Optimize Operations with Integrated Lean Warehouse & MFG/PRO Solutions
1. Enterprise Consulting IntegrationEnterprise Consulting IntegrationEnterprise Consulting Integration
Lean Business OperationsLean Business Operations
LEAN WAREHOUSELEAN WAREHOUSE
2. §§ LEAN WAREHOUSELEAN WAREHOUSE (Warehouse Management System)(Warehouse Management System)
seamlessly integrates with MFG/PRO to form a uniqueseamlessly integrates with MFG/PRO to form a unique
and extraordinary integrated front office tool.and extraordinary integrated front office tool.
§§ The optimal target is rapid return on investment (ROI)The optimal target is rapid return on investment (ROI)
through minimisation of items stock cycle times, detailedthrough minimisation of items stock cycle times, detailed
traceability and discrete monitoring of stock movementstraceability and discrete monitoring of stock movements
and maximization of resourcesand maximization of resources’’ performance.performance.
Product Place & ScopeProduct Place & Scope
3. §§ LEAN WAREHOUSE introduces a true flow business strategy. ItLEAN WAREHOUSE introduces a true flow business strategy. It
supportssupports eventevent--drivendriven manufacturing and warehouse management andmanufacturing and warehouse management and
adjusts smoothly to changes in demand, new product introductionsadjusts smoothly to changes in demand, new product introductions oror
any change in the external environment that directly or indirectany change in the external environment that directly or indirectly affectsly affects
the entropy of the system.the entropy of the system.
§§ It is standardized withIt is standardized with strategies developed on the basis ofstrategies developed on the basis of DFTDFT™™. It. It
therefore formalizes with the principles of flow manufacturing,therefore formalizes with the principles of flow manufacturing, which arewhich are
focused on eliminating waste, streamlining processes,focused on eliminating waste, streamlining processes, buildingbuilding
according to demandaccording to demand, and continuous improvements., and continuous improvements.
§§ By properly designing production lines and balancing the mix ofBy properly designing production lines and balancing the mix of productsproducts
to a daily demand rate in MFG/PRO, quality goods can be producedto a daily demand rate in MFG/PRO, quality goods can be produced asas
ordered, at a rate that falls within the required orderordered, at a rate that falls within the required order--toto--delivery responsedelivery response
cycle time. As a result, the entire supply process iscycle time. As a result, the entire supply process is pulledpulled andand
sequencedsequenced from actual demand.from actual demand.
§§ Regardless of industryRegardless of industry, type of manufacturing environment, or product, type of manufacturing environment, or product
volumes, LEAN WAREHOUSE can be implemented successfully. It isvolumes, LEAN WAREHOUSE can be implemented successfully. It is
most challenging to deploy its modules in a shop that does highlmost challenging to deploy its modules in a shop that does highlyy
configured or engineerconfigured or engineer--toto--order products, yet they are equally well withorder products, yet they are equally well with
highhigh--volume, more repetitive makevolume, more repetitive make--toto--demand operations.demand operations.
Product CharacteristicsProduct Characteristics
4. §§ The integration to MFG/PRO is directly reflected by theThe integration to MFG/PRO is directly reflected by the
acquired functionality, some of which addresses:acquired functionality, some of which addresses:
–– warehouse automationwarehouse automation
–– minimisation of stock volumesminimisation of stock volumes
–– optimisation of vehicle and staff mobilityoptimisation of vehicle and staff mobility
–– optimisation of and interoperability with shop flooroptimisation of and interoperability with shop floor
–– effective and vast interface with Radio Data Terminalseffective and vast interface with Radio Data Terminals
–– effective space management and controleffective space management and control
–– detailed job descriptiondetailed job description
–– effective use of functional areaseffective use of functional areas
–– minimisation of human intervention and therefore mistakesminimisation of human intervention and therefore mistakes
–– detail monitoring of cost of each itemdetail monitoring of cost of each item’’s transaction in terms ofs transaction in terms of
purchases, movements, issues, sales and cycle counts, etcpurchases, movements, issues, sales and cycle counts, etc
Logistics OptimizationLogistics Optimization
6. AddAdd--on Receipts Functionalityon Receipts Functionality
§§ Accommodation ofAccommodation of
different expirationdifferent expiration
dates over differentdates over different
lots but FOR THElots but FOR THE
SAME QUANTITYSAME QUANTITY
RECEIVED, which,RECEIVED, which,
in standardin standard
MFG/PRO isMFG/PRO is
performed in twoperformed in two
different receiptsdifferent receipts..
