highly competitive warehouse managemet

7/25/2019 Highly Competitive Warehouse Managemet

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Warehouse

Management

May 2013 Manila


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Section 1

Introduction

NameCompany

Warehouse experience

What are your expectations?


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Warehouses are typically viewed as a temporaryplace to store inventory and as a bufferin supplychains.They serve as static units matching product

availability to consumer demand and as suchhave a primary aim which is to facilitate themovement of goods from suppliers tocustomers, meeting demand in a timely and cost

effective manner.Primarily a warehouse should be a trans-shipment area where all goods received aredespatched as effectively and efficiently aspossible.

What is a warehouse?

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Terminology ABC Activity based costing ABC Method of prioritising items AIDC Automatic Identification and Data Collection AS/RS Automated storage and retrieval system CMI Co-managed inventory CPFR Collaborative Planning, Forecasting and

Replenishment EDI Electronic Data Interchange

EPOS Electronic Point of Sale ERP Enterprise Resource Planning e.g. SAP, Oracle FLT Fork lift truck JIT Just in Time OTIF On time in Full PPT Powered pallet truck RFID Radio Frequency Identification SAP A well-known ERP system SKU Stock keeping unit VMI Vendor Managed Inventory WMS Warehouse Management System

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The primary objective of warehousing is tomaximize the effective use of the operational

resources while satisfying customer

requirements. FIVE BASIC TENETS

Accuracy and Efficiency

Safety, Security, Cleanliness

The Objectives of Warehousing

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Warehouse management issues

I need to get the product to the customer:

On time (OT)

In Full (IF)

To the right place

In the right condition

With the right paperwork

At the right cost

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Discussion

What are the challenges facing your companies

today in terms of warehousing?

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Operational RequirementsChallenge

Improve productivity, increase accuracy, improve handling andinvest in systems

Achieve the Perfect Order

Increase productivity, improve utilisation of space, staff and

equipment

Cost reduction

Sales via multiple channels andincrease in smaller orders

Shorter order lead times

Proliferation of SKU

Fluctuations in demand

Increasing cost of energy andenvironmental challenges

Labour cost and availability

Data accuracy and speed of

transfer

Improved picking strategies such as bulk picking and greateruse of technology

Improve processes and increase productivity

Improved use of equipment such as carousels, A Frames andflow racks

Flexible working hours and improved forecasting

Manage energy more efficiently, better use of waste

Staff retention through excellent working conditions, flexiblehours, training and improved productivity

Introduce Warehouse management system and real time data

transfer

Warehouse Challenges (Adapted from Dematic)

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Role of the

Warehouse in todaysSupply Chain

Section 2


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Raw materials

Component manufacture

Product assembly /manufacture

Wholesalers/Dealerships

Consumers

D

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RetailersR

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Disposal

Re-process

- Warehouse requirement

Warehouses in the supply chain

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MANY WAREHOUSES

Inbound transport isexpensive (to supplywarehouses)

Outbound transport ischeaper (to deliver tocustomers)

Cost of maintaining manywarehouses is expensive

Cost of keeping manybuffer stocks is expensive

How many warehouses?

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How many warehouses?

FEW WAREHOUSES

Inbound transport ischeaper

Outbound transport ismore expensive

Less cost to maintainwarehouses

Less cost of bufferstock

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Number of DCs / depots

Cost

Local delivery cost

Systems cost

Storage cost

Inventory holding cost

Primary transport cost

Total logistics cost

Rushton, Croucher and Baker (2010)

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Major Cost Relationships


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Evans & Castek in Gattorna (1998)

Cost toServe

Servicequality

CustomerSatisfaction

BusinessProfit

Perfect service =

High cost

Low cost = Lower service

Cost versus Service

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MaistersRule

Reducing the number of warehousesfrom y to x, reduces the total amount ofsafety stock in the system by:

1 - [ x ][ y ]

Multiply the result by 100 to find thepercentage reduction

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Start

number of

warehouses

Inventory for "n" warehouses = Inventory for one warehouse x square root of number of

warehouses "n"

Percentage extra stock or reduced stockfor change in number of warehouses

New number of warehouses

1 2 3 4 5 10 15 20

1 0% 41% 73% 100% 124% 216% 287% 347%

2 -29% 0% 22% 41% 58% 124% 174% 216%

3 -42% -18% 0% 15% 29% 83% 124% 158%

4 -50% -29% -13% 0% 12% 58% 94% 124%

5 -55% -37% -23% -11% 0% 41% 73% 100%

10 -68% -55% -45% -37% -29% 0% 22% 41%

15 -74% -63% -55% -48% -42% -18% 0% 15%

20 -78% -68% -61% -55% -50% -29% -13% 0%

Maisters rule - grid

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Types of Warehouse

Operation

Section 3


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Functions of a warehouse Inventory holding point Stock is held to fulfil orders / demand.

Provide a buffer stock, preparation for a new

product launch, facilitate long production runs

Storage of Customs and excise goods under bond

Sequencing centre Just in time related techniques

Consolidation centre Product lines from various locations areconsolidated into complete customer orders.

Cross-dock centre Goods are received and shipped onwards withoutstorage.

Sortation centre Goods are sorted by customer or region.

Assembly facility Final assembly of goods prior todistribution e.g. postponement or labelling.

Trans-shipment point Goods are sorted into smaller vehicle loads fordelivery to the customerbreak-bulk centre.

Fulfilment centre e-commerce and catalogue sales

Returned goods centre To handle returned / faulty goods.

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Cross dock operation


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Hazardous Goods storage

Photo - EDIE

PhotoTransmare - chemie

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Classification of Dangerous Goods In order to promote the safe storage and transportation of dangerous

goods, an International System of Classification has been introduced.

(The UN Classification System).

The system divides the different types of dangerous goods into classifiedgroups, each group identified by a code marking.

The CLASS Number

The code marking, which is part of the UN Classification System ismade up of 2 numbers followed by a letter which appear, printed inblack on an orange coloured label. The system places all potentially

dangerous goods into 9 specific classes according to the degree ofdanger they present.

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UN Class Dangerous Goods Division(s) Classification

1 Explosives 1.1 - 1.6 Explosive

2 Gases 2.1 Flammable gas

2.2 Non-flammable, non-toxicgas

2.3 Toxic gas

3 Flammable liquid Flammable liquid

4 Flammable solids 4.1 Flammable solid

4.2 Spontaneouslycombustible substance

4.3 Substance which in contactwith water emits flammable

gas

5 Oxidising substances 5.1 Oxidising substance

5.2 Organic peroxide

6 Toxic substances 6.1 Toxic substance

6.2 Infectious substance

7 Radioactive material Radioactive material

8 Corrosive substances Corrosive substance

9 Miscellaneous dangerous

goods

Miscellaneous dangerous

goods

There are nine classes, some with divisions, as follows:

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Under the Control of Substances Hazardous to Health

(COSHH) Regulations 2002:

You must ensure chemicals and dangeroussubstances are stored and handled so that people'sexposure to them is minimised.

You need to assess the risks of storing and handlingdangerous substances - including the possibility ofenvironmental damage caused by leaks and

spillages

You should then implement any precautions neededto control risks.

