Applying Lean Concepts in a Warehouse Operation

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Applying Lean Concepts in a Warehouse Operation

  1. 1. Applying Lean Concepts in a Warehouse Operation Frank Garcia Partner ADVENT DESIGN CORPORATION
  2. 2. What We’ll CoverBasic Lean Concepts for WarehouseImprovementUsing Value Stream Maps:Current & Future StateImplementing Process ImprovementsCase Study Using and OngoingApplication (Pork Producer)
  3. 3. WHAT TO DO ABOUT THE WAREHOUSE? • Too many people • Excessive material handling • Inventory inaccuracies • Don’t ship the pounds • No space!!!! Need to Expand!
  4. 4. WAREHOUSE CHALLENGESFocus on Manufacturing.Warehouse is a box on theVSM Office & Info Flow Customer DemandsProduct pushed intowarehouse & pulled bycustomers WarehouseApplication of LeanPrinciples to an area thatexists because of waste inthe value stream or customer Production Suppliersdemand/lead timeWarehouse is the crossroadsof conflicting requirements
  5. 5. How Do We Use Lean Techniques for Warehouse Improvement?Assess the operation using a Value StreamMap and/or PFDs (Product families & Warehouse data)Involve the operators & supervisorsIdentify lean improvements & kaizens Question every activity! Treat the warehouse like a large staging areaDevelop justificationImplement lean improvements using VSMplanStart the cycle again!
  6. 6. Lean ManufacturingFundamental Principle of Lean Manufacturing Any activity or action which does not add value to the product is a form of waste and must be eliminated or minimized.In the Warehouse Customer Pays for Shipping Everything Else Must Be Minimized !
  7. 7. What Do We Need to Know? Demand Material Flow & Handling Information Flow to the Warehouse How Material is Stored Order Picking & Staging How ShippedVALUE STREAM MAPPING!
  8. 8. Why Use VSM?Road map for lean improvementsTrain team members in use of leanconceptsIntegrated lean implementation planLong term planning - Many Future States
  9. 9. product family Current State Map Understanding how the warehousecurrent state drawing currently operates. Material and information flows Future state Start with the “door to door” flow drawing Walk the flow and get real data * no standard times * draw by hand plan and Get operators & supervisors involved implementation Basis for the Future State
  10. 10. Warehouse Current State Value Stream Map Blanket Orders with Daily Releases; Supplemented with Open Market Purchases Blanket Orders Production Spices and Packaging Randomly Placed Various Hogs with Weekly or and Inventory Control Smokehouse Materials Orders (Various Sizes) Customers Bi-Weekly Releases (Computer System) Materials Demand: Daily 131 to 242 orders per Productio day n Avg: 167/day Schedule Daily Weekly Weekly 1 to 2 pallets/order or Bi- or Bi- Aging 15 to 17 orders per (about Daily Shipping Orders Weekly Weekly Report truck 400) & Freezer Release (5PM) 12 to 13 trucks per day 1 route per truck Smokehouse Operations Smoke Wrap & Pack Off-Site Freezer Storage Daily Shipments Smoked (12 to 13 routes) Products I I Multiple Multiple 1, 578K lbs Operators Operators Conveyor Staging Kill & Cut Wrap & Pack Metal Detection Strapping Palletizing Order Picking Order Shipping & Storage Checking 1 to 2 & Scanning 1 to 2 1 to 2 pallets 1 to 2 Cut Products Cut Products pallets per I 1 to 2 1 to 2 I pallets I order I pallets I per Pallets Pallet order Multiple Multiple 6 to 8 Operators Operators Conveyor Conveyor Rack Staging Staging 3 People 2 2 Staging Staging Storage