applying lean concepts
TRANSCRIPT
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Applying Lean Concepts in aWarehouse Operation
Applying Lean Concepts in aWarehouse Operation
Frank GarciaFrank GarciaPartnerPartner
ADVENT DESIGN CORPORATIONADVENT DESIGN CORPORATION
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What Well CoverWhat Well Cover
++ Basic Lean Concepts for WarehouseBasic Lean Concepts for WarehouseImprovementImprovement
++ Using Value Stream Maps: Using Value Stream Maps: Current & Future StateCurrent & Future State
++ Implementing Process ImprovementsImplementing Process Improvements
++ Case Study Using and Ongoing Case Study Using and Ongoing Application (Pork Producer)Application (Pork Producer)
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WHAT TO DO ABOUT THEWAREHOUSE?
WHAT TO DO ABOUT THEWAREHOUSE?
Too many peopleToo many people Excessive material handling Excessive material handling Inventory inaccuracies Inventory inaccuracies Dont ship the pounds Dont ship the pounds No space!!!! Need to Expand! No space!!!! Need to Expand!
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WAREHOUSE CHALLENGESWAREHOUSE CHALLENGES++ Focus on Manufacturing.Focus on Manufacturing.
Warehouse is a box on theWarehouse is a box on theVSMVSM
++ Product pushed intoProduct pushed intowarehouse & pulled bywarehouse & pulled bycustomerscustomers
++ Application of LeanApplication of LeanPrinciples to an area thatPrinciples to an area thatexists because of waste inexists because of waste inthe value stream or customerthe value stream or customerdemand/lead timedemand/lead time
++ Warehouse is the crossroadsWarehouse is the crossroadsof conflicting requirementsof conflicting requirements
Office & Info FlowOffice & Info Flow
WarehouseWarehouse
ProductionProduction SuppliersSuppliers
Customer DemandsCustomer Demands
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How Do We Use Lean Techniques for Warehouse Improvement?
How Do We Use Lean TechniquesHow Do We Use Lean Techniques for Warehouse Improvement? for Warehouse Improvement?
++ Assess the operation using a Value StreamAssess the operation using a Value StreamMap and/or Map and/or PFDsPFDs (Product families & Warehouse data)(Product families & Warehouse data)
++ Involve the operators & supervisorsInvolve the operators & supervisors++ Identify lean improvements & Identify lean improvements & kaizenskaizens)) Question every activity!Question every activity!)) Treat the warehouse like a large staging area Treat the warehouse like a large staging area
++ Develop justificationDevelop justification++ Implement lean improvements using VSMImplement lean improvements using VSM
planplan++ Start the cycle again!Start the cycle again!
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Lean ManufacturingLean Manufacturing
Any activity or action which doesAny activity or action which doesnot add value to the product is anot add value to the product is a
form of waste and must beform of waste and must beeliminated or minimizedeliminated or minimized..
Fundamental Principle of Lean Manufacturing
In the Warehouse Customer Pays for ShippingIn the Warehouse Customer Pays for ShippingEverything Else Must Be Minimized !Everything Else Must Be Minimized !
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What Do We Need to Know?What Do We Need to Know?
++ DemandDemand++ Material Flow & Handling Material Flow & Handling++ Information Flow to the Information Flow to the
Warehouse Warehouse++ How Material is Stored How Material is Stored++ Order Picking & Staging Order Picking & Staging++ How Shipped How Shipped
VALUE STREAM MAPPING!VALUE STREAM MAPPING!
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Why Use VSM?Why Use VSM?
++ Road map for lean improvementsRoad map for lean improvements
++ Train team members in use of lean Train team members in use of lean conceptsconcepts
++ Integrated lean implementation plan Integrated lean implementation plan
++ Long term planning - Many Future States Long term planning - Many Future States
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Current State MapCurrent State Mapproduct family
current state drawing
Future state drawing
plan and implementation
Understanding how the warehouse Understanding how the warehouse currently operates.currently operates.