Storage of dangerous or hazardous materials

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These include:

storing chemicals according to the manufacturer's instructionson the safety data sheet

keeping the minimum quantity of hazardous substancesnecessary

storing incompatible substances separately

taking steps to prevent release or leakage of dangeroussubstances

cleaning up any leaks or spills that occur

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These include (contd):

using appropriate precautions when handling substances -wearing protective clothing or ensuring adequate ventilation,for example

ensuring employees who store and handle dangerous

substances are properly trained checking containers used for short-term storage are properly

labelled

If you store chemicals or dangerous substances that could

create a fire or explosion, you must also comply withthe Dangerous Substances and Explosive AtmospheresRegulations 2002. (DSEAR)

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Temperature controlled storage

Photo by fordsproduce.com

Photo by Texas ice house30


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Fulfilment Centres

Photo by BBC News - Amazon

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Outsourced warehouses

Contract warehouses

Shared use/multi-user/public warehouse

Fulfilment centres Reverse logistics centres

Re-work

Repair Disposal

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Customs warehousing

Customs warehousing is a procedure that enablesthe suspension of Import Duty and/or VAT, forimported non-EU goods

Delay paying import duty and/or VAT and excise dutyon your stocks of imported goods.

If you want to re-export goods

If you do not know the ultimate destination of the

imported goods and want to delay having to declareimported goods to another customs procedure, forexample release for free circulation

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Revenue and Customs requirements

The warehouse will be used primarily for the storage

of goods There is a genuine economic need

Your stock records are adequate to verify the receipt,

storage, handling and disposal of the goods and theymust be able to show at all times the current stock ofgoods that are held under the customs warehouseprocedure.

You must be solvent and have a compliant revenuerecord

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Warehouse processes and flow

Receiving Despatch

Reserve storageand full pallet pick

Case picking

Item

picking

Sortation, Consolidation and packing

Replenishment Replenishment

Direct put-awayto reserve stock

Direct movementTo pick faces

Cross-docking

Adapted from Schmidt & Follert 2011

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Returns

Non-used products, packaging, waste.

Repair

Raw material Manufacturing Distribution Consumer

Test

Refurbishment

Service

Recycling

Remanufacturing

Disposal

Disassembly

Used

pro

ducts

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In-handling equipment

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Accuracy issues

Item

omitted

Wrong

Item

Miscount

Quantity

misread

Picking

ReceivingDespatch

Storage

Replenish

ment

Check

Error

Correction

Pick

Pack

Paperwork

Travel

The Importance of Order Fulfilment

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ABC l t


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ABC layout

Despatch

ABC B C

C Zone

Slow movers45% SKU,5% volume

B Zone

Medium movers,

35% SKU,15% of volume

A Zone

Fast movers,20% SKU,80% of volume

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Wh t t d ith SLOB l d b l t


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What to do with SLOBslow and obsolete

Recognise and start to write down

then Redistribution internally,

Rework,

Return to Vendor,

Sales incentive,

Sell to a global user (jobbers) with an active market,

Sell online through a 'media e.g. e-bay

Salvage the usable sub assemblies,

Sell for scrap,

Donate to a recognised charity (a business expense), and

Write off by burning or burying.

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Pi ki th d


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Picking methods

Method Equipment Approx.Picks per

hour

Speed Order size(lines)

Picker to goods Low level with hand pallettruck or roll cage

150 Med. Large

Picker to goods Low level with poweredpallet truck

200 Fast Large

Picker to goods High level with operatorriser picking truck

100 Slow Small

Method Equipment Picks perhour

Speed Order size(lines)

Pallet to pickerfollowed byPicker to pallet

*By PPT, CBT or FLT

Open floor, ground level

HPT, PPT or roll cage

150 - 250

Med.

to

Fast

Various

* PPT = Powered Pallet Truck; CBT = Counter-balanced fork lift truck, FLT = Fork lifttruck; HPT = Hand Pallet Truck

Method Equipment Picks per

hour

Speed Order size

(lines)

Goods to picker Carousel station picking 100300 Fast Large

Picker to goodsor goods topicker

Conveyor/sorter 300500 Fast Large

Picker to goodsor goods topicker

Sorter e.g. Parcels 5001,000 Fast Large

Pick facesin aisles

Bulkpre-pick

Mainlyautomated

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Order picking individual and cluster


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Order Release

PointDispatch Area

A

B

C

Courtesy of VanDerLande Industries

Area picking / U path picking

Order pickingindividual and cluster

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B t h Pi ki


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Batch Picking

Order No: 100023 Customer :JJ retail

Picker I.D. Bulk Desp loc: A33

Item code Desc Location Quantity

32345 AA battery A100201 500

32465 AAA battery A 100601 1000

47001 Watch battery B 111101 200

53007 Calculatorbattery B 171301 100

Order No: 100027 Customer :ACME retail

Picker I.D. Bulk Desp loc: A33

Itemcode

Desc Location Quantity

32345 AA battery A100201 1500

32465 AAA battery A 100601 300

62101 Remotecontrol LG

C 150101 500

71202 RC holderuniversal

C 150501 300

Pick ref:: AS177791 Customer :Bulk

Picker I.D. James 101 Desp loc: A33

Item code Desc Location Quantity

32345 AA battery A100201 2000

32465 AAA battery A 100601 1300

47001 Watch battery B 111101 200

53007 Calculatorbattery

B 171301 100

62101 Remotecontrol LG

C 150101 500

71202 RC holderuniversal C 150501 500

Pick to ZeroOrPick and return

to stock

Multiple orders consolidated

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Wave picking


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Wave picking

There are two basic planning elements and benefits of wavepicking.

To organize the sequence of orders and assignment to waves,consistent with routing, loading and planned departure times

of shipping vehicles or production requirements, etc., toreduce the space required for shipping dock handling toassemble orders and load; and

To assign staff to each wave and function within a wave, withthe expectation that all the work assigned to each wave will becompleted within the wave period and more thus effectivelyutilize the staffing throughout the shift.

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What affects picking performance?


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What affects picking performance?

Productand/orpack sizeand weight

Orderreleasestrategy

Pick locationidentification

Operating

processes

Stockavailability

PickertrainingPick face

quantityand stockcover

Pick locationappropriate toproduct sizeand dynamics

Pickingtechnology

Productidentification

Replenishmentprocesses

Warehousemanagementsoftware

Walkdistances

Handlingunit (pallets,totes, etc.)

Courtesy of The Logistics Business

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Replenishment


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Replenishment

When using pick or forward locations

Replenishment is the replacement of goods picked from theforward locations

Goods are transferred from bulk or reserve locations

This can be done overnight, at the beginning or end of a shift orduring the picking process depending on the urgency

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Despatch


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Despatch

Random quality checks depending on product value Pack products securely and safely

Weigh product

Recording of batch numbers, serial numbers etc. Load manifest compilation

Loading in sequence

Load optimisation (e.g. Cubiscan) Smooth the flow of despatches

Vehicle sealed and recorded

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Minimising Theft


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Minimising Theft

Staff training and awareness

Staff vigilance Use of CCTV

Use of lockable cages or Carousels for high value goods

Parking of cars away from the warehouse

Random searches Regular cycle counts

Especially in dark, less accessible areas of the warehouse. These are prime areas fromwhich product will disappear. Same goes for inventory near exit doors. Staging areas forboth incoming and outgoing shipments may be too close to the dock doors. If no one is

around to keep an eye out, it would be easy to take something and put it in a truck.

Conduct security surveys/audits (Independent)

Use security tags for vehicles leaving the warehouse

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Stock counting


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Stock counting

Perpetual inventory or cycle counting

Use ABC analysis to determine how many and how oftenyou count which items of stock e.g. 8% of A, 4% of B and2% of C items

Monthly, quarterly, annual stock checks

Depends on what you agree with your auditors

N.B. You need to be organised:

Whos counting, are they trained and motivated, what are you counting,

when do you count, what tools do you need.