Palletizing for Trucks People People People 10 cases 10 to 15 775 & Dock 2 orders C/T = 7 sec C/T = 10 - 35 C/T = 15 min C/T = 4 hours C/T =2 sec C/T = 2 sec cases positions; 6 orders (4 pallets) per case or 10 minutes C/O = 0 min C/O = 0 min C/O =2 min C/O = 1 min 7 reefers; (12 pallets) min per pallet C/O = 0 min Rel. = 85% Rel. = 85% Rel. = 95% Rel. = 80%Order Lead Time 3.7 to 6.1 Days C/O = 0 min 610K lbs Rel. = 85% Avail. = 16.5 hrs Avail. = 16.5 hrs Rel. = 85% Avail. = 49.5 toOrder Processing Time: 6 Hrs Avail. = 24.8 66 hrs (2 shifts) hrs (2 shifts)Takt Time: 3 to 4 minutes 30 5 sec 6 minutes 2.9 to 5.3 days 20 15 minutes seconds (Freezer minutes storage: 35 10 minutes 40 seconds 40 20 6.7 to 14.5 minutes 4 hours seconds minutes
  11. 11. Important Warehouse Data 60mm pounds per year 2002 Product Picks (All) 6.8 turns per month 700 Seasonal production. 609Number of Product Items 600 500 400 Production exceeds 300 200 shipments by 20% Easter & Xmas 100 31 16 8 5 1 1 0 0 0 0 1 0 1 to 1001 to 2001 to 3001 to 4001 to 5001 to 6001 to 7001 to 8001 to 9001 to 10000 11001 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 Number of Line Item Picks to to 11000 12000 Average 1.2 pallets per order. Average 167 orders/day 10% products = 66% of picks 20% products = 84% of picks 95% of picks are for less than a pallet Returns 1.9% of lbs shipped
  12. 12. Opportunity: Material Flow & Layout Many crossed flows !
  13. 13. Opportunity: Walking and Lifting in Palletizing Little case accumulation Case lifting and walking Pallet cycle time too long Cases missing straps Area used for order staging No visual controls
  14. 14. Opportunity: Rack Storage and Utilization Daily Product Aging Counts Insufficient pallet storage for peak months No rack locator system Reefers used for overflow storage Product gets lost Rely on operator memories or supervisor expediting
  15. 15. Opportunity: Order Picking & Shipping Order picking too slow Must pick before final order confirmation Few operators understand warehouse Dock staging too small Inventory updated at scanning Not enough dock doors
  16. 16. ORDER PICKING FLOW FRESH SMOKED FROZEN GET PICK GET LOAD LIST PATTERN LOCATE PALLET IN WAREHOUSE LOCATE PALLET IN DOCK RACKS • MOVE PALLET PICK• CASES 95% OF TIME CASES OR PALLETS REPEAT UNTIL • MOVE PALLET ORDER COMPLETE STORE PALLET • PALLETIZING STAGE AREA ORDER • DOCK • MOVE TO INSPECTION CHECK ORDER SCAN BAR CODES • MOVE TO TRUCK LOAD TRAILER
  17. 17. Why is Order Picking Slow? computer-looking 2% interference 2% Walkingreorganizing product- 8% dates 11% computer-looking Looking interference 34% Looking outside interruption Picking reorganizing product-dates Walking Picking outside interruption 38% 5%
  18. 18. Opportunity: Case Flow Through Metal Detection & Strapping • No gap between cases • Cases jam at metal detector • Maintenance adjusts metal detector • Run out of strap • No system status display
  19. 19. Opportunity: Production Scheduling Not inSync With Shipments or Warehouse Capacity Pallet storage in aisles Insufficient pallet storage for peak months Outside Freezer Warehouse Used used for overflow storage
  20. 20. How Do We Fix It? Look at Application of Lean Concepts Future State Using Value Stream Maps With & Without Expansion
  21. 21. Future State Questions What is the takt time? Will we build to shipping or to a supermarket? Where can we use continuous flow? How do we level the pacemaker process?SUPPORTING IMPROVEMENTS What process improvements will be necessary to eliminate waste?
