True Labor Cost)?,[object Object],$12.00,[object Object],Average Wage =,[object Object],Burden = ,[object Object],Pay Ratio = ,[object Object],Cost of Straight Time= ,[object Object],Cost of Overtime=,[object Object],Adverse Cost of Straight Time =,[object Object],Adverse Cost of Idle Time=,[object Object],Adverse Cost of Overtime = ,[object Object],30%,[object Object],10%,[object Object],1.30 X,[object Object],1.10 = ,[object Object],$17.16,[object Object],$12.00 X,[object Object],$19.38,[object Object],1.0765 = ,[object Object],$12.00 X,[object Object],1.5  X,[object Object],Idle Time Is About 8 Times More Expensive Than Overtime,[object Object],$17.16 - $17.16 = $0,[object Object],$17.16,[object Object],$19.38 - $17.16 = $2.22,[object Object]
14,[object Object],The Implications of Different Staffing Strategies,[object Object],Short Staffing     Even Staffing     Extra Employees,[object Object]
15,[object Object],For 100 core positions, the total annual mismatch cost = $232,000,[object Object],Cost/Week/Position (Dollars),[object Object],Weekly Operating Hours,[object Object],500,[object Object],160,[object Object],400,[object Object],140,[object Object],300,[object Object],120,[object Object],200,[object Object], Coverage Required,[object Object], Coverage Provided,[object Object],100,[object Object], Staffing Mismatch Cost,[object Object],100,[object Object],80,[object Object],0,[object Object],Jun,[object Object],Jul,[object Object],Aug,[object Object],Sep,[object Object],Oct,[object Object],Nov,[object Object],Dec,[object Object],Jan,[object Object],Feb,[object Object],Mar,[object Object],Apr,[object Object],May,[object Object],Seasonal Workload,[object Object],Optimum Staffing       (Average Hours of Coverage = 116),[object Object], 2005, Core Practice Partners LLC,[object Object]
16,[object Object],OVERTIME:,[object Object], 2005, Core Practice Partners LLC,[object Object]
17,[object Object],Out of Industry Example: ,[object Object],Lost Efficiencies (37%) Occur During Low Milk Supply Periods On Wednesday and Thursday At a Cost of $367,000/Year,[object Object]
Employees Get Sick More Often On Fridays: ,[object Object],At Least 40% More Than Any Other Day,[object Object]
September is the Least Healthy Month ,[object Object],September is 63% Higher than the Avg.,[object Object],24,[object Object],14.75 Avg.,[object Object]
Vacation Distribution By Month,[object Object],Migrate Vacation to the Low Season,[object Object],146 Avg.,[object Object]
Shift Overlap Costs = $408,000,[object Object],Current: 3 – 30 Minute Overlaps,[object Object],6:30 AM,[object Object],3:00 PM,[object Object],11:00 PM,[object Object],1st Shift,[object Object],7:00 AM,[object Object],2nd Shift,[object Object],3rd Shift,[object Object],2:30 PM,[object Object],10:30 PM,[object Object],FT : 112 * (1/3) * 14 overlaps * ½ hour overlap * 49 weeks =  12,805 hours ($30.02) = $384,000,[object Object], Temp Employees: 21 * (1/3) * 14 overlaps * ½ hour overlap * 49 weeks =  2,401 hours ($9.94) = $23,866,[object Object]
22,[object Object],Drive Employee Acceptance – ,[object Object],Great Ideas Are Worth $0 Unless You Can Implement,[object Object],[object Object]
Heavy employee interaction and input
Documented course correction based on employee feedback
Buy-in achieved through combination of participation and benchmark results,[object Object]
24,[object Object],Hidden Costs of Current Scheduling  ,[object Object],High overtime ,[object Object],High inventory levels,[object Object],Inability to staff efficiently for seasonal, monthly, weekly or daily demand,[object Object],No full time/part time/temporary employee strategy ,[object Object],Uneven skills across shifts ,[object Object],Idle labor time (overall or pockets) ,[object Object],Hard to recruit and retain good employees ,[object Object],Outdated HR policies,[object Object],Past changes have not achieved long term results ,[object Object],Consolidation or blending opportunities,[object Object],Not maximizing current capital ,[object Object],Inefficient and/or numerous startups and shutdowns ,[object Object],Poor forecasting tools,[object Object],Not meeting productivity potential/goals ,[object Object],High level of unplanned absences ,[object Object],Continued/Increasing health and safety problems ,[object Object],Hourly employees have morale issues ,[object Object],Us vs. Them employee/management mindset ,[object Object],Problems communicating to evening and night shifts ,[object Object],Inefficient vacation, lunch or break staffing  ,[object Object],Green Room time underutilized – shift change inefficiencies ,[object Object]

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