News | August 16, 2006

Workforce Automation: H. B. Maynard And Company, Inc. Introduces A Lean Approach To Backroom Management For The Retail Industry

To help retailers to recapture working capital and create a more employee and customer friendly environment, H. B. Maynard and Company, Inc. (Maynard) has created Visual Backroom Management for Retail™, a packaged solution to create a lean, visual backroom supported by engineered backstock levels.

"The backroom, the unseen driver of a retail store, is often overlooked when improvement initiatives are discussed," said Edward J. Gill, Maynard Executive Vice President. "The backroom holds tens or hundreds of thousands of dollars in inventory, some of which will turn into sales, others will become shrink."

"Organizing the backroom into a visual, efficient workplace based on a proven, disciplined approach using engineered calculations for backstock helps retailers reduce our-of-stocks and increase customer service and working capital."

Gill said having the correct amount of backstock is only one measure of an optimal backroom. Proper organization and space allocation are critical as well. They key to maintaining backstock levels and the backroom environment is to have simple processes to review backstock periodically with the right culture and systems in place to support the environment. The Maynard approach for visual backroom management does just that by creating a culture of teamwork and discipline founded in 5-S. The techniques used in this packaged solution can benefit any retailer, even those currently using or preparing for a computer-generated ordering system.

"5-S is considered by many to be the foundation for other improvement efforts," said Gill. "Using 5-S, a lean, visual backroom is created which focuses on eliminating waste and determining a ‘home' location for the necessary SKU's. The clean, uncluttered and organized work environment allows for a smooth flow of work, and the discipline practiced by employees carries over into new routines and practices on the sales floor."

"5-S is a powerful technique because it involves everyone and creates a sense of pride and ownership and builds an appreciation for a disciplined approach and a desire for continued improvement."

The Visual Backroom Management for Retail packaged solution provides retailers with an effective approach to determine what backstock is needed in the backroom, how much is needed, and then to apply lean principles for organizing and maintaining the backroom.

Beginning with a comprehensive, active learning-based training session, this packaged solution takes users through a straightforward and systematic process to effectively manage the backroom.

"The approach for effective visual backroom management starts with a thorough analysis of store data including sales volume, delivery schedules, case sizes, shelf capacity, and desired product presentation levels," said Gill. "Backstock Levels are determined with engineered calculations which are incorporated into the Backstock Manager™ software tool. The software takes store data and determines backstock levels based on your sales volume, shelf capacity, delivery schedules and production presentation requirements."

The process to organize the backroom begins once correct inventory levels have been identified. Using work flow design and 5-S principles, inventory locations are set based on usage and quantity. The 5-S principles drive the removal of excess inventory and the visual identifiers to be used in the backroom. A complete 5-S kit with signs, shelf tags, hanging supplies, and other visual aids is provided to transform the backroom into a visual showcase.

Gill said the result is an organized and visual backroom that contains only the backstock needed in the optimum quantities. This approach creates a user-friendly environment as it frees up time for store associates so more time can be spent on the sales floor assisting customers or performing other value-added tasks. In addition, the package will drive reductions in inventory and out-of-stocks.

About H. B. Maynard and Company, Inc.
H. B. Maynard and Company, Inc. ("Maynard") helps leading retailers to improve workforce performance by providing tools, training, and expertise in labor management, best methods, workplace organization, labor standards, and staffing. Results focus on reducing labor costs while meeting customer service objectives. Maynard, headquartered in Pittsburgh, PA, has been helping companies improve their productivity, quality, and culture for over 72 years. The company has developed The Maynard Workforce Performance Model™, a multi-disciplined strategy, to assist companies in improving the productivity, quality, and culture of their organizations. The model includes disciplines such as: 5-S; Work Flow Design; Setup Reduction; Best Methods; Engineered Standards; and Performance Management. A complete array of published materials, training courses, and software products support each discipline.