The following Project shows the benefits of a research established into a multi-products
warehouse belongs to an automotive industry supplier. The main goal was applied a tool recognizing the rules
for distribution and material storage. Once the research was completed, the benefits were, the idle times
reduction per hours/week by the two initial processes. The politics for storage assignment and location, propose
a system to improve the space into this areain order to avoid material management and flow issues. It is
important to mention, the system proposed could be applied into warehouses with storage size and space
restricted by sorting area, also different material types, production settings and physical specifications for
which set warehouses with traditional management of distribution without slack, involves lack of materials,
pieces without records, incorrect location assigned, stock error.
Warehouse management system presentationNimish Arora
Case study on how automation can be used in warehouse mangement system with Grey orange as an example. Content based on the course Industrial Automation.
A warehouse management system (WMS) is a key part of the Supply Chain. Warehouse management systems often utilize automatic identification and data capture technology, such as barcode Scanners, mobile computers, wireless LANs and potentially radio frequency identification (RFID) to efficiently monitor the flow of products. Once data has been collected, there is either a batch synchronization with, or a real-time wireless transmission to a central database. The database can then provide useful reports about the status of goods in the warehouse.
The following Project shows the benefits of a research established into a multi-products
warehouse belongs to an automotive industry supplier. The main goal was applied a tool recognizing the rules
for distribution and material storage. Once the research was completed, the benefits were, the idle times
reduction per hours/week by the two initial processes. The politics for storage assignment and location, propose
a system to improve the space into this areain order to avoid material management and flow issues. It is
important to mention, the system proposed could be applied into warehouses with storage size and space
restricted by sorting area, also different material types, production settings and physical specifications for
which set warehouses with traditional management of distribution without slack, involves lack of materials,
pieces without records, incorrect location assigned, stock error.
Warehouse management system presentationNimish Arora
Case study on how automation can be used in warehouse mangement system with Grey orange as an example. Content based on the course Industrial Automation.
A warehouse management system (WMS) is a key part of the Supply Chain. Warehouse management systems often utilize automatic identification and data capture technology, such as barcode Scanners, mobile computers, wireless LANs and potentially radio frequency identification (RFID) to efficiently monitor the flow of products. Once data has been collected, there is either a batch synchronization with, or a real-time wireless transmission to a central database. The database can then provide useful reports about the status of goods in the warehouse.
A designated place Where Goods are stored to balance demand & supply uncertainty, to serve customers in much better way, to consolidate upstream flow and distribute down stream flow as per requirement, to do last mile value addition such as packaging, kitting etc. and to reduce last mile distribution cost.
A Warehouse Management is a software application, designed to support and optimize warehouse or distribution centre management. For more information visit at http://craveinfotech.com/sap-crave-warehouse-management/
A designated place Where Goods are stored to balance demand & supply uncertainty, to serve customers in much better way, to consolidate upstream flow and distribute down stream flow as per requirement, to do last mile value addition such as packaging, kitting etc. and to reduce last mile distribution cost.
A Warehouse Management is a software application, designed to support and optimize warehouse or distribution centre management. For more information visit at http://craveinfotech.com/sap-crave-warehouse-management/
Coleção Saber na Prática - Vol. 2, Certificação ParticipativaCepagro
Vol. 2, Certificação Participativa - Os Sistemas Participativos de Garantia (SPGs) tem como um dos principais diferenciais a oportunização de um espaço de formação e intercâmbio entre os agricultores, durante as sessões de avaliação da conformidade orgânica que acontecem nas propriedades rurais e agroindústrias, promovendo cidadania e incremento da produção familiar orgânica. Este volume lança luzes sobre o universo da certificação participativa, desde a constituição e funcionamento dos grupos de base da Rede Ecovida até o avanço da legislação brasileira de produção orgânica.
Coleção Saber na Prática / Vivências em Agroecologia - Esta coleção apresenta a sistematização de metodologias adotadas pelo Cepagro em seu trabalho de organização popular,dirigido a famílias em comunidades rurais e urbanas do Litoral Catarinense, Grande Florianópolis e Alto Vale do Itajaí.
A coleção é focada nas ações a partir de 2006, quando foram firmados os convênios com a IAF (Fundação Interamericana) e outros parceiros de cooperações internacionais e entes públicos.
Dividida em 4 volumes, representa um registro histórico e metodológico que visa auxiliar outras organizações a replicarem as ações apresentadas - levando em conta
o que há de afinidades e diferenças entre as realidades, sempre no sentido de adotar técnicas sustentáveis de Agricultura e Gestão de Resíduos Orgânicos.
Coleção Saber na Prática / Vivências em Agroecologia - Esta coleção apresenta a sistematização de metodologias adotadas pelo Cepagro em seu trabalho de organização popular,dirigido a famílias em comunidades rurais e urbanas do Litoral Catarinense, Grande Florianópolis e Alto Vale do Itajaí.
