How to pass the labor shortage crisis through better capacity visibility, clear processes, building the right automation, and retaining trained workers.

1. Beyond Compliance
Webinar & Podcast Series for Process Manufacturers
Addressing Labor Shortage:
How to increase uptime while empowering employees
Jeremy Tancredi
Partner

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Before We Get Started
BEYOND COMPLIANCE
Just so you know…

4. BEYOND COMPLIANCE
Addressing Labor Shortage: Meet the Speaker
Jeremy Tancredi
Partner, Operations Excellence
● Jeremy is a partner at West Monroe Partners and leads the Supply Chain team.
● He specializes in process improvement, supply chain efficiency and labor optimization.
● Jeremy has more than 20 years’ experience delivering solutions for distribution,
manufacturing, and retail operations, both in unionized and non-union environments.
Prior to joining West Monroe, Jeremy was a member of the industrial engineering team for two
FORTUNE® 50 companies, serving in a variety of roles from planning to execution. Jeremy has a
bachelor’s degree in Industrial and Systems Engineering from The Ohio State University.

5. Poll Question
What is the biggest labor challenge your organization is facing right now?

6. BEYOND COMPLIANCE
Objectives:
● Methods to address labor shortages
Session Overview
● Understanding and eliminating roadblocks that limit productivity
● Key performance indicators that drive individual performance
● Training and incentive programs to retain employees

7. BEYOND COMPLIANCE
The manufacturing industry is NOT exempt from labor shortages
West Monroe conducted a survey of 130 supply chain executives to learn more about current
production processes. Executives almost unanimously (95%) say that labor management is
important to their production and supply planning
Despite these challenges, 23% of respondents do not measure labor with real time metrics
and 12% do not measure labor productivity at all
Current Labor Challenges

8. Problems hiring skilled talent is compounded by the other factors

9. BEYOND COMPLIANCE 9
There are three foundational steps to consider that will help address
labor challenges and ultimately allow companies to do more with less

10. BEYOND COMPLIANCE
Standardizing, measuring and planning may seem obvious, but
there are many obstacles that prevent effective execution
A “lack of time” or “lack of
resources” when questioned
why they aren’t focusing
more in these areas
Labor shortages require
more effort from front line
management to meet
production demand and for
many this comes in the
form of jumping in to help
on the line
Fall victim to “plan chasing”
where they are too focused
on tracking how far off they
are to plan, and not focused
enough on proactive
management
Not knowing where to start or
what needs to change; believing
past performance should dictate
future performance does not
account for process
improvements that have been
implemented

11. BEYOND COMPLIANCE
Standardizing processes and tasks is a low hanging fruit
that can yield meaningful improvement
Training documents and standard operating procedures
(SOPs) are common, but vary greatly in their
effectiveness
A common misconception is that SOPs are all inclusive
and is the only training aid needed
Many SOPs cover very detailed instructions on system
interactions or technical information, but fail to cover the
most useful information that can impact worker
performance
Preferred or best methods documentation should be
leveraged to coach employees on behaviors and tactics that
will improve their efficiency, increase their productivity and
ultimately make the job easier for them

12. BEYOND COMPLIANCE
As work is standardized, KPIs should be mapped against desired
outcomes and owners should be assigned to drive behavioral change
KPIs should be identified and then dashboards
should be created to monitor progress at the
necessary intervals. Close monitoring and
follow up will drive cultural change over time.
While some KPIs are common across the
industry, companies should conduct
workshops to identify which ones are
important to support company goals.

13. BEYOND COMPLIANCE
Assess current program via
focus groups and program
assessment
Understand what is working
and driving desired behavior
along with detractors from
reaching current goals
Organizational alignment
through vision and values
session
Establish employee
committee
Town halls conducted at
kickoff and periodically with
larger employee groups to
allow feedback from all
Ensure alignment with
company goals
Communicate plan early &
often
Conduct a base wage
structure analysis
Identify job equity variance
Ensure equal incentive
opportunity
Wage system design
Determine effectiveness
and user readiness of
proposed changes
Create internal marketing
strategy
Develop communication
plan with determined
message milestones
Establish training and
messaging approaches
With established expectations and proper performance management,
incentives can be an additional asset to retain and attract talent
An effective labor performance and incentive program provides a “win – win” for both the company and employees
UNDERSTAND CURRENT STATE
DETERMINE GOALS
OF PROGRAM
PRINCIPLES OF A GREAT PLAN
COMMUNICATION &
IMPLEMENTATION

14. BEYOND COMPLIANCE
The plan in action: A case study of a life science packaging
company struggling to meet
demand
The client was facing challenges with
hiring which led them to staff 70% of
their team with temporary workers. With
this number of temporary workers,
performance was inconsistent, and
supervisors spent a large majority of
their time training new employees and
not on managing the operation. The
variance in performance led to periods
of unfulfilled customer orders, followed
by periods of underutilized workers when
staff did show up, caused by a fear of
losing workers if they were sent home.
THE CHALLENGE THE APPROACH
Taking a lean approach, we examined the kitting and
distribution operation to identify areas of waste and inefficiency.
It was discovered that many workers were employing different
methods for order kitting, picking and packing. Additionally,
employees were not consistent in logging hours correctly to
each task. We created methods documentation, trained
employees on proper behaviors, worked with supervisors on how
to effectively monitor and coach performance and created an
excel based labor planning tool.
THE RESULTS
Decreased headcount by 30%
Reduced labor cost per unit by 15%
Reduced overtime by 7%

15. Financial impact of implemented solutions totaled $0.7-$1.2M
in recurring annual savings
BEYOND COMPLIANCE

16. BEYOND COMPLIANCE
A pet food manufacturer was growing rapidly
and struggling to keep up with demand
THE CHALLENGE
One of the fastest growing players in
the dog and cat food industry were
seeking help containing costs and
improving operational performance.
Our client’s rapid growth led to the
expansion of their manufacturing
footprint and significant capital
investment. Due to the expansion of the
client’s manufacturing footprint, the
client’s plants had suboptimal layouts
causing production inefficiencies and
underutilized labor.
THE CHALLENGE THE APPROACH
● We conducted observational studies on changeovers,
labor utilization, methods, and performance to identify
inefficiencies in the operation.
● Supplied financial and operational data was analyzed
to create KPI Scorecards tailored to the appropriate
departments and used to track performance and
inform decisions.
● Short Interval Controls or “SIC’s” tools were
implemented to assess daily/hourly performance on
the floor.
● Implemented an I4.0 foundation for current and future
uses integration machines, software, networks, and 3rd
party applications. We then leveraged the data to
develop production performance analytics tailored to
the production process and machine data available.

17. BEYOND COMPLIANCE
West Monroe designed a tailored performance management program
and IIoT solutions to achieve significant performance improvement
37% $3.4M $13.1M 31
Increased
production
throughput
worth of increased
product produced
during engagement
annualized benefit at
average improved
throughput
Sorba connected
machined across
4 different
departments
OUTCOMES
Cross-department
coordination
On-time shift start-
ups and handovers
Live machine
status data
Weekly and daily
KPIs and on-floor
hourly targets
Understanding of
line balancing

18. Questions?
BEYOND COMPLIANCE
Jeremy Tancredi
Partner
West Monroe

19. More Resources at www.safetychain.com
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Product & Partner Info
Solution Consultation
BEYOND COMPLIANCE
Learning More:
SafetyChain Content Library
www.safetychain.com/content-downloads
West Monroe Resources:
www.westmonroe.com/perspectives
Jeremy Tancredi
p: 614-372-7344
e: jtancredi@westmonroe.com