OM in the News: Amazon’s Way of Measuring Work

Amazon warehouse workers who can’t ‘make rate’ don’t last.

Austin Morreale worked at the Amazon fulfillment center in Edison, N.J.. “It was 10 hours of pretty much mind-numbingly boring work, pretty much standing in the same position for the whole shift,” he said. “But at the end of the shift, I was drenched in sweat and aching like I hadn’t ached since I was playing competitive soccer.”  Morreale was slow, he says, and kept messing up the patterns for efficiently putting items on robotic shelves—known as “stowing.” He couldn’t “make rate”: Amazonese for keeping up with the pace of work. In Amazon’s fulfillment centers, writes The Wall Street Journal (Sept. 11-12, 2021), human productivity is measured by an overall pick or stow rate calculated for each worker at a robot-fed pick-and-stow station.

On the job, no one ever stood behind Morreale and barked at him to work faster. But twice a day at a stand-up meeting, his shift managers told the group how everyone was doing. They knew because Amazon’s software, and an assortment of sensors in the warehouse, tracked workers’ every move. Knowing that if you don’t make rate you’ll get a warning, triggered by an algorithm, and if it happens often enough your job is in danger, can be a powerful psychological spur to work harder, and possibly to exceed your physical limits. (In 2019, Amazon reported 5.6 injuries per 100 workers. The average rate for warehouses in the U.S. that same year was 4.8 per 100).

More than a century ago, Henry Ford pioneered systems for speeding up work that we take for granted today (see Chapters 1 and 10). What Morreale experienced was Amazon’s 21st-century, algorithm-driven successor to Fordism. It’s a mix of surveillance, measurement, psychological tricks, targets, incentives, sloganeering, and an ever-growing array of technologies. This system of technologically supercharged management can be benevolent, or sinister, or both.

Imagine the delight of  Ford, if he could know, to the millisecond, how long it took every worker to complete a task, every day, in every facility he owned. Imagine what early time-and-motion experts Frank and Lillian Gilbreth could have accomplished had they been able to discard their film cameras and replace them with millions of hours of video captured from the digital cameras that watch every station at Amazon’s fulfillment centers.

 

Classroom discussion questions:
1. How would the use of time studies, detailed in Ch. 10, be impacted by the Amazon approach for setting standards?

2. What are the responsibilities of operations managers in dealing with productivity and safety at their warehouses?

 

 

OM in the News (and Video Tip): Formula 1 Pit Stops and the Gilbreths

pitstopFrank and Lillian Gilbreth, the pioneers of time and motion studies, would smile with approval as they watch this 2-minute video comparing F1 racing pit stops in 1950 and today. If you follow F1 racing, it comes as no surprise that pit stops have been reduced to an amazing 2 seconds!

The role of the pit has changed dramatically over the years, writes OR/MS Today (Oct., 2014). For much of racing history, cars would only stop in the event of problems. Scheduled tire changes or fuel stops were not part of the equation. But in 1982, an analytically-minded UK race team focused on 2 important facts. First, softer tires stuck to the track better than harder ones, though they wore out more quickly. Second, less gas in the tank translated into a lighter, faster car. Calculations showed that time spent changing tires and refueling was more than offset by performance on the track.

The idea quickly caught on, making pit stops–and their efficient execution–an integral part of racing. But in 2010, when F1 racing instituted a no refueling policy (out of safety concerns), the stage was set for lightening-fast tire changes. Achieving a 2-second tire change required optimizing the entire process. Analysts looked at everything from the design of wheels nuts (1 per wheel on F1 cars), to special self-positioning pneumatic guns that remove and tighten each nut. They then turned their attention to the pit crews. Teams of 3 work on each wheel, one to remove the old tire, one to position the new one, and one to operate the gun. Their moves are choreographed down to the position of their hands and feet from start to finish. With 2 jack operators and other workers, as many as 20 people crowd around a car during a pit stop–for 2 seconds of work.

What a great example of methods analysis (see Figures 10.5- 10.7) for Chapter 10.

Classroom discussion questions:

1. Try to create an activity chart for the pit stop from the video, using Figure 10.6 and Solved Problem 10.1 as models.

2. How does this differ from the NASCAR pit stop described in the Global Company Profile that opens Chapter 10 on pages 396-7?