+ Material and information flows+ Start with the door to door flow+ Walk the flow and get real data * no standard times * draw by hand
+ Get operators & supervisors involved+ Basis for the Future State
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Kill & Cut Metal Detection Strapping Palletizing& Storage
I I I
C/T =2 secC/O =2 min Rel. = 95%
C/T = 2 secC/O = 1 minRel. = 80%
C/T = 10 - 35 minutesC/O = 0 minRel. = 85%Avail. = 49.5 to66 hrs (2 shifts)
C/T = 7 secper case or 10min per palletC/O = 0 minRel. = 85%Avail. = 24.8hrs (2 shifts)
ConveyorStaging10 to 15
cases
RackStorage
775positions;7 reefers;610K lbs
MultipleOperators
VariousCustomers
Spices and Smokehouse
Materials
Demand:131 to 242 orders perdayAvg: 167/day1 to 2 pallets/order15 to 17 orders pertruck12 to 13 trucks perday1 route per truck
Productionand Inventory Control
(Computer System)
Randomly PlacedOrders (Various Sizes)
Blanket Orders with DailyReleases; Supplemented with
Open Market Purchases
Blanket Orderswith Weekly or
Bi-Weekly Releases
DailyProductio
nSchedule
Daily Shipping Orders& Freezer Release
(5PM)
Order Lead Time 3.7 to 6.1 DaysOrder Processing Time: 6 HrsTakt Time: 3 to 4 minutes
Warehouse Current StateValue Stream Map
DailyShipments
(12 to 13 routes)
Cut Products
Conveyor Staging10 cases
Hogs
Daily
(about400)
Weeklyor Bi-Weekly
40seconds
20minutes
40 seconds
30seconds
6 minutes 20minutes
2.9 to 5.3 days
(Freezerstorage:
6.7 to 14.5
1 to 2Pallets
1 to 2Pallet
3People
35minutes
5 sec
1 to 2pallets
perorder
PackagingMaterials
Weeklyor Bi-Weekly
Wrap & Pack
MultipleOperators
Cut Products
Smoke
MultipleOperators
Wrap & Pack
MultipleOperators
Smoked Products
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ConveyorStaging
Order Picking
6 to 8People
I
I
StagingPalletizing
& Dock6 orders
(12 pallets)
1 to 2pallets
perorder
Shipping
Off-Site Freezer Storage
SmokehouseOperations
AgingReport
1 to 2pallets
2People
OrderChecking
& Scanning
I
2People
1 to 2pallets
Stagingfor Trucks2 orders
(4 pallets) C/T = 15 min C/O = 0 min Rel. = 85% Avail. = 16.5 hrs
C/T = 4 hours C/O = 0 min Rel. = 85% Avail. = 16.5 hrs
10minutes
15 minutes
4 hours
1, 578K lbs
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Important Warehouse DataImportant Warehouse Data++ 60mm pounds per year60mm pounds per year++ 6.8 turns per month6.8 turns per month++ Seasonal production.Seasonal production.
Production exceedsProduction exceedsshipments by 20% Eastershipments by 20% Easter& Xmas& Xmas
++ Average 1.2 pallets perAverage 1.2 pallets perorder. Average 167order. Average 167orders/dayorders/day
++ 95% of picks are for less95% of picks are for lessthan a palletthan a pallet
++ Returns 1.9% of Returns 1.9% of lbslbsshippedshipped
2002 Product Picks (All)
609
31 16 8 5 1 1 0 0 0 0 10
100
200
300
400
500
600
700
1 to1000
1001 to2000
2001 to3000
3001 to4000
4001 to5000
5001 to6000
6001 to7000
7001 to8000
8001 to9000
9001 to10000
10000to
11000
11001to
12000
Number of Line Item Picks
N
u
m
b
e
r
o
f
P
r
o
d
u
c
t
I
t
e
m
s
10% products = 66% of picks20% products = 84% of picks
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Opportunity: Material Flow & LayoutOpportunity: Material Flow & LayoutMany crossed flows !Many crossed flows !
