Most companies, especially small to moderate sized businesses, do not have the data collection and measurement processes in place to measure productivity by department and employee. This is where the improvement happens. It should be a goal of every operation so that you can set realistic goals for productivity improvement and to make better use of your labor and assets used in fulfillment.
To help you measure department productivity, here is an Excel spreadsheet you can use to calculate these metrics.
This spreadsheet contains calculations for departmental functions including receiving, putting away, picking, packing, shipping and returning items to fill orders and process returns.
Download the Excel worksheet by filling out the form and calculate your KPIs today.
To get a meaningful measurement of these departmental costs and functions, you will need to have data collection at a much lower level and include paid hours for those activities. We recommend using a timekeeping system that allows measurement of the employee in/out for various departments. Without this, any cross training you have adopted will distort how many transactions, such as orders, lines, and boxes, are processed.
You’ll also want to calculate the paid hours worked in the department from the time collected.
The calculations in this worksheet should become the basis of your warehouse departmental productivity. While simple in calculation, there will be considerable work in identifying the sources and timeliness of the data. The results, though, are worth it.