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Logistics Cost factors


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Logistics Cost factors

38%

32%

8%

6%

16%

Transport

Warehouse operation

Order processing

Administration

Cost of inventory holding

Holding cost includes loss, obsolescence, interest, insurance and depreciation89

Warehouse costs


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Warehouse costs

UK Chartered Institute of Logistics and TransportSurvey stated that between 24% and 35% of Logistics

costs relate to warehouse activity and can be between

2% and 5% of the cost of sales

LABOUR 48-60%

EQUIPMENT 10 - 15%

SPACE 25 - 42%

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Cost of Service improvement


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Cost of Service improvement


60 70 80 90 100

Costofservice()

Level of Service (%)

The cost of providing a given service is markedly higherthe nearer it reaches the perfect service (100%).

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Warehouse Cost tree


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Rent/Lease costsRates, building insuranceElectricity, Gas, Water

Building and racking depreciationRepair and maintenanceCleaning, security, other equipment depreciation

Wages, on costs, Safety wear, welfare*Overtime, bonusesHandling equipment depreciation/rental*Running costs e.g. Fuel, tyres etc

Salary, on costsCompany cars

Salary, on costsCompany cars

Advertising

TelephonePostageBank chargesInsuranceLegal and professional feesOffice equipment and furniture depreciationInformation Technology (hardware & software)

STORAGE

HANDLING

Management and administration

Sales and marketing

Miscellaneous

OVERHEAD

Labour60%

Equipment15%

Office costs

TOTAL COST

Space -25%

* Variable costs

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Methods of allocating costs


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Methods of allocating costs

Traditional

Overhead allocation by %

Activity Based Costing

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Traditional costing methods


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g

Space Costs 1,677,000

Space as a % of total warehouse cost 54%

Direct Labour costs 1,200,000Labour as a % of total warehouse cost 39%

Equipment costs 215,000

Equipment as a % of total warehouse

cost 7%

Total Direct costs 3,092,000

Overheads costs 742,000

TOTAL COST 3,834,000

Overhead as a % of direct cost 24.00%

Traditional costing models tend to allocate overhead costs

arbitrarily.The following table shows a typical warehouse cost structure.

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Activity based costing in the warehouse


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y g

In activity-based costing, systems are designed so that any costs thatcannot be attributed directly to a product, flow into the activities that make

them necessary. The cost of each activity then flows to the product(s) thatmake the activity necessary based on their respective consumption of thatactivity.

Activity Based Costing looks to allocate indirect costs to processes which

accurately reflect the way the costs are actually incurred. This is in contrastto traditional costing methods.

When looking to introduce an ABC model you need to have acomprehensive knowledge of the company, its operations and the roles of

each of the staff members. This is normally carried out by observing theoperation for a period of time and recording how long it takes for eachactivity.

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Return on Investment


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CalculationGain from investment (or savings made)cost of investment /Cost of investment x 100

A similar calculation is the payback period. This basicallymeasures how long an investment takes to pay for itself. It doeshave drawbacks however as it does not properly take intoaccount finance costs and opportunity costs. Opportunity costbeing what must be given up (the next best alternative) as aresult of the decision.

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Warehouse

Technology

Section 6

Warehouse Technology


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Warehouse Technology

Warehouse Management SystemsAutomatic Identification and Data Capture (AIDC)

RFIDRadio Frequency IdentificationVoice technologyPick to/by light technology

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N.B. Dont automate a mess you just get to the mess quicker!!


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Warehouse Management System (WMS)


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Optimum stock location and control Order processing Directed put away Slotting Routeing and planning of pick operations

Replenishment Task interleaving/dual cycling Tracking and location of products from source to end user Stock rotation Productivity reporting Control multi-site operations

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Typical Warehouse Management System


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Receipt Advice (manual or EDI)

Receipt

Automatic Receipt Handling

Inbound Area Stock Monitoring

Handling of standardised or client

defined Logistical Unit (LU) identifiers:

SSCC (EAN 128), Sequential ID, etc.

Tracking of LU id.

Generation of new LU ids

Automatic block/time block for

Quality Control

Quarantine

Etc.

Serial numbers handling

Vendor Managed Inventory

Product/Stock Statuses

Package Variants

Tracking of several properties (Lot, Batch,

etc.)

Interface to automated material handling

equipment(conveyors, cranes, etc.)

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Stock visibility via Internet


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Types of WMSJacobs (1997)


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Three levels of WMS

BASIC ADVANCED COMPLEXStock and location controlonly

Additional facility to planresources and activity

Optimisation of warehouse orgroup of warehouses

Storing and pickinginstructions

Enables synchronisation ofactivities

Full product tracking

Simple informationfocussing on throughput

Focus on throughput, stockand capacity analysis

Complex storagereplenishment, picking andcycle counting strategies

Possible links to RF Interfaces with other systems

(Route planning, RFID, Freightsystems, Customs and Excise

Value added logistics support

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Choosing a WMS
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Criteria Weight Vendor 1 Vendor 2 Vendor 3 Vendor 4

Rate Score Rate Score Rate Score Rate Score

Software standardfunction

25 3 75 2 50 5 125 3 75

Software Customfunction

20 4 80 3 60 4 80 4 80

Ability to interface 15 4 60 2 30 4 60 4 60

Hardware also supplied 15 2 30 3 45 3 45 4 60

RF System 10 3 30 2 20 5 50 4 40

Development/Implementation service

5 3 15 2 10 4 20 3 15

Annual support/Maintenance

5 3 15 2 10 4 20 3 15

Multi-site cost 5 2 10 2 10 3 15 2 10

Total 100 3.15 2.35 4.15 3.55

1 = Does not meet minimum requirements; 2 = Does not meet performance requirements by one or more factors

3 = Expected performance; 4 = Exceeds one or more requirements; 5 = Significantly exceeds performance

Tomkins Associates 106

Automatic identification (AIDC) methods


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TECHNOLOGY DESCRIPTION

Optical Character Recognition (OCR)Readers

Use optics to scan characters that arealso readable by man

Bar code readers and scanners Use optical methods to read reflected lightfrom a barcode label

Radio Frequency Identification Use radio transmission to collect data.The radio waves can travel through mostmediums except metal. Dont require lineof sight

Voice recognition systems Instruction relayed direct to operative thusallowing hands free picking

Vision systems Use camera images to identifycharacteristics. Able to compare items aswell as codes and numbers

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Bar code and reader


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2D image

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Advances in scanning
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Finger scanners

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Radio Frequency IDentification


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Transponder chip holds data

Tag antenna used to power and transmit/receive data

High frequency ID tags

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RFID tag readers
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PortableIndustrial

Portal

Flatbed

Hand Held

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RFID Applications


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Closed LoopInventory Management

EPCglobal Compliance

RFID with Trading partnersoutside 4 walls. Slap n Ship

for Suppliers.

Asset Management

Any object that has

value and needs to be

tracked to ensureoperational uptime.

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Use of RFID tags
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RFID - Popular beliefs


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Tags co st pence each

Tags cost 0.15 minimum (Cheaper tags are in experimental stage but wont

be avai lable for an est imated 3 years m inim um .)