  22. 22. TAKT TimeSynchronizes 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
  23. 23. Look for No Flow &Wastes They are in the warehouse too!Inventory (too much)Overproduction (more or sooner than needed)Correction (inspection and rework)Material MovementWaitingExtra MotionNon-Value Added Processing
  24. 24. Lean ManufacturingConcepts & Techniques in the Warehouse Flow: Visual Workplace, Layout Improvement, Lean Automation Materials: Kanban Systems, Supply Chain Management, Point of Use Perfection: Quality Systems, Training Information: Just in Time, Lean Office
  25. 25. Warehouse Assessment Value Stream Map (Future State) Without Expansion Blanket Orders with Daily Releases; Supplemented with Open Market Purchases Blanket Orders Leidy’s Production Spices and Packaging Randomly Placed Various Hogs with Weekly or and Inventory Control Smokehouse Materials Orders (Various Sizes) Customers Bi-Weekly Releases (CSB System) Materials • Aging Data Demand: Daily 131 to 242 orders per day Productio Avg: 167/day n 1 to 2 pallets/order Schedule 15 to 17 orders per truck Daily Weekly Weekly Bar Code Scan Bar Code Scan 12 to 13 trucks per day or Bi- or Bi- Daily Shipping Orders (about Warehouse Input Inventory 1 route per truck Weekly Weekly & Freezer Release 400) Updates (5PM) Smokehouse Operations Smoke Wrap & Pack Off-Site Freezer Storage Daily Shipments Smoked (12 to 13 routes) Products I I Multiple Multiple 1, 578K lbs Operators Operators Conveyor Staging Kill & Cut Wrap & Pack Metal Detection Strapping Palletizing Order Picking Order Shipping & Storage Verification 1 to 2 1 to 2 1 to 2 pallets 1 to 2 Cut Products Cut Products pallets per I 1 to 2 1 to 2 I pallets I order I pallets FIFO per order Pallets Pallet 3 2 Multiple Multiple 6 to 8 Conveyor People Rack People 2 Operators Operators Conveyor People Staging Staging Storage People Staging Dock 10 cases 883 positions; 30 to 50 C/T = 7 sec Locator system, C/T = 10 to 15 2 orders C/T = 10 min C/T = 2 hours Gap cases C/T =2 sec C/T = 2 sec cases (4 pallets) per case or 6.8 A items on first minutes C/O = 0 min C/O = 0 min C/O =2 min C/O = 1 min 3 separate min per pallet tier, additional C/O = 0 min Rel. = 85% Rel. = 85% Rel. = 95% Rel. = 90% Zones C/O = 0 min rack above Rel. = 85% Avail. = 16.5 hrs Avail. = 16.5 hrsOrder Lead Time: 3 to 4.9 Days Bar code scan Rel. = 85% palletizing Avail. = 49.5 to Avail. = 24.8 610K lbs 66 hrs (2 shifts)Order Processing Time: 3 Hrs hrs (2 shifts) Scan bar codes 2.6 to 4.5 daysTakt Time: 3 to 4 minutes 30 seconds 5 sec 6 minutes (Freezer storage: 15 minutes 6.7 to 14.5 days) 20 40 seconds 40seconds 13 minutes minutes 8 minutes 2 hours
  26. 26. What Happened in the Future State VSM Without Expansion?Implemented rack locator system & organizedstorage based on product turnsRevised order picking methodsImplemented WMSImproved palletizing systemReduced job classifications & cross trainedoperatorsEstablished operational metrics Closer to Takt Time….but not there yet!