A coleção é focada nas ações a partir de 2006, quando foram firmados os convênios com a IAF (Fundação Interamericana) e outros parceiros de cooperações internacionais e entes públicos.
Dividida em 4 volumes, representa um registro histórico e metodológico que visa auxiliar outras organizações a replicarem as ações apresentadas - levando em conta
o que há de afinidades e diferenças entre as realidades, sempre no sentido de adotar técnicas sustentáveis de Agricultura e Gestão de Resíduos Orgânicos.
Coleção Saber na Prática - Vol. 4, Diversificação ProdutivaCepagro
Vol. 4, Diversificação Produtiva - A cadeia produtiva do tabaco, embora controversa, é encarada por muitos agricultores familiares do Sul do país como a única alternativa de renda. No contexto das ações nacionais de diversificação em áreas de tabaco, são apresentados exemplos bem sucedidos em propriedades no território do Alto Vale do Itajaí e tendo como paradigma a conversão para sistemas agroecológicos de produção – desde a assistência técnica para transição à articulação de mercados de varejo e institucionais.
Coleção Saber na Prática / Vivências em Agroecologia - Esta coleção apresenta a sistematização de metodologias adotadas pelo Cepagro em seu trabalho de organização popular,dirigido a famílias em comunidades rurais e urbanas do Litoral Catarinense, Grande Florianópolis e Alto Vale do Itajaí.
A coleção é focada nas ações a partir de 2006, quando foram firmados os convênios com a IAF (Fundação Interamericana) e outros parceiros de cooperações internacionais e entes públicos.
Dividida em 4 volumes, representa um registro histórico e metodológico que visa auxiliar outras organizações a replicarem as ações apresentadas - levando em conta
o que há de afinidades e diferenças entre as realidades, sempre no sentido de adotar técnicas sustentáveis de Agricultura e Gestão de Resíduos Orgânicos.
Coleção Saber na Prática - Vol. 3, Agricultura Urbana Cepagro
Vol. 3, Agricultura Urbana - Enquanto os impactos da urbanização são fragilmente encarados pelas políticas públicas, inúmeras iniciativas no mundo repensam as cidades em suas características de produção, consumo e descarte de alimentos. Das Hortas Urbanas à Gestão Comunitária de Resíduos Orgânicos, e com amplo reflexo na rede municipal de ensino de Florianópolis, o Cepagro tem gerado referências nacionais no tema.
Coleção Saber na Prática / Vivências em Agroecologia - Esta coleção apresenta a sistematização de metodologias adotadas pelo Cepagro em seu trabalho de organização popular,dirigido a famílias em comunidades rurais e urbanas do Litoral Catarinense, Grande Florianópolis e Alto Vale do Itajaí.
A coleção é focada nas ações a partir de 2006, quando foram firmados os convênios com a IAF (Fundação Interamericana) e outros parceiros de cooperações internacionais e entes públicos.
Dividida em 4 volumes, representa um registro histórico e metodológico que visa auxiliar outras organizações a replicarem as ações apresentadas - levando em conta
o que há de afinidades e diferenças entre as realidades, sempre no sentido de adotar técnicas sustentáveis de Agricultura e Gestão de Resíduos Orgânicos.
Coleção Saber na Prática - Vol. 1, Banheiro Seco Cepagro
Vol. 1, Banheiro Seco - O trabalho com esta Tecnologia Social iniciou-se junto a agricultores da Rede Ecovida de Agroecologia, que demandavam sanitários próximos aos locais de cultivo visando a ecologização completa das propriedades, seguindo princípios da permacultura. Do litoral de Santa Catarina a experiência disseminou-se para o semiárido nordestino, com apoio técnico e elaboração de material didático pelo Cepagro. A iniciativa culminou na construção de mais de uma centena de Banheiros Secos na região de Pesqueira, em Pernambuco.
Coleção Saber na Prática / Vivências em Agroecologia - Esta coleção apresenta a sistematização de metodologias adotadas pelo Cepagro em seu trabalho de organização popular,dirigido a famílias em comunidades rurais e urbanas do Litoral Catarinense, Grande Florianópolis e Alto Vale do Itajaí.
A coleção é focada nas ações a partir de 2006, quando foram firmados os convênios com a IAF (Fundação Interamericana) e outros parceiros de cooperações internacionais e entes públicos.
Dividida em 4 volumes, representa um registro histórico e metodológico que visa auxiliar outras organizações a replicarem as ações apresentadas - levando em conta
o que há de afinidades e diferenças entre as realidades, sempre no sentido de adotar técnicas sustentáveis de Agricultura e Gestão de Resíduos Orgânicos.