Mult ip le tags wil l read in any or ientat ion

Tags need to matched to an aer ial and generally squ are to th e aer ial for b est

results RFID wil l replace barcod es in th e next few years

RFID w il l on ly rep lace 10% barcodes by 2015 (Sou rce AIM Intl. 2003)

All tags can be read from any dis tance

Most tags read from 5mm 2 Metres un less you are paying over 5 per tag.

Tags can be appl ied to most i tems

Most tags h ave di ff icu l ty reading when attached o r in the prox imi ty o f l iqu ids

or metals - A t in of beans is the wo rst case scenar io!

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ComparisonRFID v Barcodes


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25 trays per dolly

36 dollies per vehicle

Barcode Scanning = 36 x 29 secs = 1044secs = 17.4 mins

Portal Scan = 36 x 5 secs = 180secs = 3 mins

Reduction in data recording time = 83%

Portal

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Voice recognition


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Voice Server

Intermediate database

WarehouseManagementSystem

ApplicationDatabase

FTP serverVoice tasks and

Voice profiles

Main

applications

StatelessSocket task

Voice interfaceprograms

At startof a new

task

Orders,Substitutions,Stockupdates, etc.

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Voice demonstration


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Vocollect

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Why Voice Outperforms Scanning
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Read Next

Location

Travel

to Location

Scan

LocationRead Qty

on Screen

Free

Hands

Place

Device

Elsewhere

Perform

Task

Locate

Device

Press

Buttons

to

Confirm

Speak Check

Digits, Hear

Instructions,

Perform Task

Hear Next

Location,

Travel

Hear Next

Location;

Travel

Elapsed Time

No manual entry, no extra steps,no wasted time =better productivity + improved accuracy

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Know the Benefits


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Benefit Business Impact

Improves Accuracy Can increase accuracy up to

99.99%

Reduces order fulfillment errorsIncreases customer satisfaction

Reduces cost of resolving issues & processing returns

Improves Productivity

Can increase productivity by 10-25%

Reduces labour required to accomplish new levels ofthroughput. Helps accommodate seasonal increases withoutincreasing headcount.

Reduces Training TimeCut Training Time by 50%

Time to full productivity for a new worker for scanning istypically 2-3 weeks; voice is 3-4 days.

Reduce Operating Costs Reduction in annual cost of scanner equipment, maintenanceof systems, (e.g. pick to light), paper/labels/printer costs.

Improves Safety Eases worker compensation claims leading to reducedinsurance costs, etc.

Reduced Administrative Support and AuditingFunctions

Need for secondary audits are eliminated

119

KNAPP Picking Solutions - Pick To Light


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120

Put to light - Dematic


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121

Comparing technologies
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Pick-To-Light

Cost per Location

Low number of Products

Fast Movers

100-350+ picks per hour

Limited flexibility

High accuracy

Simultaneous and sequential picking

Possible 2 stage operation

Voice Picking

Cost per Picker

High Number of Products

Slow & Medium Movers

100200 picks per hour

Highly Flexible

High accuracy

122

Contingency Planning


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Equipment down time

Labour problems Significant changes in demand

Supply problems

Information Technology down time

Other emergencies

Managers must formulate a plan of action to avoid crisis management andsignificantly reduce the time taken to employ some form of corrective action

123

Contingency Planning


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Assess the main issues to be covered in acontingency plan for a critical failure of theinformation technology in a warehouse

operation

124


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Warehouse

AutomationSection 7

Warehouse automation


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Bar code/

scanning

Inventory control

Terminals

Warehouse

Management

systems

Radio data

Terminals

Voice terminals

ROBOTICS

REPLENISHMENT

Conveyors

Automated guided

vehicles

RETRIEVAL

Automated storage

& retrieval systems

STORAGE

High stackers

Cranes

Carousels/

A Frames

Pick by Light

Put to light

WAREHOUSE

AUTOMATION

Support systems Automated systemsSemi-Automated picking

systems

126

Warehouse automation


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Introduction of very narrow aisle miniload crane system.

Consolidated stock from 3 distribution centres and 60 small local sites into aSingle warehouse of 7,200 square metres. This handling system supported13,500 lines and an annual throughput of 7,000,000 items.

Other benefits included:-

Handling costs reduced by 75%Order accuracy improved from 62% to 96%Duplicate stock was almost eliminated

Flexibility improvedsame day order despatchesReduced labour costs

Warehouse of the monthModern Materials Handling Online

127

Case studyTele Danmark site

Advantages of Automated systems Increased Space Utilisation
http://localhost/var/www/apps/conversion/tmp/scratch_4/COCACOLA%20english-VTS_01_1.VOB


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Increased Space Utilisation

High bay narrow aisle systems (up to 30 metres high)

Random storage

Improved Control Pallet tracking through enhanced warehouse management system

Labour and Energy Savings

No heat and light requirement

Minimum supervision required

Continuity

24 hour, 7 days per week operation

Product Security

High bay areas, Use of First in First out principles, less human intervention

Safety

Elimination of manual handling

Reduction in accidents

Can cope with hazardous/harsh environments

Integration Coordination of product flows, avoiding bottle necks

Constant performance levels

Continuous review

128

Disadvantages of Automated systems


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High investment costs

Building, equipment, Information technology

System failure, operations are entirely reliant on technology

High opportunity cost

Require standardised unit loads

Anomalies not accepted and need to be handledseparately

More quality control required

High cost of disposal of equipment

Lack of flexibility

129

AUTOMATED GUIDED VEHICLES (AGVs)


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COMPUTER CONTROL OR BY HAND MORE DURABLE THAN PEOPLE

LONG DISTANCE &/OR HIGH DENSITY TRAFFIC

SECURITY-SENSORS & GUARDS

LIMITED POTENTIAL FOR DAMAGE

RELIABLE

INDUCTION WIRE, INFRA RED & ULTRA SONIC

130

Automated guided vehicle


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131

A Frameautomatic pick
http://www.moveitshow.com/clips/2079885263001/


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Courtesy of Knapp and SSI Schaeffer

132

Conveyors

Power or gravity
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Power or gravity

Single or multi-floor

Provide continuous goods flow

Buffer for loading bays or for work in progress

Example applications:

Order pick, assembly, parcel sortation

Problems:

Barriers, Detours, Bridging, Requires fixed floor space

133
http://localhost/var/www/apps/conversion/tmp/scratch_4/AVON_Zanesville.mp4


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Mechanical

Handling EquipmentSection 8

Influencers on the selection of MHE

Functions to be performed


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Functions to be performed

Health and Safety requirements

Type of product stored and unit load to be handled

Store layout and height, including aisle width

Travel distance and speed relationship

Building constraints and environmental issues Equipment flexibility and cost

Reliability, efficiency and ergonomics

Security Product value

Vendors and costs

135

Choice of pallet movers

Degree of use shift length work patterns pallets per shift seasonality


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Degree of useshift length, work patterns, pallets per shift, seasonality,peaks and troughs, special handling requirements

Travel distances and lift height, inside and/or outside the warehouse,private/public roads, working conditions (freezer, chill, ambient,hazardous).