  27. 27. FUTURE STATE PALLETIZING FLOW FRESH Production Cases WMS TEMP PRINT WAREHOUSE LABELS SMOKED SCAN Transfer Count Cases CASES WMS WAREHOUSE GET CASE FROMLocation MANAGEMENT CONVEYOR WALK TO Pallet Number • MOVE CASE CONVEYOR PLACE ON PALLET Yes SPACE TO FIT No • MOVE PALLET Visual Display ALL PALLETS PRINT & APPLY PALLET LABEL Zone Location • FRESH Random Pallet Number STAGE • MOVE PALLET of System • SMOKED Status PALLET LOCATE EMPTY STORAGE POSITION STRETCH WRAP • GET STRETCH WRAP • MOVE PALLET SCAN • MOVE PALLET LOCATION STAGE •IN TUNNEL PALLET FOR FORKLIFT PICKUP ADD PRODUCT TO RACK, RETURN TO PALLETIZING LINE SCAN PALLET LABEL PUT AWAY • MOVE PALLET • FRESH • SMOKED • MOVE • MOVE TO TRUCK TO TRUCK LOAD LOAD FRESH FROZEN TRAILER TRAILER
  28. 28. FUTURE STATE ORDER PICKING FLOW FRESH SMOKED FROZEN GET PICK LIST GET LOAD WMS PATTERN Truck Route Wave Pick LOCATE PALLET IN WAREHOUSE LOCATE PALLET • MOVE PALLET REPEAT IN DOCK RACKS SCAN UNTIL WMS LOCATION ORDER COMPLETE PICK CASES OR• CASES 95% OF TIME PALLETS WMS Next location • MOVE PALLET WMS SCAN CASES STORE PALLET STAGE • PALLETIZING ORDER AREA • MOVE TO INSPECTION • DOCK CHECK ORDER VERIFICATION WMS SCAN • TRUCK ROUTE Truck Route LOAD • MOVE TO TRUCK TRAILER
  29. 29. PROPOSED PALLETIZING & STORAGE IMPROVEMENTS
  30. 30. PROPOSED PALLETIZING IMPROVEMENTS
  31. 31. Future State Benefits Step 1: Without ExpansionImproved order picking and material flow Reduced cycle time 15% in 3 months. Going to 30%Reduced material handlingSaved rack space (10% reduction in 2weeks)Reduced lead time 50%Handle peak periods with less congestion(108 positions)Better trained and flexible workforceCapital Payback of 1.8 years
  32. 32. How Do We Implement the Future State VSM? Don’t Wait Until It’s Perfect! Use future state VSM to highlight changes Break up the future state into sections Develop a VSM implementation plan Tie plan to business objectives & show savings Assign projects to team members toimplement
  33. 33. Organizing the Lean Solutions Process Problem SolutionMetal M1. Cases not metered into machines causing jams and M1. Create space between cases with metering device increasesDetection backup of product reliability of strapper and metal detector&Strapping M2. Metal detector setting has to be changed manually M2. Scan product to set metal detection setting increases reliability of metal detector P1. Product is handled twice, once to palletize then once to P1. Rearrange high moving product to allow case stacking in flow pick racksPalletiz- P2. Operator walking several feet to obtain correct case of P2. Shorten walking distance by separating product onto shortering product to palletize conveyors P3. Product is moved to be shrink wrapped prior to put P3. *Automate the shrink wrapping process with conveyor and away automatic wrapper ST1. Searching for open position for putaway ST1. Implement W arehouse Management System for putawayStorage ST2. Product must be rotated from top to bottom resulting in ST2. Rearrange racking for whole pallet flow racks on high movingRacks and several pallet moves productStaging ST3. Need forklift to put bottom row away. Need ladder to ST3. Remove lower rail on certain aisles to allow pallet jack putaway pick from second tier. instead of forklift. Lower second tier to pick height without ladder. O1. Pickers searching for product due to no location system O1. Put pick locations on pick ticket after W arehouse ManagementOrder O2. W alking from aisle to aisle with no logical sequence of System is installedPicking picks