Multi products storage using randomnessIJRTEMJOURNAL
The following Project shows the benefits of a research established into a multi-products
warehouse belongs to an automotive industry supplier. The main goal was applied a tool recognizing the rules
for distribution and material storage. Once the research was completed, the benefits were, the idle times
reduction per hours/week by the two initial processes. The politics for storage assignment and location, propose
a system to improve the space into this areain order to avoid material management and flow issues. It is
important to mention, the system proposed could be applied into warehouses with storage size and space
restricted by sorting area, also different material types, production settings and physical specifications for
which set warehouses with traditional management of distribution without slack, involves lack of materials,
pieces without records, incorrect location assigned, stock error.
The future solution from SAP under Connected Hydrocarbon Logistics (CHL) solution for Oil and Gas companies would seamlessly integrate with demand plan, inventory plan, trade execution and supply chain logistics. The solution would incorporate the advanced SAP HANA features along with better user experience.
1. 1
INTEGRATED WAREHOUSE MANAGEMENT
BASED ON
DEMAND FLOW TECHNOLOGY
George N. Galanakis
M.Sc. Management Science and Operational Research (University of Warwick,
England)
An Update in Logistics (University of Berkeley,California)
George M. Papardakis
M.Sc. Management Science and Operational Research (University of Lancaster,
England)
17th
International Logistics Congress, Thessaloniki, Hellas
Abstract: The design, development and implementation of an Integrated Warehouse
Management System based on Demand Flow Technology (DFT), was always a challenge. It is
considered as an efficient way to blend traditional warehouse management and contemporary
techniques to achieve material handling optimisation in a manufacturing plant.
An Integrated Warehouse Management System needs to be applied to the whole supply chain.
Issuing material to the shop floor from the raw materials and/or packaging material warehouses is
essential. This operates along with the daily shift schedule per work order. The flow is linked to
the traditional operation of a finished goods warehouse.
The concept of DFT is to pull raw materials and products through the process strictly according
to customer demand. This method applies Kanban techniques to trigger the manufacturing
process and incorporates components from almost all aspects of a manufacturing operation from
line design to work instructions.
The finished goods warehouse is replenished at a customer demand basis and holds a minimal
amount of stock. This eventually enables not only an efficient Just-In-Time mechanism but also a
Total Quality Management operation.
Keywords: Integrated Warehouse Management, Demand Flow Technology, Just In Time, Total
Quality Management.
INTRODUCTION
The design, development and implementation of an Integrated Warehouse Management System
based on Demand Flow Technology (DFT), was always a challenge. It is considered as an
efficient way to blend traditional warehouse management and contemporary techniques to
achieve material handling optimisation in a manufacturing plant.
Traditional warehouse management systems focused on dealing with inventory using a detailed
approach that produced a precise picture of stock. These systems in certain cases had the ability
to monitor a location-controlled warehouse and inventory per lot and/or serial number. Very
few systems incorporated close interaction with the shop floor. If and when this interaction
was present it did not interlock with daily shifts and it certainly did not incorporate
mathematical algorithms that produce a frequency sensitive filter of real time demand.
2. 2
The need was evident. A warehouse management system needed to integrate with the shop
floor. Manufacturing companies follow the heartbeat of production. Regardless the supply
chain the link of production between the raw and packaging materials warehouse and the
finished goods warehouse was absent in the sense of a flow system.
The logic embraced in order to incorporate this link was elementary. An event driven approach
generates demand (pick list) based on the daily schedule that in effect feeds the production
buffers with materials, provided that capacity constraints are met.
In order to make a just-in time system function smoothly, the subsequent process must come to
the preceding process to withdraw materials at the time needed and in the quantity needed.
Kanban System was created to overcome this difficulty, namely to indicate which process
needs what and to allow various processes to communicate with each other efficiently. The
production plan is given only to the final assembly line. When it goes to the preceding process
to withdraw parts and materials, it establishes a chain of communication with preceding
process, and every process automatically knows how much and when to produce the parts and
materials it is assigned to produce.
Subsequently, a real time consumption system monitors the actual consumption per work order
released on the shop floor. The finished goods quantities are recorded into the system. The
product flow is further traced into the finished goods warehouse. Apparently daily demand
generates pick lists that organize the picking logic per case. Depending on the nature of the
finished goods a dynamically adjustable picking process is implemented.
A calculation process is present at the end of the Integrated Warehouse Management system
that cross-references the actual movements executed (picking/packing) in accordance to
customer demand. Provided that the check is satisfactory the printing of the shipper note is
released and subsequent invoicing is in order.
SYSTEM PREVIEW
The concept of being able to monitor the exact quantity per item and per lot of existing
inventory is essential to inventory control. Combined with the results of MRP II, may prove to
be the appropriate way to handle a Supplier Schedules System in a meaningful way.
Furthermore by introducing a new scope, that of Demand Flow Technology, the system
becomes a very efficient mechanism that yields higher profit margins.