Type of fuel, diesel, LPG, Electric. Available ventilation, noise level, spacefor re-charging and storing batteries

Floor condition Aisle gangway space at front and between rackscan the truck turn 90

degrees. Also needs additional 200mm to its normal turning circle

Delivery and collection vehicles

Access doors, bays, overhead pipes (sprinklers)

Rack heights

Method of acquisition and maintenance

Budget

136

Vertical movement


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(Courtesy of Atlet, Toyota, Central Training and Flexi),137

Horizontal movement
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Courtesy of Demag, Linde, AS Conveyor Systems and Seegrid),138

Pallet movers


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139

Type of truck Minimum

Aisle width

(millimetres)

Aisle Space v

Storage space

Maximum

Lift height

Maximum

weight at

maximum

lift height

Put-away

rate

Pallets

per hour

Flexibility -

internal

and

external

usage

Additional

feed truck

required

Purchase

cost

Approx.

total

pallets

stored

Reach Truck 2,700 53%/47% 12250mm 1000kg 26 No No 25,000 10,080

Counter Balance(Electric)

3,20060%/40%

6800mm 1000kg 18 YesNo

19,000 6,048

Counter Balance

(ICE)

3,800 60%/40% 6800mm 1000kg 18 Yes No 19,000 5,376

Pedestrian or Stand

on Stacker

2,400 56%/44% 6000mm 1000kg 18 No No 7,000 to

12,000

6,720

Very Narrow Aisle 1,600 43%/57% 12500mm 1250kg 23 No Yes 60,000 12,096

Articulated fork lift 2,000 48%/52% 10000mm 800kg 20 Yes No 35,000 11,088

Double deep

racking with Reach

truck

2,900 36%/64% 10000mm 1100kg 24 No No 30,000 12,600

Special equipment - Slip sheets


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140


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Truck attachments


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Courtesy of easy rack

Courtesy of Bridgestone

Courtesy of Bluewater Forklift142

Courtesy of Linde

Automation in handling equipment


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JungheinrichNarrow aisle truck navigation

143
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Warehouse Layout and

storage equipment

Section 9

Warehouse layout

Five fundamental process objectives


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1. Warehouse designs should be based on throughput not storagei. Look at forecasted growth over the next five years

ii. Evaluate the number type and physical features of the products

iii. Understand the potential changes in product profiles over the period

iv. Evaluate type and variability of demand and order profiles

2. Emphasis is placed on eliminating time, space and movement3. Material and information flow should be properly integrated to avoid

delays and uncertainty

4. All issues should be linked to wider business issuesi. Understand long term market strategy

5. Solutions should be aligned to customer requirementsi. Potential use of warehouse as postponement centre

Ballard 1994

Five fundamental process objectives

145


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Space consumption in the Facility

D k D


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Dock Doors

Storage Mediums

Personnel Support areas

Cafeteria

Restrooms

Shipping and staging areas

Pre-process and handling areas

Battery charging, packaging and pallet storage

147

Calculating Dock Requirements

Using heuristics


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Using heuristics

Space ={ Roundup (Number of loads x Hours/load) } X (size of Load x space/pallet)

time of shift

= receiving 20 loads per day

- each load is 26 pallets- each pallet is 1m x 1.2 m-45 minutes per load to unload vehicle- 30 minutes per load to stage prior to put-away- 8 hours per day work shift

Additionally Office space required Empty pallet and sundry space requirements

148

Calculating Dock Space Requirement


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{Roundup (20 x 1.25)/8} x (26 x (1.2 x 1.0))

= 3.125 (4) x 31.2 = 124.8 square metres

Dock space = 124.80 sq. metres

Add double space for working and travel area = 249.60

Total space = 374.40 square metres

149

Warehouse layouts


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BulkStorage

Low usageItems

Medium usageItems

High usageitems

Goods inwards Despatches

Inverted T Warehouse Flow

AdvantagesBetter utilisation of loading docksReduction in total area requiredIncreased flexibilityUnified management of

merchandise flowBetter security controlAbility to extend warehouseImprove employee comfort andreduce heat loss

Disadvantages

Congested central areaPotential friction between inboundand outbound teams

Pick area

150

Warehouse layouts


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Goods inwards Despatches

Cross flow or U flow WarehouseAdvantages

Better utilisation of loading docksReduction in total area requiredIntegration of bulk and pickingstocksUnified management ofmerchandise flow

Better security control

DisadvantagesCongested aisle areasPotential friction between inboundand outbound teamsGrouped product may not be

stored in the same area

Low usage items

Medium usage items

High usage items

A

B

C

151

Warehouse layouts


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Goods inwards

Corner Warehouse AdvantagesLess disruption at the loading bays

DisadvantagesMore difficult to expand without majorchanges internally

Increase security required

Low usage items

Medium usage items

High usage items

Despatches

152


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C C C C

CBatterycharging


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A A A A

B B B B

A

B

Flow rack with reserve storage above

Item picking

Full carton pick at floor level, reserve storage above

Short cut through racking with reserve storage above

Packing area

Empty palletstorage

154

Warehouse layout diagrams


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1 2 3 4

Despatch Area

MHE Charging Area

66 m

115 m

5 6 7

8 109

Damages

Goods Receipt

Despatch OverspillOffice & Mezz Floor

The Right Answer?


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Travel

HandlingStorage

Typically there isno one definitiveanswer for yourwarehouse

Design is a tradeoff betweentravel, handlingand Storage

156

Finally dont forget about the outside of the building!

External areas

N.B. At large DCs over 60% of the site area can be allocated


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gto roadways, parking, and external activities.

Make sure that:- The site has a secure perimeter

Employee car parking is secure and separated from the warehouse

Proper routes are defined and marked for commercial vehicles

Adequate parking is provided for commercial vehicles and cars

All access and egress is security controlled

Pallets, cages, waste items are stored neatly in a designated area

Pedestrian routes are properly defined with safety in mind Ensure there is enough room to manoeuvre all the vehicles without

causing congestion

157

Courtesy of LPC


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Pallet quantity calculations - width

Module Width = width of aisle + 2 pallet length (short side) + 100


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Module Width width of aisle 2 pallet length (short side) 100mm

Aisle = 2,500mm (variable with type of MHE used)Two pallets = 2,000mm (2 x 1,000mm)Clearance = 100mm between back to back pallets

Therefore:Width of module = 4,600 mm (the sequence is palletaislepallet - clearance)

Aisle AisleAisle

159

Pallet quantity calculations - length

Module Length = width of upright + clearance +2 pallets (long


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Module Length = width of upright + clearance +2 pallets (longside)

Rack upright plus clearance = 420 mm (120 mm + 3 x 100 mm)Two pallets (long side) = 2,400 mm (2 x 1,200mm)

Therefore:Length of module = 2,820 mm

(the sequence isupright/clearance/pallet/clearance/pallet/clearance)

160

Pallet quantity calculations - height


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Module Height = Height of goods on pallet (e.g. 1.20 metres)

+ 150 mm (pallet height)Total Pallet height = 1,350 mm

Clearance above pallet = 150 mm

APR beam width of 140 mm

Therefore:Height of module = 1,640 mm

161

Total pallets stored within cubic capacity of a

Pallet calculation


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Total pallets stored within cubic capacity of a

warehouse section, excluding receiving anddespatch areas, gangways and other areas

(No. of width modules x pallets in module width) x (No. of length modulesx pallets in module length) x (No. of height modules) = No. of pallets intocube volume of warehouse.

So for a warehouse section with a width of 48 metres, a length of 120metres and a height of 10 metres.Width = 48/4.6 = 10

Length = 120/2.82 = 42Height = 10/1.64 = 6

Therefore total = (10 x 2) x (42 x 2) x (6) = 10,080 pallet locations in thiswarehouse storage space

162

Pallet storage

Long-side handling, (where the longest side of the pallet is picked up by
http://webtools.cisco-eagle.com/rack/


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the forklift truck) helps to prevent pyramid picking from the pallet.