O2. Sort products by frequency of pick then by weight in warehouse O3. Rotating stock to bring oldest date to front to minimize walking O3. *Use pallet flow racks to automatically rotate stockShipping SH1. Insufficient space to stage multiple pallets leads to SH1. *Increase floor space for dock staging. Long term plan would be double moves of product to reorganize when building is expanded SH2. Operator is dedicated to verifying picked pallet prior to SH2. Improve picking operation through training and scanning at pick scan location with bar code scanners. SH3. Occasionally additional product gets shipped to SH3. Confirmation check by scanning once prior to loading truck customer
  34. 34. PROPOSED IMPROVEMENTS: Costs & Savings C y c le T im e A nnual C o s t toP rocess P r o b le m S o l u ti o n (R e d u c e d ) S a v in g s $ I m p le m e n tM eta l M 1. C a s es n o t m et er e d in t o m a c h in es c a u s in g ja m s M 1. C r ea te s p a c e b etw e e n c a s es w it h m et er in g d e v ic e in c r ea s es 3 ,5 0 3 2 ,0 0 0 .3 3 m in /p a lD et e c tio n a nd b a cku p o f product r elia b ility o f s tra p p er a n d m eta l d et e c to r& 3 ,5 0 3 2 0 ,0 0 0S tr a p p in g M 2. M eta l d e t e c t o r s ettin g h a s to b e c h a n g e d M 2. S c a n p r o d u c t to s et m eta l d et ec t io n s ettin g in c r ea s es .3 3 m in /p a l m a n u a lly r elia b ility o f m eta l d et e c t o r P1. P r o d u c t is h a n d le d tw ic e, o n c e to p a lle tiz e th e n P1. * R ea r r a n g e h ig h m o v in g p r o d u c t to a llo w c a s e s ta c k in g in 1 o p e r /y e a r *TBD *TBD o n c e t o p ic k flo w r a c k sP a lletiz - P2. O p e r a to r w a lk in g s ev er a l f e et to o b ta in c o r r ec t P2. S h o r t e n w a lk in g d is ta n c e b y s o r tin g p r o d u c t b y b a r c o d e 1 .3 3 m in /p a l 1 4 ,0 2 4 9 5 ,0 0 0in g c a s e o f p r o d u c t to p a llet iz e in to c o n v e y o r z o n e s o r u s in g a v er tic a l r ec ir c u la tin g con vey or ( v e r t ic a l P3. P r o d 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 to c o nve yo rs) put away P3. * A u to m a te th e s tr e tc h w r a p p in g p r o c e s s w ith c o n v e y o r 2 m in /p a l * 2 1 ,0 4 2 * 6 2 5 ,0 0 0 a n d a u to m a tic p a lle tizin g S T 1 . S ea r c h in g f o r o p e n p o s itio n fo r p u ta w a y 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 y .7 5 m in /p a l 7 ,8 9 1 ^ S e e b e lo w S T 2 . P r o d u c t m u s t b e r o ta te d fr o m to p to b o tt o m S T 2 . R ea r ra n g e r a c k i n g f o r w h o le p a llet flo w r a c k s o n h ig h 5 m in /p a lS to r a g e r es u lt in g in s e v er a l p a lle t m o v es m o v in g p r o d u c tR a cks a nd 2 6 ,3 0 3 4 0 ,0 0 0 S T 3 . N e e d f o r k lift to p u t b o tto m r o w a w a y . N e e d S T 3 . L o w er s e c o n d tier to p ic k h e ig h t w ith o u t la d d er .S ta g in g 0 .3 3 m in /p a l la d d er to p ic k fr o m s ec o n d tier . R e o r g a n iz e s h e lv in g h e ig h t to a llo w s e v er a l S K U ’s to fit in S T 4 . N e e d a d d it io n a l r a c k s p a c e f o r p r o d u c t o n e p a llet lo c a tio n . 