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NJIT
Small Carton Processing
Optimization
Senior Project Interim Report – IE 444
Alessandro Reverberi, Chidera Nweke, Vittorio Cavirani, Karlas Madera
5/14/2015
Contents
Executive Summary.......................................................................................................................................3
Acknowledgements.......................................................................................................................................4
Glossary.........................................................................................................................................................5
Chapter 1: Introduction.................................................................................................................................6
1.1 Company Overview......................................................................................................... 7
1.2 Problem Overview............................................................................................................ 8
Chapter 2: Project Approach.......................................................................................................................10
2.1 Action Plan..................................................................................................................... 11
2.2 Actual Repack Process................................................................................................... 12
Chapter 3: Data and Data Analysis.............................................................................................................14
3.1 Definition of Small Carton............................................................................................. 15
3.2 Sturges’ Rule.................................................................................................................. 16
3.2.1 Application.............................................................................................................. 17
3.3 MOST............................................................................................................................. 20
3.3.1 Application.............................................................................................................. 23
3.4 Additional Side Cost ...................................................................................................... 30
Chapter 4: Exclusive Small Carton Zone......................................................................................................33
4.1 New Process Flow.......................................................................................................... 34
4.1.1 Small Carton Zone Design...................................................................................... 36
Chapter 5: Speedcell....................................................................................................................................39
5.1 Overview........................................................................................................................ 40
5.2 High Bay Case Pick........................................................................................................ 42
5.3 Data and Analysis........................................................................................................... 43
Chapter 6: Summary and Conclusion..........................................................................................................46
6.1 Cost-Benefit Analysis......................................................................................................... 47
6.2 Project Proposal .................................................................................................................. 54
References...................................................................................................................................................56
Appendix A ..................................................................................................................................................57
Appendix B ..................................................................................................................................................62
Appendix C ..................................................................................................................................................66
Appendix D..................................................................................................................................................68
Executive Summary
The project’s main purpose is to analyze and to optimize the small carton process flow by
finding an alternative to remove the use of the trays that are currently being used to make it
possible for these cartons to ride the conveyor. Additionally, a way to reduce High Bay Case
Pick is also considered, since it also falls under the category of processing small cartons for this
is one of the most common methods of storage for such carton.
In order to accomplish this, a series of data and procedures are analyzed. This data
included the actual process flow to handle small cartons throughout the Distribution Center, time
studies of the current Repack Process, the standards of the current Repack Process, inventory
lists of the SKU’s, and the velocity reports of the SKU’s processed in the DC along with their
dimensions.
Therefore, the recommendation consists of creating a new zone dedicated only to small
cartons. In this zone, boxes are brought when needed from an on-floor storage, the operator will
strip the pallet, scan the box and put it in their respective Repack Tote to be send to their
respective destination. Moreover, by applying this method, the trays are no longer necessary
since the Repack Totes can ride the conveyor with no problem. Additionally, there would be
fewer crowds in the conveyor and less boxes in the No-Read section which will result in a more
efficient carton processing overall.
Acknowledgements
The group would like to express our deepest appreciation first, to Toys R Us for
giving us the opportunity to experience a real life situation in the workplace and
second, the following people which whom without, this project would have been
dreadful.
Keith Krkuti - Director of Engineering & Facilities, Toys R US
Anis Charania – Former DC Industrial Engineer, Toys R US
Jorge Ipanaque Olivos - Network Slotting Manager, Toys R US
Layek Abdel-Malek - Professor of Industrial and Manufacturing Engineering, NJIT
George Abdou - Professor of Industrial and Manufacturing Engineering, NJIT
Golgen Bengu – Professor of Industrial and Manufacturing Engineering, NJIT
Irma Luque – Student, NJIT
J. W. Jones - Director of Sales & Marketing for Speedcell
Glossary
 Carton – Word used in the Distribution Center to refer to a box; often interchangeable
 CPH – Cartons Processed Per Hour
 Datum Point - A point which serves as a reference or base for the measurement of other
quantities.
 DC – Distribution Center
 HBCP – High Bay Case Pick, an expensive method of storage where an operator
performs a manual pick from high bays with the assistance of a lift truck
 Repack Totes – Cartons assigned to each individual store, which will be stuffed with
different items that pertain to the same store.
 Skin –The labels assigned to each carton and/or pallet; also known as SKUs
 TMU – Time Measurement Unit
 Voice Unit – System used in Repack where the operator wears a headset in which he or
she communicates with the system by telling the box number and the system in return
will give them the location and quantity for each item to be placed in a tote
Chapter 1: Introduction
In this portion of the report, please find the Company Overview containing background
information about Toys R Us and the Problem Overview with the detailed description of the
inconvenience encountered at the Distribution Center.
1.1 Company Overview
Toys“R”Us, Inc. is the world’s leading dedicated toy and baby products retailer, offering
a differentiated shopping experience through its family of brands. Headquartered in Wayne, NJ,
Toys“R”Us, Inc., employs approximately 70,000 employees worldwide.
As expectations have it, the toy and baby products authority, Toys“R”Us, Inc. is committed to
stocking its stores with the most sought-after products, as well as a broad assortment of
merchandise to ensure customer satisfaction. The company’s regional Distribution Centers
operate with the highest standards of excellence and are located in California, Georgia, Illinois,
Maryland, Missouri, New Jersey and Texas.
Furthermore, merchandise is sold in 876 Toys“R”Us®
and Babies“R”Us®
stores in the
United States and Puerto Rico, and in more than 725 international stores and over 200 licensed
stores in 36 countries and jurisdictions. In addition, it exclusively operates the legendary FAO
Schwarz®
brand, as well as KB Toys and eToys, and host an experience with extraordinary toys
in the brand’s flagship store on Fifth Avenue in New York City.
1.2 Problem Overview
Currently, in the Distribution Center, ironically the small boxes are bringing a huge
inconvenience to the carton process flow overall. However, before going in depth with the
situation, let’s keep in mind that the Distribution Center’s main goal is to receive merchandise
and put it out as soon as possible.
Therefore, going in details, the condition is as follows:
The current path of all merchandise is depicted in Figure 1.2-1:
While the boxes are being processed, they all pass through a scanner which reads the
“skin” (label/barcode) and with it, the systems knows what is this specific box respective
destination. Notice that they have a barcode scanning system and not radio frequency
identification system (RFID).
Within all these process, however, they have the small sized boxes. These boxes are received,
and if they are not going to be stored, they are put on the trays in order to ride the conveyor that
is going to take them through the processing and shipment process. Once the scanner reads the
“skin,” the boxes (with their respective trays), are sorted to their particular lane for destination.
Once there, the small box is removed from the tray and loaded in the trucks for shipping, while
the tray is stack on a side. At a certain point of the day, an operator will go all the way to the
shipping area to get the trays and bring them all the way back to the processing areas.
Boxes are
received
Boxes are
processed
Boxes are send to
storage or
shipping
Figure 1.2-1. Current Path of Merchandise in the Distribution Center.
Even more, the reason these small cartons have to be in trays is due to their size. In other
words, if these cartons are placed in the conveyor without the trays two things can happen which
affect the overall productivity. One, the boxes will start bouncing and flipping along the way;
when this happens, at the time that the scanner is going to read the “skin,” if the label is not on
the surface facing the scanner, the system will not read it and this box will be send to the “No-
Read” section. Here, the operator will figure out why is the box (ie. the label) not being read (in
this case she will put it in a tray with the surface of the label facing up), and the box will go
through the whole processing and shipping process once again. Or two, they can cause a jam in
the whole line, which will lead to that line being hold back.
Additionally, sometimes depending on the volume of boxes riding the conveyor at a specific
time, the trays themselves may be a problem as well. When there are many boxes riding the
conveyor, and of course they are all different sizes, if the tray is not placed a certain way
(vertically, rather than horizontal), these same trays can cause serious jams, they can make other
boxes fall off the conveyor, they might just fall off the conveyor themselves or a combination of
these situations can be happen, as seen in Figure 1.2-2.
Figure 1.2-2. Visualization of Trays Causing Problems in the DC Line
Chapter 2: Project Approach
This section will first explain the actual Repack process that Toys R US has in place, and then it
will have the action plan to be adopted in order to come up with a feasible and perhaps an
optimal solution to our problem.
2.1 Action Plan
Since the beginning of the project, two potential ideas are given by the company itself,
which are sending these small cartons to Repack and/or implementing Speedcell technology.
Particularly, most of the project is dedicated to the Repack Process due to the fact that Speedcells
are already being piloted in our assigned facility; therefore the alternative is not discussed as in
depth as per the management request.
Moving on, for this project’s purpose, the group intends to follow a series of steps in order to
come up with an ideal recommendation. These steps are shown in Figure 2.1-1:
Define a Small Carton
Analyze Data on Small
Carton Frequency
Analyze Data on
Repack Process
Develop Standards for
New Small Carton Zone
Additional Analysis on
Alternative (Speedcells)
Cost -Benefit Analysis
Figure 2.1-1. Action Plan Steps
2.2 Actual Repack Process
Before going in detail with the rest of the project, it is important that the current Repack
Process in the Distribution Center is well understood. The reason the group is incorporating this
process in the project is because the guidelines from this process are being used in order to
generate the standards of the recommendation to Toys R US.
Therefore, before going any further, let’s define the Repack process as it is now.
In the Repack Area there are have three zones that between all will normally
accommodate a Repack Tote for each store that the DC supplies. These totes are plastic “boxes”
with a bigger dimension (24 x 12 x 15.6 inches) that can carry other items inside and are able to
ride the conveyor with no problem. Furthermore, having a tote per store, gives us a distribution
of a total of 150 totes when they are off-season, and 176 totes when they are on-season (ie.
Christmas). There are 3 totes per store per wave; off-season there is one wave, while on-season
are two waves. This gives us a total of 450 and 1056 totes respectively being processed.
In addition, the way boxes are currently processed in this area is shown in Figure 2.2-1:
Boxes are received in
the conveyor from
Receiving or Storage
Boxes are palletized
(Notice that they are
palltized in the Repack
Area)
Operator takes over a
pallet and strips it
Operator takes 9 boxes
from pallet and places
them in cart
Operator allocates the
items with Voice Unit
assistance
Figure 2.2-1. Process to Handle Cartons in the Repack Area
However, some of these boxes are palletized and assign a label for inner shipping. In this
process, the operator still uses the voice unit, but instead of putting the boxes in the Repack
Totes, the boxes are opened and the inner boxes are placed in the conveyor with their respective
label. Notice that if this is a small box, the operator has to put the box in a tote for it to ride the
conveyor.
Equally important to know, with the process as it is now, the CPH, or cartons processed per
hour, is 25 units.
Chapter 3: Data and Data Analysis
In this chapter, you will find all the data with its respective analysis and its applications. In details,
first, a “Small Carton” is define, then, with this valuable information, the data provided by the
Distribution Center is able to be filtered in order to verify if the suggested plan is achievable.
3.1 Definition of Small Carton
To begin with, let us understand what cartons are being considered for this project. That
is, what are the cartons that are being regarded, or in better words, what is a small carton?
Therefore, before continuing, let’s define what a small carton is.
Recalling the dimension of a Repack Tote, it is 24 x 12 x 15.6 inches. Parting from this, a
small carton is every box whose dimensions will fit in a Repack Tote and does not have any
inner cartons in it, since these boxes with inner cartons will keep going to the actual Repack zone
in order to be allocated properly.
From this, a list of 17,682 “skins” given from the company, is reduced to 11,884 after
filtering the data to get the cartons with the feasible dimensions. Another filter is then applied to
remove the cartons that had inner packs and the list is dramatically reduced to a total of 1107
SKUs. These “skins” then leave us with a total frequency of 761,962 small packs processed in
the DC. Then, for each SKU, the volume is calculated by using the length, width and height
given in the data.
Dimensions (in)
Tray
Repack tote
Volume 4492.8 in3
2.6 ft3
3.9
14
24
12
15.6
24
Figure 3.1-1. Dimensions of a Tray and a Repack Tote
3.2 Sturges’ Rule
While having a normal distribution for our list of frequencies, the group is not certain as
to what the right size of bins is or how many classes are needed to represent our data correctly.
So in order to determine the desirable number of groups in to which a distribution of
observations should be classified, the statistical “rule of thumb” or the Sturges’ Rule is applied.
A histogram is a graphical representation of the distribution of numerical data by
indicating the number of data points that lie within a range of values, called a class or a bin. To
determine how wide to choose bars (i.e. of the bins) when visually representing data and ergo
how many classes to use in a histogram Herbert Sturges developed the following formula:
i =
𝑅
1+(3.322∗Log10 ( 𝑛))
(1)
Where
R = Range of the Volume
n = Size of the Data (in this case the number of SKUs).
3.2.1 Application
By applying this formula to the data, it is found that the width of the bin for the
histogram is 0.172 which yields a total of 11 bins as shown in Figure 3.2-1.
Range 1.909722222
i 0.171851069 Sturges' Rule
h 11.1126584
# Lower
Bound
Upped
Bound
Cell
Midpoint
Freq Rel Freq Cum
Freq
1 0.000 0.172 0.086 258367 33.91% 33.91%
2 0.173 0.345 0.259 485498 63.72% 97.62%
3 0.346 0.518 0.432 14868 1.95% 99.58%
4 0.519 0.690 0.604 127 0.02% 99.59%
5 0.691 0.863 0.777 790 0.10% 99.70%
6 0.864 1.036 0.950 254 0.03% 99.73%
7 1.037 1.209 1.123 0 0.00% 99.73%
8 1.210 1.382 1.296 2058 0.27% 100.00%
9 1.383 1.555 1.469 0 0.00% 100.00%
10 1.556 1.728 1.642 0 0.00% 100.00%
11 1.729 1.900 1.814 0 0.00% 100.00%
Total 761962 100.00%
Figure 3.2-1 – Sturges’ Rule Application Results
Figure 3.2-2. Frequency of each Bin
Then, as it is possible to see from the data above, the frequencies of each bin have been
calculated by getting the sum of the frequencies of each SKU present in the interval. Below, in
Figure 3.2-3, find the histograms representing the distributions of the frequencies between the
intervals.
As a result, it is possible to see how 97.62% of all the SKUs are gathered in the first two
intervals.
0,086 0,259 0,432 0,604 0,777 0,950 1,123 1,296 1,469 1,642 1,814
Series1 33,91%63,72% 1,95% 0,02% 0,10% 0,03% 0,00% 0,27% 0,00% 0,00% 0,00%
0,00%
10,00%
20,00%
30,00%
40,00%
50,00%
60,00%
70,00%
RelativeFreq
Volume
Relative Frequencies between Intervals
Figure 3.2-3. Distribution of Frequencies between Intervals
Actually, a volume of 0.345 ft3
represents the type of packs that are being considered for
this project. On the same token, recalling that the volume of a Repack Tote ( 2.6 ft3
), if a
volume of 0.345 ft3
is consider as an upper bound for our calculation, since it contains the
97.62% of all the packs, a Repack Tote can host an amount of 7 cartons of that type.
Nonetheless, if a value of 0.259 ft3
is used instead, (midpoint off the interval with the highest
frequency) and a value of 0.173 ft3
(lower bound), an amount of 10 and 15 packs that will fit on a
Repack Tote respectively as shown in Figure 3.2.1-1.
Indeed, as a result from these calculations and for this project’s purposes, the group will
conclude by saying that in the New Small Cartons Zone, the Repack Totes will be able to host an
average of 10 small cartons.
Figure 3.2.1-1. Number of Cartons that a Repack Tote will Host Depending on the Considered
Volume
Volume # packs
Upper 0.345 7.536 7
Midpoint 0.259 10.03861 10
Lower 0.173 15.0289 15
3.3 MOST
In order to determine the Standard Time it should take an operator to perform certain
tasks and also to determine the amount of time it should take the same operator to perform
particular movements individually, the MOST technique is going to be applied. Specifically, this
method will be applied to determine certain times from the actual Repack Process and to develop
the process flow chart for the New Small Carton Zone.
The MOST or Maynard Operation Sequence Technique is a predetermined motion time
system that is used primarily in industrial settings to set the standard time in which a worker
should perform a task. To calculate this, a task is broken down into individual motion elements,
and each is assigned a numerical time value in units known as Time Measurement Units, or
TMUs, where, again, 1 TMUs is equivalent to 0.036 seconds. All the motion element times are
then added together in order to calculate the Normal Time (NT) of the task, then any allowances
(Basic fatigue allowance + Personal allowance) are added, and the result is the Standard Time
(ST).
NT = ST (1 + Allowance)
In the MOST system three activity sequence models has been used:
 General moves: applicable when an object is moved through the air from one location to
another (Ex. walking or bending). There are four parameters (actions) in the General
Move, symbolized by letters of the alphabet:
A — Action distance
B — Body motion
G — Gain control
P — Placement
Standard sequence in General Move: A B G A B P A
ABG: to get an object;
ABP: to move the object to a new location;
A: return to original position
 Controlled move: used when an object is moved through a path that is somehow
constrained (Ex. putting a paper sheet in a print). This activity sequence has a new sub-
activities:
M = Move controlled (path is controlled)
X = Process Time (controlled by mechanical devices, not manual actions)
I = Alignment (conclusion of process to achieve alignment of objects)
Standard sequence in controlled move: A B G M X I A
MXI: to move the object followed by a process time and alignment
 Tool use: used when the operator performs a task using a tool (Ex. using a screwdriver, a
scissor or writing a record)
This activity sequence applies a variety of work situations:
F — fasten
L — loosen
C — cut
S — surface treat
M — measure
R — record
T — think
Standard sequence in Tool use: A B G A B P L/C/S/M/R/T A B P A
Each letter of the sequences is matched with an Index from 0 to 330 in order to express
the intensity level and duration of the movement described. Adding the indexes of each sequence
and multiplying by 10, the TMUs required to perform the task is given.
3.3.1 Application
In order to design and create guidelines for our New Small Carton Zone, the Time Study
provided by the management of the current Repack Process is first analyzed. The file contained a
very detailed report with a description of all the tasks performed by an operator in the current
process, along with the relative times needed for an operator to complete each task expressed in
TMUs (Time Measurement Unit) (See Appendix B).
Subsequently, to make it easier to understand, the Time Study provided is used to create a
Process Flow Chart for the current Repack Process by combining the basic gestures into main
sequences of motions that the operator has to perform. To be more detailed, the Time Study
contained 203 rows of motions with the relative quantity of TMUs needed to accomplish each
task. Our purpose is to simplify the report by merging all the tasks and by doing so, a sequence
of 7 main tasks with a total amount of 18 motions is achieved. Also, from the Process Flow
Chart, the amount of time needed for each carton to be processed is converted in seconds.
Below, in Figure 3.3.1-1, find the simplified version of the first Flow Chart with additions of:
1- The description of each task
2- The TMUs (obtained by the Time Study)
3- The total time (in seconds)
4- The time in second per carton
Furthermore, the Total Time has been achieved by multiplying the TMU value by 0.036,
which is the constant that permits to convert the value from Time Measurement Units to seconds.
