Perhaps the hottest application right now in the world of Supply Chain Execution software is Labor Management, aka Workforce Management. When combined with accurate Engineered Labor Standards, these tools can drive strong ROI through significant productivity improvements. The irony is that while demand for LMS is strong, the primary reasons why these projects succeed or fail are commonly overlooked.
Many organizations fall into the trap of thinking that a LMS will provide a significant increase in productivity by simply installing the software and having it manage operator performance. The reality is a labor management system doesn’t manage your labor force – you do. In fact, the very name of these solutions is misleading. A more accurate term would be “Management Enablement Solution.”
LMS projects have three main components: Software, Engineered Labor Standards, and Operator/Management Interaction. What do all highly successful LMS implementations have in common? Answer: the operator/management interaction is the foundation of the project.
How do companies create strong operator/management interaction?
All successful LMS projects have incorporated the above key elements. Projects that fail either do not clearly define the goals at the onset of the project, do not involve the operators, overestimate the supervisors’ coaching and mentoring skills, or do not provide a consistent positive feedback mechanism for management to use with the operators.
Remember it’s not really a Labor Management System – it’s a Management Enablement System.
In our next blog we’ll take a closer look at the make-up of a successful LMS Coaching and Mentoring Program.