7. AddAdd--on Receipts Functionalityon Receipts Functionality
§§ All transactions areAll transactions are
tracked andtracked and
recorded to monitorrecorded to monitor
errors anderrors and
accountabilityaccountability in ain a
realreal--time mode.time mode.
8. AddAdd--on Receipts Functionalityon Receipts Functionality
§§ MultipleMultiple
simultaneoussimultaneous
output choice tooutput choice to
timetime--benefit thebenefit the
user.user.
9. §§ Opportunity and planned crossOpportunity and planned cross--docking in case of justdocking in case of just--inin--timetime
warehouse operationwarehouse operation, with few, succinct, practical and effective, with few, succinct, practical and effective
system movementssystem movements..
§§ Simultaneous and parallel management of two units of measureSimultaneous and parallel management of two units of measure
in case of weighted items. Ability to report theoretical over acin case of weighted items. Ability to report theoretical over actualtual
weight balance depending on quantity on hand.weight balance depending on quantity on hand.
§§ Product immediately available for order at the receiving dockProduct immediately available for order at the receiving dock..
§§ Receiving functions can be performed from either LEANReceiving functions can be performed from either LEAN
WAREHOUSE directly, handWAREHOUSE directly, hand--held RF mobile computers or anyheld RF mobile computers or any
combination of the two simultaneously and/or sequentiallycombination of the two simultaneously and/or sequentially..
§§ Generation and printout of any industryGeneration and printout of any industry--standard bar codesstandard bar codes..
§§ RealReal--time link to MFG/PRO or any other contemporarytime link to MFG/PRO or any other contemporary
enterpriseenterprise resource planningresource planning system, accommodating POsystem, accommodating PO
verification changesverification changes..
AddAdd--on Receipts Functionalityon Receipts Functionality
10. §§ Ability toAbility to handle warehousehandle warehouse receiptsreceipts –– or any other inventoryor any other inventory
transfertransfer –– via remote data terminals (RDT) in three scans. Thevia remote data terminals (RDT) in three scans. The
user is being notified for the existence of a pending palletuser is being notified for the existence of a pending pallet
transfer, via an asterisk that appears automatically after thetransfer, via an asterisk that appears automatically after the
receiver note has been printed, as shown belowreceiver note has been printed, as shown below::
RDTRDT -- ReceiptsReceipts
11. §§ Storage parameters will be assigned based onStorage parameters will be assigned based on::
–– zone designationszone designations
–– cube size and weightcube size and weight
–– equipment assignmentsequipment assignments
–– environmental properties such as secure or hazardousenvironmental properties such as secure or hazardous
material handlingmaterial handling
–– rate at which each location is accessed via a forklift vehiclerate at which each location is accessed via a forklift vehicle
filtered through ABC analysisfiltered through ABC analysis
–– itemitem’’s ABC analysiss ABC analysis
–– itemitem’’s stacking factors stacking factor –– for bulk storagefor bulk storage
–– locationlocation’’s capacitys capacity
–– resources availability etc.resources availability etc.
PutPut--away & Storageaway & Storage
13. §§ RF directed replenishment tasks are routed and dispatched byRF directed replenishment tasks are routed and dispatched by
equipment characteristics and forward pick area demand. Letequipment characteristics and forward pick area demand. Let--downsdowns
are timed based on pick rates against actual inventory flow of tare timed based on pick rates against actual inventory flow of thehe
primary pick locations. Special features of the replenishment fuprimary pick locations. Special features of the replenishment functionnction
include:include:
–– Changes to wave picking will automatically change replenishmentsChanges to wave picking will automatically change replenishments
–– Pick zone replenishmentPick zone replenishment
–– Emergency replenishmentsEmergency replenishments
Replenishment & LetReplenishment & Let--DownsDowns
14. Order ProcessingOrder Processing
§§ LEAN WAREHOUSE allows for multiple wave picking to be easilyLEAN WAREHOUSE allows for multiple wave picking to be easily
constructed by the warehouse manager, based on the changingconstructed by the warehouse manager, based on the changing
customercustomer priorities andpriorities and
demands.demands. Waves can beWaves can be
constructed on variousconstructed on various
criteria such as:criteria such as:
–– pickpick--byby--orderorder
–– by shipping routeby shipping route
–– by customerby customer
–– by shipperby shipper
–– by load(s)by load(s)
–– or by rules built to suit aor by rules built to suit a
companycompany’’s businesss business
procedures.procedures.