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Opportunity: Walking and Lifting inPalletizing
Opportunity: Walking and Lifting inPalletizing
++ Little caseLittle caseaccumulationaccumulation
++ Case lifting andCase lifting andwalkingwalking
++ Pallet cycle time tooPallet cycle time toolonglong
++ Cases missing strapsCases missing straps++ Area used for orderArea used for order
stagingstaging++ No visual controlsNo visual controls
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Opportunity: Rack Storage andUtilization
Opportunity: Rack Storage andUtilization
++ Daily Product AgingDaily Product AgingCountsCounts
++ Insufficient pallet storageInsufficient pallet storagefor peak monthsfor peak months
++ No rack locator systemNo rack locator system++ Reefers used for overflowReefers used for overflow
storagestorage++ Product gets lostProduct gets lost++ Rely on operatorRely on operator
memories or supervisormemories or supervisorexpeditingexpediting
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Opportunity: Order Picking & ShippingOpportunity: Order Picking & Shipping
++ Order picking too slowOrder picking too slow++ Must pick before finalMust pick before final
order confirmationorder confirmation++ Few operatorsFew operators
understand warehouseunderstand warehouse++ Dock staging too smallDock staging too small++ Inventory updated atInventory updated at
scanningscanning++ Not enough dock doorsNot enough dock doors
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ORDER PICKING FLOW
SMOKED
STAGEORDER
FRESH FROZEN
GET PICKLIST
GET LOADPATTERN
LOCATE PALLETIN WAREHOUSE
MOVE PALLET
PICKCASES OR PALLETS CASES 95% OF TIME
STOREPALLET
MOVE PALLET
LOCATE PALLETIN DOCK RACKS
PALLETIZING AREA DOCK
CHECKORDER
SCANBAR CODES
LOADTRAILER
REPEATUNTIL
ORDERCOMPLETE
MOVE TO INSPECTION
MOVE TO TRUCK
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Looking34%
outside interruption5%
Picking38%
reorganizing product-dates11%
Walking8%
computer-looking2% interference
2%
computer-looking
interference
Looking
outside interruption
Picking
reorganizing product-dates
Walking
Why is Order Picking Slow?Why is Order Picking Slow?
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Opportunity: Case Flow Through MetalDetection & Strapping
Opportunity: Case Flow Through MetalDetection & Strapping
No gap between casesNo gap between cases Cases jam at metal detector Cases jam at metal detector Maintenance adjusts metal Maintenance adjusts metal
detectordetector Run out of strap Run out of strap No system status display No system status display
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Opportunity: Production Scheduling Not inSync With Shipments or Warehouse CapacityOpportunity: Production Scheduling Not in
Sync With Shipments or Warehouse Capacity
++ Pallet storage in aislesPallet storage in aisles++ Insufficient palletInsufficient pallet
storage for peakstorage for peakmonthsmonths
++ Outside FreezerOutside FreezerWarehouse Used usedWarehouse Used usedfor overflow storagefor overflow storage
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How Do We Fix It?How Do We Fix It?
++ Look at Application of Lean Look at Application of LeanConceptsConcepts
++ Future State Using Value Future State Using ValueStream Maps With & Stream Maps With & Without ExpansionWithout Expansion
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Future State QuestionsFuture State Questions++ What is the What is the takt takt time?time?++ Will we build to shipping or to a supermarket?Will we build to shipping or to a supermarket?++ Where can we use continuous flow? How do we level theWhere can we use continuous flow? How do we level the
pacemaker process?pacemaker process?
SUPPORTING IMPROVEMENTSSUPPORTING IMPROVEMENTS++ What process improvements will be necessary to eliminateWhat process improvements will be necessary to eliminate
waste?waste?
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TAKT TimeTAKT Time
Synchronizes pace of production to match pace of sales
Rate for assembling an order based on shipping schedule
TAKT = Effective Working Time per Shift Customer Requirement per Shift
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Look for No Flow &WastesThey are in the warehouse too!
Look for No Flow &WastesThey are in the warehouse too!
