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Ask any operations manager about productivity and you’ll hear about pick rates: 77 units per hour, maybe 85 on a good day. But here’s the uncomfortable truth that every warehouse leader knows but rarely discusses: traditional pick rates are fundamentally flawed, bringing everyone down to the lowest common denominator.
At WIN Solutions, we’ve spent decades guiding warehouses beyond these limitations. Today, we’re sharing insights into engineered work measurement, a precise, fair, and transformative approach that’s revolutionising how forward-thinking operations measure and incentivise productivity.
Listen to our podcast episode on engineered work management, or scroll down to read the rest of the article.
The Fatal Flaw of Traditional Pick Rates
Traditional pick rates operate like a form of industrial communism; they reduce everyone to the average, regardless of the actual complexity of their work. Consider two warehouse operatives: one receives orders requiring three items all located at the front of the warehouse, whilst another must collect 53 items scattered throughout the facility. Under traditional systems, both are measured against the same arbitrary standard.
As James Gardiner, Principal at WIN Solutions, explains: “The pick rate is unfair because it brings people down to the lowest level. Because there’s some guys that are doing 90, 100. But on average, they can get people to 77.”
This creates an inherently unfair system where high performers are discouraged and struggling team members aren’t given the support they need. The result? As James puts it: “What do you think the average warehouse is running at when we go to implement this? 65 to 70% is the average.”
What is Engineered Work Measurement?
Engineered work measurement transforms productivity from a blunt instrument into a precision tool. Rather than measuring arbitrary pick rates, it calculates the actual time required for each specific task based on proven industrial engineering standards.
The system breaks down every warehouse activity into its core elements:
Order Time: The baseline time for each order, including collecting the paperwork, scanning into the system, and initial setup.
Case Time: When picking loose items, time allocated for building cases, applying labels, and inducting them into the system.
Travel Time: Calculated based on actual distance travelled, accounting for aisle navigation, machine speed, and walking pace.
Pick Time: Differentiated between first picks (requiring location verification and scanning) and subsequent picks of the same item.
Personal Fatigue and Delay (PF&D): A studied percentage added to account for natural breaks, interruptions, and the realities of warehouse operations.
The Science Behind the Standards
These aren’t arbitrary numbers conjured by consultants with stopwatches. Engineered work measurement relies on Master Standard Data internationally recognised time standards developed through extensive video analysis of warehouse operations. These standards have been tested and validated across countless facilities, with some even surviving royal commissions and legal challenges.
“None of these times that we’ve got are done by stopwatch, none at all,” James explains. “What we do is we use standard numbers that have been approved that have been used for years. We’ve never had the processing power to do it in smaller places until now.”
The beauty lies in its universality: regardless of who performs the task, the fundamental motions remain remarkably consistent. Whether you’re picking an item or your colleague is, the time required for that specific motion varies by mere fractions of a second.
A Real-World Example
Let’s say an order requires 10 different items totalling 26 individual units across 5 aisles. The system calculates:
- Order time: 1 minute for setup and completion
- Case time: 30 seconds for container preparation
- Travel time: Based on actual distance and aisle navigation
- Pick time: 8-13 seconds for first picks, 6-10 seconds for subsequent picks
- PF&D: 18% additional time for natural delays
Total calculated time: 10 minutes
If completed in 9 minutes, the operative achieves 111% performance. If it takes 11 minutes, they’re at 91%. This creates a fair, transparent system where performance truly reflects capability and effort.
The Transformation Process: From Theory to Practice
Implementation begins with detailed observation studies. Supervisors conduct structured observations using standardised forms that mirror your warehouse’s standard operating procedures. This isn’t about surveillance, it’s about understanding the reality of your operations.
These observations reveal the hidden inefficiencies that plague most warehouses: blocked aisles, equipment issues, missing inventory, poor warehouse layout, and communication breakdowns. Suddenly, the reasons behind poor performance become crystal clear, and more importantly, actionable.
“The part of the reason some warehouses are running at 65-75% is because management have got unintentional blocks and barriers,” James notes. “Things like having to walk back to the desk every time to do something, or waiting for equipment to be charged.”
