Press Release

Avoid Common Errors when Measuring System Performance

(Boonton, NJ, December 2, 2008) — When a warehouse manager suspects poor system performance, the first step is typically to check his data. Unfortunately, more than 50 percent of the time, system performance is measured incorrectly.

According to Don Savage, a senior account manager with Diamond Phoenix, data is only as good as the methods used to calculate it; if we measure something the wrong way, the results will be wrong.

In an article in the December issue of Distribution Center Management, Savage examines four of the most common errors DC managers make when measuring system performance. One of those errors, he says, is flawed pick rate measurement.

“Many managers complain of low daily or hourly pick rates,” he says. “Upon investigation, we find that pickers are only picking between four and six hours, but management is measuring that output against an eight hour day. This translates into low pick rates on a spreadsheet, but it is completely inaccurate.”

Instead, Savage recommends you measure pick rates against the time actually worked. This makes for a more complex measurement, but it gives you a much clearer picture of the true capabilities of the existing system. It is also a good indicator of wasted or available time throughout the day.

To read the full article, “How to avoid four common errors when measuring system performance,” visit the Distribution Group website at http://www.DistributionGroup.com/featured_articles.php.

About the Distribution Group

For more than 40 years, Distribution Group publications have helped distribution center and warehouse managers increase productivity, cut costs, and meet increasing customer demands. Distribution Group publishes Distribution Center Management newsletter, books and reports, and a free e-newsletter.

Website: http://www.DistributionGroup.com