3 ,4 7 9 3 ,0 0 0 S T 4 . A d d r a c k in g o v e r h e a d o n p a lletiz in g lin e 0 m in /p a l 0 3 0 ,0 0 0 O 1. P ic k er s s ea r c h in g f o r p r o d u c t d u e to n o lo c a tio n O 1. P u t p ic k lo c a tio n s o n p ic k tic k et a fter W a r eh o u s e 1 0 m in /p a l 1 0 5 ,2 1 0 ^ S e e b e lo wO r d er system M a n a g e m e n t S y s t e m is in s ta lle dP ic k in g O 2. W a lk in g fr o m a is le t o a is le w ith n o lo g ic a l O 2. S o r t p r o d u c ts b y fr e q u e n c y o f p ic k th e n b y w e ig h t in 5 m in /p a l 5 2 ,6 0 5 ^ S e e b e lo w s e q u e n c e o f p ic k s w a r e h o u s e to m in im iz e w a lk in g 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 fr o n t O 3. * U s e c a s e flo w r a c k s to a u to m a tic a l ly r o ta te s to c k 1 m in /p a l * 1 0 ,5 2 1 TBD S H 1 . In s u ff ic ie n t s p a c e t o s ta g e m u ltip le p a llets lea d s S H 1 . * I n c r e a s e flo o r s p a c e fo r d o c k s ta g in g . L o n g te r m p la n 3 m in /p a l * 3 4 ,7 2 0 TBD to d o u b le m o v e s o f p r o d u c t w o u ld b e to r e o r g a n iz e w h e n b u ild in g is e x p a n d e d S h ip p in g S H 2 . O p e r a to r is d ed ic a te d to v er if y in g p ic k e d p a llet S H 2 . I m p r o v e p ic k in g o p er a tio n th r o u g h tra in in g a n d s c a n n in g a t 2 m in /p a l 2 1 ,0 4 2 ^ S e e b e lo w p r io r to s c a n p ic k lo c a tio n w it h b a r c o d e s c a n n er s . S H 3 . O c c a s io n a lly a d d itio n a l p r o d u c t g ets s h ip p e d to S H 3 . C o n fir m a tio n c h ec k b y s c a n n in g o n c e p r io r to lo a d in g tr u c k c u s to m er Increase U t iliz e s p r o b le m S T 1 + O 1 + O 2 + S H 2 s a v in g s d a ta D es ig n s o ft w a r e, p u r c h a s e h a r d w a r e , in t e g r a te s y s t e m s a n d 1 7 .8 m in /p a l 1 8 6 ,7 4 8 2 4 0 ,0 0 0 in s ta ll o n w a r e h o u s e flo o r . WMS O r g a n iz a tio n a l h ier a r c h y to o s p e c ia liz e d . C a n ’t tra c k C r o s s tra in o p er a to r s to fill m u ltip le r o le s d u r in g o n e s h ift. P o o l TBD TBD h o u r s c o r r ec tly d u e t o c la s s if ic a tio n o f w o r k er s . a ll la b o r a n d r e d u c e a s n e e d e d . T ra c k la b o r b y g r o u p p r o d u c tiv ity v e r s es in d iv id u a l p r o d u c tiv ity . T o t a l o f a ll p r o je c ts w i t o u t e x p a n s i o n $ 2 3 4 ,0 8 1 $ 4 3 0 ,0 0 0 ( U s in g p r o b le m M 1 , M 2 , P 2 , S T 3 , S T 4 , a n d W M S d ata)
  35. 35. PROPOSED IMPLEMENTATION PLANWithout Expansion Phase 1. Simple modifications 1. Remove bottom rail to allow pallet jack access. (Target date May 2003) 2. Lower second tier to remove the need for ladder access. (May 2003) 3. Match shelf size with average pallet height to increase the number of pick locations. (May 2003) 4. Change speed of conveyor in metal detection room to space product cases properly or implement as part of palletizing relocation. (May 2003) 5. Balance flow of orders transferring from the order pickers to verifiers during the entire shift. This can be accomplished by training more utility operators as outlined in the organizational restructuring matrix shown in Section 4. (May 2003) 6. Label all pallet rack storage locations to begin transition to warehouse management system(May 2003) 7. Place 135 high moving SKU’s on first or second tier of the pallet rack. (May 2003)
