Excessive overtime has become a persistent issue in the warehouse operations
of PT XYZ, a 3PL company. Employees frequently exceeded the legally permitted
limit of 18 hours of overtime per week. This condition arose from extended
working hours that went beyond the daily threshold of 11 hours, creating
challenges for multiple stakeholders, including the depot head, warehouse staff,
and sales personnel.
To analyse and address the problem, several structured methods were employed.
Process Activity Mapping (PAM) was first used to classify warehouse activities
into value added, non-value added, and necessary non-value added categories.
This was followed by the application of Value Stream Mapping (VSM) to visualize
the flow of activities and measure the cycle time of the entire process. The root
causes of delays and inefficiencies were then examined using the Why and Whys
analysis, which uncovered several underlying issues contributing to waste. Based
on these insights, the ECRS principle (Eliminate, Combine, Rearrange, Simplify)
was applied to redesign workflows and propose targeted improvements aimed at
reducing working hour.
The implementation of these methods resulted in significant improvements within
warehouse operations. The targeted initiatives included the redesign of several
activities, the modification of the stock card format, the introduction of a kanban
board, and the establishment of Standard Operating Procedures (SOPs).
Following these solutions, the average employee working hours were
successfully reduced to 10.72 hours per day, keeping them within the threshold
of 11 hours per day and thereby ensuring compliance with the legal overtime
regulation of 18 hours per week. Furthermore, cycle times across key warehouse
processes were reduced by 16.7 percent, equivalent to 65.9 minutes,
demonstrating a measurable improvement in overall efficiency.