For the last column, in order to obtain the time for a single carton, the Total Time is divided by
different values. For example, a calculation that has been done took place for the sequences #4,
#5 and #6; those values have been divided by 4 because one package in average contains 5 inners
and in a Repack Tote an operator can fit in average 18.5 inners. Therefore, the divisor (4), has
been obtained by dividing 18.5 (inners/Repack Tote) by 5 (inners/package). For the 7th
sequence,
the divisor used is 9 since that is the number of packs per assignment that are moved in a cart.
Seq Method
Individual
Time in TMU
Individual
Time in sec
sec/carton
>Start AST in voice 198 7.13 0.02
>Obtain carton 395 14.22 14.22
>Read/confirm 638 22.97 22.97
>Cut carton 322 11.59 11.59
>Throw carton 60 2.16 2.16
>Voice dialog 436 15.70 15.70
>Additional cut
>Change battery 10000 360.00 1.29
>Collet inners 206 7.42 7.42
31 1.12 1.12
>Scan carton 190 6.84 6.84
>Pull out tote 74 2.66 0.67
>Adjust case 224 8.06 2.02
318 11.45 2.86
>Move tote 137 4.93 1.23
>Push tote 11 0.40 0.10
>Get new tote 896 32.26 8.06
>Get label 31 1.12 0.28
122 4.39 1.10
>Place new tote 97 3.49 0.87
7
>Read sheet
1902 68.47 7.61
Total 16288 586.37 108.11
>Battery change >Happens once every 280 cartons
>Collect inners and place to tote >2.5 ft. walked to place inners, 5 inners per carton
>Read wave sheet, throw totes for the wave
and return
>20 ft. walked distance
>Place empty tote to store location
>Apply label to tote
>Rehandle inners >10% of the time additional placement
>Get tape and apply to close box (inner) >5 ft. Walked
>Adjust cases to close tote
>Scan cartons to store
>Pull tote out of location and place to floor > 18.5 inners per tote
>Cut open carton >38% of cartons are rotated
>Get label for tote
>Push tote through rack
>Get new tote/box > 3 ft walked
>Voice dialog for lane (walk to lane) >17 ft. to next lane
>Throw carton away >100% of empty carton will be thrown away
>Additional cut to open inners
>Move tote to conveyor
>Start Repack Assignment in Voice
>Obtain carton and walk to tote
>13 syllables Internal to walking from location
>17.1 feet walked
>Read and Confirm Carton ID
Description Note
5
6
1
2
3
4
Figure 3.3.1-1. Simplified Process Flowchart of Repack Area
Then, the Allowance for the operation is calculated to get the Normal Time and the Standard
Time for the whole process. Below, in Figures 3.3.1-2 and Equations 1 and 2, find the detailed
calculations.
Normal Time per Carton= (Sum of Sec/Carton) = 108.11 sec/carton (Eq.1)
Standard Time per Carton= NT*(1+Allowance) = 108.11*(1+13%) = 122.17 sec/carton (Eq.2)
Afterwards, using the data in the Flow Chart above, some of the tasks are modified and
some other tasks are as well, in order to create and describe the flow of the New Small Carton
Zone Process. In the new process, all tasks involving Voice Unit are eliminated because the
assistance of this feature is no longer going to be needed in order to know where the cartons have
to be placed. Just with that modification, the total amount of TMUs is reduced by 11891 from the
total measured in the previous Flow Chart. Another thing that needs to be changed is anything
involving the presence of inners. Reason being, again, the cartons which contain other packages
inside are not considered because those are still going to be sent to the current Repack Area.
Also, in this case, the operator will not use a cart to move the cartons to process.
Mental strain (fairly complex process) - 1%
Posture (standing) - 2%
Monotony (Medium) - 1%
Total Personal Allowance - 13%
Personal need - 5%
Basic Fatigue - 4%
Figure 3.3.1-2. Calculation of Allowance for the Operator
Visually, the total motions that have been eliminated are listed below in Figure 3.3.1-3.
Hence, the steps that an operator will need to perform in order to process small cartons in the
new workstation are represented in Figure 3.3.1-4.
Seq Method
>Start AST in voice
>Obtain carton
>Read/confirm
>Cut carton
>Throw carton
>Voice dialog
>Additional cut
>Change battery
>Collet inners
>Battery change
>Collect inners and place to tote
>Rehandle inners
>Cut open carton
>Voice dialog for lane (walk to lane)
>Throw carton away
>Additional cut to open inners
>Start Repack Assignment in Voice
>Obtain carton and walk to tote
>Read and Confirm Carton ID
Description
1
2
3
Figure 3.3.1-3. Steps Excluded from the Repack Process Flow
Chart for the creation of the Flow Chart of the New Small Carton
Zone.
Pick up pallet
form "on-floor"
storage
Strips pallet one
carton at a time
Scan label of
carton
Place carton in
respective
Repack Tote
Once Tote is full,
close tote an
push to conveyor
Replenish the
Repack Tote
Figure 3.3.1-4. Steps that an Operator will follow to Process a Carton in the New Small Carton Zone
In addition, the distances of some of the paths which each operator must take to complete
the task and the motions “Scan Carton” and “Put Carton” are modified, since in the new zone the
movements differ from the ones obtained by the Time Study of the current flow and to calculate
them MOST method is used.
Recalling, for this project’s purposes, MOST methodology is being used to modify the
duration of the walking time of the operator. With that being said, in the New Small Carton
Zone, there will be a dynamic schedule/structure in which the Repack Totes of each stores will
be updated daily according to the ones being served in the daily wave. In this way, with respect
to the actual Repack process which uses a fixed schedule/structure, the process will now require
fewer racks to host the Repack Totes. Currently, the DC supplies 150 stores but not all of them
need daily supplies. Therefore, the dynamic structure will supply 60 stores per day (the ones in
the daily wave) as opposed to all 150. Ergo, once organized, a dynamic schedule/structure will
require a reduced space and with it, the distance walked by the operator to reach the Repack Tote
is also reduced.
Moving on, as shown in Figure 3.3.1-5 below, in the Repack Area, the operator walks
17.1 ft. to reach the Repack Tote and handles the cartons for a total of 395 TMUs.
Figure 3.3.1-5. Operator’s TMU for the Step “Obtain Carton” in the Repack Area.
Contrasting, in the New Small Carton Zone, the operator will have to walk in average a
distance of 5 ft. in order to reach the Repack Tote. Again this is because of the reduced area
needed for racks, thanks to the dynamic schedule/structure. However, the time needed to handle
Seq Method Description Individual
Time in
TMU
Individual
Time in sec
sec/carton
>Obtain
carton
>Obtain carton
and walk to tote
>17.1 feet walked 395 14.22 14.22
the cartons remains unchanged. The calculations are shown below in Equation 3 and the new
sequence is shown in Figure 3.3.1-6.
Individual Time in TMU: A3B1G1 A3B1G0 P0 = 9x10 = 90 TMUs, 5ft = 2 steps (Eq. 3)
Seq Method Description Individual
Time in
TMU
Individual
Time in sec
sec/carton
>Obtain
carton
>Obtain carton
and walk to tote
> One carton at
the time, in avg. 5
ft. walked
90 3.24 3.24
Figure 3.3.1-6 Operator’s TMU for the Step “Obtain Carton” in the New Small Carton Zone.
Additionally, besides changing the distance walked, a new task called “Scan” is added. In
the New Small Carton Zone, the operator has to scan each carton that is processed in order to
inform the Information System of the DC on the status of the pack. The normal time required to
perform this task has also been calculated using the MOST standard sequence tool just
mentioned above. Below the calculations in Equation 4 and the sequence “Scan” overview in
Figure 3.3.1-7.
Individual Time in TMU: A1B0G1 A1B0P1 R3 A1B0P1 A0 = 9x10 = 90 TMUs (Eq. 4)
Seq Method Description Individual
Time in
TMU
Individual
Time in sec
sec/carton
>Scan >Scan carton >Scan cartons to
store (tote)
90 3.24 3.24
Figure 3.3.1-7 Operator’s TMU for the Step “Scan” in the New Small Carton Zone.
Last but not least, the New Small Carton Zone process is completed by modifying the
task in which the operator put the cartons in the Repack Totes. Since the new procedure doesn’t
include cartons with inners, this reduces the complexity and time length of this task. In other
words, in the new process, the operator won’t need to handle the inners as done in Repack, but
instead, he/she will just place the carton in the tote without further processes.
By applying this changes, the distance now walked by the worker is reduced from 2.5 ft. to 2 ft.
and the sec/carton is now 3.17 as opposed to 7.42. Equation 5 shows the calculation and Figure
3.3.1-8 shows the modification of the sequence “Put Carton”.
Individual Time in TMU: A0B0G0 A3B3P1 A0 = 7x10 = 70 TMUs, 2ft = 1 step (Eq. 5)
Seq Method Description Individual
Time in
TMU
Individual
Time in
sec
sec/carton
>Put
Carton
>Collect carton
and place to tote
>In average 2 ft.
walked along the
rank to place
carton
88 3.17 3.17
Figure 3.3.1-8 Operator’s TMUs for the Step “Put Carton” in the New Small Carton Zone.
3.4 Additional Side Cost
To calculate the actual cost for the small carton process flow, there is a certain side
calculation that has to be performed. Recalling the process, these small cartons are placed on
trays in order for them to ride the conveyor. Therefore, adding the cost to use these trays, or the
tray cost, is really important.
Actually, the trays are involved in three processes, those are:
1- Transporting the Small Boxes
2- Getting stacked on a pallet in Shipping Area
3- Getting transported to Processing Area
Therefore, in order to calculate an accurate Tray Cost, these three processes mentioned above are
individually considered.
First, let us consider a block pallet. Figure 3.4.1 shows the dimension of such pallet, the
dimensions of the expected loads, the space available for the cartons and by multiplying the
spaces available, the volume available per pallet is given.
L W H
Dim. timber block pallet (in.) 48 40 5
Dim. of load (in.) 48 40 96
Space available for cartons (in) 48 40 91
Volume available per pallet (in3) 174720
Figure 3.4-1. Breakdown of Calculation to get Volume Available per Pallet
Recalling the volume of a Tray (Figure 3.4.2), the total amount of trays per pallet totals to 130.
On the other hand, the Distribution Center has 60 shipping doors, by dividing the doors
into groups of 10 the consolidation points on every group are now achievable. Knowing that the
width of each door is 10 ft. the consolidation point distances are able to be calculated and that
will give the average distance walked to build the consolidation point. In this case the average
distance walked is 25 ft. With this value MOST method can now be used once again to calculate
the time to put the small carton on a tray, the time to take out the small carton of the tray and
stack the trays in a pallet and the time to transport this pallet to processing areas.
However, before going into the calculations there is important information that has to be
noted in order to then calculate the cost per carton. Below, in Figure 3.4.3 is the wage of an
operator broken down in hours, minutes and seconds.
ft3
in3
Volume of a tray 9.33 1344
Figure 3.4-2. Volume of a Tray.
Wage
18.59 $/h
0.309833 $/min
0.005164 $/sec
Figure 3.4-3. Wage of an Operator in the Distribution Center
Now, by using the information above, the cost per carton can be calculated from the MOST
calculations as shown below in Figure 3.4.4.
Then, recalling the Consolidation Points and the fact that, as per the velocity report provided by
the company, there are 767 small packs processed per hour; that is, 767 trays per hour or 13 trays
per hour per door, this leaves us with 130 trays per hour per Consolidation Point. Further, since
there are 6 Consolidation Points (or groups of 10) there is a total of 6 trips to transport all the
trays from Shipping to Processing in an hour.
Parting from this, the time to transport the pallet from Shipping to Processing can now be
calculated as it is possible to see in Figure 3.4.5.
Figure 3.4.5. Calculations of Transportation of Pallet from Shipping to Processing
Once this calculation is performed, the addition of all costs per carton in the 3 processes, gives a
Tray Cost of $0.042 per carton.
sec/130
ctns sec/ctn $/ctn
Time to bring the pallet from Shipping (Consolidation point) 240 1.84615 0.009533
to Processing on a pallet (130 trays) with fork truck
Figure 3.4-4. MOST Calculations and Cost per Cartons.
18.59 $/h
0.309833 $/min
0.005164 $/sec
sec/ctn $/ctn
Time to put the small carton on the tray 2.16 0.011 A3B0G1 A1B0P1 A0 60 TMUs 2.16 sec
Time to take out the small carton on the tray and build pallet 3.24 0.017 A3B3G1 A1B0P1 A0 90 TMUs 3.24 sec
sec/ctn $/ctn
Time to move trays from doors to Consolidation Point 0.969 0.005 A1B0G1 M16X0I1 A16 350 TMUs 12.6 sec/13 ctn
(with pallet-jack), every door brings 13 trays
MOST
MOST
Wage
Chapter 4: Exclusive Small Carton Zone
In this section, please find the process flowchart for the New Small Carton Zone which is
developed using the standards of the current Repack Process. Moreover, find the optimal design
for the zone.
4.1 New Process Flow
By using the standards of the Repack Process, a new process flow is created for the Small
Carton Zone. As seen in the previous chapter, some of the steps are modified (“Obtain Carton”),
other steps are created (“Scan Carton”) while others are simply excluded from the process
(“Voice Unit”). After doing these modifications and incorporating them all together, the process
flowchart as seen in Figure 4.1-1 is achieved.
Normal Time per carton=17.71 sec/carton
Standard Time per carton= NT*(1+Allowance) = 27.8*(1+13%) = 20.01 sec/carton
Seq Method
Individual
Time in TMU
Individual
Time in
sec
sec/carton
1 >Move pallet 670 24.12 0.10
2
>Obtain carton
90 3.24 3.24
>Scan 90 3.24 3.24
>Put Carton
88 3.17 3.17
>Pull out tote 74 2.70 0.27
>Adjust case 224 8.06 0.81
>Get Tape 318 11.45 1.14
>Move tote 137 4.93 0.49
>Push tote 11 0.40 0.04
>Get new tote 896 32.26 3.23
>Get label 31 1.12 0.11
>Label 122 4.39 0.44
>Place new tote 97 3.49 0.35
7
>Return
30 1.08 1.08
Total 2878 103.6 17.71
6
>Get label for new tote
>Apply label to new tote
>Place empty tote to store location
> Return to the pallet in process to get new
carton
> 5 ft. walked distance
>Get tape and apply to close tote >5 ft. walked
5
>Move tote to conveyor
>Push tote through rack > Push back 100% of carton processed
>Get new tote >3 ft walked
4
>Pull tote out of location and place to floor
>Adjust cases to close tote
3
>Scan carton > Scan cartons to store (Repack Tote)
>Collect carton and place to tote >In average 2 ft. walked along the rank to
place carton
Description Note
>Distance 100 ft with Forktruck, in average
235 cartons/pallet
>Obtain carton and walk to tote > One carton at the time, in average 5 ft
walked
> Move pallet to be processed from Storing
to "Pallet processing area"
Figure 4.1-1. Process Flow Chart for the New Small Carton Zone.
Notice, that in this model:
 No cart is required
 Nothing that has to do with the voice unit is required
 There are no inner cartons to handle
 A smaller area is occupied by the workstation due to the U-shaped and dynamic structure
of the zone
More importantly, notice how in this model the TMUs is dramatically reduced from 108.11 to
17.71 seconds per carton. Also, the Standard Time to process a carton is now 20.01 sec/ctn
opposed to a Standard Time of 122.17 sec/ctn.
Basing our calculation on the fact that the time per carton of the repack process is about 122.17
sec/carton and the related cost is US$ 1.055/carton, and the time of the new Repack Process is
just 20.01 sec/carton, we extrapolated the cost and it shown to be equal to US$ 0.17/carton.
Additionally, the way boxes are going to be processed in this area is shown in Figure 4.1-2
below.
Figure 4.1-2. Flow of the New Small Carton Zone.
Boxes are Palletized
in Receiving
Pallets are stored in
"On-FLoor" storage
or send to Processing
Pallets are received in
Small Carton Zone
Operator strips pallet
and scans cartons
individually
Operator places
carton in Repack Tote
Repack Tote is send
to shipping
4.1.1 Small Carton Zone Design
To design the Small Carton Zone, 3 different scenarios are being analyzed in order to get
the optimal layout for the zone. As mentioned before, the new zone will have a dynamic
structure which will follow the daily wave, meaning the operator will work with 60 Repack
Totes daily as opposed to the 150 that the Repack Zone hosts. Therefore, the area needed is
much smaller and flexible in terms of layout.
Nevertheless, before going in details with the design, the space that is going to be utilized
is an area that is currently being used for bogus items in the Distribution Center right behind the
Repack Area. By using this area, the only capital cost needed is to buy the racks in which the
Repack Totes are going to be placed.
Further, the New Small Carton Zone will consist of one long rack and two short racks placed in a
U-shaped layout in which each rack will have three levels as seen in Figure 4.1.1-1.
Figure 4.1.1-1. Rack Design for New Small Carton Zone.
There will also be a “Pallet Processing Area” with dimensions of a block pallet (4ft x 3.3ft.), in
which the operator places the pallet at the time of carton allocation. Therefore, three different
design options, in respect as to how to situate the Repack Totes in each layout, are being
analyzed to ultimately minimize the distance walked by the operator to process the carton.
Before analyzing each option, let us recall that each scenarios has:
1. Three racks
2. Each rack has three levels
3. There is 60 Repack Totes per workstation
And all of the walking distances are being calculated from the centroids.
Going into the options:
 Option 1: Distribute the Repack Totes equally through the racks that is –
 21 Repack Totes per Rack or 7 Totes per level
By following this distribution, the probability of an operator to process a carton in one of the
three racks is the same (33.33%) because each one contains the same number of Repack Totes.
This options leaves us with an average walking distance of 5.76 ft. to process a carton. To view a
design of this scenario see Figure C.1 in Appendix C.
 Option 2: Distribute the Repack Totes between racks, that is –
 36 Repack Totes in the Long Rack or 12 Totes per level
 12 Repack Totes in each Short Rack or 4 Totes per level in each rack
On the other hand, by following this layout, the probabilities are now 60% of usage for the long
rack and 20% of usage for each of the short racks. With this layout the average walking distance
is now reduced by almost a ft. to 5.07 ft. This distance can even be further reduced if the “Pallet
Processing Area” is pushed closer to the racks. To view a design of this scenario see Figure C.2
in Appendix C.
 Option 3- Distribute the Repack Totes between racks, that is –
 24 Repack Totes in the Long Rack or 8 Totes per level
 18 Repack Totes in each Short Rack or 6 Totes per level in each rack
Then, analyzing this setup, the probabilities are now 40% for the long rack and 30% for each
short rack. In this setup, the average distance walked by the operator is drastically increased to
6.33 ft. To view a design of this setup, see Figure C.3 in Appendix C.
Choosing from these solutions, the design for Option 2 will be the optimal solution. Below in
Figure 4.1.1-2.
Figure 5.1.1-2. Optimal Design for Small Carton Zone.
Area = 90.84 ft2
Pallet
processing
area
12.17 ft
4.17 ft
4.17 ft
6.42 ft
3.3 ft
4 ft
Chapter 5: Speedcell
This portion of the paper is dedicated to the Speedcells alternative. First there is an overview of
the appliance which moves on to some data and its respective analysis. Notice that the
information provided is not as elaborate as the data previously discussed. For further references,
Speedcells should still be analyzed.
