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REORGANISATION OF WAREHOUSE

                                  ISSUES FACED AND REMEDIED

The following issues were faced at the outset and were remedied. The benefits accruing from
their rectification are shown below. The methods used to remedy and the metrics are given in
succeeding pages.

Layout of Stores: Lean management is now possible. Time taken to pick and pack a full
Move order of 100 lines has reduced from 25 Minutes to 15 minutes.

Stock Location:       Placing and picking has become faster, even a new person can pick the
correct item on the first try.

ABC Analysis:         Tracking of High Value, Low Movement and Low value, High movement
goods has become better and accurate.

Location Of Materials As Per Type:           Materials are tracked and stored according to their
usage type leading to better stock control, and minimizing stock out, and quick picking and
stocking

High Inventory Levels:           The above innovations have helped to reduce inventory levels
from 45 days to 1 week, leading to reducing stock value from Rs 20 Million to Rs 4.5
Million.

Low Stock Correctness: Reorganization helped achieve stock correctness of 98% - 99%

Comparison Of Receipts With Approved Samples: Quality                of    receipts   have   been
improved by comparing receipts with approved samples, three receipts rejected within a
month of implementation.

Tracking of Defective Equipment:             Tracking   of   defective    equipment   returned   by
Ambulances, leading to automatic replenishment and reduced Equipment down time, leading
to minimum NC’s for Equipment.

Uniform Issues to Associates: Automatic issue of uniform to Associates based on last
issue date, thereby obviating the need for raising of Indents by OE’s.

Address Labels For Dispatch : Preparation of Address Labels to be stuck on the boxes for
dispatch, reduced packing and dispatch preparations per day from 3 Hrs to 1 Hour.
DESCRIPTION OF ACTION TAKEN AND THE RESULTS

Sl    Key Result     Description Of
                                         Performance
No    Area           Task or Activity
      Locator        Locator System      Addressing Software developed for quick dispatches.
1.
      System         for Easy Dispatch   (2 modules, 6 revisions)
                                         Successfully created and running application software
                     Defective           in MS Access for tracking and dispatch of Defective
      Defective
2.                   Equipment           Equipment received from various Amby’s and ensuring
      Equipment
                     Management          the minimum delay in dispatch.
                                         (8 Modules, 7 revisions)
                     Comparison of
      Approved       Receipts with       Sample display arrangement for quality check on
3.
      Samples        approved            receipt of products.
                     samples
                     Procurement and     Successfully created software in MS Access for
                     Dispatch of         tracking and issuing uniform to Associates based on
      Uniform
4.                   Uniforms to         last issue date and also able to forecast future
      Issues
                     Associates in the   requirement
                     Field                (5 Modules, 3 revisions),
                     Attendance          Attendance Management System Created for HR for
5.    HR             Management          tracking attendance of associates in the field.
                     System              (3 Modules, 2 Revisions)
                     Oracle code         Oracle Code Generator for creating Move Orders, etc
6.    Oracle
                     Generator           (3 modules, 3 revisions)
                                             Stocking as per ABC Analysis
                                             Location Of Materials As Per Type
      Innovative     Innovative              Inventory Levels : Inventory reduced from 45 Days
      Approaches     Approaches in           to 1 week.
7.                                           Stock Correctness
      in Stores      Stores
                                             Layout of Stores
      Management     Management
                                             Stock Location
                                             Indenting Schedule implemented for improved
                                             supply.
                     Audit involving     Successfully conducted Audit by NRHM by
8.    Audit          Finance Dept and    preparation of Stores and documents and ensuring NIL
                     NRHM                Discrepancies and NIL Observations
                                         NC Closures being cleared proactively with minimum
9.    Quality NC’s   NC Closures         delay on receipt with the help of the above application
                                         software.
      Ambulance      Procurement and
                                         Format developed with Fleet BO for Tyres and Fleet
10.   Tyres and      Dispatch of Tyres
                                         Spares Management.
      Spares         and Fleet Spares
KEY METRICS


    Activity          Remedy               Task              Before                After

                   Lean           Picking for move
Layout of Stores                                        25 Minutes         15 Minutes
                   management     order
                   Location
                                  Picking for issues,                      Immediate on
Stock Location     allotted for                         2 – 3 tries
                                  Stocking on receipt                      first try
                   each item

ABC Analysis       ABC and VED    Movement tracking     Approximate        Exact

Location Of        Restocked as   Stock control,
                                                        Over stoking or    No stock out, No
Materials As Per   per type of    Picking and
                                                        stock out          over stock
Type               material       Stocking
                   Procurement    Inventory reduced
High Inventory
                   based on       from 45 days to 1     Rs 20 Million      Rs 4.5 Million
Levels
                   consumption    week
Low Stock          Perpetual
                                  Stock Correctness                        98% -99%
Correctness        Audit
                   Approved
Quality of                        Rejection of low
                   Samples                              3-4 per annum      3-4 per month
Receipts                          quality stores
                   Displayed
Defective          Software       Quick                                    Low- Nil
                                                        High downtime
Equipment          Developed      replenishment                            Downtime
                                                                           High
                                                        Low Satisfaction
                                                                           Satisfaction,
                   Software       Automatic issue, No   Levels,
Uniform Issues                                                             High Accuracy,
                   Developed      indent required.      Low Accuracy,
                                                                           Forecast up to 6
                                                        No forecast
                                                                           Months
                                                        > 30 Minutes for
Addressing of      Software       Printing of Address
                                                        10 Locations /30   5 Mins
Packages           Developed      labels
                                                        Boxes
LESSONS LEARNT AND WAY FORWARD


   Sustain the momentum.
   Milk Run System for Dispatches to avoid Courier service.
   Barcode System for Inventory Management.
   Plan -- Do -- Check -- Act.