The picker has to reach in only up to a maximum of 1 metre (instead of 1.2metres if short-side handling is used).

Short-side handling, however, allows more pallets to be fitted into a givenrun of racking. For example, a run length will hold 30 pallets if short-sidehandling is used but only 25 pallets if long-side handling is used.

Short side handling of UK pallets also means that Euro pallets can also bestored in the same locations.

Introduce an access tunnel for long runs of racking

163

Space calculation


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Y1

Y2

Y3

Y=Y1+(2*Y2)+Y3

H1

H2

W2W1

W = W1 + W2

Z

H=

H1+H2+.....

+Hn+(n-1)*Z

TT

164

Capacity utilisation


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Warehouse managers are tasked with making use of thewhole cubic volume of the warehouse taking into accountaccessibility, practical utilisation limits, cost and accountability

Consider introduction of mezzanine floors for examplee.g.space above dock doors

165Courtesy of AWS Ltd and Cisco Eagle

Main types of storage systems


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Block stacking Wide aisle racking Cantilever racking Narrow aisle racking

Automated

Manual Drive-through/ Drive-in racking Sliding or Mobile racking Double deep racking Flow or Live racking Mezzanine Carousels

166

Storage Equipment

Bulk Storage/Block Stack


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High density storage on the warehouse floor.

Unit loads stacked on top of each other Best for large quantities of a single SKU (stock keeping unit)

Allowable stack heights (3 or 4)

Low utilization threshold

167

Storage Equipment

Adjustable Pallet Rack APR


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Consists of uprights, beams and back supports

Anchored to floor with adjustable beams Must know weight capacity, width of rack opening and the distance

between load bearing beams

Flexible and easily reconfigurable

168

Storage Equipment

Cantilever Rack


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Storage of long materials such as piping or wood products

High capital cost per square foot

Higher density for multiple SKUs

169

Warehouse storage methods

Narrow aisle racking


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Consists of uprights, beams and back supports

Anchored to floor with adjustable beams Requires less space than APR

Must know weight capacity, width of rack opening and the distancebetween load bearing beams

170

Storage Equipment

Automated Storage/ Retrieval Systems


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High capacity

Great for high value items

171

Storage Equipment

Drive-in/Drive Through Rack


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Similar to pallet racking but the forklift can drive into the rack

High density storage medium for large quantities of singleSKUs

Need good quality pallets

LIFO - Drive In

FIFO - Drive Out

172

Courtesy of LPC

Storage Equipment

Sliding Rack or Shelving

M t d id il


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Mounted on guides or rails

Highly space efficient Very effective for small parts and high SKU

Strong medium for slow moving parts

173


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Storage Equipment

Satellite/Shuttle racking

No aisles


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No aisles

Many pallets in small footprint Supports high speed and slow moving product

Good utilisation of space at the loading bay

Continuous flow

177

Automation in storage

Proctor and Gamblepallet sequencer
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178

Warehouse Capacity Planning Graph UK Pallet
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Note: This chart includes an allowance for marshalling areas and cross aisles. 179

1200 mm Entry x 1000 mm Deep

Mezzanine


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Utilises the cube of the buildingSpare parts storageValue adding servicesPosition above loading doors

or internal offices where feasible

180

Storage Equipment

Carousel

High capacity storage for pick and pack


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High capacity storage for pick and pack

Brings parts to operator High speed picking solution if multiple carousels used

Reduction of travel by SKU

181

Wideaisle

Narrowaisle

VNA Drivein

Doubledeep

Livestorage

Mobileracking

Decision table
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p g g

Floor space utilisation 2 3 4 5 3 4.5 4.5Cubic space utilisation 3 4 5 3.5 4 3.5 4

Access to each pallet load 5 5 5 1 3 4 3.5

Speed of access 4 3 3 2.5 3 5 2

Stock rotation 4 4 4 1 3 5 3

Stock control and mgt. 4 4 4 2 2 5 3

Specialised mhe (in termsof cost)

No

5

Yes2

Yes1

No

5

Yes

3

No

5

No

4

Ease of re-location 5 4 2 3 3 1 1

Speed of installation 5 4 2 3 4 3 1

Beam adjustments 5 4 1 1 2 1 3

Total 42 37 31 27 30 37 29

Advantages/disadvantagesmarks out of 5182


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Performance

ManagementSection 10

Performance and Productivity Standards


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Why do we need performance and productivitystandards?

Discuss.

185

Performance monitoring

You cannot manage what you cannot measure.


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You need to monitor performance against the criteria that areimportant to your customers

You need to monitor performance against the criteria that areimportant to you (costs).

186


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What to measure against?


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Historical data

Budget

Engineered standards

External standards and benchmarking


188

Good practice in Performance Monitoring


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Accuracy of data

Validity / completeness

Hierarchy of needs / targeting of correctaudience

User ownership Reactivity to changes in business activity

Timeliness

Ease of maintenance Cost-effectiveness Rushton, Croucher and Baker (2010)

189

SMART


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A performance monitoring system needs to beSMART

SSpecific

MMeasurable AAchievable

RRelevant

T Timely

190

Traditional warehouse productivity measures

MEASURE CALCULATION


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Man hours Labour hours usedLabour hours available x100

Warehouse floor area Space used

Space available x 100

MHE utilisation MHE hours usedMHE hours available x 100

Picker utilisation Actual case picks achieved

Expected case picks per picker x 100

Cost per activity Actual costExpected (budgeted cost) x 100

Need to be as close to 100% as possible with one exception.

191

Traditional warehouse benchmarks

MEASURE CALCULATION


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Orders per hour Orders picked and packed

Total warehouse labour hours

Lines per hour Lines picked and packed


Items per hour Items picked and packed


Cost as a % of sales Total warehousing costs

Total revenue

Cost per order Total warehouse Cost

Total orders shipped

192

Direct Labour Cost per Item


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0.43

0.41

0.37

0.31

0.27

0.25 0.25 0.25

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

0.50

Jul-99 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Mar-03

- 42%

193

Productivity Examples

Items per man hour

90


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55

59

63

71

75

79 80 82

0

10

20

30

40

50

60

70

80

90

Jul-99 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Mar-03

194

The perfect order


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On time in full, damage free and all the correct paperwork

Example:On time 98%

In full 97%Damage free 99.5%Correct paperwork 91%

Perfect order % = 86.1%

195

Integrated Performance Models

Category Target rating Weight Target

Score

Rating Actual score


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Customer service 5 40 200 1 2 34 5 120

Safety 5 40 200 1 2 3 4 5 200

Inventory accuracy 5 30 150 1 2 3 4 5 150

Space utilisation 5 20 100 1 2 34 5 60

Labour productivity 5 20 100 1 2 3 45 80

IT Downtime 5 20 100 1 2 3 4 5 100

Equipment maintenance 5 10 50 1 2 34 5 30

Equipment utilisation 5 10 50 1 2 3 45 40

Building facilities 5 5 25 1 2 3 4 5 25

Housekeeping 5 5 25 1 2 3 45 20

TOTAL 1000 825Performance Index 82.5%

Adapted from Tomkins Associates 2002

196

Order Fulfilment Measures

MEASURE DEFINITION CALCULATION


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On-time delivery Orders delivered as per customersrequests