5.1 Overview
SpeedCell Storage Solution is a concentrated high density, high volume, scalable storage
solution for slow to mid-level velocity products within a warehouse. Their goal is to help
companies maximize storage space and optimize order picking of their products. In addition, this
gadget reduces traveling time for both the operator and the item, and allows easy access to each
item stored.
When talking about their design, SpeedCell columns contain smaller compartments,
called cells. These cells are stacked vertically to create columns. The columns are then
suspended from a specially designed steel suspension track system that fits into existing or new
pallet racks. Ultimately, this system creates multiple rows of columns that can be filled with
different inventory. The front columns can then be gently moved aside to gain access to those
columns in the rear, thus giving full accessibility to all products stored.
Furthermore, some facts about the product:
 It eliminates dead space by utilizing a bay depth extender
 Due to the Polyester Mesh Textile with PVC double laminated on both sides, it provides
High-Strength, Lightweight, and a Non-Fraying storage solution
 It increases storage density by 40 - 60%
 It improves labor efficiency up to 25 - 40%
5.2 High Bay Case Pick
First, let us go more in depth with High Bay Case Pick. HBCP is a storage method used
in the Distribution Center in which pallets are placed in high bay areas for storage until needed.
Once the carton is requested, an operator will perform a manual pick with the assistance of a lift
truck and put the cartons in a blue cage. This blue cage is then transported to the assigned zone.
Figure 5.2-1 gives a visual representation of HBCP
However, this method has been consider too slow and too expensive to process cartons,
and as mentioned before, this is one of the most common methods of storage for the cartons
being considered for this project. Therefore, in order to reduce HBCP, the Speedcells Storage
Solution is being analyzed.
Figure 6.2-1. Operator Performing a High Bay Case Pick
5.3 Data and Analysis
In order to start designing the Speedcells, the small pack’s max dimensions are taken in
consideration. The goal is to create a space for storage suitable for every small carton that the DC
ships.
Recalling these values, they are shown in Figure 5.3-1:
By using these values, a bay (unit of Speedcell) was created. However, this design of bay
occupied a large amount of space and did not maximize the storing capacity since there was
more “air” being stored than actual products. Also the design was not feasible, and therefore not
optimal. (Figure D.1, Appendix D)
This issue was noted, after a conversation the Director of Sales & Marketing for
Speedcell. With his suggestions, the space available is maximized by redesigning the dimensions
of the single cells and of the entire bay.
The design of the new bay is now done by looking at the individual maximum
dimensions of length, width and height of the SKUs. By doing this a volume of 0.262 ft3
(452.736 in3
) is obtained which represents the 80th
percentile of the distribution of frequencies.
From this data, a cell able to fit the majority of our Small Packages (80%) is designed. By
doing so, the empty space in each cell is minimized and the number of cells per bay is
maximized without damaging the capacity of the Speedcell.
MAX Small Pack Dimensions
L (/Depth) W H
24 12 15.6
Figure 5.3-1. Dimensions of a Small Carton
After applying these changes, the model of bay is shown in Figure 5.3-2.
Figure 5.3-2. Model of Bay for Speedcell
As it is possible to see, the area occupied by the single bay is diminished by 19 ft2
(From
55 to 36 ft2
) and the number of cells per bay is increased by 114 units. These improvements have
been done working on the dimensions and volume of the single cell.
Even if the design doesn’t have any more datum points, that is, the maximum dimensions
of all small packages, but rather has the smaller dimensions just defined above, the storing
method will still be able to host almost all the SKUs considered as small cartons, as defined by
the Pareto’s Law.
Also since the latest design has been also approved by the Director of Sales & Marketing
for Speedcell, a Time Study using the MOST technique has been done to recreate the sequence
of movements that the operators will have to perform to work around the Speedcell. By doing
this, the cycle time in seconds for each Small Pack that must be stored and then picked up to be
moved to the New Repack Area can be calculated. (Find these calculations in Figures D.2 and
D.3 in Appendix D)
Furthermore, it is important to know that the calculations are done assuming that the operator can
carry a cart able to host 10 packs.
Then, by looking at the calculations, the cycle times for an operator are:
 30.60 sec/pack stripping the Pallet
 31.01 sec/pack creating the Pallet
Looking at this data the following conclusions are:
In the Stripping Pallets Area:
 Incoming Flow: 767 Packs/hour
 One Operator capacity: 117.63 Packs/hour
 Min Operators needed: 7 (6.52)
1) In the Creating Pallets Area:
 One Operator capacity: 116.08 Packs/hour
 Min Operators needed: 7 (6.60)
Moreover, once the average time that the packages need to stay stored in the Speedcells
and their frequency is defined, the number of bays needed to handle the Small Packs’ flow would
have been able to be calculate and a quote of the costs would have been gotten in order to
perform a Cost/Benefit Analysis of the project. However, as per the management request no
further analysis have been done.
Chapter 6: Summary and Conclusion
In this chapter, a cost benefit analysis of our recommendation is given, different savings other
than monetary are briefly discussed and then the formal proposal for Toys R US.
6.1 Cost-Benefit Analysis
To fully comprehend the Cost-Benefit Analysis of the New Small Carton Zone, the
current cost of a small carton has been found. Below shows the current flow cost per carton:
These costs listed above have been partially given by the company and partially
calculated by the group in the pages before, in fact this list has been created from the costs of the
flow of any carton in DC. From these data, the actual cost just for small cartons has been define
adding the cost of handling the Tray calculated in Chapter 3.4. The Locate Pallet and Pick Carton
are the costs related to the High Bay Case Pick method of storing.
Below has been defined the costs per small carton for the new process.
Receiving 0.12$
Run Pallet 0.02$
Locate Pallet 0.02$
Pick Carton 0.12$
Run Pallet 0.02$
Process carton 0.05$
Shipping 0.05$
Tray 0.042$
Total cost/ctn 0.438$
Receiving 0.12$
Run Pallet 0.02$
Locate Carton 0.04$
Pick Carton 0.04$
Process Carton 0.17$
Shipping 0.0046$
Total cost/ctn 0.397$
Figure 6.1-1. Actual Flow Process Cost / small carton
Figure 6.1-2. New Flow Process Cost / small carton
The Receiving and Run Pallet processes have been kept the same.
In the new process the storing of the cartons collected in pallets has been designed to be
“on floor “. This variation allowed to eliminate an expensive process as the High Bay Case Pick.
The Locate Carton and Pick Carton are the costs related to the storing method mentioned above
and they have been given by the company.
The Process Carton cost has been calculated in Chapter 4.1 .
The Shipping cost has been calculated taking the cost/carton ($0.046) present in the
actual flow cost and divided by 10. In fact with the new process this cost has been applied to the
Repack Tote that, as already motioned, is able to contain in average 10 small cartons. As one can
observe by comparing the new flow cost to the current, you see that there is a $ 0.041 per carton
cost differential.
Next calculations show how the DC is affected if the new process would be implemented.
Using the costs and standard times along with the volume of small cartons going through the DC,
the approximate yearly savings of the zone is calculated.
The percentages represent 3 different quantity of the total flow of small cartons that the
DC has to process every hour. This because the company can decide to apply the new process to
a minor part of the flow and test the functioning of the New Small Carton Zone.
As it is possible to notice with the 100% of small cartons processed, 4.26 workstations
would be required. To keep going to further analysis, it has been taken in consideration a realistic
number of workstations. For this reason from now on the project requires the implementation of
4 workstations that will allows at the DC to handle the 94% of the small carton’s flow.
100% 75% 50%
20.01 20.01 20.01
3.00 3.00 3.00
179.89 179.89 179.89
767 575.25 383.5
4.26 3.20 2.13
0.438$ 0.438$ 0.438$
0.397$ 0.397$ 0.397$
0.041$ 0.041$ 0.041$
6136 4602 3068
248.99$ 186.74$ 124.49$
255 255 255
63,491.93$ 47,618.95$ 31,745.97$
244,199.75$ 183,149.81$ 122,099.87$
Workstations req'd
Volume of Small Packs
Standart Time (sec/ctn)
Process Rate (ctns/min)
Process Rate (ctns/h)
Demand (ctns/h)
Savings/year in Mt. Olive
Network Savings/year
Cost actual process ($/cnt)
Cost New R. Process ($/cnt)
Cost Differential ($/ctn)
Daily Volume (ctns/day)
Savings/day
Days/year
Figure 6.1-3. Savings per year with relative percentages
The chart below displays how the savings per year has been affected.
Volume of Small Packs 94%
Standart Time (sec/ctn) 20.01
Process Rate (ctns/min) 3.00
Process Rate (ctns/h) 179.89
Demand (ctns/h) 720
Workstations req'd 4.00
Cost actual process ($/cnt) 0.44$
Cost New Process ($/cnt) 0.40$
Cost Differential ($/ctn) 0.04$
Daily Volume (ctns/day) 5760
Savings/day 233.73$
Days/year 255
Savings/year in Mt. Olive 59,601.29$
Figure 6.1-4. Savings per year with 4 workstations
Lastly, the initial Set-up Cost is calculated in order to obtain a clear evaluation of the cost
benefit. Below you see the costs for the racks needed in the new zone along with cost of the
additional repack totes needed and the cost for an IT update in order to obtain the total Set-up
cost. To notice that all the costs related to the labor required in the workstations has already been
included in the New Flow Process Cost.
The total Set-up cost for the implementation of the New Small Carton Zone is $40,008
Figure 6.1-5. Initial Set-up Costs
#rack/workstation 5 (1 for the short side, 3 for the long side)
Total #racks 20
Cost/rack 550.00US$
Total cost racks 11,000.00US$
#repack totes filled/h 72
#repack totes filled/day 576
Total #Repack Totes 1,728 (Repack Totes/day x 3 , 1 in the DC + 1 in the store + 1 shipped)
Cost/Repack Tote 11.00US$
Total Cost Repack Tote 19,008.00US$
IT update 10,000.00US$
Repack Totes
Rack (W = 4 ft)
Now with the availability of data regarding the savings and the cost for the
implementation of proposed project, the below additional analysis is furnished:
Total Initial Set-Up Cost 40,008.00US$
Savings/day 233.73US$
Break even point 171.17 days
Days/year 255
67.13%
With half of a working year we can cover the Set-up costs of our project
Months(21 days) Cost Profit Saving/month
0 40,008.00US$ 35,099.66-US$ 4,908.34US$
1 35,099.66US$ 30,191.32-US$
2 30,191.32US$ 25,282.97-US$
3 25,282.97US$ 20,374.63-US$
4 20,374.63US$ 15,466.29-US$
5 15,466.29US$ 10,557.95-US$
6 10,557.95US$ 5,649.61-US$
7 5,649.61US$ 5,649.61-US$
8 741.26US$ 741.26-US$
9 4,167.08US$
10 9,075.42US$
11 13,983.76US$
12 18,892.10US$
Profit
Total Initial Set-Up Cost 40,008.00US$
Savings/day 233.73US$
Break even point 171.17 days
Days/year 255
67.13%
With half of a working year we can cover the Set-up costs of our project
Months(21 days) Cost Profit Saving/month
0 40,008.00US$ 35,099.66-US$ 4,908.34US$
1 35,099.66US$ 30,191.32-US$
2 30,191.32US$ 25,282.97-US$
3 25,282.97US$ 20,374.63-US$
4 20,374.63US$ 15,466.29-US$
5 15,466.29US$ 10,557.95-US$
6 10,557.95US$ 5,649.61-US$
7 5,649.61US$ 5,649.61-US$
8 741.26US$ 741.26-US$
9 4,167.08US$
10 9,075.42US$
11 13,983.76US$
12 18,892.10US$
Profit
Figure 6.1-6. Break-even point
Figure 6.1-7. Cost/Profit Table
Here below a graphic representation of the Cost/Profit table:
Figure 6.1-8. Cost/Profit Graph
6.2 Project Proposal
Toys R Us should be delighted with the results in that have been brought to the
distribution center regarding the solutions to the problem given. The project was to optimize the
processing of small cartons more efficiently in the Distribution Center. With the help of the
concepts studied at New Jersey Institute of Technology in the department of Industrial
Engineering the team was able to review the multiple flow paths of small cartons and create a
new feasible solution for the process of these cartons. This was possible studying and taking as
standards the Repack Process now in use in the DC.
The new designed process allows to handle the flow of small cartons without the use of
trays during their movements on the conveyor as required now. This adjustment has as
consequences the alleviation of congestion in the conveyors with the relative reduction of events
such as the flipping of the cartons along the way. For this reason with the removal of the trays
also the No Read section of the DC would require less labor effort. Beside the benefit just
mentioned also the cost regarding the handling of the Trays is eliminated.
With the implementation of the new process further savings has been achieved deviating
the flow of the small cartons from the High Bay Case Pick method of storing to a new “on floor”
storing area. Moving part of the cartons from this expensive process would bring additional
savings. Regarding this aspect alternatives involving speed cell was explored in detail, however
the DotCom Department of the distribution center is currently testing this concept and advice
was given to not look any further into the possible solution.
Finally is important to underline that the application of the New Small Cartons Process
designed requires a total implementation cost of $40,008. As show above this cost can be
covered in 172 working days by the saving per carton brought by the use of the new process and
with the relative creation of a profit of $18.892 at the end of the first year.
Toy R Us Distribution Center in Flanders, NJ has now been proposed this solution and it
is now completely the decision of the engineers to choose if they wish to apply the solution or
keep the current flow path.
References
Freivalds, A., & Niebel, B. (2009). Niebel's methods, standards, and work design (12th ed.).
Boston: McGraw-Hill Higher Education.
Besterfield, D. (2013). Quality improvement (9th ed.). Upper Saddle River, N.J.: Prentice Hall.
Maynard, H. B., & Hodson, W. K. (1992). Maynard's industrial engineering handbook. New
York: McGraw-Hill.
Sturges, Herbert A. "The Choice of a Class Interval." Journal of the American Statistical
Association 21.153: 65-66. American Statistical Association. Web. 26 Apr. 2015.
<http://www.jstor.org/stable/2965501>.
Tompkins, James A., and John A. White. Facilities Planning. 4th ed. New York: Wiley, 2010.
854. Print.
Niebel, Benjamin W. Motion and Time Study. 9th ed. Homewood, Ill.: McGraw-Hill Higher
Education, 1992. 880. Print.
http://www.speedcell.net
Flow Process Chart Handout – Case Study 3 – IE 339, Prof Abdou.
Time Study Chart Handout – Case Study 7 – IE 339, Prof Abdou
Standards of Toys R US – Excel File – Irma Luque
Appendix A
Figure A.1. Repack Time Study
Figure A.2. Repack Time Study
Figure A.3. Repack Time Study
Figure A.4. Repack Time Study
Figure A.5. Repack Time Study
Appendix B
Flowchart Report 6 - Cartons
This flowchart details the steps for Repack original layout 7 - Items/Stores
Flowchart ID I.RPKA.BASELINE.060511.S Warehouse ID 8801 8 - Not Used
RE 9 - Inners (placed to store tote/box)
Job Code ID REPACK Company ID Toys R Us 718.42
Create Date 05/11/2006 Prepared By Julian Sassoon
Modify Date 8/8/08 Approved By
PF & D 12.40 Approved Date
Assign Time 916 462 Order Time 0 KEY:
w/PF & D 1,030 519 0 Modified statement
KVI01 0 KVI02 0 KVI03 0 KVI04 KVI05 0 Verify distance
w/PF & D 0 0 0 0 Delete
KVI06 747 KVI07 395 KVI08 0 KVI09 45 KVI10 0
w/PF & D 840 445 0 50 0
KVI11 0 KVI12 0 KVI13 0 KVI14 0 KVI15 0
w/PF & D 0 0 0 0 0 450.00
Seq. Description Element KVI TMU F1 F2 F3 F4 F5
001 GC Confidential and proprietary information. Copyright by red prairie software
international
002 GC -
003 GC This flowchart details the steps necessary for repack.
004 GC -
005 GC The key volume indicators (KVIs) used are:
006 GC 0 - Not used
007 GC 1 - Not used
008 GC 2 - Not used
009 GC 3 - Not used
010 GC 4 - Not Used
011 GC 5 - Not used
012 GC 6 - Cartons
013 GC 7 - Items/Stores
014 GC 8 - Not Used
015 GC 9 - Inners (placed to store tote/box)
016 GC 10 - Not used
017 GC -
018 GC ***** Terminology used in flowcharts *************
019 GC -
020 GC seq - Line sequence number of the flowchart
021 GC elem - Msd pattern element code
022 GC Msd - Master standard data
023 GC KVI - Key volume indicator
024 GC tmu - Time measurement unit 100,000 TMUs/hour or 27.78 TMUs/sec
025 GC -
026 GC To convert TMUs:
027 GC Into seconds: = multiply by .036
028 GC Into minutes: - Multiply by .0006
029 GC -
030 MC M/C - Methods clarification
031 FC F/C - Frequency clarification
032 GC
033 GC The job function begins after the associate has logged in to the LRT.
034 GC Palletize inbound cartons
035 GC THE FOLLOWING ELEMENTS ARE CONSIDERED
036 GC *******COMMON TASKS*******
MC Check out unit walk to Repack, Power up unit, put on equipment
GC Check out voice unit and walk to Repack area.