 Share the Experience with other states.
 Keys to Success:
      Management support
               Effective ‘champion’
                    Involved and engaged staff
                         KISS
                             Effective teams
                 Build a SYSTEM to Survive
               Build a SYSTEM to Manage Better
                  Build a SYSTEM to Excel

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Reorganisation of warehouse at my current work

  • 1. REORGANISATION OF WAREHOUSE ISSUES FACED AND REMEDIED The following issues were faced at the outset and were remedied. The benefits accruing from their rectification are shown below. The methods used to remedy and the metrics are given in succeeding pages. Layout of Stores: Lean management is now possible. Time taken to pick and pack a full Move order of 100 lines has reduced from 25 Minutes to 15 minutes. Stock Location: Placing and picking has become faster, even a new person can pick the correct item on the first try. ABC Analysis: Tracking of High Value, Low Movement and Low value, High movement goods has become better and accurate. Location Of Materials As Per Type: Materials are tracked and stored according to their usage type leading to better stock control, and minimizing stock out, and quick picking and stocking High Inventory Levels: The above innovations have helped to reduce inventory levels from 45 days to 1 week, leading to reducing stock value from Rs 20 Million to Rs 4.5 Million. Low Stock Correctness: Reorganization helped achieve stock correctness of 98% - 99% Comparison Of Receipts With Approved Samples: Quality of receipts have been improved by comparing receipts with approved samples, three receipts rejected within a month of implementation. Tracking of Defective Equipment: Tracking of defective equipment returned by Ambulances, leading to automatic replenishment and reduced Equipment down time, leading to minimum NC’s for Equipment. Uniform Issues to Associates: Automatic issue of uniform to Associates based on last issue date, thereby obviating the need for raising of Indents by OE’s. Address Labels For Dispatch : Preparation of Address Labels to be stuck on the boxes for dispatch, reduced packing and dispatch preparations per day from 3 Hrs to 1 Hour.
  • 2. DESCRIPTION OF ACTION TAKEN AND THE RESULTS Sl Key Result Description Of Performance No Area Task or Activity Locator Locator System Addressing Software developed for quick dispatches. 1. System for Easy Dispatch (2 modules, 6 revisions) Successfully created and running application software Defective in MS Access for tracking and dispatch of Defective Defective 2. Equipment Equipment received from various Amby’s and ensuring Equipment Management the minimum delay in dispatch. (8 Modules, 7 revisions) Comparison of Approved Receipts with Sample display arrangement for quality check on 3. Samples approved receipt of products. samples Procurement and Successfully created software in MS Access for Dispatch of tracking and issuing uniform to Associates based on Uniform 4. Uniforms to last issue date and also able to forecast future Issues Associates in the requirement Field (5 Modules, 3 revisions), Attendance Attendance Management System Created for HR for 5. HR Management tracking attendance of associates in the field. System (3 Modules, 2 Revisions) Oracle code Oracle Code Generator for creating Move Orders, etc 6. Oracle Generator (3 modules, 3 revisions) Stocking as per ABC Analysis Location Of Materials As Per Type Innovative Innovative Inventory Levels : Inventory reduced from 45 Days Approaches Approaches in to 1 week. 7. Stock Correctness in Stores Stores Layout of Stores Management Management Stock Location Indenting Schedule implemented for improved supply. Audit involving Successfully conducted Audit by NRHM by 8. Audit Finance Dept and preparation of Stores and documents and ensuring NIL NRHM Discrepancies and NIL Observations NC Closures being cleared proactively with minimum 9. Quality NC’s NC Closures delay on receipt with the help of the above application software. Ambulance Procurement and Format developed with Fleet BO for Tyres and Fleet 10. Tyres and Dispatch of Tyres Spares Management. Spares and Fleet Spares
  • 3. KEY METRICS Activity Remedy Task Before After Lean Picking for move Layout of Stores 25 Minutes 15 Minutes management order Location Picking for issues, Immediate on Stock Location allotted for 2 – 3 tries Stocking on receipt first try each item ABC Analysis ABC and VED Movement tracking Approximate Exact Location Of Restocked as Stock control, Over stoking or No stock out, No Materials As Per per type of Picking and stock out over stock Type material Stocking Procurement Inventory reduced High Inventory based on from 45 days to 1 Rs 20 Million Rs 4.5 Million Levels consumption week Low Stock Perpetual Stock Correctness 98% -99% Correctness Audit Approved Quality of Rejection of low Samples 3-4 per annum 3-4 per month Receipts quality stores Displayed Defective Software Quick Low- Nil High downtime Equipment Developed replenishment Downtime High Low Satisfaction Satisfaction, Software Automatic issue, No Levels, Uniform Issues High Accuracy, Developed indent required. Low Accuracy, Forecast up to 6 No forecast Months > 30 Minutes for Addressing of Software Printing of Address 10 Locations /30 5 Mins Packages Developed labels Boxes
  • 4. LESSONS LEARNT AND WAY FORWARD  Sustain the momentum.  Milk Run System for Dispatches to avoid Courier service.  Barcode System for Inventory Management.  Plan -- Do -- Check -- Act.  Share the Experience with other states.  Keys to Success: Management support Effective ‘champion’ Involved and engaged staff KISS Effective teams Build a SYSTEM to Survive Build a SYSTEM to Manage Better Build a SYSTEM to Excel