++ Inventory (too much)Inventory (too much)++ Overproduction (more or Overproduction (more or soonersooner than needed) than needed)++ Correction (inspection and rework)Correction (inspection and rework)++ Material MovementMaterial Movement++ WaitingWaiting++ Extra MotionExtra Motion++ Non-Value Added ProcessingNon-Value Added Processing
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Lean ManufacturingConcepts & Techniques in the Warehouse
Lean ManufacturingConcepts & Techniques in the Warehouse
++ Flow:Flow: Visual Workplace, Layout Visual Workplace, LayoutImprovement, Lean AutomationImprovement, Lean Automation
++ Materials:Materials: KanbanKanban Systems, Supply Chain Systems, Supply ChainManagement, Point of UseManagement, Point of Use
++ Perfection:Perfection: Quality Systems, Training Quality Systems, Training
++ Information:Information: Just in Time, Lean OfficeJust in Time, Lean Office
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Kill & Cut Metal Detection Strapping Palletizing& Storage
I I I
C/T =2 secC/O =2 min Rel. = 95%
C/T = 2 secC/O = 1 minRel. = 90%
C/T = 10 to 15 minutesC/O = 0 minRel. = 85%Avail. = 49.5 to66 hrs (2 shifts)Scan bar codes
C/T = 7 secper case or 6.8 min per palletC/O = 0 minRel. = 85%Avail. = 24.8hrs (2 shifts)
ConveyorStaging30 to 50
cases3 separate
ZonesBar code scan
RackStorage
883 positions;Locator system,A items on firsttier, additional
rack abovepalletizing610K lbs
MultipleOperators
VariousCustomers
Spices and Smokehouse
Materials
Demand:131 to 242 orders per dayAvg: 167/day1 to 2 pallets/order15 to 17 orders per truck12 to 13 trucks per day1 route per truck
Leidys Productionand Inventory Control
(CSB System)
Randomly PlacedOrders (Various Sizes)
Blanket Orders with DailyReleases; Supplemented with
Open Market Purchases
Blanket Orderswith Weekly or
Bi-Weekly Releases
DailyProductio
nSchedule
Daily Shipping Orders& Freezer Release
(5PM)
Order Lead Time: 3 to 4.9 DaysOrder Processing Time: 3 HrsTakt Time: 3 to 4 minutes
Warehouse AssessmentValue Stream Map (Future State) Without Expansion
DailyShipments
(12 to 13 routes)
Cut Products
Conveyor Staging10 cases
Gap cases
Hogs
Daily
(about400)
Weeklyor Bi-Weekly
40seconds 13 minutes40 seconds
30 seconds 6 minutes 15 minutes2.6 to 4.5 days
(Freezer storage:
6.7 to 14.5 days)
1 to 2Pallets
1 to 2Pallet 3
People
20minutes
5 sec
1 to 2pallets
perorder
PackagingMaterials
Weeklyor Bi-Weekly
Wrap & Pack
MultipleOperators
Cut Products
Smoke
MultipleOperators
Wrap & Pack
MultipleOperators
Smoked Products
I
ConveyorStaging
Order Picking
6 to 8People
I
I
StagingDock
2 orders(4 pallets)
1 to 2palletsper order
Shipping
Off-Site Freezer Storage
SmokehouseOperations
1 to 2pallets
2People
OrderVerification
2People
1 to 2pallets
FIFO
C/T = 10 min C/O = 0 min Rel. = 85% Avail. = 16.5 hrs
C/T = 2 hours C/O = 0 min Rel. = 85% Avail. = 16.5 hrs
8 minutes 2 hours
1, 578K lbs
Aging Data
Bar Code ScanInventoryUpdates
Bar Code ScanWarehouse Input
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What Happened in the Future StateVSM Without Expansion?
What Happened in the Future StateVSM Without Expansion?
++ Implemented rack locator system & organizedImplemented rack locator system & organizedstorage based on product turnsstorage based on product turns
++ Revised order picking methodsRevised order picking methods
++ Implemented WMSImplemented WMS
++ Improved palletizing systemImproved palletizing system
++ Reduced job classifications & cross trainedReduced job classifications & cross trainedoperatorsoperators
++ Established operational metricsEstablished operational metrics
Closer to Closer to Takt Takt Time.but not there yet!Time.but not there yet!
