Building a World Class Inserting    and Distribution Center                               CASE STUDY   1
“First Start With Good People”Need good people and great leadership with project            management expertise          ...
“Create a Organizational Chart”Get the “right people on the bus” and make sure they           are in the right seats to co...
“Create…”   Selection Matrix for consistent selection of associates   Conduct Associates Evaluations with staff input  ...
“Understand the Process”Flowchart the process current and future states before                 designing the plant        ...
“Breaking Ground”Breaking Ground on the new 20k sq. ft. Warehouse                                                   CASE S...
“It’s Lonely at the Top”“Iron is the easy part of a start-up” Operation                                                  C...
“How Much Racking is            Required?”Installed 4 & 5 High racking with a security cage for High  Value products (Made...
“Model Receiving Requirements”Pallet Positions Receiving                                            8-Oct    Packages     ...
“What Material Handling          Equipment is Required”Converted Fleet from LP to New Rapid Charge Batteries – No transfer...
“Distribution Requirements                                                                  Model”       Total      Pallet...
“Polished Concrete”Never Seal or Paint over good aged concrete. Repainted Deck,   Joists and Walls, High Efficiency Lighti...
“Partner With a World Class              Supplier”Muller Martini and In-house Installation crew commissionedequipment on t...
“Is it big enough? (150HP)” New Variable Trim Energy Efficient Quincy Compressor withOil/Water Separator, Dryer and Pre-fi...
“Never Forget Your Training”One of the many classes we had with Muller Martini –      Key to success is process improvemen...
“The Dream Becomes a Reality”Cleanliness is key to good manufacturing it reflects on the quality of the operation and prod...
How Fast Will it go?IFRA CALCULATION(NO MAKEREADY TIME INCLUDED)N= P x f1 x f2 x f3 x .96 x f4 x f5 x f6N = Basic Proforma...
Return on Investment – Less than one year! “If we are to achieve results never before accomplished, we must expect to empl...
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Building Case Study1

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Building Case Study1

  1. 1. Building a World Class Inserting and Distribution Center CASE STUDY 1
  2. 2. “First Start With Good People”Need good people and great leadership with project management expertise CASE STUDY 2
  3. 3. “Create a Organizational Chart”Get the “right people on the bus” and make sure they are in the right seats to contribute CASE STUDY 3
  4. 4. “Create…” Selection Matrix for consistent selection of associates Conduct Associates Evaluations with staff input Outplacement Provided for those not selected New Job Descriptions for each position Competitive Wage Scale providing a progression Standard Operational Procedures (Mimic - ISO 9001) Work Rules & Policies Project Plan with Weekly Updates (MS Project) Contingency Planning (PMBOK) Layouts (Auto CAD, PDF’s) CASE STUDY 4
  5. 5. “Understand the Process”Flowchart the process current and future states before designing the plant CASE STUDY 5
  6. 6. “Breaking Ground”Breaking Ground on the new 20k sq. ft. Warehouse CASE STUDY 6
  7. 7. “It’s Lonely at the Top”“Iron is the easy part of a start-up” Operation CASE STUDY 7
  8. 8. “How Much Racking is Required?”Installed 4 & 5 High racking with a security cage for High Value products (Made use of existing 4 high racking) CASE STUDY 8
