Project Description

UTD Case Study 1: Distribution Center (DC) Workforce Scheduling

Company background

McKesson Corporation, founded in 1833 and headquartered in Irving, Texas, is a Fortune 9 company. It is a leading distributor of healthcare systems, medical supplies, and pharmaceutical products. McKesson offers its healthcare services both in the United States and internationally. The company operates through four main segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International. For more detailed information about McKesson, please visit their official website: https://www.mckesson.com/About-McKesson/

Project background / Problem Statement

The distribution centers (DCs) operate from 6-7AM and remain open until the completion of work, usually around 1-2AM the following day. This extended schedule is necessary because customer and sales representative orders are received and consolidated for same-day shipment (as the UPS cutoff time is 9pm). Subsequently, preparations for the next day’s orders must be carried out. McKesson aims to become the best place to work in healthcare and is striving to implement schedules that optimize both productivity and employee contentment.

Project scope and deliverables

1. Conduct research on labor schedules used by other supply chain distribution center companies to determine which form, such as 4 x 10-hour workdays, 5 x 8-hour workdays, 3 x 12-hour workdays, or full work to completion (as McKesson currently does), is the most efficient. Based on an internal survey with the DC staff their preferred schedule was found to be 4 x 10-hour workdays. Furthermore, explore whether implementing an “uber model” to bring in additional personnel when needed would be beneficial in any of these scenarios. Lastly, we welcome any creative ideas on how AI can be leveraged to optimize the system, provide valuable insights, and streamline workflows.
2. Utilize PowerBI or PowerPoint to create dashboards that evaluate the following key performance indicators (KPIs) for the different labor schedules, as stated above: a. Assess the positive and negative aspects of each schedule and its impact on employee morale and productivity. b. Evaluate risks for employee burnout across the different labor schedules. c. Measure productivity levels for each labor schedule and compare their effectiveness. d. Compare the cost of employing workers under each labor model, including overtime pay, to determine the most cost-effective option.

These dashboards will provide valuable insights into the various KPIs, allowing for data-driven decision-making when selecting the most suitable labor schedule for the organization.

Recommended Student Skills.

Online Research, Data Visualization like PowerPoint/ PowerBI/Excel, Artificial intelligence.

Additional Information:

Consider arranging a visit to the Dallas distribution center (DC) for additional research purposes. During the visit, McKesson’s team can provide information on the number of personnel required to handle the current volume of work, as tracked by the DC Supervisors. This on-site investigation will provide firsthand insights and allow for a deeper understanding of the workforce requirements and operational dynamics at the DC.