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FUTURE STATE PALLETIZING FLOW
SPACE TO FIT ALL PALLETS
ADD PRODUCT TO RACK,RETURN TO PALLETIZING
LINE
LOADFRESH
TRAILER
PUT AWAY
LOADFROZENTRAILER
MOVE TO TRUCK
FRESH SMOKED
MOVE TO TRUCK
LOCATE EMPTYSTORAGEPOSITION
FRESH SMOKED
SCANLOCATION
GET CASE FROMCONVEYOR
PLACE ONPALLET
MOVE CASE
MOVE PALLET
STAGEPALLET
GET STRETCH WRAPSTRETCH
WRAP
STAGEPALLET
IN TUNNEL FOR FORKLIFT PICKUP
MOVE PALLET
SCANPALLET LABEL
PRINT & APPLY PALLETLABEL
SCANCASES
SMOKED
FRESH
PRINTLABELS
WALK TOCONVEYOR
WMS WAREHOUSE
MANAGEMENT
WMS TEMPWAREHOUSE
Count Cases
Pallet Number
MOVE PALLET
MOVE PALLETPallet NumberRandomZone
Yes No
Location
Production Cases
Transfer
Location
MOVE PALLET
Visual Displayof System
Status
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FUTURE STATE ORDER PICKING FLOW
SMOKED
STAGEORDER
FRESH FROZEN
GET PICK LIST GET LOADPATTERN
LOCATE PALLETIN WAREHOUSE
MOVE PALLET
PICK CASES ORPALLETS CASES 95% OF TIME
STOREPALLET
MOVE PALLET
LOCATE PALLETIN DOCK RACKS
PALLETIZING AREA DOCK CHECK
ORDER
VERIFICATIONSCAN
LOADTRAILER
REPEATUNTIL
ORDERCOMPLETE
MOVE TO INSPECTION
MOVE TO TRUCK
SCANLOCATION
SCAN CASES
TRUCK ROUTE
WMS
WMS
WMS
WMS
WMS
Next location
Truck Route Wave Pick
Truck Route
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PROPOSED PALLETIZING & STORAGEIMPROVEMENTS
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PROPOSED PALLETIZING IMPROVEMENTSPROPOSED PALLETIZING IMPROVEMENTS
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Future State BenefitsStep 1: Without ExpansionFuture State BenefitsStep 1: Without Expansion
++ Improved order picking and material flowImproved order picking and material flow)) Reduced cycle time 15% in 3 months. Going to Reduced cycle time 15% in 3 months. Going to
30%30%++ Reduced material handlingReduced material handling++ Saved rack space (10% reduction in 2Saved rack space (10% reduction in 2
weeks)weeks)++ Reduced lead time 50%Reduced lead time 50%++ Handle peak periods with less congestionHandle peak periods with less congestion
(108 positions)(108 positions)++ Better trained and flexible workforceBetter trained and flexible workforce++ Capital Payback of 1.8 yearsCapital Payback of 1.8 years
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How Do We Implement the Future StateVSM?
How Do We Implement the Future StateHow Do We Implement the Future StateVSM?VSM?
++ Dont Wait Until Its Perfect! Dont Wait Until Its Perfect!++ Use future state VSM to highlight changes Use future state VSM to highlight changes++ Break up the future state into sections Break up the future state into sections++ Develop a VSM implementation plan Develop a VSM implementation plan++ Tie plan to business objectives & show Tie plan to business objectives & show
savingssavings++ Assign projects to team members to Assign projects to team members to
implementimplement
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Process Problem Solution
MetalDetection&Strapping
M1. Cases not metered into machines causing jams andbackup of product
M2. Metal detector setting has to be changed manually
M1. Create space between cases with metering device increasesreliability of strapper and metal detector
M2. Scan product to set metal detection setting increases reliability ofmetal detector
Palletiz-ing
P1. Product is handled twice, once to palletize then once topick
P2. Operator walking several feet to obtain correct case ofproduct to palletize
P3. Product is moved to be shrink wrapped prior to putaway
P1. Rearrange high moving product to allow case stacking in flowracks
P2. Shorten walking distance by separating product onto shorterconveyors
P3. *Automate the shrink wrapping process with conveyor andautomatic wrapper
StorageRacks andStaging
ST1. Searching for open position for putawayST2. Product must be rotated from top to bottom resulting in
several pallet movesST3. Need forklift to put bottom row away. Need ladder to
pick from second tier.
ST1. Implement Warehouse Management System for putawayST2. Rearrange racking for whole pallet flow racks on high moving
productST3. Remove lower rail on certain aisles to allow pallet jack putaway
instead of forklift. Lower second tier to pick height withoutladder.
OrderPicking
O1. Pickers searching for product due to no location systemO2. Walking from aisle to aisle with no logical sequence of
picksO3. Rotating stock to bring oldest date to front
O1. Put pick locations on pick ticket after Warehouse ManagementSystem is installed
O2. Sort products by frequency of pick then by weight in warehouseto minimize walking
O3. *Use pallet flow racks to automatically rotate stock
ShippingSH1. Insufficient space to stage multiple pallets leads to
double moves of productSH2. Operator is dedicated to verifying picked pallet prior to
scanSH3. Occasionally additional product gets shipped to
customer
SH1. *Increase floor space for dock staging. Long term plan would beto reorganize when building is expanded
SH2. Improve picking operation through training and scanning at picklocation with bar code scanners.
