Definition of productivity using technology, decision making framework, case study use of active RFID to increase productivity. Useful for DTAPP program in Canada

1. Increasing Productivity via Technology
What it is - How to measure – Technology - Case study
Terry Rachwalski, MBA CMC
@consultingmania #CEMC
terry@theconsultinglife.ca

2. 1. Automation applied to an efficient operation will magnify the
efficiency.
2. Automation applied to an inefficient operation will magnify the
inefficiency.
Bill Gates

3. Where is the value?
Strategy Operation
• Business model • Perform activities better
• Customer value • Cost, quality, time
• Uniqueness • Execution

4. Decision making framework
• Strategic objectives 3 – 5 years? Performance?
• 5 best opportunities for growth?
• Pain points? What keeps you from growth?
SWOT
• 5 biggest opportunities for productivity?
• Barriers to increasing productivity?
• How will we measure?

5. COST vs FLOW
COST - re-work, reducing
waste & non-value add
FLOW increase includes
COST items +
Increased output
Improved quality
Decreased lead time
Why flow?
Increase sales and
productivity

6. Earnings Salaries VAPE
FTEs
Cold facts: Value Added per Employee + ROI
= Productivity

7. Value?
+
What to do more of ?
Less of?
+
Compare VAPE and ROI
+
Does the technology add
a strategic value?
=
Make it so!

8. Barcode 2D tag code
Quick response code
12 digits Sends to a web site
Sends to a web site
Standardized
Need smart phone + app
Need smart phone + app
Need line of site Close proximity
Close proximity
Close proximity Design! Retail !

9. Smart cards
Magnetic stripe Access Control
Access control
More secure
125kHz
Finance, border control,
Mag stripe less secure Close proximity
security

10. Active RFID & RTLS
GPS/cell
Passive RFID Transmits
Needs antenna
Poly tag Needs battery
Standardized Longer range
More data Indoor
Outdoor
alt: WiFi
Fleet management
1-3 m read range
Tracking
Need reader + antenna Need reader + antenna
Time
Retail/inventory Warehouse
Value added features
Warehousing High value assets

11. Handheld Devices Mobile Forms
Versus Visibility
Smart Phones Lone worker safety Needs
Ruggedized Smart Phones Combinations of
Barcode/passive readers technology &
Mobile Work Force business
Retail/inventory management
Warehousing intelligence

12. Case Study: real time locating inventory
• Before RTLS (Monthly)
– Labour – 4 people per shift $16,000
– Rush shipments & late charges $ 5,000
– Halted or slowed production lines $12,000
– Total $33,000
• Cost with RTLS (Monthly)
– Labour – 1 person per shift $ 16,000
– Labour re-assigned to high value work
– Rush shipments & late charges $ 2,000
– Halted or slowed production lines $ 5,000
– Total $23,000
– Monthly Savings $10,000

13. ROI & VAPE
• Technology saved $10,000 per month
• Capital cost of $100,000 ROI = 10 months
• Re-assigned labour increased profit
• VAPE: increased 10% per employee
• Improved client relations = differentiator

14. Where’s the sweet spot?
Technology doesn’t solve bad process
Stick to value & profit
Productivity is in flow not just cost reduction
Value added per employee + ROI + strategic value
Combine business intelligence & technology

15. Questions?
Terry Rachwalski, MBA CMC
terry@theconsultinglife.ca
@consultingmania
Next up: Eric Anderson - Business Intelligence