2. OUTLINES
What is Warehouse?
Warehouse History
Customer Service
Inventory Cost
Methods of Stock
Valuation
Demand & Supply
Re-order Point System
Economic Order
Quantity (EOQ)
Just In Time (JIT)
5s Theory
Price Vs. Total Cost
Conclusion
3. WHAT IS WAREHOUSE?
A warehouse is a commercial building for storage of
goods. Warehouses are used by manufacturers,
importers, exporters, wholesalers, transport
businesses, customs, etc. They are usually large
plain buildings in industrial areas.
4. WAREHOUSE HISTORY
Warehousing's roots go back to the creation of granaries to
store food, which was historically available for purchase
during times of famine. As European explorers began to
create shipping-trade routes with other nations, warehouses
grew in importance for the storage of products and
commodities from afar. Ports were the major location for
warehouses.
5. WAREHOUSE HISTORY
As railroads began to expand travel and transportation, the
creation of rail depots for the storage of materials became
necessary. In 1891 the American Warehousemen's
Association was organized to challenge the railroad
companies' control over freight depots. President Theodore
Roosevelt significantly strengthened the Interstate Commerce
Commission with passage of the Hepburn Act in 1906.
Commercial warehousing began to grow after the government
placed more restrictions on railroads.
6. WAREHOUSE HISTORY
World War II impacted warehousing in several ways, including
the need to increase the size of warehouses and the need for
more mechanized methods of storing and retrieving the
products and materials. As mass production grew throughout
manufacturing, the needs of efficient and effective
warehousing capabilities grew with it.
7. CUSTOMER SERVICE
Customer service is the provision of service to
customers before, during and after a purchase.
Customer service is a series of activities designed
to enhance the level of customer satisfaction, that is
the feeling that a product or service has met and
exceed the customer expectation.
8. 9 RULES FOR GOOD CUSTOMER SERVICE
1. Smile.
2. Answer your phone.
3. Listen to your customers.
4. Don't make promises unless you will keep them.
5. Deal with complaints.
6. Be always helpful, courteous, and knowledgeable.
7. Take the extra step.
8. Throw in something extra.
9. Think like a customer.
9. RULE TO REMEMBER
Rule 1
The Customer Is Always Right !
Rule 2
If The Customer Is Ever Wrong
Reread Rule 1
10. INVENTORY COST
Cost of Capital (Holding Cost & Opportunity Cost)
Overheads (Electricity, Water, Utility…)
Stock Management (Workers, Salary and Wages)
Stores Security and Insurance
Stock Deterioration, Loss and Obsolescence
11. METHODS OF STOCK VALUATION
FIFO (First In First Out)
LIFO (Last In First Out)
Average Cost
Standard Cost
Replacement Cost
12. FIFO (FIRST IN FIRST OUT)
FIFO assumes that the first items put on the shelf are the first
items sold, so your oldest goods are sold first. This system is
generally used by companies whose inventory is perishable or
subject to quick obsolescence. If prices go up, FIFO will give
you a lower cost of goods sold because you are using your
older, cheaper goods first.
13. LIFO (LAST IN FIRST OUT)
LIFO assumes that the last items put on the shelf are the first
items sold. LIFO is a good system to use when your products
are not perishable or become obsolete. Under LIFO, when
prices rise, the higher priced items are sold first and the lower
priced products are left in inventory. This increases a
company's cost of goods sold and lowers their tax liability and,
as a result, their net income.
14. AVERAGE COST
Average cost method, it is assumed that the cost of
inventory is based on the average cost of the goods available
for sale during the period.
The average cost is computed by dividing the total cost of
goods available for sale by the total units available for sale.
This gives a weighted-average unit cost that is applied to the
units in the ending inventory.
15. STANDARD COST
This method uses the standard cost price to
process the stock valuation. It takes the cost price
of the inflow transaction and updates the current
stock value.
19. RE-ORDER POINT SYSTEM
Reorder Point = Normal consumption during lead-time + Safety Stock .
Reorder level = Average daily usage rate x lead-time in days .
Reorder point = S x L + J ( S x R x L)
Where
S = Usage in units per day
L = Lead time in days
R = Average number of units per order
J = Stock out acceptance factor
26. 5S THEORY, SORT (CLEAN UP)
Sorting" means to sort through everything in each work area. Keep only
what is necessary. Materials, tools, equipment and supplies that are not
frequently used should be moved to a separate, common storage area. Items
that are not used should be discarded.