Why Operations Managers Initially Resist (And Why They Shouldn’t)
Let’s address the elephant in the room: many warehouse teams initially resist engineered work measurement. The concerns are understandable—it represents a fundamental shift from the familiar chaos of traditional operations to a structured, accountable environment.
However, successful implementations consistently demonstrate that resistance quickly transforms into enthusiasm when teams realise several key benefits:
Fair Recognition: High performers are finally recognised and rewarded appropriately, whilst struggling team members receive targeted support rather than blanket criticism.
Transparent Accountability: Both management and operatives are held accountable for their respective responsibilities. If productivity suffers due to poor planning, inadequate equipment, or workflow issues, it’s immediately apparent.
Meaningful Feedback: For the first time, warehouse operatives receive regular, structured feedback about their work performance—something standard in offices but rare on warehouse floors.
Operational Visibility: Management gains unprecedented insight into the true costs and efficiency drivers within their operation.
The Foundation for DC Metrics Excellence
Here’s where the story becomes particularly compelling for WIN Solutions clients: engineered work measurement serves as the essential foundation for DC Metrics implementation. You cannot achieve the full benefits of advanced warehouse analytics without first establishing accurate, fair performance baselines.
DC Metrics leverages these engineered standards to provide real-time visibility into labour costs, productivity trends, and operational efficiency. It transforms the observational data from engineered work measurement into actionable insights that drive continuous improvement.
The Business Case: Beyond Productivity Gains
The financial impact is immediate and substantial. Most warehouses see productivity improvements of 25-35% within months of implementation. But the benefits extend far beyond raw numbers:
Reduced Labour Costs: More accurate staffing decisions based on actual productivity data rather than guesswork.
Improved Employee Engagement: Fair, transparent systems that reward performance and provide clear development pathways.
Enhanced Operational Control: Real-time visibility into productivity issues before they impact customer service.
Stronger Management Credibility: Data-driven decisions that eliminate the “he said, she said” dynamics that plague many operations.
Scalable Growth: Systems that maintain efficiency standards even as operations expand.
Speed to Dock: Customers are serviced quicker and product ships faster by definition.
Improved DIFOT: Getting through those tough days where service suffers.
Improved service offers: Being able to offer a better service to the customer.
Additional Considerations for Operations Managers
Staff Development and Training: Engineered work measurement provides objective data for identifying training needs and measuring improvement over time. New employees can track their progression from initial performance to full competency.
Cost Justification for Capital Investments: When you understand the true cost of inefficiencies, justifying investments in equipment, layout improvements, or technology becomes straightforward.
Seasonal and Peak Planning: Historical performance data enables more accurate forecasting and staffing decisions during peak periods.
Quality Integration: Linking quality metrics with productivity data ensures that speed improvements don’t compromise accuracy.
Customer Service Enhancement: Understanding true operational capacity enables more reliable delivery commitments and improved customer satisfaction.
The Path Forward
For operations managers and warehouse leaders considering this transformation, the question isn’t whether engineered work measurement will improve your operation, it’s how quickly you can begin realising these benefits.
The most successful implementations start with a clear understanding that this isn’t merely a measurement system—it’s a comprehensive approach to operational excellence that touches every aspect of warehouse management.
At WIN Solutions, we’ve guided countless operations through this transformation, serving as your trusted partner in achieving warehouse excellence. We understand that change requires careful management, stakeholder buy-in, and a commitment to supporting your team throughout the journey.
Your Next Step
Engineered work measurement represents more than a productivity tool it’s the foundation upon which truly efficient warehouse operations are built. Combined with DC Metrics, it provides the visibility and control that modern operations demand.
If your warehouse is operating at 65-70% of its potential (and statistically, it likely is), the path to improvement begins with understanding what that potential actually is. Engineered work measurement provides that clarity, whilst DC Metrics ensures you can sustain and continuously improve upon those gains.
The transformation of your warehouse operations awaits. The question is: are you ready to move beyond arbitrary pick rates and embrace a system that truly reflects the complexity and potential of your operation?
Ready to explore how engineered work measurement can transform your warehouse operations? Contact WIN Solutions today to discuss how we can help you unlock your facility’s true potential.