SH3. Confirmation check by scanning once prior to loading truck
Organizing the Lean Solutions
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PROPOSED IMPROVEMENTS: Costs & Savings
P r o c e s s P r o b le m S o lu tio nC y c le T im e(R e d u c e d )
A n n u a lS a v in g s $
C o s t toIm p le m e n t
M eta lD ete c tio n&S tr a p p ing
M 1 . C a ses no t m eter e d in to m a c h in es c a u s in g ja m sa nd b a ck u p o f p r od u c t
M 2 . M eta l d e te c to r s ett in g h a s to b e c h a n g e dm a n u a lly
M 1 . C r ea te sp a c e b etw e e n c a s es w ith m eter in g d e v ic e in c rea s esr el ia b il ity o f s tra p p er a n d m eta l d et e c to r
M 2 . S c a n p r od u c t to s et m eta l d et ec t io n sett in g in c r ea s esr elia b il ity o f m eta l d et e c to r
.3 3 m in /p a l
.3 3 m in /p a l
3 ,5 0 3
3 ,5 0 3
2 ,0 0 0
2 0 ,0 0 0
P a llet iz -in g
P 1 . P r od u c t is h a n d le d tw ic e, o n c e to p a lle t iz e th e no n c e to p ic k
P 2 . O p era to r w a lk in g s ev era l f e et to o b ta in c o r rec tc a se o f p r o d u c t to p a llet iz e
P 3 . P r od u c t is m o v e d to b e s tr e tc h w r a p p ed p r io r top u t a w a y
P 1 . *R ea r r a ng e h ig h m o v in g p r od u c t to a llo w c a s e s ta c k in g inflo w r a c ks
P 2 . S h or t e n w a lk in g d is ta nc e b y so r t in g p r o d u c t b y b a r c o d ein to c o n v e y o r z o n e s o r u s in g a ver t ic a l r ec irc u la tin gc o n v e y or
P 3 . * A u to m a te th e s tr e tc h w ra p p in g p ro c e ss w ith c o n v e y o ra n d a u to m a tic pa lle t izin g
1 o p e r /ye a r
1 .3 3 m in /p a l
2 m in /p a l
* T B D
1 4 ,0 2 4
* 2 1 ,0 4 2
* T B D
9 5 ,0 0 0(v e r t ic a l
c o n v e yo r s )* 6 2 5 ,0 0 0
S to ra g eR a c k s a ndS ta g in g
S T 1 . S ea rc h in g f o r o p e n p o s it io n fo r p u ta w a yS T 2 . P r od u c t m u s t b e ro ta te d fr o m to p to b o tto m
r esu lt in g in s e v er a l p a lle t m o v esS T 3 . N e e d fo rk lif t to p u t b o tto m r o w a w a y . N e e d
la d d er to p ic k fr o m s ec o n d t ier .S T 4 . N e e d a d d it io n a l r a c k sp a c e fo r p r od u c t
S T 1 . I m p le m e n t W a r eh o u s e M a n a g e m e n t S y s t e m f o r p u ta w a yS T 2 . R ea r ra n g e ra c k in g fo r w h o le p a llet flo w r a c k s o n h ig h
m o v in g p r o du c tS T 3 . L o w er se c o n d t ier to p ic k h e ig h t w ith o u t la d d er .
R e o rg a n iz e s h e lv in g h e ig h t to a llo w se v era l S K U s to fit ino n e p a llet loc a tio n .