A location-controlled warehouse is an area divided into specific locations with determined
capacity. This enables ease of management especially if the stocked items are used on an
everyday basis e.g. fast moving stock. In this case the correct selection of the storage location
minimises forklift movements towards the final destination that might be the despatching ramp
or the floor shop.
Like any open operational system, a warehouse needs a precise registration of incoming entities
and an exact recording system of outflow. An information system to monitor quantitative and
qualitative factors associated with the entities is also necessary. To satisfy the above functions
of a warehouse, apparently control should be imposed on every procedural step.
The arrival of goods should be identified and labeled in sequence of receipt. Relevant
information to each pallet received should incorporate item code, lot, quantity and receipt
status. A label with bar-code insignia and descriptive characteristics identifies each incoming
3. 3
pallet designated for receipt at a specific receive-location. Depending on its inventory status a
pallet may be nettable, available or both. The exact position of the pallet is recorded and may
be there onwards traced by location. The pattern of recording is simple. The forklift operator is
compelled to record the pallet being moved as well as the location from which it is being
picked. This relation is kept in the system during the pallet’s movement. A single forklift
operator may pick as many pallets as his equipment allows him to. The next action is to travel
to the required destination (despatching area or production floor) or any intermediate location.
The unloading of the pallet, again, requires the operator to scan the pallet’s bar-code and the
destination location.
The outflow is monitored indirectly by identifying the destination locations in a specific
manner. For example, the despatching location(s) may have a discrete descriptive code (D167
i.e. D for Despatch) and so may the production floor buffers (B269 i.e. B for Buffer).
Issuing raw material and/or packaging material to the shop floor, is in principle, not very
complicated. It starts getting complicated when there is a mix of products running on mutually
exclusive machines that may share buffers with limited capacity and on multiple shop floor
levels. This may occur for three shifts per day. In this case congestion generates complex
queueing problems that need immediate attention. The logic of pulling material proportional to
demand can very well solve these problems.
Kanban system has a very simple purpose to achieve: Elimination of various kinds of waste
lying concealed within a company through improvement activities. The rationale behind such a
purpose is cost reduction so as to increase profitability. Cost reduction and productivity
improvement are attained through the elimination of various forms of waste such as excessive
inventory and excessive work force.
DFT is an integrated assembly and inspection pull manufacturing system. This method applies
Kanban techniques to trigger the manufacturing process and incorporates components from
almost all aspects of a manufacturing operation from line design to work instructions. The
technique accommodates lot sizes down to one, and provides for flexibility in scheduling
throughput by allowing operators to perform various processes within the manufacturing cells.
The concept of demand flow is to pull raw materials and products through the process strictly
according to customer demand. Since the nature of demand and the state of technology are
subject to perpetual change, a shop floor organised according to DFT principles has to be very
flexible, incorporating innovations as they occur. Whereas most innovations are small requiring
only minor adjustments to a shop floor already organised in this sense, the initial adoption of
DFT requires major changes.
Whatever system is used ultimately determines the long run character of an organization, so
until the data that DFT utilises becomes the basis for an information system, the survival of
DFT cannot be assured. In this respect it is much easier to introduce DFT to a new plant than an
existing organization, already endowed with an information system, such as MRP II, which
must be dismantled. The method sheets and Kanban cards help introduce DFT. Bills of
materials, usually multilevel in traditional manufacturing, are flattened for demand flow
purposes, since customer demands drive Kanbans, supplier requirements, and the back-flushing
of finished products to relieve component parts from raw in process inventory (RIP). Although
a flow process can be audited it is not necessary (as in traditional manufacturing) since all
components in the process are kept to the minimum through use of Kanbans. New systems are
currently developed to fully support DFT to ensure the formalisation of the process, including
4. 4
the use of flex fences, a key element in resource planning, which helps smooth production in
the face of unanticipated fluctuations in demand.
A true flow business strategy is event-driven and adjusts easily to changes in demand, new
product introductions or any change in the external environment that directly or indirectly
affects the entropy of the system.
Flow manufacturing is a term that has evolved to represent systems and strategies developed on
the basis of DFT. The principles of flow manufacturing are based on eliminating waste,
streamlining processes, building according to demand, and continuous improvements.
The underlying concept is based on the theory that by properly designing production lines and
balancing the mix of products to a daily demand rate, quality goods can be produced as ordered,
at a rate that falls within the required order-to-delivery response cycle time. As a result, the
entire supply process is pulled and sequenced from actual demand; it is not pushed or
rescheduled to meet scheduled due dates.