Total orders shipped on timeTotal orders shipped

Order fill rate Orders filled completely on firstshipment

Orders filled completely


Order accuracy Orders picked, packed and shippedperfectly

Orders shipped withouterrors


Line accuracy Lines picked, packed and shippedperfectly

Lines shipped without errors

Total lines shipped

Order cycle time Time from order placement tocustomer shipment

Actual ship datecustomerorder date

Perfect ordercompletion

Orders delivered without changes,damages or invoice errors

Perfect delivery orders

Total orders

197

Inventory Management Measures

MEASURE DEFINITION CALCULATION


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Inventory Accuracy Inventory quantity compared to system-reported quantity Actual quantity by SKUReported quantity by SKU

Damaged Inventory Damage measured as a % of inventoryvalue/throughput

Total damage ($)

Total inventory or sales value

Days on Hand Average sales days of inventory onhand based on historical sales

Average inventory value

Average daily sales (pastmonth)

Storage Utilisation Occupied locations as a % of totalavailable locations

Average no. locations occupied

Total available locations

Dock to stock time Average time from carrier arrival toavailable for picking

Average dock to stock hours perreceipt

Inventory Visibility Time from physical receipt to customerservice notice of availability

Time of host system receipt dataentrytime of physical receipt

198

Warehouse best practice WERC metrics

Measures Best in class Median Typical Opportunity


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On time

shipments

99.8% 98.5% 98 and


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Measures Best in class Median Typical Opportunity

Cost as a % ofsales

1.6% 3.7% 2.9 and 8.9%

Workforceturnover


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DIO means how many days of sales a company is holding in inventory, and which REL defines as:End of Year Inventory Level/[total revenue/365] Data compiled by Supply Chain Digest from info received from REL.

201

Exercise


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What are the consequences of poor service interms of sending the either the wrong product

or wrong quantity of product to a customer?

202

Effects of sub-standard service

Finance department is affected by delayed payments and possible


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Finance department is affected by delayed payments and possible

penalties Inventory department has to provide extra stock cover

Sales department has to handle complaints and authorise returns

Transport department has to effect extra deliveries and collections

Warehouse has to re-pick, re-pack and duplicate activities

Returns procedure has to take place

Possible product disposal/write-off

Review of processes needs to take place

Potential additional training required

Loss of product if client retains over delivery of product

Potential loss of customer

203

Cost of a warehouse error

Volume Occurrence Approx. cost

per occurrence

Total cost


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204

Despatcherrors (96%accuracy)

50,000 orders 4.0% error rate $45 $90,000

Shrinkage/loss $7,000,000 in stock 1.0% 0.1% x $7min inventory

$70,000

Data entryerror

100,000transactions

4% $10 per entry $40,000

Miss-placedproduct inwarehouse

50,000 orders x 5lines per order

2% $2.50Based on 10minutes

searching at $15per hour

$12,500

Total $212,500

(Adapted from Red Prairie 2010)

Customer service

Ensure KPI are alignedcustomers perceptioncould be totally different to yours


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could be totally different to yours

E.g. 100% despatch of whats available from the warehousedoesnt mean its what the customer ordered.

Despatch within 24 hours of the warehouse receiving theorder from sales may not been 24 hour despatch to thecustomer!

205

Performance management

Regular operational meetings


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Regular operational meetings

Weekly, monthly, quarterly

Post results on Notice Boards

Team targets and achievements

Bonus schemes

Internal and external, team and individual

Penalties

Gain share if outsourcing

206


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Health and Safety

and LegislationSection 11

Call for regular maintenance following near-fatal accident

Fork truck accidents
http://www.shdlogistics.com/news/view/call-for-regular-maintenance-following-near-fatal-accidenthttp://www.shdlogistics.com/news/view/call-for-regular-maintenance-following-near-fatal-accidenthttp://www.shdlogistics.com/news/view/call-for-regular-maintenance-following-near-fatal-accidenthttp://www.shdlogistics.com/news/view/call-for-regular-maintenance-following-near-fatal-accidenthttp://www.shdlogistics.com/news/view/call-for-regular-maintenance-following-near-fatal-accidenthttp://www.shdlogistics.com/news/view/call-for-regular-maintenance-following-near-fatal-accidenthttp://www.shdlogistics.com/news/view/call-for-regular-maintenance-following-near-fatal-accidenthttp://www.shdlogistics.com/news/view/call-for-regular-maintenance-following-near-fatal-accident


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g g

Directors fined after worker loses leg in forklift accidentEasilift loading bay management system prevents accidentaldrive-offsGlobal storage firm fined for forklift accidentLidl fined for forklift accidentMajor retailers fined over flt accidents

Serious fork lift truck accidents on the rise says FLTASerious forklift accidents on the rise says MentorThorworld safety aids help prevent loading bay accidentsUPDATE: Forklift driver killed in town centre accidentUPDATE: Forklift mechanics death was accidentalUPDATED: Man dies in forklift accident

Vinyard loses third of production in forklift accident

208

Manufacturers duty

Ensure product is safe to use andfit for purpose

HASWA responsibility for Health & Safety
http://www.shdlogistics.com/news/view/call-for-regular-maintenance-following-near-fatal-accidenthttp://www.shdlogistics.com/news/view/call-for-regular-maintenance-following-near-fatal-accidenthttp://www.shdlogistics.com/news/view/call-for-regular-maintenance-following-near-fatal-accidenthttp://www.shdlogistics.com/news/view/call-for-regular-maintenance-following-near-fatal-accidenthttp://www.shdlogistics.com/news/view/directors-fined-after-worker-loses-leg-in-forklift-accidenthttp://www.shdlogistics.com/news/view/easilift-loading-bay-management-system-prevents-accidental-drive-offshttp://www.shdlogistics.com/news/view/easilift-loading-bay-management-system-prevents-accidental-drive-offshttp://www.shdlogistics.com/news/view/global-storage-firm-fined-for-forklift-accidenthttp://www.shdlogistics.com/news/view/lidl-fined-for-forklift-accidenthttp://www.shdlogistics.com/news/view/major-retailers-fined-over-flt-accidentshttp://www.shdlogistics.com/news/view/serious-fork-lift-truck-accidents-on-the-rise-says-fltahttp://www.shdlogistics.com/news/view/serious-forklift-accidents-on-the-rise-says-mentorhttp://www.shdlogistics.com/news/view/thorworld-safety-aids-help-prevent-loading-bay-accidentshttp://www.shdlogistics.com/news/view/forklift-driver-killed-in-town-centre-accidenthttp://www.shdlogistics.com/news/view/death-of-forklift-engineer-was-avoidablehttp://www.shdlogistics.com/news/view/man-dies-in-forklift-accidenthttp://www.shdlogistics.com/news/view/vinyard-loses-third-of-production-in-forklift-accidenthttp://www.shdlogistics.com/news/view/vinyard-loses-third-of-production-in-forklift-accidenthttp://www.shdlogistics.com/news/view/vinyard-loses-third-of-production-in-forklift-accidenthttp://www.shdlogistics.com/news/view/vinyard-loses-third-of-production-in-forklift-accidenthttp://www.shdlogistics.com/news/view/man-dies-in-forklift-accidenthttp://www.shdlogistics.com/news/view/death-of-forklift-engineer-was-avoidablehttp://www.shdlogistics.com/news/view/forklift-driver-killed-in-town-centre-accidenthttp://www.shdlogistics.com/news/view/thorworld-safety-aids-help-prevent-loading-bay-accidentshttp://www.shdlogistics.com/news/view/thorworld-safety-aids-help-prevent-loading-bay-accidentshttp://www.shdlogistics.com/news/view/thorworld-safety-aids-help-prevent-loading-bay-accidentshttp://www.shdlogistics.com/news/view/serious-forklift-accidents-on-the-rise-says-mentorhttp://www.shdlogistics.com/news/view/serious-fork-lift-truck-accidents-on-the-rise-says-fltahttp://www.shdlogistics.com/news/view/major-retailers-fined-over-flt-accidentshttp://www.shdlogistics.com/news/view/major-retailers-fined-over-flt-accidentshttp://www.shdlogistics.com/news/view/major-retailers-fined-over-flt-accidentshttp://www.shdlogistics.com/news/view/major-retailers-fined-over-flt-accidentshttp://www.shdlogistics.com/news/view/lidl-fined-for-forklift-accidenthttp://www.shdlogistics.com/news/view/lidl-fined-for-forklift-accidenthttp://www.shdlogistics.com/news/view/lidl-fined-for-forklift-accidenthttp://www.shdlogistics.com/news/view/global-storage-firm-fined-for-forklift-accidenthttp://www.shdlogistics.com/news/view/easilift-loading-bay-management-system-prevents-accidental-drive-offshttp://www.shdlogistics.com/news/view/easilift-loading-bay-management-system-prevents-accidental-drive-offshttp://www.shdlogistics.com/news/view/easilift-loading-bay-management-system-prevents-accidental-drive-offshttp://www.shdlogistics.com/news/view/easilift-loading-bay-management-system-prevents-accidental-drive-offshttp://www.shdlogistics.com/news/view/easilift-loading-bay-management-system-prevents-accidental-drive-offshttp://www.shdlogistics.com/news/view/easilift-loading-bay-management-system-prevents-accidental-drive-offshttp://www.shdlogistics.com/news/view/directors-fined-after-worker-loses-leg-in-forklift-accidenthttp://www.shdlogistics.com/news/view/call-for-regular-maintenance-following-near-fatal-accidenthttp://www.shdlogistics.com/news/view/call-for-regular-maintenance-following-near-fatal-accidenthttp://www.shdlogistics.com/news/view/call-for-regular-maintenance-following-near-fatal-accidenthttp://www.shdlogistics.com/news/view/call-for-regular-maintenance-following-near-fatal-accident


