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How to keep the bulk trucks from hurting the numbers?
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<blockquote data-quote="TechGrrl" data-source="post: 628932" data-attributes="member: 4932"><p>Unfortunately, this problem has been around forEVER, way before DIAD showed up. It demonstrates a fundamental IGNORANCE of solid business sense on the part of our IE and Accounting dudes.</p><p></p><p>Let's say that you have 'bulk stops' where you can deliver a couple hundred packages on skids from the back of a trailer, or a 20-ft box van. This takes WAY LESS TIME than unloading each package by hand, right? Therefore, this is MORE EFFICIENT, and MORE COST EFFECTIVE to do it this way.</p><p></p><p>BUT, since Stops Per On Road Hour is our Sacred Metric, IE and ACCOUNTING have ignored this basic business fact for going on FORTY YEARS. So, a center is doing the right BUSINESS THING, but the simpletons back at the district office beat up the center, even though the center is doing the RIGHT BUSINESS THING.</p><p></p><p>This same idiotic mentality leads to district managers wanting to put up an airplane to take down a feeder, due to the fact that airplanes go on Louisville's cost report instead of the district's. My opinion of this is that such district managers are too stupid to live, much less run districts.</p><p></p><p><sigh> end of rant.....I feel your pain. This particular problem is one I had often when trying to save the company some bucks.</p><p></p><p>Increased computerization makes this worse, by the way: the programming is NOT flexible. What is printed on computer paper is Holy Writ and not to be questioned.</p><p></p><p>If we were to REALLY take the correct metric approach here, we should show SPORH by ROUTE, and track variability. The idea behind statistical process control is that you measure the things that matter. SPORH is meaningless except for the individual route, and then only if the area delivered is pretty consistent. AND it is a metric that is remarkably resistant to improvement, since it is pretty much dependent on the characteristics of the traffic patterns and the type of buildings you deliver to. I suspect that if we looked at routes that have been stable over years, the SPORH has been consistent over years, no matter who delivers them.</p></blockquote><p></p>
[QUOTE="TechGrrl, post: 628932, member: 4932"] Unfortunately, this problem has been around forEVER, way before DIAD showed up. It demonstrates a fundamental IGNORANCE of solid business sense on the part of our IE and Accounting dudes. Let's say that you have 'bulk stops' where you can deliver a couple hundred packages on skids from the back of a trailer, or a 20-ft box van. This takes WAY LESS TIME than unloading each package by hand, right? Therefore, this is MORE EFFICIENT, and MORE COST EFFECTIVE to do it this way. BUT, since Stops Per On Road Hour is our Sacred Metric, IE and ACCOUNTING have ignored this basic business fact for going on FORTY YEARS. So, a center is doing the right BUSINESS THING, but the simpletons back at the district office beat up the center, even though the center is doing the RIGHT BUSINESS THING. This same idiotic mentality leads to district managers wanting to put up an airplane to take down a feeder, due to the fact that airplanes go on Louisville's cost report instead of the district's. My opinion of this is that such district managers are too stupid to live, much less run districts. <sigh> end of rant.....I feel your pain. This particular problem is one I had often when trying to save the company some bucks. Increased computerization makes this worse, by the way: the programming is NOT flexible. What is printed on computer paper is Holy Writ and not to be questioned. If we were to REALLY take the correct metric approach here, we should show SPORH by ROUTE, and track variability. The idea behind statistical process control is that you measure the things that matter. SPORH is meaningless except for the individual route, and then only if the area delivered is pretty consistent. AND it is a metric that is remarkably resistant to improvement, since it is pretty much dependent on the characteristics of the traffic patterns and the type of buildings you deliver to. I suspect that if we looked at routes that have been stable over years, the SPORH has been consistent over years, no matter who delivers them. [/QUOTE]
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