  36. 36. PROPOSED IMPLEMENTATION PLANWithout Expansion Phase 2. Moderate improvements to computer system and operations 1. Implement warehouse wide standards on order accuracy, line items shipped on time, orders shipped complete. Post the results weekly to begin continuous improvement philosophy in warehouse activity.(June 2003) 2. Install static racking above the existing palletizing area, leaving sufficient head room for the palletizing operation. (September 2003) 3. Install new vertical recirculation conveyor palletizing station and lift tables. (September 2003) 4. Consider implementation of CSB locator screen using move tickets if automated scanning will be delayed. (September 2003) 5. Install flow through pallet rack on bottom tiers of existing racks to eliminate top-down pallet rotation on high movers. (October 2003) 6. Change configuration of metal detection conveyor to scan labels prior to entering metal detection equipment. Use barcode scan to change settings on the metal detector. (2004) Phase 3. Major improvements to computer system and operations 1. Upgrade CSB system to include Warehouse Management System for locating product and install equipment to bar code scan case labels. (1 st quarter 2004)
  37. 37. Warehouse Assessment Value Stream Map (Future State) With Expansion Blanket Orders with Daily Releases; Supplemented with Open Market Purchases Blanket Orders Leidy’s Production Spices and Packaging Randomly Placed Various Hogs with Weekly or and Inventory Control Smokehouse Materials Orders (Various Sizes) Customers Bi-Weekly Releases (CSB System) Materials • Aging Data Demand: Daily 131 to 242 orders per day Productio Avg: 167/day n 1 to 2 pallets/order Schedule 15 to 17 orders per truck Daily Weekly Weekly Bar Code Scan Bar Code Scan 12 to 13 trucks per day or Bi- or Bi- Daily Shipping Orders (about Warehouse Input Inventory 1 route per truck Weekly Weekly & Freezer Release 400) Updates (5PM) Smokehouse Operations Smoke Wrap & Pack Off-Site Freezer Storage Daily Shipments Smoked (12 to 13 routes) Products I I Multiple Multiple 1, 578K lbs Operators Operators Conveyor Staging Kill & Cut Wrap & Pack Metal Detection Strapping Palletizing Order Picking Order Shipping & Storage Verification 1 to 2 1 to 2 1 to 2 pallets 1 to 2 Cut Products Cut Products pallets per I 1 to 2 1 to 2 I pallets I order I pallets FIFO per Pallets Pallet order Multiple Multiple 6 to 8 Conveyor Rack Operators Operators Conveyor 3 People Staging 2 2 Staging Storage Staging People Dock People People 10 cases 1100 positions; 30 to 50 C/T = 7 sec Locator system, C/T = 10 to 15 5 orders C/T = 5 min C/T = 1. 5 hours Gap cases C/T =2 sec C/T = 2 sec cases per case or 6.8 A items on first minutes (10 pallets) C/O = 0 min C/O = 0 min C/O =2 min C/O = 1 min 3 separate min per pallet tier, additional C/O = 0 min Rel. = 95% Rel. = 95% Rel. = 95% Rel. = 90% ZonesOrder Lead Time: 2.5 to 4.4 Days Bar code scan C/O = 0 min Rel. = 85% rack above Rel. = 85% Avail. = 49.5 to Avail. = 16.5 hrs Avail. = 16.5 hrs palletizingOrder Processing Time: 2.5 Hrs Avail. = 24.8 610K lbs 66 hrs (2 shifts) hrs (2 shifts) Scan bar codesTakt Time: 3 to 4 minutes 30 seconds 5 sec 6 minutes 2.6 to 3.5 days 8 minutes (Freezer storage: 40 seconds 40 13 minutes 10 minutes 8 minutes 1.5 hours seconds 6.7 to 14.5
  38. 38. What Happens in the Future State VSM With Expansion? Expand warehouse to provide staging areas Most pallets are staged on floor not in racks Revised order picking methods…Pick from pallets not racks Robotic palletizing system based on previously upgraded system Improved production scheduling & planning New markets for frozen products to increase turns
  39. 39. PROPOSED PALLETIZING & STORAGE IMPROVEMENTS expansion1.wmf
  40. 40. PROPOSED PALLETIZING & STAGING IMPROVEMENTS
  41. 41. The Warehouse Improvement Cycle Assessment Recommended Methods (VSM) Solutions Layout Material Handling Visual ControlsContinuousImprovement Automation Implementation Information DO IT! Plan Systems

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