Operation Management

2. Execute Station & Position Productivity Analysis After establishing maximum capacity and par levels, it’s time to conduct a gap analysis to see how station- and position-level data and performance stack up. Here are some methods to identify areas of opportunity for process improvements when looking to optimize labor: • Labor Analysis - Labor analysis examines how many labor hours the company uses in a year and how these hours are distributed among employees and tasks. Many businesses do not track where their time goes, resulting in hidden inefficiencies. When labor usage is measured properly, managers can see which tasks consume too much time and whether these tasks add real value. This analysis often reveals opportunities to reduce unnecessary work and redeploy labor more effectively.