FC Average assignments per shift = 37. F1 = 1/37. PAT Z.ST01 AST 27.78 0.03 207.00 1.00 1.00 1.00 155.42 5,750.46
Seconds to complete task -
FC Time = 171 seconds -
GC Power up unit and put on equipment -
FC Average assignments per shift = 37. F1 = 1/37. -
GC Associates need to power up unit and put on gear at start of day, after break and after lunch. -
FC Average of 37 assignments per day. (F1 = 1/37). Time =45 seconds. (F2 = 45). Occurs 3 time a day. (F3 = 3) -
Seconds to complete task PAT Z.ST01 AST 27.78 0.03 45.00 3.00 1.00 1.00 101.36 1,250.10
-
37A MC M/C - Start Repack Assignment in Voice 198.00 -
GC Voice/User Dialog -
FC Voice says "Assignment complete for Next Assignment say Ready", User "Ready" PAT CR11 AST 11.00 1.00 13.00 1.00 1.00 1.00 143.00 143.00
Syllables = 13 -
FC F/C - Voice says "Go to Repack", User "Ready" (Syllables = 5) PAT CR11 AST 11.00 1.00 5.00 1.00 1.00 1.00 55.00 55.00
037 MC M/C - OBTAIN AND PLACE CARTON 249.48 -
FC Obtaining 1st carton internal to Start Repack in voice MC. 9 cartons per assignment. F5 = 8/9 Changed from KVI06 to AST time -
038 GC G/C - This method is assuming associates do NOT perform any inbound palletization -
039 FC F/C - Walking to carton PAT BW01 AST 6.80 1.00 17.10 1.00 1.00 1.00 116.28
040 Walking obstructed and unburdened in the work environment - The -
number of feet walked = 17.1 -
041 FC F/C - 20% of cartons will require a bend or carry to obtain -
Figure B.1 – Repack Flow Chart
042 Obtain and place light carton within 3 steps - no bend or carry PAT OLC3B KVI 06 129.00 0.80 1.00 1.00 1.00 1.00 103.20 129.00
043 Obtain and place light carton within 3 steps PAT OHC3b KVI 06 150.00 0.20 1.00 1.00 1.00 1.00 30.00 150.00
48A MC M/C - Read and Confirm Carton ID 449.90 -
FC F/C - This MC is internal to Cut Open Carton. F5 = 0. Not Internal -
GC Voice/User Dialog -
FC Voice says "Carton ID" (Syllables = 3) PAT CR11 KVI 06 11.00 1.00 3.00 1.00 1.00 1.00 33.00 33.00
FC User reads 6 digit ID aloud (Syllables = 6) PAT CR01 KVI 06 11.00 1.00 6.00 1.00 1.00 1.00 66.00 66.00
FC Voice says "123456 Correct", User says "Yes" (Syllables = 9) PAT CR11 KVI 06 11.00 1.00 9.00 1.00 1.00 1.00 99.00 99.00
-
GC Repeat a Carton ID - -
FC User says "No", Voice says "Carton ID", PAT CR11 KVI 06 11.00 0.05 18.00 1.00 1.00 1.00 9.90 198.00
User says "123456", Voice says "123456 Correct?" - -
Syllables = 18 -
FC F/C - User has to repeat x% of carton IDs. (F1 = 5%) - -
-
GC User finished loading cart -
FC User says "No More" (Syllables = 2) PAT CR11 AST 11.00 1.00 2.00 1.00 1.00 1.00 22.00 22.00
FC Voice says "Direction?", User says "Forwards" <or> "Reverse" (Syllables = 5) PAT CR11 AST 11.00 1.00 5.00 1.00 1.00 1.00 55.00 55.00
-
GC F/C - The following is internal to walking to the 1st location. Remains Internal -
FC Voice says "Assignment has X Slot locations and Y SKUs Say Ready" User says "Ready" PAT CR11 AST 11.00 1.00 15.00 1.00 1.00 - 0.00
GC User will sometimes change Zone from Repack to Shippable. - -
FC User says "Change zone", Voice says "Change zone correct?", User says "Yes", Voice says "Zone?" , User says "9" -
PAT CR11 AST 11.00 1.00 15.00 1.00 1.00 1.00 165.00 165.00
048 MC M/C - CUT OPEN CARTON 304.64 -
050 FC F/C - 38% of cartons are rotated PAT rc2 KVI 06 28.00 0.38 1.00 1.00 1.00 1.00 10.64 28.00
051 FC Obtain/Aside cutter and Open Carton PAT OCOB KVI 06 294.00 1.00 1.00 1.00 1.00 1.00 294.00 294.00
F/C - Pattern contains all elements involved with opening carton. -
067 MC M/C - Voice Dialog for Lane 129.88 -
FC Voice says "Lane 123 Carton 1 Put 3" (Syllables = 9) KVI 07 11.00 9.00 1.00 1.00 1.00 1.00 99.00 11.00
GC User walks to lane -
039 FC F/C - Walking to carton PAT BW01 AST 6.80 1.00 17.10 1.00 1.00 0.89 103.36 116.28
040 Walking obstructed and unburdened in the work environment - The -
number of feet walked = 17.1 -
GC User walks from lane to lane -
089 Walking obstructed and burdened in the work environment - 2.6 feet PAT BW16 KVI 07 10.20 1.00 2.60 1.00 1.00 1.00 26.52 26.52
FC F/C - Average distance to next lane is 2.6 feet -
GC Skipping a put because other user is at lane -
GC Currently don't have 2 people in a lane -
FC User says "Skip Put", Voice says "Skip Put correct?", User says "Yes". Internal to Walk to next lanePAT CR11 KVI 07 11.00 1.00 3.00 1.00 1.00 0.00 0.00
3 syllables F2 = 3. F5 = 0. -
3 syllables F2 = 3. F5 = 0. -
FC F/C - User Skips Put for x% of assignments. (F1 = 0%) PAT CR11 AST 11.00 0.00 10.00 1.00 1.00 0.00 0.00
FC At end of unskipped picks Voice says "To put skips say ready", User says "Ready", Voice says "Lane 123" -
Syllables = 10. -
GC User has to walk back to 1st skipped lane at end of assignment -
089 Walking obstructed and burdened in the work environment - 20 feet PAT BW16 AST 10.20 0.00 20.00 1.00 1.00 1.00 0.00
walked -
FC F/C - Distance walked back to first skip is 20 ft. -
-
GC User Confirms Voice ID by repeating last 3 digits -
FC User says last 3 digits of Voice ID "123" PAT CR11 KVI 07 11.00 0.96 3.00 1.00 1.00 1.00 31.68 33.00
Syllables = 3. User does not need to start new tote for 13/14 inners F1 = 0.96 -
FC There is a pause of 1.5 seconds before Voice repeats numbers. F2 = 1.5. PAT Z.ST01 KVI 07 27.78 0.96 1.50 1.00 1.00 1.00 40.00 41.67
GC Voice repeats digits, User confirms by saying "Yes" -
FC Voice says "123 correct", User says "Yes" PAT CR11 KVI 07 11.00 0.96 6.00 1.00 1.00 1.00 63.36 66.00
Syllables = 6. User does not need to start new tote for 13/14 inners F1 = 0.96 -
FC There is a pause of .75 seconds before Voice repeats numbers. F2 = .75. PAT Z.ST01 KVI 07 27.78 0.96 0.75 1.00 1.00 1.00 20.00 20.84
-
GC Starting a new tote -
FC User says "New tote", Voice says "New tote correct", User says "Yes", Voice says "Enter New tote"PAT CR11 KVI 07 11.00 0.06 11.00 1.00 1.00 1.00 7.26 121.00
Syllables = 11, -
FC F/C - User has to repeat x% of carton IDs. (F1 = 6%) PAT CR11 KVI 07 11.00 0.06 11.00 1.00 1.00 0.00 0.00
FC Voice says "1234567 correct", User says "Yes" -
-
GC Repeating a label ID -
FC User says "No", Voice says "Label ID?", User says "1234567", Voice says "1234567 correct?" PAT CR11 KVI 07 11.00 0.05 20.00 1.00 1.00 1.00 11.00 220.00
FC F/C - User has to repeat x% of carton IDs. (F1 = 5%), Syllables = 20 -
-
GC Syllables = Voice put commands -
User doesn't repeat carton ID? Get
credit above
Figure B.2 – Repack Flow Chart
FC Voice says "Carton X Put Y", User says "Y", Syllables = 5 PAT CR11 KVI 07 11.00 1.00 5.00 1.00 1.00 1.00 55.00 55.00
FC There is a pause of 1.5 seconds before Voice repeats numbers. F2 = 1.5. PAT Z.ST01 KVI 07 27.78 1.00 1.50 1.00 1.00 1.00 41.67 41.67
082 MC M/C - COLLECT INNERS AND PLACE TO TOTE 0.00 -
FC F/C - This MC is Internal to Voice Dialog for Lane. F5 = 0. Not internal -
083 GC G/C - Obtain carton to walk to place inners to totes calculated discretly -
084 Obtain object within 12 inches PAT OL12 KVI 06 38.00 1.00 1.00 1.00 1.00 - 0.00 38.00
085 Tightly packed inner packs in master carton additional element to obtain PAT LR34 KVI 06 21.00 2.00 1.00 1.00 1.00 - 0.00 21.00
or place -
087 FC F/C - Average distance walked to place inners is (F2=2.5) -
088 GC Distance traveled is calculated above in voice dialog per lane MC -
089 Walking obstructed and burdened in the work environment - 2.5 feet PAT BW16 KVI 07 10.20 1.00 2.50 1.00 1.00 - 0.00 25.50
-
091 Small case obtain 0 to 6 feet from floor PAT JM00 KVI 07 20.36 1.00 0.50 1.00 1.00 - 0.00 10.18
092 FC F/C - Obtain .5 small cartons from inner F2= 2 -
093 FC F/C - 66% of inners will be placed to tote on upper levels PAT KR26 KVI 09 40.25 0.67 1.00 1.00 1.00 - 0.00 40.25
094 Place three or four inner (avg size) cartons (Up to 2 in each hand) Into a -
pick box -
095 FC F/C - 33% of inners will be placed to totes on lower level PAT KR26B KVI 09 70.75 0.33 1.00 1.00 1.00 - 0.00 70.75
096 Place three or four inner (avg size) cartons (Up to 2 in each hand) Into a -
pick box on lower level -
099 MC M/C - REHANDLE INNERS 0.00 -
FC F/C - This MC is Internal to Voice Dialog for Lane. F5 = 0. -
100 FC F/C - Additional placement - 10% of the time -
101 Placement PAT P6L2 KVI 09 31.00 0.10 1.00 1.00 1.00 0.00 0.00 31.00
067 MC M/C - ADDITIONAL CUT TO OPEN INNERS 0.00 -
FC F/C - This MC is Internal to Voice Dialog for Lane. F5 = 0. Kept Internal -
068 GC G/C - Inners must be broken down due to improperly split cartons -
069 FC F/C - 12% of cartons have incorrectly split inners -
070 Rotate Carton PAT rc2 KVI 06 28.00 0.12 1.00 1.00 1.00 0.00 0.00 28.00
071 Obtain/Aside cutter and Open Carton PAT OCOB KVI 06 294.00 0.12 1.00 1.00 1.00 0.00 0.00 294.00
073 Open flap or cover on an inner pack or container PAT LR16 KVI 06 33.00 0.12 1.00 1.00 1.00 0.00 0.00 33.00
074 Slide with force knife blade into a protective sheath, knife is in hand PAT CLKNF KVI 06 29.00 0.12 1.00 1.00 1.00 0.00 0.00 29.00
075 Place knife to pocket PAT PT16 KVI 06 31.00 0.12 1.00 1.00 1.00 0.00 0.00 31.00
076 MC M/C - BATTERY CHANGE 40.00 -
077 FC F/C - Happens 1/280 ctns (F1=.004) Need credit -
078 FC F/C - One battery change takes 6 minutes (F2=6) PAT z.bat KVI 06 1666.80 0.00 6.00 1.00 1.00 1.00 40.00 10,000.80
-
080 GC THE FOLLOWING ELEMENTS ARE FOR -
081 GC *******HANDLING TOTES********* -
056 MC M/C - THROW CARTON AWAY 60.00 -
FC This MC is internal to Start Repack in voice MC. F5 = 0 -
058 GC Number of feet walked is calculated during travel to gain new cartons -
FC F/C - Distance to throw trash away = 0 feet (F2=0) PAT BW01 KVI 06 6.80 0.00 1.00 1.00 1.00 1.00 0.00 Distance given when walk to cartons 6.80
060 Toss empty carton to trash PAT TEC KVI 06 60.00 1.00 1.00 1.00 1.00 1.00 60.00 60.00
057 FC F/C - 100% of empty cartons will be thrown away (F1=1) -
107 MC M/C - PULL TOTE OUT OF LOCATION AND PLACE TO FLOOR - -
GC Currently push totes back on rollers -
108 FC F/C - 18.5 inners per tote, 1/18.5 = .054 (F1=.054) -
109 FC F/C - 33% of totes are place to floor (Lower Level) 66% of totes are place -
to floor (High Level) -
110 Pull tote out Rack (High level) place to floor PAT PTHfl KVI 09 96.00 0.05 0.67 1.00 1.00 0.00 - 64.32
111 GC G/C - Pull tote out Rack (Lower level) place to floor -
112 Place a tote box to a stack level 1 PAT HX36 KVI 09 29.13 0.05 0.33 1.00 1.00 0.00 - 9.61
113 MC M/C - ADJUST CASES TO CLOSE TOTE 12.11 -
114 FC F/C - 18.5 inners per tote, 1/18.5 = .054 (F1=.054) -
115 FC F/C - Move 3 items per tote -
116 Adjust items in tote PAT AIT KVI 09 39.00 0.05 1.00 3.00 1.00 1.00 6.32 117.00
117 Close hinged two flapped tote box PAT hx41 KVI 09 107.00 0.05 1.00 1.00 1.00 1.00 5.78 107.00
118 MC M/C - GET TAPE AND APPLY 0.00 -
GC This is for building boxes to place to the store. Currently don't use tape to build boxes -
120 FC F/C - 18.5 inners per tote, 1/18.5 = .054 (F1=.054) -
121 FC F/C - Average distance walked to roll of tape is 5 feet (F2=5) -
122 Walking obstructed and unburdened in the work environment - The PAT bw01 KVI 09 6.80 - 5.00 1.00 0.10 1.00 0.00 34.00
number of feet walked = 5 -
123 Obtain (Non-Exposed) Edge of tape from roll PAT at05 KVI 09 22.00 - 1.00 1.00 0.10 1.00 0.00 22.00
124 Walking obstructed and unburdened in the work environment - The PAT bw01 KVI 09 6.80 - 5.00 1.00 0.10 1.00 0.00 34.00
number of feet walked = 5 -
125 Tape, start tape and end tape - Cut PAT pt40 KVI 09 104.00 - 1.00 1.00 0.10 1.00 0.00 104.00
126 Tape - Apply & rub on - Per foot. Tape is in hand and in position for use. PAT at25 KVI 09 37.00 - 1.00 1.00 0.10 1.00 0.00 37.00
127 Get and Place label on Tote/Carton PAT plot KVI 09 87.00 - 1.00 1.00 0.10 1.00 0.00 87.00
129 MC M/C - MOVE TOTE TO CONVEYOR 0.00 -
GC Totes are moved to conveyor on non-standard time. Use this if switch and put job on standard -
130 FC F/C - 18.5 inners per tote, 1/18.5 = .054 (F1=.054) 0.00 -
132 FC F/C - Distance from work area to conveyor is 2.5 feet (F2=2.5) -
133 FC F/C - 34% of cartons are used for the wave (F3=.34) -
134 Walking obstructed and burdened in the work environment - 2.5 feet PAT bw16 KVI 09 10.20 0.05 2.50 1.00 1.00 0.00 0.00 25.50
walked -
135 Get carton/tote from floor place to general location PAT gffp KVI 06 111.00 0.05 1.00 1.00 1.00 0.00 0.00 111.00
137 MC M/C - PUSH TOTE THROUGH RACK 0.59 -
138 FC F/C - 18.5 inners per tote, 1/18.5 = .054 (F1=.054) -
Figure B.3 Repack Flow Chart
139 FC F/C - Push back 100% of cartons processed (F3=1) PAT BX05 KVI 09 11.00 0.05 1.00 1.00 1.00 1.00 0.59 11.00
141 MC M/C - GET NEW TOTE/BOX 20.68 -
142 FC F/C - 18.5 inners per tote, 1/18.5 = .054 (F1=.054) -
144 Walking obstructed and unburdened in the work environment - The PAT bw01 KVI 09 6.80 0.05 2.90 1.00 1.00 1.00 1.07 19.72
number of feet walked = 2.9 -
-
146 GC Build new Tote Time study (F2 is secs/tote) PAT BldT KVI 09 27.78 0.05 12.00 1.00 1.00 1.00 18.02 333.36
148 Walking obstructed and burdened in the work environment back to cart- 2.9 feet PAT BW16 KVI 09 10.20 0.05 2.90 1.00 1.00 1.00 1.60 29.58
159 MC M/C - GET LABEL FOR TOTE 1.68 -
160 FC F/C - 18.5 inners per tote, 1/18.5 = .054 (F1=.054) -
161 GC G/C - Walk is included in returning from getting tote/box -
162 Turn & tear page from a multipage document, page is in position to turn, PAT FM35 KVI 09 31.00 0.05 1.00 1.00 1.00 1.00 1.68 31.00
tear and hold document -
163 MC M/C - APPLY LABEL TO TOTE 6.59 -
164 FC F/C - 18.5 inners per tote, 1/18.5 = .054 (F1=.054) -
165 Peel end of tape back from roll and position it toa surface. PAT at60 KVI 09 64.00 0.05 1.00 1.00 1.00 1.00 3.46 64.00
166 Place object PAT P12L1 KVI 09 21.00 0.05 1.00 1.00 1.00 1.00 1.14 21.00
167 Rub label to a surface PAT RLS KVI 09 37.00 0.05 1.00 1.00 1.00 1.00 2.00 37.00
168 MC M/C - PLACE EMPTY TOTE/BOX TO STORE LOCATION 3.03 -
169 FC F/C - 18.5 inners per tote, 1/18.5 = .054 (F1=.054) -
170 FC F/C - 33% of locations will require a bend to place the tote (F2=.33) -
171 Body motion - Vertical - Bending and arising PAT BV15 KVI 09 61.00 0.05 0.33 1.00 1.00 1.00 1.09 20.13
172 Place Tote to store location PAT HX37 KVI 09 36.00 0.05 1.00 1.00 1.00 1.00 1.95 36.00
173 MC M/C - REPLENISH STORE LABELS 1.50 -
174 FC F/C - 18.5 inners per tote, 1/18.5 = .054 (F1=.054) -
175 FC F/C - Replenish labels 10% of the time -
176 Get more store labels TIM RPCK04 KVI 06 278.00 0.05 0.10 1.00 1.00 1.00 1.50 27.80
191 MC M/C - READ WAVE SHEET, THROW TOTES FOR THE WAVE AND 0.00 -
GC Currently we throw totes on non-standard time -
193 FC F/C -Step required for 20% of shippables -
194 Obtain and read sheet (up to 7 words) PAT ors KVI 06 97.00 0.02 0.75 1.00 1.00 0.00 0.00 72.75
196 FC F/C - Average distance walked is 32 feet (F2=32) -
197 Walking obstructed and unburdened in the work environment - The PAT bw01 KVI 06 6.80 0.02 32.00 1.00 1.00 0.00 0.00 217.60
number of feet walked = 20 -
198 Small case obtain 0 to 6 feet from floor PAT JM00 KVI 06 20.36 0.02 30.00 1.00 1.00 0.00 0.00 610.80
199 FC F/C - Average distance walked is 8 feet (F2=8) -
200 Walking obstructed and burdened in the work environment - 8 feet PAT bw16 KVI 06 10.20 0.02 8.00 1.00 1.00 0.00 0.00 81.60
walked -
201 Place shippable on ground PAT plcshp KVI 06 62.00 0.02 10.00 1.00 1.00 0.00 0.00 620.00
202 FC F/C - Average distance walked is 44 feet (F2=44) -
203 Walking obstructed and unburdened in the work environment - The PAT bw01 KVI 06 6.80 0.02 44.00 1.00 1.00 0.00 0.00 299.20
number of feet walked = 44 -
Need to verify distance
Figure B.4 Repack Flow Chart
Appendix C
Figure C.1. Design of Option 1 of the Small Carton Zone
Figure C.2. Design for Option 2 of the Small Carton Zone
Area = 75.01 ft2
Pallet
processing
area
7.17 ft
7.17 ft
7.17 ft
5.06 ft
3.3 ft
4 ft
Area = 90.84 ft2
Pallet
processing
area
12.17 ft
4.17 ft
4.17 ft
6.42 ft
3.3 ft
4 ft
Figure C.3. Design of Option 3 of the Small Carton Zone.