S T 4 . A d d r a c k in g o v er h ea d o n p a llet iz in g lin e
.7 5 m in /p a l5 m in /p a l
0 .3 3 m in /p a l
0 m in /p a l
7 ,8 9 1 ^
2 6 ,3 0 3
3 ,4 7 9
0
S e e b e lo w
4 0 ,0 0 0
3 ,0 0 0
3 0 ,0 0 0
O r d erP ic k in g
O 1 . P ic k ers s ea rc h in g f o r p ro du c t d u e to n o lo c a tio nsy s t e m
O 2 . W a lk in g fro m a is le t o a is le w ith n o lo g ica lse q u e n c e o f p ic k s
O 3 . R o ta tin g s to c k to b r in g o ld e s t d a te to fro n t
O 1 . P u t p ic k lo c a tio n s o n p ic k t ic k et a f ter W a reh o u s eM a na g e m e n t S ys t em is in s ta lle d
O 2 . S o r t p r od u c ts b y fre q u e n c y o f p ic k th e n b y w e ig h t inw a re h o u s e to m in im iz e w a lk in g
O 3 . * U s e c a se flo w r a c k s to au to m a tic a l ly ro ta te s to c k
1 0 m in /p a l
5 m in /p a l
1 m in /p a l
1 0 5 ,2 1 0 ^
5 2 ,6 0 5 ^
* 1 0 ,5 2 1
S e e b e lo w
S e e b e lo w
T B D
S h ip p in g
S H 1 . Ins u ff ic ie n t sp a c e t o s ta g e m u ltip le p a llets lea d sto d o u b le m o v e s o f p ro d u c t
S H 2 . O p era to r is d ed ic a te d to v er if y in g p ic k e d p a lletp r io r to s c a n
S H 3 . O c c a s io n a lly a d d it io n a l p r o du c t g ets sh ip p e d toc u s to m er
S H 1 . * I n c re a se f lo o r sp a c e fo r do c k s ta g in g . L o n g te rm p la nw o u ld b e to r e o rg a n ize w h e n b u ild in g is e x p a n d e d
S H 2 . I m p ro v e p ic k in g op era tio n th r ou g h tra in in g a n d sc a n n in g a tp ic k lo c a tio n w ith b a r c od e sc a n n er s .
S H 3 . C o n fir m a tio n c h ec k b y sc a nn in g o nc e p r io r to lo a d in g tru c k
3 m in /p a l
2 m in /p a l
In c re a s e
* 3 4 ,7 2 0
2 1 ,0 4 2 ^
T B D
S e e b e lo w
W M S
U t il iz e s p ro b le m S T 1 + O 1 + O 2 + S H 2 sa v in gs da ta
O r ga n iz a tio n a l h ier a rc h y to o sp e c ia liz e d . C a n t tra c kh o u rs c o r rec tly d u e to c la s s if ic a tio n o f w or k er s .
D es ig n so ftw a r e, p u rc h a se h a rd w a re , in t e g ra te sys t em s a n din s ta ll o n w a r e h o u s e flo o r .
C r os s tra in op era to r s to fil l m u lt ip le ro le s d u r in g o n e s h ift . P oo la ll la b o r a n d r e du c e a s n e e d e d . T ra c k la b or b y g ro u p p ro du c tiv ityv er s es in d iv id u a l p r od u c tiv ity .
1 7 .8 m in /p a l
T B D
1 8 6 ,7 4 8
T B D
2 4 0 ,0 0 0
T o ta l o f a ll p r o je c ts w ito u t e x p a n s io n(U s in g p ro b le m M 1 , M 2 , P 2 , S T 3 , S T 4 , a n d W M Sd a ta )
$ 2 3 4 ,0 8 1 $ 4 3 0 ,0 0 0
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PROPOSED IMPLEMENTATION PLAN
Without Expansion
Phase 1. Simple modifications
1. Remove bottom rail to allow pallet jack access. (Target dateMay 2003)
2. Lower second tier to remove the need for ladder access. (May2003)
3. Match shelf size with average pallet height to increase thenumber of
pick locations. (May 2003)4. Change speed of conveyor in metal detection room to space
product cases properly or implement as part of palletizingrelocation. (May 2003)
5. Balance flow of orders transferring from the order pickers toverifiers during the entire shift. This can be accomplished bytraining more utility operators as outlined in theorganizational restructuring matrix shown in Section 4. (May2003)
6. Label all pallet rack storage locations to begin transition towarehouse management system(May 2003)
7. Place 135 high moving SKUs on first or second tier of thepallet rack. (May 2003)
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PROPOSED IMPLEMENTATION PLAN
Without Expansion
Phase 2. Moderate improvements to computer system andoperations
1. Implement warehouse wide standards on order accuracy, lineitems shipped on time, orders shipped complete. Post theresults weekly to begin continuous improvement philosophy inwarehouse activity.(June 2003)
2. Install static racking above the existing palletizing area, leavingsufficient head room for the palletizing operation. (September2003)