Some unique features of orderSome unique features of order
processing include:processing include: OrderOrder
consolidation, sequencing andconsolidation, sequencing and
verification via a userverification via a user--friendlyfriendly
spreadsheetspreadsheet--like screenlike screen::
15. §§ Paper picking, which can be parameterised with respect to thePaper picking, which can be parameterised with respect to the
columns presentedcolumns presented. Quantities are consolidated per pallet,. Quantities are consolidated per pallet,
location, item, load, etc. in order to achieve wave picking.location, item, load, etc. in order to achieve wave picking.
§§ RF picking, or any combination of the two simultaneouslyRF picking, or any combination of the two simultaneously..
Order ProcessingOrder Processing
16. §§ Pallet ExchangePallet Exchange™™: LEAN WAREHOUSE offers the possibility to the RF: LEAN WAREHOUSE offers the possibility to the RF
user to pick a pallet other than that reserved by the system foruser to pick a pallet other than that reserved by the system for a specifica specific
order, so long as the parameters that define the specific inventorder, so long as the parameters that define the specific inventoryory --expireexpire
date, item number, lot,date, item number, lot,
inventory status, palletinventory status, pallet
number, etc.number, etc.-- are eitherare either
identical for the alternativeidentical for the alternative
pallet or within a rangepallet or within a range
specified for each item byspecified for each item by
the warehouse manager.the warehouse manager.
Order ProcessingOrder Processing
This is extremely useful inThis is extremely useful in
warehouses that operate under thewarehouses that operate under the
physical constraints generated by aphysical constraints generated by a
DriveDrive--In system, in which the forkliftIn system, in which the forklift
driverdriver would not want to pick the palletwould not want to pick the pallet
that lies at the back of the rack but,that lies at the back of the rack but,
alternativelyalternatively,, at the front, expecting allat the front, expecting all
phantom inventory movements to takephantom inventory movements to take
place automatically and unnoticeably.place automatically and unnoticeably.
18. §§ Interface to carousels and other material handling automationInterface to carousels and other material handling automation
§§ Continuous monitoring for order shorts offering the user theContinuous monitoring for order shorts offering the user the
opportunity to cancel the line of the order, which includes theopportunity to cancel the line of the order, which includes the
item of which the warehouse is short. It is also possible toitem of which the warehouse is short. It is also possible to
cancel the whole order if this is necessary at any time beforecancel the whole order if this is necessary at any time before
printing the invoiceprinting the invoice
Order ProcessingOrder Processing
19. §§ Accuracy of picked orders is confirmed by scanning bar codes witAccuracy of picked orders is confirmed by scanning bar codes withh
either RF mobile terminals or workstations at the shipping/packieither RF mobile terminals or workstations at the shipping/packingng
stationsstations..
§§ Shipping label generation upon verifying the contents of each loShipping label generation upon verifying the contents of each load.ad.
§§ RepackingRepacking::
ShippingShipping
21. §§ Cycle counting can be performed using RCycle counting can be performed using RDTDT, directly into the, directly into the
system, or use MFG/PRO functionality towards this proceduresystem, or use MFG/PRO functionality towards this procedure..
§§ LEAN WAREHOUSE supports the use of automated materialLEAN WAREHOUSE supports the use of automated material
handling equipment such as carousels, ASRS units,handling equipment such as carousels, ASRS units, AGVsAGVs, pick, pick--
toto--light systems, or sorting systems.light systems, or sorting systems.
§§ Combination of different logic methods such as:Combination of different logic methods such as:
–– Location sequenceLocation sequence
–– Zone logicZone logic
–– Fixed locationFixed location
–– FirstFirst--inin--firstfirst--outout
–– FirstFirst--expiresexpires--firstfirst--outout
–– LastLast--inin--firstfirst--outout
–– PickPick--toto--clear:clear: LEAN WAREHOUSE has the ability to implement thisLEAN WAREHOUSE has the ability to implement this
logic in which the forklift workers are directed to pick from lologic in which the forklift workers are directed to pick from locationscations
with the smallest quantities in hand, i.e. pallets that are notwith the smallest quantities in hand, i.e. pallets that are not full, etc.full, etc.
This logic is used for increased space utilisation.This logic is used for increased space utilisation.
–– Reserved LocationsReserved Locations:: specific locations to pick from/putspecific locations to pick from/put--away toaway to..