Area = 77.31 ft2
Pallet
processing
area
8.17 ft
6.17 ft
6.17 ft
5.11 ft
3.3 ft
4 ft
Appendix D
Figure D.1 – Erroneous Design for Speedcell.
Figure D.2 - MOST Calculations to Strip Pallet and Put Packages in Cells.
Figure D.3 – MOST Calculations for Picking the Cartons from Cells and Creating a Pallet

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REPORT FINALI

  • 1. NJIT Small Carton Processing Optimization Senior Project Interim Report – IE 444 Alessandro Reverberi, Chidera Nweke, Vittorio Cavirani, Karlas Madera 5/14/2015
  • 2. Contents Executive Summary.......................................................................................................................................3 Acknowledgements.......................................................................................................................................4 Glossary.........................................................................................................................................................5 Chapter 1: Introduction.................................................................................................................................6 1.1 Company Overview......................................................................................................... 7 1.2 Problem Overview............................................................................................................ 8 Chapter 2: Project Approach.......................................................................................................................10 2.1 Action Plan..................................................................................................................... 11 2.2 Actual Repack Process................................................................................................... 12 Chapter 3: Data and Data Analysis.............................................................................................................14 3.1 Definition of Small Carton............................................................................................. 15 3.2 Sturges’ Rule.................................................................................................................. 16 3.2.1 Application.............................................................................................................. 17 3.3 MOST............................................................................................................................. 20 3.3.1 Application.............................................................................................................. 23 3.4 Additional Side Cost ...................................................................................................... 30 Chapter 4: Exclusive Small Carton Zone......................................................................................................33 4.1 New Process Flow.......................................................................................................... 34 4.1.1 Small Carton Zone Design...................................................................................... 36 Chapter 5: Speedcell....................................................................................................................................39 5.1 Overview........................................................................................................................ 40 5.2 High Bay Case Pick........................................................................................................ 42 5.3 Data and Analysis........................................................................................................... 43 Chapter 6: Summary and Conclusion..........................................................................................................46 6.1 Cost-Benefit Analysis......................................................................................................... 47 6.2 Project Proposal .................................................................................................................. 54 References...................................................................................................................................................56 Appendix A ..................................................................................................................................................57 Appendix B ..................................................................................................................................................62 Appendix C ..................................................................................................................................................66 Appendix D..................................................................................................................................................68
  • 3. Executive Summary The project’s main purpose is to analyze and to optimize the small carton process flow by finding an alternative to remove the use of the trays that are currently being used to make it possible for these cartons to ride the conveyor. Additionally, a way to reduce High Bay Case Pick is also considered, since it also falls under the category of processing small cartons for this is one of the most common methods of storage for such carton. In order to accomplish this, a series of data and procedures are analyzed. This data included the actual process flow to handle small cartons throughout the Distribution Center, time studies of the current Repack Process, the standards of the current Repack Process, inventory lists of the SKU’s, and the velocity reports of the SKU’s processed in the DC along with their dimensions. Therefore, the recommendation consists of creating a new zone dedicated only to small cartons. In this zone, boxes are brought when needed from an on-floor storage, the operator will strip the pallet, scan the box and put it in their respective Repack Tote to be send to their respective destination. Moreover, by applying this method, the trays are no longer necessary since the Repack Totes can ride the conveyor with no problem. Additionally, there would be fewer crowds in the conveyor and less boxes in the No-Read section which will result in a more efficient carton processing overall.
  • 4. Acknowledgements The group would like to express our deepest appreciation first, to Toys R Us for giving us the opportunity to experience a real life situation in the workplace and second, the following people which whom without, this project would have been dreadful. Keith Krkuti - Director of Engineering & Facilities, Toys R US Anis Charania – Former DC Industrial Engineer, Toys R US Jorge Ipanaque Olivos - Network Slotting Manager, Toys R US Layek Abdel-Malek - Professor of Industrial and Manufacturing Engineering, NJIT George Abdou - Professor of Industrial and Manufacturing Engineering, NJIT Golgen Bengu – Professor of Industrial and Manufacturing Engineering, NJIT Irma Luque – Student, NJIT J. W. Jones - Director of Sales & Marketing for Speedcell
  • 5. Glossary  Carton – Word used in the Distribution Center to refer to a box; often interchangeable  CPH – Cartons Processed Per Hour  Datum Point - A point which serves as a reference or base for the measurement of other quantities.  DC – Distribution Center  HBCP – High Bay Case Pick, an expensive method of storage where an operator performs a manual pick from high bays with the assistance of a lift truck  Repack Totes – Cartons assigned to each individual store, which will be stuffed with different items that pertain to the same store.  Skin –The labels assigned to each carton and/or pallet; also known as SKUs  TMU – Time Measurement Unit  Voice Unit – System used in Repack where the operator wears a headset in which he or she communicates with the system by telling the box number and the system in return will give them the location and quantity for each item to be placed in a tote
  • 6. Chapter 1: Introduction In this portion of the report, please find the Company Overview containing background information about Toys R Us and the Problem Overview with the detailed description of the inconvenience encountered at the Distribution Center.
  • 7. 1.1 Company Overview Toys“R”Us, Inc. is the world’s leading dedicated toy and baby products retailer, offering a differentiated shopping experience through its family of brands. Headquartered in Wayne, NJ, Toys“R”Us, Inc., employs approximately 70,000 employees worldwide. As expectations have it, the toy and baby products authority, Toys“R”Us, Inc. is committed to stocking its stores with the most sought-after products, as well as a broad assortment of merchandise to ensure customer satisfaction. The company’s regional Distribution Centers operate with the highest standards of excellence and are located in California, Georgia, Illinois, Maryland, Missouri, New Jersey and Texas. Furthermore, merchandise is sold in 876 Toys“R”Us® and Babies“R”Us® stores in the United States and Puerto Rico, and in more than 725 international stores and over 200 licensed stores in 36 countries and jurisdictions. In addition, it exclusively operates the legendary FAO Schwarz® brand, as well as KB Toys and eToys, and host an experience with extraordinary toys in the brand’s flagship store on Fifth Avenue in New York City.
  • 8. 1.2 Problem Overview Currently, in the Distribution Center, ironically the small boxes are bringing a huge inconvenience to the carton process flow overall. However, before going in depth with the situation, let’s keep in mind that the Distribution Center’s main goal is to receive merchandise and put it out as soon as possible. Therefore, going in details, the condition is as follows: The current path of all merchandise is depicted in Figure 1.2-1: While the boxes are being processed, they all pass through a scanner which reads the “skin” (label/barcode) and with it, the systems knows what is this specific box respective destination. Notice that they have a barcode scanning system and not radio frequency identification system (RFID). Within all these process, however, they have the small sized boxes. These boxes are received, and if they are not going to be stored, they are put on the trays in order to ride the conveyor that is going to take them through the processing and shipment process. Once the scanner reads the “skin,” the boxes (with their respective trays), are sorted to their particular lane for destination. Once there, the small box is removed from the tray and loaded in the trucks for shipping, while the tray is stack on a side. At a certain point of the day, an operator will go all the way to the shipping area to get the trays and bring them all the way back to the processing areas. Boxes are received Boxes are processed Boxes are send to storage or shipping Figure 1.2-1. Current Path of Merchandise in the Distribution Center.
  • 9. Even more, the reason these small cartons have to be in trays is due to their size. In other words, if these cartons are placed in the conveyor without the trays two things can happen which affect the overall productivity. One, the boxes will start bouncing and flipping along the way; when this happens, at the time that the scanner is going to read the “skin,” if the label is not on the surface facing the scanner, the system will not read it and this box will be send to the “No- Read” section. Here, the operator will figure out why is the box (ie. the label) not being read (in this case she will put it in a tray with the surface of the label facing up), and the box will go through the whole processing and shipping process once again. Or two, they can cause a jam in the whole line, which will lead to that line being hold back. Additionally, sometimes depending on the volume of boxes riding the conveyor at a specific time, the trays themselves may be a problem as well. When there are many boxes riding the conveyor, and of course they are all different sizes, if the tray is not placed a certain way (vertically, rather than horizontal), these same trays can cause serious jams, they can make other boxes fall off the conveyor, they might just fall off the conveyor themselves or a combination of these situations can be happen, as seen in Figure 1.2-2. Figure 1.2-2. Visualization of Trays Causing Problems in the DC Line
  • 10. Chapter 2: Project Approach This section will first explain the actual Repack process that Toys R US has in place, and then it will have the action plan to be adopted in order to come up with a feasible and perhaps an optimal solution to our problem.
  • 11. 2.1 Action Plan Since the beginning of the project, two potential ideas are given by the company itself, which are sending these small cartons to Repack and/or implementing Speedcell technology. Particularly, most of the project is dedicated to the Repack Process due to the fact that Speedcells are already being piloted in our assigned facility; therefore the alternative is not discussed as in depth as per the management request. Moving on, for this project’s purpose, the group intends to follow a series of steps in order to come up with an ideal recommendation. These steps are shown in Figure 2.1-1: Define a Small Carton Analyze Data on Small Carton Frequency Analyze Data on Repack Process Develop Standards for New Small Carton Zone Additional Analysis on Alternative (Speedcells) Cost -Benefit Analysis Figure 2.1-1. Action Plan Steps
  • 12. 2.2 Actual Repack Process Before going in detail with the rest of the project, it is important that the current Repack Process in the Distribution Center is well understood. The reason the group is incorporating this process in the project is because the guidelines from this process are being used in order to generate the standards of the recommendation to Toys R US. Therefore, before going any further, let’s define the Repack process as it is now. In the Repack Area there are have three zones that between all will normally accommodate a Repack Tote for each store that the DC supplies. These totes are plastic “boxes” with a bigger dimension (24 x 12 x 15.6 inches) that can carry other items inside and are able to ride the conveyor with no problem. Furthermore, having a tote per store, gives us a distribution of a total of 150 totes when they are off-season, and 176 totes when they are on-season (ie. Christmas). There are 3 totes per store per wave; off-season there is one wave, while on-season are two waves. This gives us a total of 450 and 1056 totes respectively being processed. In addition, the way boxes are currently processed in this area is shown in Figure 2.2-1: Boxes are received in the conveyor from Receiving or Storage Boxes are palletized (Notice that they are palltized in the Repack Area) Operator takes over a pallet and strips it Operator takes 9 boxes from pallet and places them in cart Operator allocates the items with Voice Unit assistance Figure 2.2-1. Process to Handle Cartons in the Repack Area
  • 13. However, some of these boxes are palletized and assign a label for inner shipping. In this process, the operator still uses the voice unit, but instead of putting the boxes in the Repack Totes, the boxes are opened and the inner boxes are placed in the conveyor with their respective label. Notice that if this is a small box, the operator has to put the box in a tote for it to ride the conveyor. Equally important to know, with the process as it is now, the CPH, or cartons processed per hour, is 25 units.
  • 14. Chapter 3: Data and Data Analysis In this chapter, you will find all the data with its respective analysis and its applications. In details, first, a “Small Carton” is define, then, with this valuable information, the data provided by the Distribution Center is able to be filtered in order to verify if the suggested plan is achievable.
  • 15. 3.1 Definition of Small Carton To begin with, let us understand what cartons are being considered for this project. That is, what are the cartons that are being regarded, or in better words, what is a small carton? Therefore, before continuing, let’s define what a small carton is. Recalling the dimension of a Repack Tote, it is 24 x 12 x 15.6 inches. Parting from this, a small carton is every box whose dimensions will fit in a Repack Tote and does not have any inner cartons in it, since these boxes with inner cartons will keep going to the actual Repack zone in order to be allocated properly. From this, a list of 17,682 “skins” given from the company, is reduced to 11,884 after filtering the data to get the cartons with the feasible dimensions. Another filter is then applied to remove the cartons that had inner packs and the list is dramatically reduced to a total of 1107 SKUs. These “skins” then leave us with a total frequency of 761,962 small packs processed in the DC. Then, for each SKU, the volume is calculated by using the length, width and height given in the data. Dimensions (in) Tray Repack tote Volume 4492.8 in3 2.6 ft3 3.9 14 24 12 15.6 24 Figure 3.1-1. Dimensions of a Tray and a Repack Tote
  • 16. 3.2 Sturges’ Rule While having a normal distribution for our list of frequencies, the group is not certain as to what the right size of bins is or how many classes are needed to represent our data correctly. So in order to determine the desirable number of groups in to which a distribution of observations should be classified, the statistical “rule of thumb” or the Sturges’ Rule is applied. A histogram is a graphical representation of the distribution of numerical data by indicating the number of data points that lie within a range of values, called a class or a bin. To determine how wide to choose bars (i.e. of the bins) when visually representing data and ergo how many classes to use in a histogram Herbert Sturges developed the following formula: i = 𝑅 1+(3.322∗Log10 ( 𝑛)) (1) Where R = Range of the Volume n = Size of the Data (in this case the number of SKUs).
  • 17. 3.2.1 Application By applying this formula to the data, it is found that the width of the bin for the histogram is 0.172 which yields a total of 11 bins as shown in Figure 3.2-1. Range 1.909722222 i 0.171851069 Sturges' Rule h 11.1126584 # Lower Bound Upped Bound Cell Midpoint Freq Rel Freq Cum Freq 1 0.000 0.172 0.086 258367 33.91% 33.91% 2 0.173 0.345 0.259 485498 63.72% 97.62% 3 0.346 0.518 0.432 14868 1.95% 99.58% 4 0.519 0.690 0.604 127 0.02% 99.59% 5 0.691 0.863 0.777 790 0.10% 99.70% 6 0.864 1.036 0.950 254 0.03% 99.73% 7 1.037 1.209 1.123 0 0.00% 99.73% 8 1.210 1.382 1.296 2058 0.27% 100.00% 9 1.383 1.555 1.469 0 0.00% 100.00% 10 1.556 1.728 1.642 0 0.00% 100.00% 11 1.729 1.900 1.814 0 0.00% 100.00% Total 761962 100.00% Figure 3.2-1 – Sturges’ Rule Application Results Figure 3.2-2. Frequency of each Bin
  • 18. Then, as it is possible to see from the data above, the frequencies of each bin have been calculated by getting the sum of the frequencies of each SKU present in the interval. Below, in Figure 3.2-3, find the histograms representing the distributions of the frequencies between the intervals. As a result, it is possible to see how 97.62% of all the SKUs are gathered in the first two intervals. 0,086 0,259 0,432 0,604 0,777 0,950 1,123 1,296 1,469 1,642 1,814 Series1 33,91%63,72% 1,95% 0,02% 0,10% 0,03% 0,00% 0,27% 0,00% 0,00% 0,00% 0,00% 10,00% 20,00% 30,00% 40,00% 50,00% 60,00% 70,00% RelativeFreq Volume Relative Frequencies between Intervals Figure 3.2-3. Distribution of Frequencies between Intervals
  • 19. Actually, a volume of 0.345 ft3 represents the type of packs that are being considered for this project. On the same token, recalling that the volume of a Repack Tote ( 2.6 ft3 ), if a volume of 0.345 ft3 is consider as an upper bound for our calculation, since it contains the 97.62% of all the packs, a Repack Tote can host an amount of 7 cartons of that type. Nonetheless, if a value of 0.259 ft3 is used instead, (midpoint off the interval with the highest frequency) and a value of 0.173 ft3 (lower bound), an amount of 10 and 15 packs that will fit on a Repack Tote respectively as shown in Figure 3.2.1-1. Indeed, as a result from these calculations and for this project’s purposes, the group will conclude by saying that in the New Small Cartons Zone, the Repack Totes will be able to host an average of 10 small cartons. Figure 3.2.1-1. Number of Cartons that a Repack Tote will Host Depending on the Considered Volume Volume # packs Upper 0.345 7.536 7 Midpoint 0.259 10.03861 10 Lower 0.173 15.0289 15
  • 20. 3.3 MOST In order to determine the Standard Time it should take an operator to perform certain tasks and also to determine the amount of time it should take the same operator to perform particular movements individually, the MOST technique is going to be applied. Specifically, this method will be applied to determine certain times from the actual Repack Process and to develop the process flow chart for the New Small Carton Zone. The MOST or Maynard Operation Sequence Technique is a predetermined motion time system that is used primarily in industrial settings to set the standard time in which a worker should perform a task. To calculate this, a task is broken down into individual motion elements, and each is assigned a numerical time value in units known as Time Measurement Units, or TMUs, where, again, 1 TMUs is equivalent to 0.036 seconds. All the motion element times are then added together in order to calculate the Normal Time (NT) of the task, then any allowances (Basic fatigue allowance + Personal allowance) are added, and the result is the Standard Time (ST). NT = ST (1 + Allowance) In the MOST system three activity sequence models has been used:  General moves: applicable when an object is moved through the air from one location to another (Ex. walking or bending). There are four parameters (actions) in the General Move, symbolized by letters of the alphabet: A — Action distance B — Body motion G — Gain control
  • 21. P — Placement Standard sequence in General Move: A B G A B P A ABG: to get an object; ABP: to move the object to a new location; A: return to original position  Controlled move: used when an object is moved through a path that is somehow constrained (Ex. putting a paper sheet in a print). This activity sequence has a new sub- activities: M = Move controlled (path is controlled) X = Process Time (controlled by mechanical devices, not manual actions) I = Alignment (conclusion of process to achieve alignment of objects) Standard sequence in controlled move: A B G M X I A MXI: to move the object followed by a process time and alignment  Tool use: used when the operator performs a task using a tool (Ex. using a screwdriver, a scissor or writing a record) This activity sequence applies a variety of work situations: F — fasten L — loosen
  • 22. C — cut S — surface treat M — measure R — record T — think Standard sequence in Tool use: A B G A B P L/C/S/M/R/T A B P A Each letter of the sequences is matched with an Index from 0 to 330 in order to express the intensity level and duration of the movement described. Adding the indexes of each sequence and multiplying by 10, the TMUs required to perform the task is given.