  9. 9. “Model Receiving Requirements”Pallet Positions Receiving 8-Oct Packages Pieces pc% Mach % 15-Oct Packages Pieces pc% Mach % 22-Oct Packages Pieces pc% Mach % Fri 173,543.00 274,357.00 1.9% 0% Fri - - 0.0% 0% Fri 133,272.00 224,549.00 1.5% 0% Mon 85,977.00 662,526.00 4.7% 10% Mon 61,955.00 525,594.00 4.4% 10% Mon 107,763.00 680,087.00 4.5% 9%Currently 746 Spaces Tue 301,927.00 4,040,691.00 28.6% 25% Tue 331,042.00 4,121,534.00 34.5% 25% Tue 282,403.00 4,054,726.00 27.1% 22.50%Avg Distribution 366 Spaces Wed 236,573.00 3,720,871.00 26.3% 30% Wed 303,904.00 4,200,846.00 35.2% 30% Wed 245,167.00 4,131,274.00 27.6% 30%Avg Receving 380 Spaces Thu 240,910.00 3,781,262.00 26.8% 29% Thu 240,287.00 3,092,839.00 25.9% 29% Thu 219,751.00 3,911,393.00 26.1% 28.50% Fri 113,864.00 1,649,257.00 11.7% 7% Fri - - 0.0% 7% Fri 150,265.00 1,972,497.00 13.2% 10% Total 1,152,794.00 14,128,964.00 100% 100% Total 937,188.00 11,940,813.00 100% 100% Total 1,138,621.00 14,974,526.00 100% 100% FRIDAY SATURDAY THURSDAY FRIDAY SATURDAY SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY 15-Jul 16-Jul 29-Sep 30-Sep 1-Oct 2-Oct 3-Oct 4-Oct 5-Oct 6-Oct 7-Oct 8-Oct 9-Oct 10-Oct 11-Oct 12-Oct 13-Oct 14-Oct 15-Oct 16-Oct 17-Oct 18-Oct 19-Oct 20-Oct 21-Oct 22-Oct Total PalletsIn Home Date 8-Oct Receiving 4 58 56 4 82 104 24 57814128964 pcs CUM 4 4 308 364 364 368 450 554 578 578 578 578 0 0 0 0 0 0 0 % Produced 0 0 0 9 22.5 30 28.5 10 0 Pallet Produced 0 0.0 0.0 52.0 130.1 173.4 164.7 57.8 0.0 Subtotal 4 4 308 364 364.00 368.00 397.98 371.93 222.53 57.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00In Home Date 15-Oct Receiving 4 21 11 16 27 32 61 57 4 66 110 22 48611940913 pcs CUM 4 4 59 80 80 91 107 134 166 227 284 288 288 354 464 486 486 486 486 486 486 486 486 % Produced 9 22.5 30 28.5 10 Pallet Produced 43.74 109.35 145.8 138.51 48.6 0 Subtotal 4 4 59 80 80 91 107 134 166 227 284 288 288 310.26 310.91 187.11 48.60 0.00 0.00 0.00 0.00 0.00 0.00 0.00In Home Date 22-Oct Receiving 2 1 1 6 2 36 18 103 50 47 64 57 7 120 52 21 59314977496 pcs CUM 2 2 9 9 9 9 10 16 18 54 72 72 72 175 225 272 336 393 400 400 520 572 593 % Produced 0 0 0 9 22.5 30 28.5 10 Pallet 0 0 0 53 133 178 169 59 0 Produced Subtotal 2 393 400 400 467 385 228 59 0 0 1657 Total/Day 10 8 367 444 444 459 505 506 389 285 284 288 288 310 311 187 49 393 400 400 467 385 228 59Perpectual 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21Other Storage 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5Growth Est % 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14%Growth Pallets 1 1 50 60 60 62 68 68 52 38 38 39 39 42 42 25 7 53 54 54 63 52 31 8 2,022,504 14%Total 36 34 393 470 470 485 531 532 415 311 310 314 314 336 337 213 75 419 426 426 493 411 254 85 Created a model to compare 3 overlapping weeks of receiving and production. Factored in perpetual and growth – Max Utilization 532 positions CASE STUDY 9
  10. 10. “What Material Handling Equipment is Required”Converted Fleet from LP to New Rapid Charge Batteries – No transfer carts. All new Safety features included, not shown are new Walker/Riders CASE STUDY 10
  11. 11. “Distribution Requirements Model” Total Pallets B&Q CTZ ASSIGN 769 STATEN CTZ ASSIGN 97 % Production Pallets Produced Produced % by 4pm Prod by 4PM Available as of 4PM Bal to produce 2nd Pick up Comments Total 866 Mon 9.6% 83.1 0.0 0 0.0 0.0 0 Start up Monday Night Tues 24.7% 213.9 0.5 107.0 190.09 107.0 0 Cant deliver until wed (Preload ) Wed 30.2% 261.5 0.5 130.8 237.7 130.8 427.8 Load 150 Pallets at 6AM (Actually 277 on floor) Thurs 28.8% 249.4 0.5 124.7 255.5 124.7 255.5 Friday 6.6% 57.2 1.0 57.2 181.9 0.0 181.9 99.9% 865.13 420 865.1 865.134 839 865.1 Build Distribution Side for Approximately 277 Cant Deliver Until WedPallet Packing AssumptionOverall Package Size 10" x 12 x .375 Overall Package Size 11 1/2" x 12 x .375 Overall Package Size 11.5" x 12 x .375Assume 40" x 48" Pallet Assume 40" x 48" Plastic Pallet Assume 45" x 45" PalletAssume 25 Packages per Bundle Assume 25 Packages per Bundle Assume 25 Packages per BundleThis means 16 bundles to a layer This means 12 bundles to a layer This means 16 bundles to a layerEach Layer