To protect the apparel retailer that nGroup had the honor of working with, we will not list their name on the blog. But here’s the story…
Within one year, productivity increased more than 30% and cost per unit decreased by 17%. Productivity improvements are projected to increase to 100% above baseline with a corresponding cost per unit reduction estimated to be 50% of original costs.
The project helped create a performance-focused culture. Supervisors transformed their perspective to focus on achieving throughput goals by improving the efficiency and effectiveness of individual associates by using real-time, software based reporting tools to help performance incentives reward individuals for their performance as determined by engineered labor standards, improving the link between performance and compensation.
The company also implemented actionable activity-based costing. Process costs can tracked by product category, channel based on processing and special handling requirements. Data capture and reporting supports budgeting, standard costs, variance, and profitability analysis.