  • 23. 3.3.1 Application In order to design and create guidelines for our New Small Carton Zone, the Time Study provided by the management of the current Repack Process is first analyzed. The file contained a very detailed report with a description of all the tasks performed by an operator in the current process, along with the relative times needed for an operator to complete each task expressed in TMUs (Time Measurement Unit) (See Appendix B). Subsequently, to make it easier to understand, the Time Study provided is used to create a Process Flow Chart for the current Repack Process by combining the basic gestures into main sequences of motions that the operator has to perform. To be more detailed, the Time Study contained 203 rows of motions with the relative quantity of TMUs needed to accomplish each task. Our purpose is to simplify the report by merging all the tasks and by doing so, a sequence of 7 main tasks with a total amount of 18 motions is achieved. Also, from the Process Flow Chart, the amount of time needed for each carton to be processed is converted in seconds. Below, in Figure 3.3.1-1, find the simplified version of the first Flow Chart with additions of: 1- The description of each task 2- The TMUs (obtained by the Time Study) 3- The total time (in seconds) 4- The time in second per carton
  • 24. Furthermore, the Total Time has been achieved by multiplying the TMU value by 0.036, which is the constant that permits to convert the value from Time Measurement Units to seconds. For the last column, in order to obtain the time for a single carton, the Total Time is divided by different values. For example, a calculation that has been done took place for the sequences #4, #5 and #6; those values have been divided by 4 because one package in average contains 5 inners and in a Repack Tote an operator can fit in average 18.5 inners. Therefore, the divisor (4), has been obtained by dividing 18.5 (inners/Repack Tote) by 5 (inners/package). For the 7th sequence, the divisor used is 9 since that is the number of packs per assignment that are moved in a cart. Seq Method Individual Time in TMU Individual Time in sec sec/carton >Start AST in voice 198 7.13 0.02 >Obtain carton 395 14.22 14.22 >Read/confirm 638 22.97 22.97 >Cut carton 322 11.59 11.59 >Throw carton 60 2.16 2.16 >Voice dialog 436 15.70 15.70 >Additional cut >Change battery 10000 360.00 1.29 >Collet inners 206 7.42 7.42 31 1.12 1.12 >Scan carton 190 6.84 6.84 >Pull out tote 74 2.66 0.67 >Adjust case 224 8.06 2.02 318 11.45 2.86 >Move tote 137 4.93 1.23 >Push tote 11 0.40 0.10 >Get new tote 896 32.26 8.06 >Get label 31 1.12 0.28 122 4.39 1.10 >Place new tote 97 3.49 0.87 7 >Read sheet 1902 68.47 7.61 Total 16288 586.37 108.11 >Battery change >Happens once every 280 cartons >Collect inners and place to tote >2.5 ft. walked to place inners, 5 inners per carton >Read wave sheet, throw totes for the wave and return >20 ft. walked distance >Place empty tote to store location >Apply label to tote >Rehandle inners >10% of the time additional placement >Get tape and apply to close box (inner) >5 ft. Walked >Adjust cases to close tote >Scan cartons to store >Pull tote out of location and place to floor > 18.5 inners per tote >Cut open carton >38% of cartons are rotated >Get label for tote >Push tote through rack >Get new tote/box > 3 ft walked >Voice dialog for lane (walk to lane) >17 ft. to next lane >Throw carton away >100% of empty carton will be thrown away >Additional cut to open inners >Move tote to conveyor >Start Repack Assignment in Voice >Obtain carton and walk to tote >13 syllables Internal to walking from location >17.1 feet walked >Read and Confirm Carton ID Description Note 5 6 1 2 3 4 Figure 3.3.1-1. Simplified Process Flowchart of Repack Area
  • 25. Then, the Allowance for the operation is calculated to get the Normal Time and the Standard Time for the whole process. Below, in Figures 3.3.1-2 and Equations 1 and 2, find the detailed calculations. Normal Time per Carton= (Sum of Sec/Carton) = 108.11 sec/carton (Eq.1) Standard Time per Carton= NT*(1+Allowance) = 108.11*(1+13%) = 122.17 sec/carton (Eq.2) Afterwards, using the data in the Flow Chart above, some of the tasks are modified and some other tasks are as well, in order to create and describe the flow of the New Small Carton Zone Process. In the new process, all tasks involving Voice Unit are eliminated because the assistance of this feature is no longer going to be needed in order to know where the cartons have to be placed. Just with that modification, the total amount of TMUs is reduced by 11891 from the total measured in the previous Flow Chart. Another thing that needs to be changed is anything involving the presence of inners. Reason being, again, the cartons which contain other packages inside are not considered because those are still going to be sent to the current Repack Area. Also, in this case, the operator will not use a cart to move the cartons to process. Mental strain (fairly complex process) - 1% Posture (standing) - 2% Monotony (Medium) - 1% Total Personal Allowance - 13% Personal need - 5% Basic Fatigue - 4% Figure 3.3.1-2. Calculation of Allowance for the Operator
  • 26. Visually, the total motions that have been eliminated are listed below in Figure 3.3.1-3. Hence, the steps that an operator will need to perform in order to process small cartons in the new workstation are represented in Figure 3.3.1-4. Seq Method >Start AST in voice >Obtain carton >Read/confirm >Cut carton >Throw carton >Voice dialog >Additional cut >Change battery >Collet inners >Battery change >Collect inners and place to tote >Rehandle inners >Cut open carton >Voice dialog for lane (walk to lane) >Throw carton away >Additional cut to open inners >Start Repack Assignment in Voice >Obtain carton and walk to tote >Read and Confirm Carton ID Description 1 2 3 Figure 3.3.1-3. Steps Excluded from the Repack Process Flow Chart for the creation of the Flow Chart of the New Small Carton Zone. Pick up pallet form "on-floor" storage Strips pallet one carton at a time Scan label of carton Place carton in respective Repack Tote Once Tote is full, close tote an push to conveyor Replenish the Repack Tote Figure 3.3.1-4. Steps that an Operator will follow to Process a Carton in the New Small Carton Zone
  • 27. In addition, the distances of some of the paths which each operator must take to complete the task and the motions “Scan Carton” and “Put Carton” are modified, since in the new zone the movements differ from the ones obtained by the Time Study of the current flow and to calculate them MOST method is used. Recalling, for this project’s purposes, MOST methodology is being used to modify the duration of the walking time of the operator. With that being said, in the New Small Carton Zone, there will be a dynamic schedule/structure in which the Repack Totes of each stores will be updated daily according to the ones being served in the daily wave. In this way, with respect to the actual Repack process which uses a fixed schedule/structure, the process will now require fewer racks to host the Repack Totes. Currently, the DC supplies 150 stores but not all of them need daily supplies. Therefore, the dynamic structure will supply 60 stores per day (the ones in the daily wave) as opposed to all 150. Ergo, once organized, a dynamic schedule/structure will require a reduced space and with it, the distance walked by the operator to reach the Repack Tote is also reduced. Moving on, as shown in Figure 3.3.1-5 below, in the Repack Area, the operator walks 17.1 ft. to reach the Repack Tote and handles the cartons for a total of 395 TMUs. Figure 3.3.1-5. Operator’s TMU for the Step “Obtain Carton” in the Repack Area. Contrasting, in the New Small Carton Zone, the operator will have to walk in average a distance of 5 ft. in order to reach the Repack Tote. Again this is because of the reduced area needed for racks, thanks to the dynamic schedule/structure. However, the time needed to handle Seq Method Description Individual Time in TMU Individual Time in sec sec/carton >Obtain carton >Obtain carton and walk to tote >17.1 feet walked 395 14.22 14.22
  • 28. the cartons remains unchanged. The calculations are shown below in Equation 3 and the new sequence is shown in Figure 3.3.1-6. Individual Time in TMU: A3B1G1 A3B1G0 P0 = 9x10 = 90 TMUs, 5ft = 2 steps (Eq. 3) Seq Method Description Individual Time in TMU Individual Time in sec sec/carton >Obtain carton >Obtain carton and walk to tote > One carton at the time, in avg. 5 ft. walked 90 3.24 3.24 Figure 3.3.1-6 Operator’s TMU for the Step “Obtain Carton” in the New Small Carton Zone. Additionally, besides changing the distance walked, a new task called “Scan” is added. In the New Small Carton Zone, the operator has to scan each carton that is processed in order to inform the Information System of the DC on the status of the pack. The normal time required to perform this task has also been calculated using the MOST standard sequence tool just mentioned above. Below the calculations in Equation 4 and the sequence “Scan” overview in Figure 3.3.1-7. Individual Time in TMU: A1B0G1 A1B0P1 R3 A1B0P1 A0 = 9x10 = 90 TMUs (Eq. 4) Seq Method Description Individual Time in TMU Individual Time in sec sec/carton >Scan >Scan carton >Scan cartons to store (tote) 90 3.24 3.24 Figure 3.3.1-7 Operator’s TMU for the Step “Scan” in the New Small Carton Zone.
  • 29. Last but not least, the New Small Carton Zone process is completed by modifying the task in which the operator put the cartons in the Repack Totes. Since the new procedure doesn’t include cartons with inners, this reduces the complexity and time length of this task. In other words, in the new process, the operator won’t need to handle the inners as done in Repack, but instead, he/she will just place the carton in the tote without further processes. By applying this changes, the distance now walked by the worker is reduced from 2.5 ft. to 2 ft. and the sec/carton is now 3.17 as opposed to 7.42. Equation 5 shows the calculation and Figure 3.3.1-8 shows the modification of the sequence “Put Carton”. Individual Time in TMU: A0B0G0 A3B3P1 A0 = 7x10 = 70 TMUs, 2ft = 1 step (Eq. 5) Seq Method Description Individual Time in TMU Individual Time in sec sec/carton >Put Carton >Collect carton and place to tote >In average 2 ft. walked along the rank to place carton 88 3.17 3.17 Figure 3.3.1-8 Operator’s TMUs for the Step “Put Carton” in the New Small Carton Zone.
  • 30. 3.4 Additional Side Cost To calculate the actual cost for the small carton process flow, there is a certain side calculation that has to be performed. Recalling the process, these small cartons are placed on trays in order for them to ride the conveyor. Therefore, adding the cost to use these trays, or the tray cost, is really important. Actually, the trays are involved in three processes, those are: 1- Transporting the Small Boxes 2- Getting stacked on a pallet in Shipping Area 3- Getting transported to Processing Area Therefore, in order to calculate an accurate Tray Cost, these three processes mentioned above are individually considered. First, let us consider a block pallet. Figure 3.4.1 shows the dimension of such pallet, the dimensions of the expected loads, the space available for the cartons and by multiplying the spaces available, the volume available per pallet is given. L W H Dim. timber block pallet (in.) 48 40 5 Dim. of load (in.) 48 40 96 Space available for cartons (in) 48 40 91 Volume available per pallet (in3) 174720 Figure 3.4-1. Breakdown of Calculation to get Volume Available per Pallet
  • 31. Recalling the volume of a Tray (Figure 3.4.2), the total amount of trays per pallet totals to 130. On the other hand, the Distribution Center has 60 shipping doors, by dividing the doors into groups of 10 the consolidation points on every group are now achievable. Knowing that the width of each door is 10 ft. the consolidation point distances are able to be calculated and that will give the average distance walked to build the consolidation point. In this case the average distance walked is 25 ft. With this value MOST method can now be used once again to calculate the time to put the small carton on a tray, the time to take out the small carton of the tray and stack the trays in a pallet and the time to transport this pallet to processing areas. However, before going into the calculations there is important information that has to be noted in order to then calculate the cost per carton. Below, in Figure 3.4.3 is the wage of an operator broken down in hours, minutes and seconds. ft3 in3 Volume of a tray 9.33 1344 Figure 3.4-2. Volume of a Tray. Wage 18.59 $/h 0.309833 $/min 0.005164 $/sec Figure 3.4-3. Wage of an Operator in the Distribution Center
  • 32. Now, by using the information above, the cost per carton can be calculated from the MOST calculations as shown below in Figure 3.4.4. Then, recalling the Consolidation Points and the fact that, as per the velocity report provided by the company, there are 767 small packs processed per hour; that is, 767 trays per hour or 13 trays per hour per door, this leaves us with 130 trays per hour per Consolidation Point. Further, since there are 6 Consolidation Points (or groups of 10) there is a total of 6 trips to transport all the trays from Shipping to Processing in an hour. Parting from this, the time to transport the pallet from Shipping to Processing can now be calculated as it is possible to see in Figure 3.4.5. Figure 3.4.5. Calculations of Transportation of Pallet from Shipping to Processing Once this calculation is performed, the addition of all costs per carton in the 3 processes, gives a Tray Cost of $0.042 per carton. sec/130 ctns sec/ctn $/ctn Time to bring the pallet from Shipping (Consolidation point) 240 1.84615 0.009533 to Processing on a pallet (130 trays) with fork truck Figure 3.4-4. MOST Calculations and Cost per Cartons. 18.59 $/h 0.309833 $/min 0.005164 $/sec sec/ctn $/ctn Time to put the small carton on the tray 2.16 0.011 A3B0G1 A1B0P1 A0 60 TMUs 2.16 sec Time to take out the small carton on the tray and build pallet 3.24 0.017 A3B3G1 A1B0P1 A0 90 TMUs 3.24 sec sec/ctn $/ctn Time to move trays from doors to Consolidation Point 0.969 0.005 A1B0G1 M16X0I1 A16 350 TMUs 12.6 sec/13 ctn (with pallet-jack), every door brings 13 trays MOST MOST Wage
  • 33. Chapter 4: Exclusive Small Carton Zone In this section, please find the process flowchart for the New Small Carton Zone which is developed using the standards of the current Repack Process. Moreover, find the optimal design for the zone.
  • 34. 4.1 New Process Flow By using the standards of the Repack Process, a new process flow is created for the Small Carton Zone. As seen in the previous chapter, some of the steps are modified (“Obtain Carton”), other steps are created (“Scan Carton”) while others are simply excluded from the process (“Voice Unit”). After doing these modifications and incorporating them all together, the process flowchart as seen in Figure 4.1-1 is achieved. Normal Time per carton=17.71 sec/carton Standard Time per carton= NT*(1+Allowance) = 27.8*(1+13%) = 20.01 sec/carton Seq Method Individual Time in TMU Individual Time in sec sec/carton 1 >Move pallet 670 24.12 0.10 2 >Obtain carton 90 3.24 3.24 >Scan 90 3.24 3.24 >Put Carton 88 3.17 3.17 >Pull out tote 74 2.70 0.27 >Adjust case 224 8.06 0.81 >Get Tape 318 11.45 1.14 >Move tote 137 4.93 0.49 >Push tote 11 0.40 0.04 >Get new tote 896 32.26 3.23 >Get label 31 1.12 0.11 >Label 122 4.39 0.44 >Place new tote 97 3.49 0.35 7 >Return 30 1.08 1.08 Total 2878 103.6 17.71 6 >Get label for new tote >Apply label to new tote >Place empty tote to store location > Return to the pallet in process to get new carton > 5 ft. walked distance >Get tape and apply to close tote >5 ft. walked 5 >Move tote to conveyor >Push tote through rack > Push back 100% of carton processed >Get new tote >3 ft walked 4 >Pull tote out of location and place to floor >Adjust cases to close tote 3 >Scan carton > Scan cartons to store (Repack Tote) >Collect carton and place to tote >In average 2 ft. walked along the rank to place carton Description Note >Distance 100 ft with Forktruck, in average 235 cartons/pallet >Obtain carton and walk to tote > One carton at the time, in average 5 ft walked > Move pallet to be processed from Storing to "Pallet processing area" Figure 4.1-1. Process Flow Chart for the New Small Carton Zone.
  • 35. Notice, that in this model:  No cart is required  Nothing that has to do with the voice unit is required  There are no inner cartons to handle  A smaller area is occupied by the workstation due to the U-shaped and dynamic structure of the zone More importantly, notice how in this model the TMUs is dramatically reduced from 108.11 to 17.71 seconds per carton. Also, the Standard Time to process a carton is now 20.01 sec/ctn opposed to a Standard Time of 122.17 sec/ctn. Basing our calculation on the fact that the time per carton of the repack process is about 122.17 sec/carton and the related cost is US$ 1.055/carton, and the time of the new Repack Process is just 20.01 sec/carton, we extrapolated the cost and it shown to be equal to US$ 0.17/carton. Additionally, the way boxes are going to be processed in this area is shown in Figure 4.1-2 below. Figure 4.1-2. Flow of the New Small Carton Zone. Boxes are Palletized in Receiving Pallets are stored in "On-FLoor" storage or send to Processing Pallets are received in Small Carton Zone Operator strips pallet and scans cartons individually Operator places carton in Repack Tote Repack Tote is send to shipping
  • 36. 4.1.1 Small Carton Zone Design To design the Small Carton Zone, 3 different scenarios are being analyzed in order to get the optimal layout for the zone. As mentioned before, the new zone will have a dynamic structure which will follow the daily wave, meaning the operator will work with 60 Repack Totes daily as opposed to the 150 that the Repack Zone hosts. Therefore, the area needed is much smaller and flexible in terms of layout. Nevertheless, before going in details with the design, the space that is going to be utilized is an area that is currently being used for bogus items in the Distribution Center right behind the Repack Area. By using this area, the only capital cost needed is to buy the racks in which the Repack Totes are going to be placed. Further, the New Small Carton Zone will consist of one long rack and two short racks placed in a U-shaped layout in which each rack will have three levels as seen in Figure 4.1.1-1. Figure 4.1.1-1. Rack Design for New Small Carton Zone.
  • 37. There will also be a “Pallet Processing Area” with dimensions of a block pallet (4ft x 3.3ft.), in which the operator places the pallet at the time of carton allocation. Therefore, three different design options, in respect as to how to situate the Repack Totes in each layout, are being analyzed to ultimately minimize the distance walked by the operator to process the carton. Before analyzing each option, let us recall that each scenarios has: 1. Three racks 2. Each rack has three levels 3. There is 60 Repack Totes per workstation And all of the walking distances are being calculated from the centroids. Going into the options:  Option 1: Distribute the Repack Totes equally through the racks that is –  21 Repack Totes per Rack or 7 Totes per level By following this distribution, the probability of an operator to process a carton in one of the three racks is the same (33.33%) because each one contains the same number of Repack Totes. This options leaves us with an average walking distance of 5.76 ft. to process a carton. To view a design of this scenario see Figure C.1 in Appendix C.  Option 2: Distribute the Repack Totes between racks, that is –  36 Repack Totes in the Long Rack or 12 Totes per level  12 Repack Totes in each Short Rack or 4 Totes per level in each rack On the other hand, by following this layout, the probabilities are now 60% of usage for the long rack and 20% of usage for each of the short racks. With this layout the average walking distance is now reduced by almost a ft. to 5.07 ft. This distance can even be further reduced if the “Pallet
  • 38. Processing Area” is pushed closer to the racks. To view a design of this scenario see Figure C.2 in Appendix C.  Option 3- Distribute the Repack Totes between racks, that is –  24 Repack Totes in the Long Rack or 8 Totes per level  18 Repack Totes in each Short Rack or 6 Totes per level in each rack Then, analyzing this setup, the probabilities are now 40% for the long rack and 30% for each short rack. In this setup, the average distance walked by the operator is drastically increased to 6.33 ft. To view a design of this setup, see Figure C.3 in Appendix C. Choosing from these solutions, the design for Option 2 will be the optimal solution. Below in Figure 4.1.1-2. Figure 5.1.1-2. Optimal Design for Small Carton Zone. Area = 90.84 ft2 Pallet processing area 12.17 ft 4.17 ft 4.17 ft 6.42 ft 3.3 ft 4 ft
  • 39. Chapter 5: Speedcell This portion of the paper is dedicated to the Speedcells alternative. First there is an overview of the appliance which moves on to some data and its respective analysis. Notice that the information provided is not as elaborate as the data previously discussed. For further references, Speedcells should still be analyzed.