will be 9.375 each Each Layer will be 9.375 each Each Layer will be 9.375 eachAssume each CTZ is approximately 2,000 packages Assume each CTZ is approximately 2,000 packages Assume each CTZ is approximately 2,000 packagesEach layer will have approximately 400 packages Each layer will have approximately 225 packages Each layer will have approximately 400 packagesAssume maximum of 5 layers or 46.875" or 2000 Pkgs Assume maximum of 5 layers or 46.875" or 1500 Pkgs Assume maximum of 5 layers or 46.875" or 2000 Pkgs*If we have to go 6 layers max is still only 56.25" or 2400 Pkgs *If we have to go 6 layers max is still only 56.25" or 1800 Pkgs *If we have to go 6 layers max is still only 56.25" or 2400 Pkgs This will overhang 3" on one side and 1" on other - Not recommendNot to Scale: Not to Scale: Not to Scale: 25 25 25 25 25 25 25 25 25 25 25 12" 12" 12" 25 25 25 25 25 25 25 25 25 25 25 12" 12" 12" 25 25 25 25 25 25 25 25 25 25 25 12" 12" 12" Over by 3" 25 25 25 25 25 25 25 25 25 25 25 12" 12" 12"10" 10" 10" 10" 11.5 11.5 11.5 11.5" 11.5" 11.5" 11.5 Over by 1"Conclusion: Unless we have less than 1800pkgs or more then 3600 per CTZ we will assume 2 pallets/CTZ for design purposes! Modeled actual Trade Zone quantities and converted to finished pallets to determine receiving required CASE STUDY 11
  12. 12. “Polished Concrete”Never Seal or Paint over good aged concrete. Repainted Deck, Joists and Walls, High Efficiency Lighting and New HVAC CASE STUDY 12
  13. 13. “Partner With a World Class Supplier”Muller Martini and In-house Installation crew commissionedequipment on time (Matched capacity with equirements) CASE STUDY 13
  14. 14. “Is it big enough? (150HP)” New Variable Trim Energy Efficient Quincy Compressor withOil/Water Separator, Dryer and Pre-filter (Con Edison Rebate) CASE STUDY 14
  15. 15. “Never Forget Your Training”One of the many classes we had with Muller Martini – Key to success is process improvement! CASE STUDY 15
  16. 16. “The Dream Becomes a Reality”Cleanliness is key to good manufacturing it reflects on the quality of the operation and products produced CASE STUDY 16
  17. 17. How Fast Will it go?IFRA CALCULATION(NO MAKEREADY TIME INCLUDED)N= P x f1 x f2 x f3 x .96 x f4 x f5 x f6N = Basic Proformance MM conversion from Inches SI Wrap 11 3/8" x 11 3/4"P = Main Jacket infeed Speed 9 25.40 228.6 Queens 11 3/16" x 9 1/16"f1 = Influence of the main product format Enter Inches Result in MMf2= Influence of the type of the main productf3= influence of the page count of the end productf4= Influence of the page counts of the pre-prints A4 = 8.27" x 11.69"f5= Influence of the page count and size of insertsf6= The numbers of Hopper Feeders in operationStaten Island Wrap 18-1 P f1 f2 f3 0.96 f4 f5 f6 N Inserts 8500 1 1 1 0.96 1 0.8 0.74 4830.72 18 8500 1 1 1 0.96 1 0.8 0.75 4896.00 17 8500 1 1 1 0.96 1 0.8 0.76 4961.28 16 8500 1 1 1 0.96 1 0.8 0.77 5026.56 15 8500 1 1 1 0.96 1 0.8 0.78 5091.84 14 7000 8500 1 1 1 0.96 1 0.8 0.79 5157.12 13 6000 8500 1 1 1 0.96 1 0.8 0.80 5222.40 12 8500 1 1 1 0.96 1 0.8 0.81 5287.68 11 5000 8500 1 1 1 0.96 1 0.8 0.82 5352.96 10 8500 1 1 1 0.96 1 0.8 0.83 5418.24 9 4000 8500 1 1 1 0.96 1 0.8 0.84 5483.52 8 N 3000 Inserts 8500 1 1 1 0.96 1 0.8 0.86 5614.08 7 8500 1 1 1 0.96 1 0.8 0.88 5744.64 6 2000 8500 1 1 1 0.96 1 0.8 0.90 5875.20 5 8500 1 1 1 0.96 1 0.8 0.92 6005.76 4 1000 8500 1 1 1 0.96 1 0.8 0.94 6136.32 3 8500 1 1 1 0.96 1 0.8 0.96 6266.88 2 0 8500 1 1 1 0.96 1 0.8 0.98 6397.44 1 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Using a formula provided by (IFRA) the Newspaper Organization, was able to determine a theoretic output CASE STUDY 17
  18. 18. Return on Investment – Less than one year! “If we are to achieve results never before accomplished, we must expect to employ methods never before attempted” – Sir Francis Bacon CASE STUDY 18
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