3. Install new vertical recirculation conveyor palletizing stationand lift tables. (September 2003)
4. Consider implementation of CSB locator screen using movetickets if automated scanning will be delayed. (September2003)
5. Install flow through pallet rack on bottom tiers of existing racksto eliminate top-down pallet rotation on high movers. (October2003)
6. Change configuration of metal detection conveyor to scanlabels prior to entering metal detection equipment. Use barcodescan to change settings on the metal detector. (2004)
Phase 3. Major improvements to computer system and operations
1. Upgrade CSB system to include Warehouse ManagementSystem for locating product and install equipment to bar codescan case labels. (1 st quarter 2004)
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Kill & Cut Metal Detection Strapping Palletizing& Storage
I I I
C/T =2 secC/O =2 min Rel. = 95%
C/T = 2 secC/O = 1 minRel. = 90%
C/T = 10 to 15 minutesC/O = 0 minRel. = 85%Avail. = 49.5 to66 hrs (2 shifts)Scan bar codes
C/T = 7 secper case or 6.8 min per palletC/O = 0 minRel. = 85%Avail. = 24.8hrs (2 shifts)
ConveyorStaging30 to 50
cases3 separate
ZonesBar code scan
RackStorage
1100 positions;Locator system,A items on firsttier, additional
rack abovepalletizing610K lbs
MultipleOperators
VariousCustomers
Spices and Smokehouse
Materials
Demand:131 to 242 orders per dayAvg: 167/day1 to 2 pallets/order15 to 17 orders per truck12 to 13 trucks per day1 route per truck
Leidys Productionand Inventory Control
(CSB System)
Randomly PlacedOrders (Various Sizes)
Blanket Orders with DailyReleases; Supplemented with
Open Market Purchases
Blanket Orderswith Weekly or
Bi-Weekly Releases
DailyProductio
nSchedule
Daily Shipping Orders& Freezer Release
(5PM)
Order Lead Time: 2.5 to 4.4 DaysOrder Processing Time: 2.5 HrsTakt Time: 3 to 4 minutes
Warehouse AssessmentValue Stream Map (Future State) With Expansion
DailyShipments
(12 to 13 routes)
Cut Products
Conveyor Staging10 cases
Gap cases
Hogs
Daily
(about400)
Weeklyor Bi-Weekly
40seconds
13 minutes40 seconds
30 seconds 6 minutes 8 minutes2.6 to 3.5 days
(Freezerstorage:
6.7 to 14.5
1 to 2Pallets
1 to 2Pallet
3People
10 minutes
5 sec
1 to 2pallets
perorder
PackagingMaterials
Weeklyor Bi-Weekly
Wrap & Pack
MultipleOperators
Cut Products
Smoke
MultipleOperators
Wrap & Pack
MultipleOperators
Smoked Products
I
ConveyorStaging
Order Picking
6 to 8People
I
I
StagingDock
5 orders(10 pallets)
1 to 2pallets
perorder
Shipping
Off-Site Freezer Storage
SmokehouseOperations
1 to 2pallets
2People
OrderVerification
2People
1 to 2pallets
FIFO
C/T = 5 min C/O = 0 min Rel. = 95% Avail. = 16.5 hrs
C/T = 1. 5 hours C/O = 0 min Rel. = 95% Avail. = 16.5 hrs
8 minutes 1.5 hours
1, 578K lbs
Aging Data
Bar Code ScanInventoryUpdates
Bar Code ScanWarehouse Input
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What Happens in the Future State VSMWith Expansion?
What Happens in the Future State VSMWith Expansion?
++ Expand warehouse to provide staging areasExpand warehouse to provide staging areas
++ Most pallets are staged on floor not in racksMost pallets are staged on floor not in racks
++ Revised order picking methodsPick fromRevised order picking methodsPick frompallets not rackspallets not racks
++ Robotic palletizing system based on previouslyRobotic palletizing system based on previouslyupgraded systemupgraded system
++ Improved production scheduling & planningImproved production scheduling & planning
++ New markets for frozen products to increaseNew markets for frozen products to increaseturnsturns
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expansion1.wmf
PROPOSED PALLETIZING & STORAGE IMPROVEMENTS
-
PROPOSED PALLETIZING & STAGINGPROPOSED PALLETIZING & STAGINGIMPROVEMENTSIMPROVEMENTS
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The Warehouse Improvement CycleThe Warehouse Improvement Cycle
Assessment(VSM)
ImplementationPlan
RecommendedSolutions
DO IT!
ContinuousImprovement
MethodsLayoutMaterial HandlingVisual Controls
Automation
Information Systems