Flow manufacturing, however, takes more than moving equipment around into product family
production lines, creating flexible workstation teams, establishing quick changeovers, and
introducing Kanban signals—steps often taken to set up cells and focused factories. It also
requires the following:
• specific flow training;
• conversion of multilevel bills of material (BOMs) and routings into flat bills and
sequence-of-events documents;
• a mechanism for defining and refining the optimal line design, Kanbans, and mixed-
mode production sequences;
• a mathematical model for synchronising the daily production rate to actual demand;
• agreements with suppliers;
• the ability to quickly reflect product engineering changes in the line design;
• quick Kanban calculations as needed;
• operator instructions and production reporting; and
• links to a product configurator for real-time capable-to-promise, demand loading, and
line sequencing when products are configured to order.
Regardless of industry, type of manufacturing environment, or product volumes, continuous-
flow principles can be implemented successfully. It is most challenging to deploy them in a
shop that does highly configured or engineer-to-order products, yet it is being done with almost
as much success as high-volume, more repetitive make-to-demand operations are experiencing.
FUNCTIONALITY PREREQUISITIES
There is a set of initial conditions and parameters that have to be set to specific values to
describe the operational environment. The specifications are direct and indirect. The direct ones
are related to the actual description of the warehouse and its locations as well as the various
peripheral entities associated. The indirect ones are parameters that affect the overall
functionality of the warehouse and are usually set to value once.
The locations may be warehouse storage locations or production buffers. When outlining the
warehouse, the storage locations have to be declared and fully described with respect to
capacity. It is very helpful to use coding schemes that are meaningful. A location can be
5. 5
declared as a buffer and coded as such. This immediately divides the locations into storage ones
and buffers.
Each location has a certain quantity of stock of a specific item(s) related to it or none at all. In
every case a cycle count is in order. Once the count has been completed, stock is recorded per
item and per lot. By updating the inventory file, physical stock is now identical to the logical
one.
The various warehouses that belong to a company should be designated and their attributes set.
In detail, each warehouse should be declared as a lot controlled environment or not, as a
warehouse that operates with the use of remote data terminals (RDTs) or not, etc. It is
important, at this point, to declare the coding chosen to designate the receipt location as well as
the despatch location, that have already been fully described in location maintenance.
The parameters that have to be set refer to the entity with respect to which the picking logic is
activated as well as the declaration of the inspection location used at the receipt area. When
implementing a FIFO (First-in First-out) system for processing lot controlled stock it is
appropriate to choose the item’s lot/serial number, to proceed with picking from the storage
locations.
In some cases, it is necessary to know the exact quantity of an item per box or pallet. These
items should be designated and the respective quantities recorded. There are items that may be
split and subsequently merged again, so they should be flagged as such. Finally, it is important
to declare the inventory status codes used in the warehouse being described.
SYSTEM MECHANICS
The primal objective of the system is to be able to provide an exact picture of quantity on hand
on a real time basis under the umbrella of Total Quality Management. This satisfies the needs
of the warehouse, the statistics of the Logistics Department and the requirements of Production
Scheduling that are relative to the Purchasing Department.
This is a real time open system and therefore dependent on changes of the environment. Its
operational integrity heavily relies upon the correct functioning of the associated procedures.
More importantly it relies upon precise execution on the human element’s behalf. The system
addresses the three major functional areas that follow:
Receipts
The receiving procedures facilitate shipments by suppliers as well as shipments of stock from
warehouse to warehouse within the company. Each warehouse has a unique code associated to
it and is identified as such throughout the system.
Each receiving procedure identifies the composition of the received material according to the
despatch note and/or packing list. To do this the warehouse supervisor is responsible for
associating the Purchase Order number, as registered in the system, to the stock items being
delivered. This ensures contingency.
The stock items being received are selected per Purchase Order line number and the insertion of
the respective quantities received reduces the outstanding quantity to be received accordingly.
Once the quantity of units per pallet for each item is known to the system it converts the
quantity received to pallets received. At the same time the lot is also specified (usually it is the
date received or the expiration date). Hence the system generates a Goods Received Note, a
6. 6
Quality Inspection Order as well as the corresponding labels per pallet. Each label contains a
serial number generated by the system that appears in bar-code form (electronically
identifiable) and in human legible form as well as the item’s code, description and quantity
held.
These labels are attached to the bottom right of each pallet. It is important to point out that
unequal delivery is also handled. In many cases the shipment delivered may not be equally
divided on the pallets. This results to a number of pallets with an equal quantity of units held
and the pallet with a residue quantity. In these cases extra care should be taken so that the
respective labels identify the right pallet.
At this point each pallet is uniquely identified by a label and exists in that sense for the system.
The remaining issue in a location-controlled warehouse is to relate each pallet to a location.
This relationship is dynamically utilized the forklift operators on a real time basis as it occurs.
For each movement, the forklift operator has to identify the pallet and the location by recording
it. If the movement is a «pick» then the pallet and the source location (location of origin) are
recorded, whereas if the movement is a «put» then the pallet and the destination location are
recorded.