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Employer duties:

Provide:

Safe plant & systems of work

Safe handling, storage, etc.

Information, instruction & training

Safe place of work

Safe environment & welfare

Employee duties: Look after their own H&S Not endanger others Co-operate with employers on H&S Not interfere with or misuse items supplied

for H&S purposes

Remember that individuals can be prosecutedunder this legislation as well as companies

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MHEMechanical handling equipment

Select responsible staff to be trained


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Ensure staff are trained by a competent trainer Follow the manufacturers handbook

Undertake pre-operational checks as per the handbook

Undertake daily and weekly checks and record any defects

ensure supervisor countersigns the check list Only allow suitably trained staff to operate the equipment

210

Fork truck maintenance

Daily check or pre-shift commencement
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Daily check or pre shift commencement

Weekly checks or after 50 hours operation

Six monthly check or after 1,000 hours operation

Tyre pressures and condition, brakes, lights and audiblesignals, fluid levels, batteries, lifting and tilting systems

Steering, lifting gear, condition of mast, fork, attachments,hydraulic pipes

All working parts

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Racking maintenance

Is the equipment on sound level flooring?


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Is the equipment on sound, level flooring?

Is it still installed correctly?Are double sided runs connected properly?Are the aisles wide enough?Are the beam connector locks securely fastened?Are the racks aligned properly?Are the correct pallets being used?Are the pallets in good condition?Is there any visible damage?When were they last inspected?Are there signs on the end detailing weightcapacities?

Are staff trained properly?Are there any receptacles for rubbish e.g. Shrink-wrap, packaging, broken bit of pallet.

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H & S accident pyramid


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The Accident Pyramid

Record, Investigate, Action, Train, Review

Continually undertake Risk Assessments!!!

www.hse.gov.uk

1 fatal accident

30 property

accidents

600 near misses

10 seriousinjuries

213

Risk assessment and duty of care

45%

50%
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N.B. More litigation than ever before

0%

5%

10%

15%

20%

25%

30%

35%

40%

Slip or trip Manual

handling

Falls from

height

Hit by

moving,

falling

object

Hit by

moving

vehicle

Hit

something

fixed or

stationary

Other

kinds of

accident

Causes of major injury

Causes of 3+ days absence from work

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The principles of risk assessment


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Any company with 5 plus staff needs to carry outrisk assessments under the Management of Health &

Safety at Work Regulations 1999

These Regulations are law under the Health & Safety

At Work Act 1974

Risk assessments are designed to measure the risk of ahazard causing harm (its likelihood and severity)

weighed against the cost of the measures necessary to

avoid that risk (including money, time, trouble, effort &

sacrifice)

They must be suitable and sufficient and carriedout by a competent person

215

Hazardsthings with the potential to cause harm

Risk assessments explained
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Risksthe harm that the hazard could cause Those affectedpeople who could be harmed Existing controlsthings already in place to prevent harm

occurring Likelihoodscore out of five relating to the chance of the harm

occurring (1 very unlikely, 5 very likely)

Severityscore out of five relating to the worst possible outcome (1is minor injury, 5 is death) Risk factorthe 2 scores multiplied together to get a score out of 25 Risk levelsHigh risk 16-25, Medium risk 5-15, low risk 1-4 Remedial actionsthings which can be done to avoid the risk (NB

avoiding the risk is the best remedial action; physical

barriers/segregation are next then lastly providing information andtraining and protective equipment).

Action planThis identifies who has to do what, by when, in orderto reduce the risks to an acceptable level

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Risk assessments


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You are working in areas of vehicle movementincluding LGVs and Fork Lift Trucks.

Seventy people a year are killed in workplacetransportaccidents.

Avoid staying in these areas longer than is necessary.

Always ensure staff wear high visibility jacket andsafety boots

Take dangers seriously

217


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Resource Planning &Labour Management

Section 12

General Manager

Organisation Chart


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Warehouse Manager

Early Controller Late Controller Stock Controller

Goods-InForeman

PickingForeman

OutboundForeman

InventoryClerks

Administration

Operatives Operatives Operatives

219

Resource Planning

Balance warehouse throughputs between days


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Balance warehouse throughputs between days

Maximise the utilisation of resources and avoid idletime or additional costs through overtime

Normally daily or weekly planning

220

Controlling labour productivity

Time and motion studies


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Determine time period

Determine number of pallets/cases/units handledduring the period

Determine total hours worked in the period for allactivities

Divide total number of cases by total number of

minutes to determine case per minute throughput

221

Establishing timings

Manual operations

Pick up and put down small pallet

Pick up and put down carton

Time taken

10 seconds

20 seconds


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Pick up and put down carton

Walking empty handed

Walking with hand pallet truck

Fork truck operations

Pick up and put down pallet (PU/PD) Hoist up and down (HU/HD)

Travelling

20 seconds

61 metres per minute

30.5 metres per minute

65 seconds

20 seconds per metre 120 metres per minute

Also need to take into account1. preparation (collecting, equipment, pallet, paperwork)

2. Human factors (Skills, motivation, fatigue)3. Mechanical factors (battery changing, attachment changes, re-fuelling)4. Operational factors (location system, product placement, congestion)

Can be up to 75% of total time

222

Timed events


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Activity Description

Daily volume (Average)

Productivity

standard

(units per hour)

Hours

required

MHE

type

Other

highly competitive warehouse managemet

Documents