Other Standard FunctionalityOther Standard Functionality
22. Reports:Reports:
§§ The following screen is an indicative and nonThe following screen is an indicative and non--exhaustive list ofexhaustive list of
reports available to the warehouse manager:reports available to the warehouse manager:
23. §§ Indicative report titles:Indicative report titles:
–– Movements of a pallet since its entrance in the warehouseMovements of a pallet since its entrance in the warehouse
–– Empty storage locationsEmpty storage locations
–– Storage locations with remaining spaceStorage locations with remaining space
–– Quantity on hand per item, per lot and per status in all locatioQuantity on hand per item, per lot and per status in all locationsns
–– Pallets per locationPallets per location
–– Outstanding inventory movements e.g. receipts not registered atOutstanding inventory movements e.g. receipts not registered at
storage locationsstorage locations
–– ReRe--print Goods Received Noteprint Goods Received Note
–– ReRe--print receipt labelsprint receipt labels
–– Expired palletsExpired pallets
–– PalletPallet’’s period of residence in warehouses period of residence in warehouse
–– Changes in palletChanges in pallet’’s inventory statuss inventory status
–– Split pallets using systemSplit pallets using system’’s resources, or RF, with the ability tos resources, or RF, with the ability to
automatically print new barcode labelsautomatically print new barcode labels
–– Pallet and Location label and barcode rePallet and Location label and barcode re--print.print.
ReportsReports
24. §§ Our experience through business cases has proved that after theOur experience through business cases has proved that after the
implementation of LEAN WAREHOUSE, apart from the reduction ofimplementation of LEAN WAREHOUSE, apart from the reduction of
users’ errors and cost savings, our customers have benefitedusers’ errors and cost savings, our customers have benefited
through:through:
–– A significant decrease in errors on invoices and despatch notes.A significant decrease in errors on invoices and despatch notes. Due toDue to
the high complexity of individual shipments (each consisting ofthe high complexity of individual shipments (each consisting of modestmodest
quantities of many products) and the large number of product codquantities of many products) and the large number of product codes, thees, the
procedure of issuing invoices and despatch notes is highly errorprocedure of issuing invoices and despatch notes is highly error prone.prone.
This in turn leads to high error correction costs. With the instThis in turn leads to high error correction costs. With the installation ofallation of
the system,the system, the errors are virtually eliminatedthe errors are virtually eliminated..
–– Improved accuracy in customer order executionImproved accuracy in customer order execution. Just as with. Just as with
invoices and despatch notes, there are frequent errors in the exinvoices and despatch notes, there are frequent errors in the executionecution
(preparation, packaging and shipment) of customer orders. This(preparation, packaging and shipment) of customer orders. This
generates considerable costs (for the replacement of mistakenlygenerates considerable costs (for the replacement of mistakenly shippedshipped
items, reitems, re--shipment of omissions and so on). These errors that can causeshipment of omissions and so on). These errors that can cause
customer dissatisfaction are eliminated.customer dissatisfaction are eliminated.
ConclusionConclusion
25. ……our customers have benefited through:our customers have benefited through:
–– Greater accuracy in data acquisition, improved overall inventoryGreater accuracy in data acquisition, improved overall inventory
monitoring and amonitoring and a considerable reduction in inventory lossesconsiderable reduction in inventory losses..
–– The streamlined operation of the warehouses eliminates the needThe streamlined operation of the warehouses eliminates the need for afor a
large number of administrative staff. Warehouses can operate witlarge number of administrative staff. Warehouses can operate with justh just
one instead of many employees, thus slashing a major overhead.one instead of many employees, thus slashing a major overhead.
Similarly,Similarly, the total operating costs of the warehousesthe total operating costs of the warehouses havehave bebeenen
reducedreduced..
–– TheThe leadlead--time reductiontime reduction for preparing and shipping a customer order.for preparing and shipping a customer order.
–– The system ensures thatThe system ensures that strict FEFO prioritiesstrict FEFO priorities are kept, so that onlyare kept, so that only
fresh products (where applicable) are shipped and products withfresh products (where applicable) are shipped and products with expiryexpiry
dates (e.g. pharmaceuticals) do not remain in the warehouse fordates (e.g. pharmaceuticals) do not remain in the warehouse for long.long.
–– Accurate lot trackingAccurate lot tracking, which, which hashas allowalloweded the efficient withdrawal of athe efficient withdrawal of a
defective lot. This enabledefective lot. This enabledd the rapid recall of any defective productthe rapid recall of any defective product
batchesbatches,, which previously was almost impossible because of thewhich previously was almost impossible because of the
administrative overheads.administrative overheads.
ConclusionConclusion ((cont.)cont.)
