When evaluating the success of a new automated system pilot in a distribution center, it is essential to choose metrics that directly measure the efficiency and effectiveness of the system.
Impact on labor hours is the best metric to measure the overall success of the pilot. Automation aims to streamline operations, reduce manual labor, and increase productivity. By tracking the impact on labor hours, the supply manager can quantify the reduction in manual work, which directly correlates with the efficiency gains from the automated system.
Other metrics mentioned, such as:
* Average cost of orders: While important, this metric may be influenced by several factors beyond the automation system.
* Competitiveness of pricing: This is more relevant to market strategy and less to internal operational changes.
* Adherence to forecasts: Useful but does not directly reflect the operational improvements from the automation.
Measuring labor hours provides a clear, tangible indication of the automation system's impact on operational efficiency, making it the most relevant and direct measure of the pilot's success.
References:
* "Warehouse & Distribution Science" by John Bartholdi and Steven Hackman
* "Automation in Warehouse Development: Impact on Workforce and Productivity" by the International Journal of Production Research