Referring to receipts the forklift operator picks the pallet to be stored, scans the pallet’s bar-
code label or keys-in the pallet’s serial number as well as the bar-code designating the receipt
area (ramp). Subsequently the system proposes the destination location in the warehouse. The
operator may go to that or any other location, to place the pallet. The placement consists of
scanning the pallet to be placed (or again by keying-in the pallet’s serial number) and the
corresponding destination location. If the destination location is the one being proposed by the
system then the movement is directly accepted. In the case that the destination location is
arbitrarily chosen by the operator, the system prompts for verification and logs the alternative
placement registering the user’s identification.
House-keeping
The storage locations are used to stock items of any status. It is not necessary to have fixed
inspection locations if the warehouse’s capacity is limited. The only necessary thing is to
designate stock that is under inspection. Therefore it is important to be able to change the
inventory status of stock to identify its ability to be used either in production or to be shipped-
out.
To satisfy a requirement for a specific amount of stock, a procedure enables the picking of
pallets, abiding FIFO constraints. A pallet is completely traceable in a location-controlled
warehouse. Given the pallet’s serial number, the system traces the pallet to its location
permanent or not.
Depending on the nature of inventory in many cases it is necessary to split a pallet or merge
smaller quantities of inventory onto a pallet. Splitting a pallet means that two pallets result,
each of which contains a specific quantity. Both pallets have the same attributes and naturally
reside at the same location. On the other hand merging is allowed by the system provided that
the two pallets being merged have the same attributes e.g. same item, lot and status.
Pallets may be moved from one location to another regardless of status. There is a constraint
however that restricts a pallet from being moved from a storage location to a buffer when its
inventory status is labeled as under inspection or in quarantine. Pallets are moved on forklifts
7. 7
equipped with remote data terminals. The functions available are adequate to cater for everyday
operations. An outline is presented in the following sections:
Receipt: Allows for receipt of multiple pallets and subsequent placement at locations
predefined by humans or locations proposed by the system’s placement logic. The receipt
procedure apart from producing a receiver and the pallet bar-code stickers, triggers Quality
Control by generating a Quality Order.
Movement: Allows planned placements of pallets in locations chosen by the warehouse
manager. The selection is done via the respective menu.
Production: Allows for selective feeding of machine buffers with pre-designated pallets or their
equivalents. The constraints are limited to supplying the daily production plan needs per shift.
This obviously restricts picking to materials used for specific final products. The work order for
which the respective movement is done must be previously released. Picking is based on the
result produced by the DFT algorithm.
Returns from Production: Allows for producing requests for picking pallets from the machine
buffers. When this is attempted the respective work order must be closed. A procedure caters
for selecting which pallets should be sent back for storage and which should remain for
satisfying packaging needs of the successive work order if any.
Despatch: Allows for moving pallets from arbitrary source locations to the predefined despatch
location. This move is necessary for the despatch procedure that produces the despatch note.
Independent: Allows for independent moves. This means that no constraints are imposed to
restrict a movement. An operator may pick a pallet and move it to any destination. There is an
exception though. Return from production is restricted to independent moving. Once a pallet is
allocated to a specific work order it should be de-allocated and then allowed to move. An audit
procedure records all such movements.
Status: Allows for characterising a pallet with a specific inventory status.
Check: Displays the immediate data relevant to a pallet. In other words, when prompted with
the pallet’s serial number; the item number, lot, location, inventory status and quantity display.
Split: Allows for splitting a pallet into two discrete pallets with identical characteristics apart
from the quantities obviously.
Merge: Allows for merging two pallets into one provided that the quantities of the two pallets
share the same characteristics.
Cycle Count: Allows for recording the stock found during a cycle count. Entering the pallet’s
serial number or by scanning the bar-code insignia, all associated details appear on screen.
These data may be accepted as such or may be modified accordingly.
Consume: Allows for declaring consumption of the contents of a pallet. This is done by stating
the date, the machine and the final product code to pin-point the consumption point and finally
by stating the pallet’s serial number as well as the quantity consumed.
8. 8
Cancel: Allows for cancellation of consumption. Again the date, the machine and the final
product code must be stated as well as the pallet’s serial number. If there is a multiple
successive consumption of partial quantities then it is possible to browse and select the one that
must be canceled.
Request: Allows for an extra request of stock quantity that might arise as a need on the shop
floor. This request is well described by stating date, machine, finished good’s code, item code
as well as the quantity requested. The work order number might not be enough in case of a job
shop environment since more than one machine may be involved in the manufacturing process.
A variety of printed lists support the functionality of the system. A brief outline of the
possibilities is listed in the following:
• Movements of a pallet since its entrance in the warehouse.
• Pallets allocated per work order.
• Consumption per work order.
• Movements per work order.
• Empty storage locations.
• Storage locations with remaining space.
• Quantity on hand per item, per lot and per status in all locations.