Don't keep things around just because they might be used, someday.
Sorting is the first step in making a work area tidy. It makes it easier to
find the things you need and frees up additional space.
As a result of the sorting process you will eliminate (or repair) broken
equipment and tools. Obsolete fixtures, molds, jigs, scrap material, waste and
other unused items and materials are disposed of.
The objective of this step is to clean up the work area. Cleaning up not
only makes things look nice, it makes it easier to spot maintenance needs
such as an oil leak. It improves safety. It eliminates clutter and confusion. It
removes tools, equipment, supplies and waste that interferes with getting the
job done.
27. 5S THEORY, SET IN ORDER (ORGANIZE)
Step two is to organize, arrange and identify everything in a work area
for the most efficient and effective retrieval and return to its proper place.
Commonly used tools should be readily available. Storage areas,
cabinets and shelves should be properly labeled. Clean and paint floors
to make it easier to spot dirt, waste materials and dropped parts and
tools. Outline areas on the floor to identify work areas, movement lanes,
storage areas, finished product areas, etc. Put shadows on tool boards,
making it easy to quickly see where each tool belongs.
In an office, provide bookshelves for frequently used manuals, books and
catalogs. Labels the shelves and books so that they are easy to identify
and return to their proper place.
The objective in this step is: A place for everything and everything in it's
place, with everything properly identified and labeled. This means there
are two important parts to Systematic Organization - putting everything in
its proper place and setting up a system so that it is easy to return each
item to its proper place. The second part is where good labeling and
identification practices are important. Both the equipment/tools and
materials you use, as well as their proper storage locations, need to be
clearly identified and labeled.
28. 5S THEORY, SHINE (REGULAR CLEANING)
Step Three: Once you have everything, from each individual
work area up to your entire facility, sorted (cleaned up) and
organized, you need to keep it that way. This requires regular
cleaning, or to go along with our third S, "shining" things up.
Regular, usually daily, cleaning is needed or everything will return
to the way it was. This could also be thought of as inspecting.
While cleaning it's easy to also inspect the machines, tools,
equipment and supplies you work with.
Regular cleaning and inspection makes it easy to spot lubricant
leaks, equipment misalignment, breakage, missing tools and low
levels of supplies. Problems can be identified and fixed when
they are small. If these minor problems are not addressed while
small, they could lead to equipment failure, unplanned outages or
long - unproductive - waits while new supplies are delivered.
When done on a regular, frequent basis, cleaning and inspecting
generally will not take a lot of time, and in the long run will most
likely save time.
29. 5S THEORY, STANDARDIZE (SIMPLIFY)
Step Four: To ensure that the first three steps in your Five S
program continue to be effective, the fourth step is to simplify
and standardize.
The good practices developed in steps 1 through 3 should be
standardized and made easy to accomplish. Develop a work
structure that will support the new practices and make them
into habits. As you learn more, update and modify the
standards to make the process simpler and easier.
One of the hardest steps is avoiding old work habits. It's easy
to slip back into what you've been doing for years. That's what
everyone is familiar with. It feels comfortable.
Use standards to help people work into new habits that are a
part of your Five S program.
Any easy way to make people aware of, and remind them
about the standards is to use labels, signs, posters and
banners.
30. 5S THEORY, SUSTAIN
Step Five: The final step is to continue training and maintaining the
standards.
Don't expect that you can clean up, get things organized and labeled,
and ask people to clean and inspect their areas every day — and then
have everything continue to happen without any follow-up.
Continue to educate people about maintaining standards. make any
needed changes in the standards and provide training that addresses
those changes.
Using 5s Posters and Signs: A good way to continue educating
employees, and for maintain standards, is to use 5s posters and signs.
You can create your own custom 5S posters, allowing you to
communicate the specific information that needs to be communicated at
each location. Changing work habits can be difficult, and it is easy to slip
back into doing things the old, comfortable way. Use custom 5S posters
to remind employees of the proper procedures, and of the benefits that
come from following a 5s plan.
Think of this step as sustaining the benefits you are getting from your
Five S program.