  • 40. 5.1 Overview SpeedCell Storage Solution is a concentrated high density, high volume, scalable storage solution for slow to mid-level velocity products within a warehouse. Their goal is to help companies maximize storage space and optimize order picking of their products. In addition, this gadget reduces traveling time for both the operator and the item, and allows easy access to each item stored. When talking about their design, SpeedCell columns contain smaller compartments, called cells. These cells are stacked vertically to create columns. The columns are then suspended from a specially designed steel suspension track system that fits into existing or new pallet racks. Ultimately, this system creates multiple rows of columns that can be filled with different inventory. The front columns can then be gently moved aside to gain access to those columns in the rear, thus giving full accessibility to all products stored.
  • 41. Furthermore, some facts about the product:  It eliminates dead space by utilizing a bay depth extender  Due to the Polyester Mesh Textile with PVC double laminated on both sides, it provides High-Strength, Lightweight, and a Non-Fraying storage solution  It increases storage density by 40 - 60%  It improves labor efficiency up to 25 - 40%
  • 42. 5.2 High Bay Case Pick First, let us go more in depth with High Bay Case Pick. HBCP is a storage method used in the Distribution Center in which pallets are placed in high bay areas for storage until needed. Once the carton is requested, an operator will perform a manual pick with the assistance of a lift truck and put the cartons in a blue cage. This blue cage is then transported to the assigned zone. Figure 5.2-1 gives a visual representation of HBCP However, this method has been consider too slow and too expensive to process cartons, and as mentioned before, this is one of the most common methods of storage for the cartons being considered for this project. Therefore, in order to reduce HBCP, the Speedcells Storage Solution is being analyzed. Figure 6.2-1. Operator Performing a High Bay Case Pick
  • 43. 5.3 Data and Analysis In order to start designing the Speedcells, the small pack’s max dimensions are taken in consideration. The goal is to create a space for storage suitable for every small carton that the DC ships. Recalling these values, they are shown in Figure 5.3-1: By using these values, a bay (unit of Speedcell) was created. However, this design of bay occupied a large amount of space and did not maximize the storing capacity since there was more “air” being stored than actual products. Also the design was not feasible, and therefore not optimal. (Figure D.1, Appendix D) This issue was noted, after a conversation the Director of Sales & Marketing for Speedcell. With his suggestions, the space available is maximized by redesigning the dimensions of the single cells and of the entire bay. The design of the new bay is now done by looking at the individual maximum dimensions of length, width and height of the SKUs. By doing this a volume of 0.262 ft3 (452.736 in3 ) is obtained which represents the 80th percentile of the distribution of frequencies. From this data, a cell able to fit the majority of our Small Packages (80%) is designed. By doing so, the empty space in each cell is minimized and the number of cells per bay is maximized without damaging the capacity of the Speedcell. MAX Small Pack Dimensions L (/Depth) W H 24 12 15.6 Figure 5.3-1. Dimensions of a Small Carton
  • 44. After applying these changes, the model of bay is shown in Figure 5.3-2. Figure 5.3-2. Model of Bay for Speedcell As it is possible to see, the area occupied by the single bay is diminished by 19 ft2 (From 55 to 36 ft2 ) and the number of cells per bay is increased by 114 units. These improvements have been done working on the dimensions and volume of the single cell. Even if the design doesn’t have any more datum points, that is, the maximum dimensions of all small packages, but rather has the smaller dimensions just defined above, the storing method will still be able to host almost all the SKUs considered as small cartons, as defined by the Pareto’s Law. Also since the latest design has been also approved by the Director of Sales & Marketing for Speedcell, a Time Study using the MOST technique has been done to recreate the sequence
  • 45. of movements that the operators will have to perform to work around the Speedcell. By doing this, the cycle time in seconds for each Small Pack that must be stored and then picked up to be moved to the New Repack Area can be calculated. (Find these calculations in Figures D.2 and D.3 in Appendix D) Furthermore, it is important to know that the calculations are done assuming that the operator can carry a cart able to host 10 packs. Then, by looking at the calculations, the cycle times for an operator are:  30.60 sec/pack stripping the Pallet  31.01 sec/pack creating the Pallet Looking at this data the following conclusions are: In the Stripping Pallets Area:  Incoming Flow: 767 Packs/hour  One Operator capacity: 117.63 Packs/hour  Min Operators needed: 7 (6.52) 1) In the Creating Pallets Area:  One Operator capacity: 116.08 Packs/hour  Min Operators needed: 7 (6.60) Moreover, once the average time that the packages need to stay stored in the Speedcells and their frequency is defined, the number of bays needed to handle the Small Packs’ flow would have been able to be calculate and a quote of the costs would have been gotten in order to perform a Cost/Benefit Analysis of the project. However, as per the management request no further analysis have been done.
  • 46. Chapter 6: Summary and Conclusion In this chapter, a cost benefit analysis of our recommendation is given, different savings other than monetary are briefly discussed and then the formal proposal for Toys R US.
  • 47. 6.1 Cost-Benefit Analysis To fully comprehend the Cost-Benefit Analysis of the New Small Carton Zone, the current cost of a small carton has been found. Below shows the current flow cost per carton: These costs listed above have been partially given by the company and partially calculated by the group in the pages before, in fact this list has been created from the costs of the flow of any carton in DC. From these data, the actual cost just for small cartons has been define adding the cost of handling the Tray calculated in Chapter 3.4. The Locate Pallet and Pick Carton are the costs related to the High Bay Case Pick method of storing. Below has been defined the costs per small carton for the new process. Receiving 0.12$ Run Pallet 0.02$ Locate Pallet 0.02$ Pick Carton 0.12$ Run Pallet 0.02$ Process carton 0.05$ Shipping 0.05$ Tray 0.042$ Total cost/ctn 0.438$ Receiving 0.12$ Run Pallet 0.02$ Locate Carton 0.04$ Pick Carton 0.04$ Process Carton 0.17$ Shipping 0.0046$ Total cost/ctn 0.397$ Figure 6.1-1. Actual Flow Process Cost / small carton Figure 6.1-2. New Flow Process Cost / small carton
  • 48. The Receiving and Run Pallet processes have been kept the same. In the new process the storing of the cartons collected in pallets has been designed to be “on floor “. This variation allowed to eliminate an expensive process as the High Bay Case Pick. The Locate Carton and Pick Carton are the costs related to the storing method mentioned above and they have been given by the company. The Process Carton cost has been calculated in Chapter 4.1 . The Shipping cost has been calculated taking the cost/carton ($0.046) present in the actual flow cost and divided by 10. In fact with the new process this cost has been applied to the Repack Tote that, as already motioned, is able to contain in average 10 small cartons. As one can observe by comparing the new flow cost to the current, you see that there is a $ 0.041 per carton cost differential.
  • 49. Next calculations show how the DC is affected if the new process would be implemented. Using the costs and standard times along with the volume of small cartons going through the DC, the approximate yearly savings of the zone is calculated. The percentages represent 3 different quantity of the total flow of small cartons that the DC has to process every hour. This because the company can decide to apply the new process to a minor part of the flow and test the functioning of the New Small Carton Zone. As it is possible to notice with the 100% of small cartons processed, 4.26 workstations would be required. To keep going to further analysis, it has been taken in consideration a realistic number of workstations. For this reason from now on the project requires the implementation of 4 workstations that will allows at the DC to handle the 94% of the small carton’s flow. 100% 75% 50% 20.01 20.01 20.01 3.00 3.00 3.00 179.89 179.89 179.89 767 575.25 383.5 4.26 3.20 2.13 0.438$ 0.438$ 0.438$ 0.397$ 0.397$ 0.397$ 0.041$ 0.041$ 0.041$ 6136 4602 3068 248.99$ 186.74$ 124.49$ 255 255 255 63,491.93$ 47,618.95$ 31,745.97$ 244,199.75$ 183,149.81$ 122,099.87$ Workstations req'd Volume of Small Packs Standart Time (sec/ctn) Process Rate (ctns/min) Process Rate (ctns/h) Demand (ctns/h) Savings/year in Mt. Olive Network Savings/year Cost actual process ($/cnt) Cost New R. Process ($/cnt) Cost Differential ($/ctn) Daily Volume (ctns/day) Savings/day Days/year Figure 6.1-3. Savings per year with relative percentages
  • 50. The chart below displays how the savings per year has been affected. Volume of Small Packs 94% Standart Time (sec/ctn) 20.01 Process Rate (ctns/min) 3.00 Process Rate (ctns/h) 179.89 Demand (ctns/h) 720 Workstations req'd 4.00 Cost actual process ($/cnt) 0.44$ Cost New Process ($/cnt) 0.40$ Cost Differential ($/ctn) 0.04$ Daily Volume (ctns/day) 5760 Savings/day 233.73$ Days/year 255 Savings/year in Mt. Olive 59,601.29$ Figure 6.1-4. Savings per year with 4 workstations
  • 51. Lastly, the initial Set-up Cost is calculated in order to obtain a clear evaluation of the cost benefit. Below you see the costs for the racks needed in the new zone along with cost of the additional repack totes needed and the cost for an IT update in order to obtain the total Set-up cost. To notice that all the costs related to the labor required in the workstations has already been included in the New Flow Process Cost. The total Set-up cost for the implementation of the New Small Carton Zone is $40,008 Figure 6.1-5. Initial Set-up Costs #rack/workstation 5 (1 for the short side, 3 for the long side) Total #racks 20 Cost/rack 550.00US$ Total cost racks 11,000.00US$ #repack totes filled/h 72 #repack totes filled/day 576 Total #Repack Totes 1,728 (Repack Totes/day x 3 , 1 in the DC + 1 in the store + 1 shipped) Cost/Repack Tote 11.00US$ Total Cost Repack Tote 19,008.00US$ IT update 10,000.00US$ Repack Totes Rack (W = 4 ft)
  • 52. Now with the availability of data regarding the savings and the cost for the implementation of proposed project, the below additional analysis is furnished: Total Initial Set-Up Cost 40,008.00US$ Savings/day 233.73US$ Break even point 171.17 days Days/year 255 67.13% With half of a working year we can cover the Set-up costs of our project Months(21 days) Cost Profit Saving/month 0 40,008.00US$ 35,099.66-US$ 4,908.34US$ 1 35,099.66US$ 30,191.32-US$ 2 30,191.32US$ 25,282.97-US$ 3 25,282.97US$ 20,374.63-US$ 4 20,374.63US$ 15,466.29-US$ 5 15,466.29US$ 10,557.95-US$ 6 10,557.95US$ 5,649.61-US$ 7 5,649.61US$ 5,649.61-US$ 8 741.26US$ 741.26-US$ 9 4,167.08US$ 10 9,075.42US$ 11 13,983.76US$ 12 18,892.10US$ Profit Total Initial Set-Up Cost 40,008.00US$ Savings/day 233.73US$ Break even point 171.17 days Days/year 255 67.13% With half of a working year we can cover the Set-up costs of our project Months(21 days) Cost Profit Saving/month 0 40,008.00US$ 35,099.66-US$ 4,908.34US$ 1 35,099.66US$ 30,191.32-US$ 2 30,191.32US$ 25,282.97-US$ 3 25,282.97US$ 20,374.63-US$ 4 20,374.63US$ 15,466.29-US$ 5 15,466.29US$ 10,557.95-US$ 6 10,557.95US$ 5,649.61-US$ 7 5,649.61US$ 5,649.61-US$ 8 741.26US$ 741.26-US$ 9 4,167.08US$ 10 9,075.42US$ 11 13,983.76US$ 12 18,892.10US$ Profit Figure 6.1-6. Break-even point Figure 6.1-7. Cost/Profit Table
  • 53. Here below a graphic representation of the Cost/Profit table: Figure 6.1-8. Cost/Profit Graph
  • 54. 6.2 Project Proposal Toys R Us should be delighted with the results in that have been brought to the distribution center regarding the solutions to the problem given. The project was to optimize the processing of small cartons more efficiently in the Distribution Center. With the help of the concepts studied at New Jersey Institute of Technology in the department of Industrial Engineering the team was able to review the multiple flow paths of small cartons and create a new feasible solution for the process of these cartons. This was possible studying and taking as standards the Repack Process now in use in the DC. The new designed process allows to handle the flow of small cartons without the use of trays during their movements on the conveyor as required now. This adjustment has as consequences the alleviation of congestion in the conveyors with the relative reduction of events such as the flipping of the cartons along the way. For this reason with the removal of the trays also the No Read section of the DC would require less labor effort. Beside the benefit just mentioned also the cost regarding the handling of the Trays is eliminated. With the implementation of the new process further savings has been achieved deviating the flow of the small cartons from the High Bay Case Pick method of storing to a new “on floor” storing area. Moving part of the cartons from this expensive process would bring additional savings. Regarding this aspect alternatives involving speed cell was explored in detail, however the DotCom Department of the distribution center is currently testing this concept and advice was given to not look any further into the possible solution. Finally is important to underline that the application of the New Small Cartons Process designed requires a total implementation cost of $40,008. As show above this cost can be
  • 55. covered in 172 working days by the saving per carton brought by the use of the new process and with the relative creation of a profit of $18.892 at the end of the first year. Toy R Us Distribution Center in Flanders, NJ has now been proposed this solution and it is now completely the decision of the engineers to choose if they wish to apply the solution or keep the current flow path.
  • 56. References Freivalds, A., & Niebel, B. (2009). Niebel's methods, standards, and work design (12th ed.). Boston: McGraw-Hill Higher Education. Besterfield, D. (2013). Quality improvement (9th ed.). Upper Saddle River, N.J.: Prentice Hall. Maynard, H. B., & Hodson, W. K. (1992). Maynard's industrial engineering handbook. New York: McGraw-Hill. Sturges, Herbert A. "The Choice of a Class Interval." Journal of the American Statistical Association 21.153: 65-66. American Statistical Association. Web. 26 Apr. 2015. <http://www.jstor.org/stable/2965501>. Tompkins, James A., and John A. White. Facilities Planning. 4th ed. New York: Wiley, 2010. 854. Print. Niebel, Benjamin W. Motion and Time Study. 9th ed. Homewood, Ill.: McGraw-Hill Higher Education, 1992. 880. Print. http://www.speedcell.net Flow Process Chart Handout – Case Study 3 – IE 339, Prof Abdou. Time Study Chart Handout – Case Study 7 – IE 339, Prof Abdou Standards of Toys R US – Excel File – Irma Luque
  • 57. Appendix A Figure A.1. Repack Time Study
  • 58. Figure A.2. Repack Time Study
  • 59. Figure A.3. Repack Time Study
  • 60. Figure A.4. Repack Time Study
  • 61. Figure A.5. Repack Time Study