• Pallets per location.
• Outstanding movements e.g. receipts not registered at storage locations.
• Re-print Goods Received Note.
• Re-print receipt labels.
• Expired pallets.
• Pallet’s period of residence in warehouse.
• Changes in pallet’s inventory status.
• Shipment variances.
• Pallets outstanding for production.
• Log file content of alternative placements.
• Splitted pallets.
• Pallet label re-print.
• Location label re-print.
Issues
The issuing procedures facilitate issuing to production (DFT), despatching to another
warehouse or returns to suppliers. In every case a list or note with the corresponding details is
being printed.
Issuing to production is a rather complex procedure as a whole but easily implemented as far as
the warehousing part is considered. The daily requirements, shift by shift, generate a succession
of pallets to be brought to production (pick list) at discrete time intervals.
The forklift operators are responsible for completing the list’s requirements. This means that
they will supply the production buffers with the pallets listed or their equivalents. A pallet is
equivalent with another then and only then when it holds the same item of the same lot, of the
same quantity and of the same status.
Despatching to another warehouse consists of the selection of pallets to despatch and the
issuance of the respective despatch note. Prior to despatch and before issuing the note the
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pallets have to move from their storage locations to the warehouse’s despatch location (ramp).
The same steps are followed when pallets are returned to a supplier.
Despatching can be complicated as a procedure, depending on the nature of the finished gods
warehouse. In some cases orders need to be fulfilled by moving goods to the despatch area
sorting them by work order and then returning the pallets to the warehouse. This is mostly met
in refrigerator warehouses.
SYSTEM HIGHLIGHT
Methodical, accurate analysis of the product and the process which yields it, including a
detailed knowledge of the value added and non-value added steps, as well as the dimensions
and standards of quality requirements, are a prerequisite for the successful implementation of
DFT. Whereas most innovations are small, requiring only minor adjustments to a plant floor
already utilising flow manufacturing, the conversion to DFT requires major changes in
corporate culture, organisational structures, management attitudes and worker relationships.
By adopting DFT, a manufacturing plant enjoys several benefits. It eliminates the job category
of inspector and places the requirement on down-line operators for subsequent inspections.
Cycle times and work in progress are dramatically reduced with batch sizes approaching one,
and faster inventory turnover is projected.
The system constitutes an integrated real-time logistics system for the automation of warehouse
operations. The core of the system is the use of portable wireless terminals, mounted on forklift
trucks that perform two key tasks:
• They guide human operators during the materials movement processes, in an efficient
and error-proof way;
• They provide on site data entry and thus enable real time stock monitoring and material
tracking.
The results proved to be spectacular. In addition to delivering cost savings and considerable
reductions in lead times, it has also enabled quality critical material tracking and eliminated
costly errors.
The nature of the supply chain entails a considerable overhead in logistics operations. Both
incoming and outgoing material flows are characterised by large quantities of a huge variety of
different product codes. Moreover, outgoing material flows include the preparation and
shipment of large numbers of customer orders in very short lead times. Each order usually
includes modest quantities of many different product codes. In effect, warehouses are complex
and fast moving, and their operation is both complicated and error prone. Prior to the
installation of the Integrated Warehouse Management system, the operational complexity not
only generates high operational cost (as measured in labour hours and idle time) but is also
highly error prone, incurring additional costs for error correction. Furthermore, both legal
obligations and quality considerations engender two major requirements that are difficult to
satisfy without effective support. These are, absolute FIFO warehouse operation, to ensure that
products are distributed and elimination of the possibility of keeping a lot in the warehouse
after its expiry date. Furthermore, the capability for absolute lot control, allows for efficient
withdrawal of a defective lot.
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The Integrated Warehouse Management system by incorporating DFT to handle the production
link of the chain, faces the major challenge of improving the system as far as the fast moving
warehouses are concerned and furthermore to enable continuous monitoring of the products so
as to better serve customer demand and ensure high quality. The system focuses on a number of
specific objectives that ensure high quality standards in the flow of products to the end
customers. These include:
• Better organisation of the warehouses operation, in order to reduce administrative
overhead and related costs;
• Absolute FIFO product flow, reflecting the existence of expiry;
• Conformance to legal obligations concerning lot tracking and control and the capability
for lot withdrawal;
• Adhesion to the requirements of the ISO 9001 standard.
CONCLUSION
The change is profound. In addition to the direct and measurable results, such as cost savings
and error reduction, the system also generates a number of positive side effects. The main
results include:
• A significant decrease in errors on invoices and despatch notes. Due to the high
complexity of individual shipments (each consisting of modest quantities of many
products) and the large number of product codes, the procedure of issuing invoices and
despatch notes is highly error prone. This in turn leads to high error correction costs.
With the installation of the system, the errors are virtually eliminated.
