Managing warehouse operations. How to manage and run warehouse operations by Omar Youssef

129,216 views

Published on

Managing warehouse operations

Published in: Business, Health & Medicine
64 Comments
201 Likes
Statistics
Notes
No Downloads
Views
Total views
129,216
On SlideShare
0
From Embeds
0
Number of Embeds
501
Actions
Shares
0
Downloads
3,842
Comments
64
Likes
201
Embeds 0
No embeds

No notes for slide

Managing warehouse operations. How to manage and run warehouse operations by Omar Youssef

  1. 1. By Omar Youssef Business Consultant E-mail: Omar.youssef5@hotmail.com Warehouse Operations Training Session
  2. 2. Mission Statement “The warehouse is our strongest asset. Dedication, accountability and reliability are at the heart of our business philosophy. Focussed on our business units needs, we provide integrated logistics of outstanding product quality, Product quantity, and delivered on time. we are the extension of your business.”
  3. 3. Warehouse Goals 1. Maximize effective use of space. 2. Maximize effective use of equipment. 3. Maximize effective use of labor. 4. Maximize accessibility of all items. 5. Maximize protection of all items. 6. Maximize effective use of information. 7. Maximize the protection of company’s assets. 8. Minimize goods Handling. 9. Minimize the company operating Cost.
  4. 4. Warehouse Functions 1. Unloading 2. Receiving & Checking inbound goods 3. Internal product movement 4. Storing 5. Order-picking 6. Stock Sortation 7. Stock Rotation 8. Packing 9. Loading & Shipping 10. Cycle Counting 11. Replenishement 12. Handling Returns 13. Maintenance & Loss Prevention
  5. 5. Operational Process Picking Inbound Activities Outbound Activities Process Activities Put-away PackingStorageReceiving Shipping 1 - Unloading 2 - Counting 3 - Identifying 4 - Marking 5 - Quality Control 6 - Registering goods 7 – Put away 11 – Product Category 12 – Palletize 13 – Stocking 14 – Cycle Counting 15 – Replenishment 16 – Stock Rotation 17 – Space Planning 18 – Routing 19 – Directing 20 – Zoning 21 – Dunnaging 22 – Confirmation 23 – Invoicing 24 – Sealing 25 – Staging 26 – Loading
  6. 6. Receiving • Receiving Objectives • Right Product • Right Quality • Right Quantities • Right Weight • Right PPB. • Right Condition • Right Standards • Right Time
  7. 7. Receiving • Prepare to receive goods and materials • Check Temperature • Unload the product (manual or automated) • Count the product • Check the product (quality, quantity & expiry) • Check Methods(100 % accept,100 %check, 10% sample check) • Identify the product • Mark the product • Enter the product on the receipt register • Transfer the product to stage area • Enter the product in stock • Re-Stack the product • Receiving Procedures
  8. 8. Put away & Stacking • Stack according to First in First out • Stack according to standards • Method of stacking - Manual Stacking - Automated Stacking • Keep stacked goods neat • Boxes to be stacked evenly • Keep Identity sticker visible • Keep expiry date visible • Stack goods in a safe way
  9. 9. Picking Time Consumption Source: John J. Bartholdi, III, Steven T. Hackman, 1998 Pickers Time Breakdown Traveling 55% Paperwork and other activities 20% Extracting 10% Searching 15% Traveling Searching Extracting Paperwork
  10. 10. Picking • 50-60% of time spent traveling • - Optimize picking workload • - Optimize work force assignm • - Optimize picking route • - Use of labor standards • Apply First in First out • Use the right picking equip • Pick the right item (accuracy) • Picking the right qty (accuracy) • Keep the Picking area neat • Picking Method • - Manual Picking • - Automated picking This is wrong This is Right
  11. 11. Shipping • Invoicing • Staging • Categorizing • Checking • - the right product • - in the correct quantity • - in good condition • - and on scheduled time • Confirming • Loading
  12. 12. Cold Storage Standards • Proper Storage Temperature • - Dry Storage from 55 to 70 F(13-21 C). • - Refrigerator from 34 to 38 F(1-4 C). • - Freezers from 0 to -22 F(-18 - -30 C). • A relative humidity of • - 50-60 % in the storeroom • - 75-85 % in the refrigerators for meats, fish, chicken, dairy products • - 85-95 % for fruits and vegetables • Good ventilation provides clean air at the required temperatures and humidity.
  13. 13. Unit Load Racking 44-48” 40” 40” 40” 132” 40”40”40” 3-6” • 3-6” between unit loads • 3-6” between unit load and bay member • 4-6” between unit load and wall • 18” between unit load and first ceiling obstacle • 6” off the floor