  • 62. Appendix B Flowchart Report 6 - Cartons This flowchart details the steps for Repack original layout 7 - Items/Stores Flowchart ID I.RPKA.BASELINE.060511.S Warehouse ID 8801 8 - Not Used RE 9 - Inners (placed to store tote/box) Job Code ID REPACK Company ID Toys R Us 718.42 Create Date 05/11/2006 Prepared By Julian Sassoon Modify Date 8/8/08 Approved By PF & D 12.40 Approved Date Assign Time 916 462 Order Time 0 KEY: w/PF & D 1,030 519 0 Modified statement KVI01 0 KVI02 0 KVI03 0 KVI04 KVI05 0 Verify distance w/PF & D 0 0 0 0 Delete KVI06 747 KVI07 395 KVI08 0 KVI09 45 KVI10 0 w/PF & D 840 445 0 50 0 KVI11 0 KVI12 0 KVI13 0 KVI14 0 KVI15 0 w/PF & D 0 0 0 0 0 450.00 Seq. Description Element KVI TMU F1 F2 F3 F4 F5 001 GC Confidential and proprietary information. Copyright by red prairie software international 002 GC - 003 GC This flowchart details the steps necessary for repack. 004 GC - 005 GC The key volume indicators (KVIs) used are: 006 GC 0 - Not used 007 GC 1 - Not used 008 GC 2 - Not used 009 GC 3 - Not used 010 GC 4 - Not Used 011 GC 5 - Not used 012 GC 6 - Cartons 013 GC 7 - Items/Stores 014 GC 8 - Not Used 015 GC 9 - Inners (placed to store tote/box) 016 GC 10 - Not used 017 GC - 018 GC ***** Terminology used in flowcharts ************* 019 GC - 020 GC seq - Line sequence number of the flowchart 021 GC elem - Msd pattern element code 022 GC Msd - Master standard data 023 GC KVI - Key volume indicator 024 GC tmu - Time measurement unit 100,000 TMUs/hour or 27.78 TMUs/sec 025 GC - 026 GC To convert TMUs: 027 GC Into seconds: = multiply by .036 028 GC Into minutes: - Multiply by .0006 029 GC - 030 MC M/C - Methods clarification 031 FC F/C - Frequency clarification 032 GC 033 GC The job function begins after the associate has logged in to the LRT. 034 GC Palletize inbound cartons 035 GC THE FOLLOWING ELEMENTS ARE CONSIDERED 036 GC *******COMMON TASKS******* MC Check out unit walk to Repack, Power up unit, put on equipment GC Check out voice unit and walk to Repack area. FC Average assignments per shift = 37. F1 = 1/37. PAT Z.ST01 AST 27.78 0.03 207.00 1.00 1.00 1.00 155.42 5,750.46 Seconds to complete task - FC Time = 171 seconds - GC Power up unit and put on equipment - FC Average assignments per shift = 37. F1 = 1/37. - GC Associates need to power up unit and put on gear at start of day, after break and after lunch. - FC Average of 37 assignments per day. (F1 = 1/37). Time =45 seconds. (F2 = 45). Occurs 3 time a day. (F3 = 3) - Seconds to complete task PAT Z.ST01 AST 27.78 0.03 45.00 3.00 1.00 1.00 101.36 1,250.10 - 37A MC M/C - Start Repack Assignment in Voice 198.00 - GC Voice/User Dialog - FC Voice says "Assignment complete for Next Assignment say Ready", User "Ready" PAT CR11 AST 11.00 1.00 13.00 1.00 1.00 1.00 143.00 143.00 Syllables = 13 - FC F/C - Voice says "Go to Repack", User "Ready" (Syllables = 5) PAT CR11 AST 11.00 1.00 5.00 1.00 1.00 1.00 55.00 55.00 037 MC M/C - OBTAIN AND PLACE CARTON 249.48 - FC Obtaining 1st carton internal to Start Repack in voice MC. 9 cartons per assignment. F5 = 8/9 Changed from KVI06 to AST time - 038 GC G/C - This method is assuming associates do NOT perform any inbound palletization - 039 FC F/C - Walking to carton PAT BW01 AST 6.80 1.00 17.10 1.00 1.00 1.00 116.28 040 Walking obstructed and unburdened in the work environment - The - number of feet walked = 17.1 - 041 FC F/C - 20% of cartons will require a bend or carry to obtain - Figure B.1 – Repack Flow Chart
  • 63. 042 Obtain and place light carton within 3 steps - no bend or carry PAT OLC3B KVI 06 129.00 0.80 1.00 1.00 1.00 1.00 103.20 129.00 043 Obtain and place light carton within 3 steps PAT OHC3b KVI 06 150.00 0.20 1.00 1.00 1.00 1.00 30.00 150.00 48A MC M/C - Read and Confirm Carton ID 449.90 - FC F/C - This MC is internal to Cut Open Carton. F5 = 0. Not Internal - GC Voice/User Dialog - FC Voice says "Carton ID" (Syllables = 3) PAT CR11 KVI 06 11.00 1.00 3.00 1.00 1.00 1.00 33.00 33.00 FC User reads 6 digit ID aloud (Syllables = 6) PAT CR01 KVI 06 11.00 1.00 6.00 1.00 1.00 1.00 66.00 66.00 FC Voice says "123456 Correct", User says "Yes" (Syllables = 9) PAT CR11 KVI 06 11.00 1.00 9.00 1.00 1.00 1.00 99.00 99.00 - GC Repeat a Carton ID - - FC User says "No", Voice says "Carton ID", PAT CR11 KVI 06 11.00 0.05 18.00 1.00 1.00 1.00 9.90 198.00 User says "123456", Voice says "123456 Correct?" - - Syllables = 18 - FC F/C - User has to repeat x% of carton IDs. (F1 = 5%) - - - GC User finished loading cart - FC User says "No More" (Syllables = 2) PAT CR11 AST 11.00 1.00 2.00 1.00 1.00 1.00 22.00 22.00 FC Voice says "Direction?", User says "Forwards" <or> "Reverse" (Syllables = 5) PAT CR11 AST 11.00 1.00 5.00 1.00 1.00 1.00 55.00 55.00 - GC F/C - The following is internal to walking to the 1st location. Remains Internal - FC Voice says "Assignment has X Slot locations and Y SKUs Say Ready" User says "Ready" PAT CR11 AST 11.00 1.00 15.00 1.00 1.00 - 0.00 GC User will sometimes change Zone from Repack to Shippable. - - FC User says "Change zone", Voice says "Change zone correct?", User says "Yes", Voice says "Zone?" , User says "9" - PAT CR11 AST 11.00 1.00 15.00 1.00 1.00 1.00 165.00 165.00 048 MC M/C - CUT OPEN CARTON 304.64 - 050 FC F/C - 38% of cartons are rotated PAT rc2 KVI 06 28.00 0.38 1.00 1.00 1.00 1.00 10.64 28.00 051 FC Obtain/Aside cutter and Open Carton PAT OCOB KVI 06 294.00 1.00 1.00 1.00 1.00 1.00 294.00 294.00 F/C - Pattern contains all elements involved with opening carton. - 067 MC M/C - Voice Dialog for Lane 129.88 - FC Voice says "Lane 123 Carton 1 Put 3" (Syllables = 9) KVI 07 11.00 9.00 1.00 1.00 1.00 1.00 99.00 11.00 GC User walks to lane - 039 FC F/C - Walking to carton PAT BW01 AST 6.80 1.00 17.10 1.00 1.00 0.89 103.36 116.28 040 Walking obstructed and unburdened in the work environment - The - number of feet walked = 17.1 - GC User walks from lane to lane - 089 Walking obstructed and burdened in the work environment - 2.6 feet PAT BW16 KVI 07 10.20 1.00 2.60 1.00 1.00 1.00 26.52 26.52 FC F/C - Average distance to next lane is 2.6 feet - GC Skipping a put because other user is at lane - GC Currently don't have 2 people in a lane - FC User says "Skip Put", Voice says "Skip Put correct?", User says "Yes". Internal to Walk to next lanePAT CR11 KVI 07 11.00 1.00 3.00 1.00 1.00 0.00 0.00 3 syllables F2 = 3. F5 = 0. - 3 syllables F2 = 3. F5 = 0. - FC F/C - User Skips Put for x% of assignments. (F1 = 0%) PAT CR11 AST 11.00 0.00 10.00 1.00 1.00 0.00 0.00 FC At end of unskipped picks Voice says "To put skips say ready", User says "Ready", Voice says "Lane 123" - Syllables = 10. - GC User has to walk back to 1st skipped lane at end of assignment - 089 Walking obstructed and burdened in the work environment - 20 feet PAT BW16 AST 10.20 0.00 20.00 1.00 1.00 1.00 0.00 walked - FC F/C - Distance walked back to first skip is 20 ft. - - GC User Confirms Voice ID by repeating last 3 digits - FC User says last 3 digits of Voice ID "123" PAT CR11 KVI 07 11.00 0.96 3.00 1.00 1.00 1.00 31.68 33.00 Syllables = 3. User does not need to start new tote for 13/14 inners F1 = 0.96 - FC There is a pause of 1.5 seconds before Voice repeats numbers. F2 = 1.5. PAT Z.ST01 KVI 07 27.78 0.96 1.50 1.00 1.00 1.00 40.00 41.67 GC Voice repeats digits, User confirms by saying "Yes" - FC Voice says "123 correct", User says "Yes" PAT CR11 KVI 07 11.00 0.96 6.00 1.00 1.00 1.00 63.36 66.00 Syllables = 6. User does not need to start new tote for 13/14 inners F1 = 0.96 - FC There is a pause of .75 seconds before Voice repeats numbers. F2 = .75. PAT Z.ST01 KVI 07 27.78 0.96 0.75 1.00 1.00 1.00 20.00 20.84 - GC Starting a new tote - FC User says "New tote", Voice says "New tote correct", User says "Yes", Voice says "Enter New tote"PAT CR11 KVI 07 11.00 0.06 11.00 1.00 1.00 1.00 7.26 121.00 Syllables = 11, - FC F/C - User has to repeat x% of carton IDs. (F1 = 6%) PAT CR11 KVI 07 11.00 0.06 11.00 1.00 1.00 0.00 0.00 FC Voice says "1234567 correct", User says "Yes" - - GC Repeating a label ID - FC User says "No", Voice says "Label ID?", User says "1234567", Voice says "1234567 correct?" PAT CR11 KVI 07 11.00 0.05 20.00 1.00 1.00 1.00 11.00 220.00 FC F/C - User has to repeat x% of carton IDs. (F1 = 5%), Syllables = 20 - - GC Syllables = Voice put commands - User doesn't repeat carton ID? Get credit above Figure B.2 – Repack Flow Chart
  • 64. FC Voice says "Carton X Put Y", User says "Y", Syllables = 5 PAT CR11 KVI 07 11.00 1.00 5.00 1.00 1.00 1.00 55.00 55.00 FC There is a pause of 1.5 seconds before Voice repeats numbers. F2 = 1.5. PAT Z.ST01 KVI 07 27.78 1.00 1.50 1.00 1.00 1.00 41.67 41.67 082 MC M/C - COLLECT INNERS AND PLACE TO TOTE 0.00 - FC F/C - This MC is Internal to Voice Dialog for Lane. F5 = 0. Not internal - 083 GC G/C - Obtain carton to walk to place inners to totes calculated discretly - 084 Obtain object within 12 inches PAT OL12 KVI 06 38.00 1.00 1.00 1.00 1.00 - 0.00 38.00 085 Tightly packed inner packs in master carton additional element to obtain PAT LR34 KVI 06 21.00 2.00 1.00 1.00 1.00 - 0.00 21.00 or place - 087 FC F/C - Average distance walked to place inners is (F2=2.5) - 088 GC Distance traveled is calculated above in voice dialog per lane MC - 089 Walking obstructed and burdened in the work environment - 2.5 feet PAT BW16 KVI 07 10.20 1.00 2.50 1.00 1.00 - 0.00 25.50 - 091 Small case obtain 0 to 6 feet from floor PAT JM00 KVI 07 20.36 1.00 0.50 1.00 1.00 - 0.00 10.18 092 FC F/C - Obtain .5 small cartons from inner F2= 2 - 093 FC F/C - 66% of inners will be placed to tote on upper levels PAT KR26 KVI 09 40.25 0.67 1.00 1.00 1.00 - 0.00 40.25 094 Place three or four inner (avg size) cartons (Up to 2 in each hand) Into a - pick box - 095 FC F/C - 33% of inners will be placed to totes on lower level PAT KR26B KVI 09 70.75 0.33 1.00 1.00 1.00 - 0.00 70.75 096 Place three or four inner (avg size) cartons (Up to 2 in each hand) Into a - pick box on lower level - 099 MC M/C - REHANDLE INNERS 0.00 - FC F/C - This MC is Internal to Voice Dialog for Lane. F5 = 0. - 100 FC F/C - Additional placement - 10% of the time - 101 Placement PAT P6L2 KVI 09 31.00 0.10 1.00 1.00 1.00 0.00 0.00 31.00 067 MC M/C - ADDITIONAL CUT TO OPEN INNERS 0.00 - FC F/C - This MC is Internal to Voice Dialog for Lane. F5 = 0. Kept Internal - 068 GC G/C - Inners must be broken down due to improperly split cartons - 069 FC F/C - 12% of cartons have incorrectly split inners - 070 Rotate Carton PAT rc2 KVI 06 28.00 0.12 1.00 1.00 1.00 0.00 0.00 28.00 071 Obtain/Aside cutter and Open Carton PAT OCOB KVI 06 294.00 0.12 1.00 1.00 1.00 0.00 0.00 294.00 073 Open flap or cover on an inner pack or container PAT LR16 KVI 06 33.00 0.12 1.00 1.00 1.00 0.00 0.00 33.00 074 Slide with force knife blade into a protective sheath, knife is in hand PAT CLKNF KVI 06 29.00 0.12 1.00 1.00 1.00 0.00 0.00 29.00 075 Place knife to pocket PAT PT16 KVI 06 31.00 0.12 1.00 1.00 1.00 0.00 0.00 31.00 076 MC M/C - BATTERY CHANGE 40.00 - 077 FC F/C - Happens 1/280 ctns (F1=.004) Need credit - 078 FC F/C - One battery change takes 6 minutes (F2=6) PAT z.bat KVI 06 1666.80 0.00 6.00 1.00 1.00 1.00 40.00 10,000.80 - 080 GC THE FOLLOWING ELEMENTS ARE FOR - 081 GC *******HANDLING TOTES********* - 056 MC M/C - THROW CARTON AWAY 60.00 - FC This MC is internal to Start Repack in voice MC. F5 = 0 - 058 GC Number of feet walked is calculated during travel to gain new cartons - FC F/C - Distance to throw trash away = 0 feet (F2=0) PAT BW01 KVI 06 6.80 0.00 1.00 1.00 1.00 1.00 0.00 Distance given when walk to cartons 6.80 060 Toss empty carton to trash PAT TEC KVI 06 60.00 1.00 1.00 1.00 1.00 1.00 60.00 60.00 057 FC F/C - 100% of empty cartons will be thrown away (F1=1) - 107 MC M/C - PULL TOTE OUT OF LOCATION AND PLACE TO FLOOR - - GC Currently push totes back on rollers - 108 FC F/C - 18.5 inners per tote, 1/18.5 = .054 (F1=.054) - 109 FC F/C - 33% of totes are place to floor (Lower Level) 66% of totes are place - to floor (High Level) - 110 Pull tote out Rack (High level) place to floor PAT PTHfl KVI 09 96.00 0.05 0.67 1.00 1.00 0.00 - 64.32 111 GC G/C - Pull tote out Rack (Lower level) place to floor - 112 Place a tote box to a stack level 1 PAT HX36 KVI 09 29.13 0.05 0.33 1.00 1.00 0.00 - 9.61 113 MC M/C - ADJUST CASES TO CLOSE TOTE 12.11 - 114 FC F/C - 18.5 inners per tote, 1/18.5 = .054 (F1=.054) - 115 FC F/C - Move 3 items per tote - 116 Adjust items in tote PAT AIT KVI 09 39.00 0.05 1.00 3.00 1.00 1.00 6.32 117.00 117 Close hinged two flapped tote box PAT hx41 KVI 09 107.00 0.05 1.00 1.00 1.00 1.00 5.78 107.00 118 MC M/C - GET TAPE AND APPLY 0.00 - GC This is for building boxes to place to the store. Currently don't use tape to build boxes - 120 FC F/C - 18.5 inners per tote, 1/18.5 = .054 (F1=.054) - 121 FC F/C - Average distance walked to roll of tape is 5 feet (F2=5) - 122 Walking obstructed and unburdened in the work environment - The PAT bw01 KVI 09 6.80 - 5.00 1.00 0.10 1.00 0.00 34.00 number of feet walked = 5 - 123 Obtain (Non-Exposed) Edge of tape from roll PAT at05 KVI 09 22.00 - 1.00 1.00 0.10 1.00 0.00 22.00 124 Walking obstructed and unburdened in the work environment - The PAT bw01 KVI 09 6.80 - 5.00 1.00 0.10 1.00 0.00 34.00 number of feet walked = 5 - 125 Tape, start tape and end tape - Cut PAT pt40 KVI 09 104.00 - 1.00 1.00 0.10 1.00 0.00 104.00 126 Tape - Apply & rub on - Per foot. Tape is in hand and in position for use. PAT at25 KVI 09 37.00 - 1.00 1.00 0.10 1.00 0.00 37.00 127 Get and Place label on Tote/Carton PAT plot KVI 09 87.00 - 1.00 1.00 0.10 1.00 0.00 87.00 129 MC M/C - MOVE TOTE TO CONVEYOR 0.00 - GC Totes are moved to conveyor on non-standard time. Use this if switch and put job on standard - 130 FC F/C - 18.5 inners per tote, 1/18.5 = .054 (F1=.054) 0.00 - 132 FC F/C - Distance from work area to conveyor is 2.5 feet (F2=2.5) - 133 FC F/C - 34% of cartons are used for the wave (F3=.34) - 134 Walking obstructed and burdened in the work environment - 2.5 feet PAT bw16 KVI 09 10.20 0.05 2.50 1.00 1.00 0.00 0.00 25.50 walked - 135 Get carton/tote from floor place to general location PAT gffp KVI 06 111.00 0.05 1.00 1.00 1.00 0.00 0.00 111.00 137 MC M/C - PUSH TOTE THROUGH RACK 0.59 - 138 FC F/C - 18.5 inners per tote, 1/18.5 = .054 (F1=.054) - Figure B.3 Repack Flow Chart
  • 65. 139 FC F/C - Push back 100% of cartons processed (F3=1) PAT BX05 KVI 09 11.00 0.05 1.00 1.00 1.00 1.00 0.59 11.00 141 MC M/C - GET NEW TOTE/BOX 20.68 - 142 FC F/C - 18.5 inners per tote, 1/18.5 = .054 (F1=.054) - 144 Walking obstructed and unburdened in the work environment - The PAT bw01 KVI 09 6.80 0.05 2.90 1.00 1.00 1.00 1.07 19.72 number of feet walked = 2.9 - - 146 GC Build new Tote Time study (F2 is secs/tote) PAT BldT KVI 09 27.78 0.05 12.00 1.00 1.00 1.00 18.02 333.36 148 Walking obstructed and burdened in the work environment back to cart- 2.9 feet PAT BW16 KVI 09 10.20 0.05 2.90 1.00 1.00 1.00 1.60 29.58 159 MC M/C - GET LABEL FOR TOTE 1.68 - 160 FC F/C - 18.5 inners per tote, 1/18.5 = .054 (F1=.054) - 161 GC G/C - Walk is included in returning from getting tote/box - 162 Turn & tear page from a multipage document, page is in position to turn, PAT FM35 KVI 09 31.00 0.05 1.00 1.00 1.00 1.00 1.68 31.00 tear and hold document - 163 MC M/C - APPLY LABEL TO TOTE 6.59 - 164 FC F/C - 18.5 inners per tote, 1/18.5 = .054 (F1=.054) - 165 Peel end of tape back from roll and position it toa surface. PAT at60 KVI 09 64.00 0.05 1.00 1.00 1.00 1.00 3.46 64.00 166 Place object PAT P12L1 KVI 09 21.00 0.05 1.00 1.00 1.00 1.00 1.14 21.00 167 Rub label to a surface PAT RLS KVI 09 37.00 0.05 1.00 1.00 1.00 1.00 2.00 37.00 168 MC M/C - PLACE EMPTY TOTE/BOX TO STORE LOCATION 3.03 - 169 FC F/C - 18.5 inners per tote, 1/18.5 = .054 (F1=.054) - 170 FC F/C - 33% of locations will require a bend to place the tote (F2=.33) - 171 Body motion - Vertical - Bending and arising PAT BV15 KVI 09 61.00 0.05 0.33 1.00 1.00 1.00 1.09 20.13 172 Place Tote to store location PAT HX37 KVI 09 36.00 0.05 1.00 1.00 1.00 1.00 1.95 36.00 173 MC M/C - REPLENISH STORE LABELS 1.50 - 174 FC F/C - 18.5 inners per tote, 1/18.5 = .054 (F1=.054) - 175 FC F/C - Replenish labels 10% of the time - 176 Get more store labels TIM RPCK04 KVI 06 278.00 0.05 0.10 1.00 1.00 1.00 1.50 27.80 191 MC M/C - READ WAVE SHEET, THROW TOTES FOR THE WAVE AND 0.00 - GC Currently we throw totes on non-standard time - 193 FC F/C -Step required for 20% of shippables - 194 Obtain and read sheet (up to 7 words) PAT ors KVI 06 97.00 0.02 0.75 1.00 1.00 0.00 0.00 72.75 196 FC F/C - Average distance walked is 32 feet (F2=32) - 197 Walking obstructed and unburdened in the work environment - The PAT bw01 KVI 06 6.80 0.02 32.00 1.00 1.00 0.00 0.00 217.60 number of feet walked = 20 - 198 Small case obtain 0 to 6 feet from floor PAT JM00 KVI 06 20.36 0.02 30.00 1.00 1.00 0.00 0.00 610.80 199 FC F/C - Average distance walked is 8 feet (F2=8) - 200 Walking obstructed and burdened in the work environment - 8 feet PAT bw16 KVI 06 10.20 0.02 8.00 1.00 1.00 0.00 0.00 81.60 walked - 201 Place shippable on ground PAT plcshp KVI 06 62.00 0.02 10.00 1.00 1.00 0.00 0.00 620.00 202 FC F/C - Average distance walked is 44 feet (F2=44) - 203 Walking obstructed and unburdened in the work environment - The PAT bw01 KVI 06 6.80 0.02 44.00 1.00 1.00 0.00 0.00 299.20 number of feet walked = 44 - Need to verify distance Figure B.4 Repack Flow Chart
  • 66. Appendix C Figure C.1. Design of Option 1 of the Small Carton Zone Figure C.2. Design for Option 2 of the Small Carton Zone Area = 75.01 ft2 Pallet processing area 7.17 ft 7.17 ft 7.17 ft 5.06 ft 3.3 ft 4 ft Area = 90.84 ft2 Pallet processing area 12.17 ft 4.17 ft 4.17 ft 6.42 ft 3.3 ft 4 ft
  • 67. Figure C.3. Design of Option 3 of the Small Carton Zone. Area = 77.31 ft2 Pallet processing area 8.17 ft 6.17 ft 6.17 ft 5.11 ft 3.3 ft 4 ft
  • 68. Appendix D Figure D.1 – Erroneous Design for Speedcell.
  • 69. Figure D.2 - MOST Calculations to Strip Pallet and Put Packages in Cells.
  • 70. Figure D.3 – MOST Calculations for Picking the Cartons from Cells and Creating a Pallet