• Improved accuracy in customer order execution. Just as with invoices and despatch
notes, there are frequent errors in the execution (preparation, packaging and shipment)
of customer orders. This generates considerable costs (for the replacement of
mistakenly shipped items, re-shipment of omissions and so on). These errors that can
cause customer dissatisfaction are eliminated.
• Greater accuracy in data acquisition, improved overall inventory monitoring and a
considerable reduction in inventory losses.
• The streamlined operation of the warehouses eliminates the need for a large number of
administrative staff. Warehouses can operate with just one instead of many employees,
thus slashing a major overhead. Similarly, the total operating costs of the warehouses
can be reduced.
• The lead-time for preparing and shipping a customer order can also be reduced.
• The system ensures that strict FIFO priorities are kept, so that only fresh products
(where applicable) are shipped and products with expiry dates (e.g. pharmaceuticals)
do not remain in the warehouse for long.
• Accurate lot tracking is possible, allowing the efficient withdrawal of a defective lot.
This enables the rapid recall of any defective product batches, which previously was
almost impossible because of the administrative overheads.
The implementation of such a system is an example of how a single technology can effectively
enable the redesign and streamlining of a core business process. A batch-oriented system
switched to a real time data acquisition system that embraces flow manufacturing, allowing
radical change to the whole process.
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BIOGRAPHIES
George N. Galanakis
Education
• M.Sc. Operational Research & Management Science (1985 - 1986)
School of Industrial & Business Studies, University of Warwick, United Kingdom.
• B.Sc. Mathematics (1979-1983)
Department of Mathematics & Physics, University of Patras, Hellas.
Professional Experience
1999 – today General Manager (Enterprise Consulting Integration)
1998 – 1999 Logistics Director (Plaisio Computers)
1996 – 1997 Consulting Services Director (BMS Management Consultants)
1994 -1996 Management Consultant (Vector Information Systems)
1991 – 1993 IT & Logistics Manager (BIOKAT Metal Constructions0
1989 – 1991 IT Engineer (01 Pliroforiki)
1984 - 1988 Systems Analyst (Hellenic Productivity Centre)
Seminars
• Systems Analysis – Hellenic Productivity Centre (1985)
• Production Management - National Technical University Athens (Sept. 1991)
• Xi Plus Artificial Intelligence Shell - Inference Europe Ltd., Slough, England
(Nov., 1991)
• An Update in Logistics - University of California, Berkeley (Nov. 1997)
• Certificate in Progress Ver. 6-7-8 (July 1999) Progress Europe
• MFG/PRO ERP software European Accounting Certification – (1999)
• MFG/PRO ERP software Distribution and Global Supply Chain Modules
(2000)
Articles – Publications
• Demand Flow Technology in Production – Aegean University, Samos Hellas,
June 2002.
• Integrated Warehouse Management based on Demand Flow Technology -
17th International Logisitcs Conference - Thessaloniki Hellas, October 2001.
12. 12
• Technology Issues on re-engineering Warehouse Management and
Distribution Procedures – Logistics Brief Section, PLANT Management
magazine No. 163, Aug. – Sept. 2000.
• Demand Flow Technology, the prerequisites for an integrated business
strategy - Factory Section, PLANT Management magazine No. 162, June – July
2000.
• The impact of contemporary Logistics on Supply Chain Management -
Research Section, PLANT Management magazine No. 161, April – May 2000.
• Inventory Management of Raw and Packaging Materials – 1st Conference of
the Hellenic Operational Research Society (University of Ioannina, October 1999).
• Procedural re-engineering of the Supply Chain - 1st Hellenic Operational
Research Society Conference (University of Ioannina, October 1999).
• Integrated Warehouse Management - 3rd Panhellenic Logistics Conference,
Athens April 1998.
• Evolution of the L(e,4v) Family of Periodical Orbits for the Three Body
Restricted Problem - (Published in the Celestial Mechanics Journal, 1983).
George M. Papardakis
Education
• M.Sc. Management Science & Operational Research, (1998 - 1999)
Management School, Lancaster University, United Kingdom.
• B.Sc. Economics & Marketing (1995-1998)
University of Wales, Aberystwyth, United Kingdom.
• HND Business Administration & Economics (1992 – 1995)
British – Hellenic College.
Professional Experience
1999 – today Operational Research Consultant ((Enterprise Consulting Integration))
1996 – 1997 Airbus Industry Operations Officer (Air France)
1990 – 1992 Assistant Accountant
Seminars
• Computers & Technology – Youth Ministry (1991)
• E-Commerce Cameleon Software (Feb. 2000) - Access Commerce France
• MFG/PRO ERP software Distribution and Global Supply Chain Modules
(April 2000)
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Articles - Publications
• Integrated Warehouse Management based on Demand Flow Technology -
17th International Logisitcs Conference - Thessaloniki Hellas, October 2001.