  14. 14. 001 002 003 004 005 006 008 010 009 011 012 014 013 016 015 018 017007 002 001003005007009011013015017 004006008010012014016018 Aisle 12 Aisle 11 11-A-L1-002 11-A-L1-001 11-A-L1-004 11-A-L1-003 11-A-L1-006 11-A-L1-005 Location & Aisle Numbering for Ground Storage A B C
  15. 15. Location and Aisle Numbering for Rack Storage AISLE-02 Aisle Entry Left Right 02-L-01A 02-L-01B 02-L-01C 02-L-01D 02-L-03A 02-L-03B 02-L-03C 02-L-03D 02-L-05A 02-L-05B 02-L-05C 02-L-05D 02-L-07A 02-L-07B 02-L-07C 02-L-07D 02-R-08A 02-R-08B 02-R-08C 02-R-08D 02-R-06A 02-R-06B 02-R-06C 02-R-06D 02-R-04A 02-R-04B 02-R-04C 02-R-04D 02-R-02A 02-R-02B 02-R-02C 05-R-02D
  16. 16. Drivers Duties • Loyalty to company is very important • To implement all job description • Cars, daily check up for maintenance • Cars, Cleaning on weekly basis • Cars, Damage resulting of omission • No eating or drinking while driving • Complying w/warehouse rules & regulations • To execute information delivered to you • Smoking is not allowed in warehouse • Cooperation w/colleagues and direct managers • Deal w/rests. representative Like the only customer • Handling returns as per policy
  17. 17. Key Inventory Terms • Lead time. Time interval between ordering and receiving the order • Holding (carrying) costs. Cost to carry an item in inventory for a length of time, usually a year • Ordering costs. Costs of ordering and receiving inventory • Shortage costs. Costs when demand exceeds supply
  18. 18. Inventory Costs • Ordering costs. • Includes monitoring costs, order preparation. order transmittal, order receipt (unpacking, shelving, loss and damage). • Holding (Carrying) costs. • Includes interest, insurance, depreciation, obsolescence, deterioration, spoilage, pilferage, breakage and warehousing costs. • Warehousing costs. • Energy, Space, Labor, Equipment security • Stock out costs. • Includes opportunity cost of not making a sale (lost profit), lost customer goodwill, backorder costs, lateness charges.
  19. 19. COMPONENTS OF CARRYING COSTS • Capital Costs. Cost of Money. • Storage Costs. Is the cost of space, personnel, and equipment. • Risk Costs. It is the costs of obsolescence, Damage, pilferage, insurance, etc. • Records & Handling costs.
  20. 20. Total Cost Annual Holding cost Purchasing costTC = + Q 2 H D Q STC = + + Annual ordering cost DC+ TC Total annual cost D Annual Demand C Cost per unit Q Order quantity S Cost of placing an order H Annual holding and storage cost per unit of inventory
  21. 21. The Total-Cost Curve is U-Shaped Ordering Costs AnnualCost Holding Costs Total Costs Cost Minimization Goal Optimal Order Quantity
  22. 22. Re-ordering Point L L Q S TimeR = Reorder point = L*D + S Q = Economic order quantity L = Lead time D = Demand per Unit of Time S = Safety Stock L Quantity Reorder point Reorder point Reorder point Reorder point L Safety Stock(SS)
  23. 23. WD Cost Breakdown Figures based on October 31, 2005 Average Company % of Sales Transportation & Maintenance ………………………… 0.19% Warehousing ………………………………………………………0.61% Salaries & Wages………………………………………………. 1.07% Total WD Cost ……………………………... 2.72%
  24. 24. WD Opportunity • To be Improved • Inventory Accuracy • Picking Accuracy • Picking & Replenishment Efficiency • Control of Products • Space Utilization • Stock Rotation • Backorder Handling • Resource Planning & Scheduling • Labor & Equipment Productivity • Performance Management
  25. 25. • Reduced • Inventory • Workforce • Damage / Shrinkage Product • Lost Stock & Safety Stock • Search Times • Paperwork / Human Error • Physical Inventory Taking • Labor, Equipment & Utility Costs • Driver / Delivery Costs • Worker Accidents • Warehousing Costs • Outside Warehousing WD Opportunity
  26. 26. Warehouse Controls •Personnel Safety and Health • Reduce all risks • Follow procedure for security risk • Report all accidents • Handle any accident • Report any security risk • Promote good housekeeping • Maintain a clean, neat personnel hygiene • Maintain a clean workplace • work according to standards • Dispose of waste in timely way • Effectively mark aisles & maintain their • integrity • Have adequate lighting • Apply all rules adopted in your organization
  27. 27. Fire Prevention and Protection Warehouse Controls Is smoking permitted in the warehouse?
  28. 28. Warehouse Controls •Theft and Pilferage •Product Damage & Contamination •Storing Hazardous Materials
  29. 29. Equipment & Tools
  30. 30. Any Questions?

×