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MODERN MANAGEMENT CONTROLS. W. FRANK DELL II, CMC DELLMART & COMPANY. AGENDA. INTRODUCTION FOUNDATION SYSTEMS. Objectives. Introduce approaches for management labor control Provide Management foundations Describe typical control systems Identify approach issues and drivers.
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MODERN MANAGEMENT CONTROLS W. FRANK DELL II, CMC DELLMART & COMPANY
AGENDA INTRODUCTION FOUNDATION SYSTEMS DELLMART & COMPANY
Objectives • Introduce approaches for management labor control • Provide Management foundations • Describe typical control systems • Identify approach issues and drivers DELLMART & COMPANY
Management Is Difficult • Own mind of employees • Difficult to motivate • Working for success • Pride in work • Getting by • Challenge • Getting the job done • Getting the job done right • Increase • Productivity • Service • Accuracy DELLMART & COMPANY
ADVANTAGES Specialization Affordable Training Promote within Computer Systems DISADVANTAGES Span of Control Communications Local Interest Larger Company Factors DELLMART & COMPANY
Computer System Limitations • Limitations in scope • Man Vs Machine • Maintenance requirements • Changes in process or methods • Data issues • Timely collection • Accuracy • Complete (all entries every day) DELLMART & COMPANY
AGENDA INTRODUCTION FOUNDATION SYSTEMS DELLMART & COMPANY
Forces On Management DELLMART & COMPANY
Controls Require Balance Employees Assets Assets DELLMART & COMPANY
Basic Controls • Company Policies • Mission Statement • Personnel Policies • Financial Controls • Job Description • Scope of responsibilities • Reporting relationship • Primary task description • Secondary task description DELLMART & COMPANY
Management Responsibilities • Hire right people • Train and educate • Employees • Supervisors • Forecast requirements • Assign and schedule employees • Make employees accountable • Verify work is performed correctly • Follow up DELLMART & COMPANY
Labor Control Concept DELLMART & COMPANY
Cost Of Store Labor DELLMART & COMPANY
Levels Of Control • General – everyone • Area – store, warehouse or department • Employee groups – stocking or selecting • Computer monitoring • Computer controlling DELLMART & COMPANY
AGENDA INTRODUCTION FOUNDATION SYSTEMS DELLMART & COMPANY
Control Systems DELLMART & COMPANY
Time & Attendance • Core computer system • Hourly employee pay base • Records by location • Days worked • Hours worked • No shows • Identifies whose working, but not what they are doing • Not a fool proof approach DELLMART & COMPANY
Time & Attendance - System DELLMART & COMPANY
Store Labor Overview DELLMART & COMPANY
Inbound • Represents 15% to 20% in store labor • Service and control issues • Shelves fully stocked • Unauthorized items and product cost • Accurate store inventory • Labor scheduling • Door coverage for receiving • Dry, refrigerated and frozen stocking DELLMART & COMPANY
DSD Receiving - System DELLMART & COMPANY
Stocking Method DELLMART & COMPANY
Process • Department coverage • Customer service • Production • Consistent method • Shrink control • Periodic Task • Clean • Straighten • Re-supply • Ordering DELLMART & COMPANY
Process - System DELLMART & COMPANY
Service • Department coverage • Minimum of one • Adjust to transactions • Periodic task • Clean • Straighten • Re-supply • Ordering DELLMART & COMPANY
Front End • Represents a third to half of store labor • Central customer service point • Control issues • Money • Shrink • Scanning is a minimum requirement • Can be a significant labor waste • Reassign labor during slow periods DELLMART & COMPANY
Front End - System DELLMART & COMPANY
Linking Store Systems DELLMART & COMPANY
Non Food Store Labor DELLMART & COMPANY
Warehouse Labor Overview DELLMART & COMPANY
Inbound • Issues • Accurate inventory • Transfer inventory ownership • Vendor performance • On time delivery • Complete delivery • Operations • Door utilization • Dock congestion • Completing paperwork DELLMART & COMPANY
Receiving - System DELLMART & COMPANY
Receiving Method DELLMART & COMPANY
Put Away • Radio Frequency standard • Complete computer control DELLMART & COMPANY
Selection • Represents 50% of warehouse labor • Issues • Accuracy • Productivity • Complete • New equipment • Voice recognition • Pick-To-Light DELLMART & COMPANY
Selection - System DELLMART & COMPANY
Replenishment • Approaches • Patrol • Directed DELLMART & COMPANY
Transportation Factors • Labor Drivers • Stops • Kilometers • Pallets • Control • Departure Time • Arrival Time • Quantity • Paperwork DELLMART & COMPANY
Summary • Employees must be managed • Clear communication required • What work is to be done • How is work to be done • When work is to be done • How often the task is performed • Who is responsible • No substitution for good supervision DELLMART & COMPANY
Summary (Cont.) • Computers & Technology • Planning & Scheduling • Tracking • Monitoring • Controlling DELLMART & COMPANY
Thank You DELLMART & COMPANY
W. Frank Dell II, CMC President DELLMART & Company 125 Hardesty Road Stamford, CT 06903 USA Tel: 203-968-8609 Fax: 203-968-8613 e-mail Wfdell2@msn.com DELLMART & COMPANY
