The document discusses expanding an existing warehouse to address current issues with limited space. The small size of the warehouse hinders production efficiency, chemical separation, order fulfillment, and limits growth potential. A larger warehouse would allow for better chemical separation and safety compliance. It would enable bulk storage of popular products to minimize changeover times and downtime between production runs. This could reduce labor costs by 25-30% by improving shift efficiency. The expanded warehouse would also provide room to package additional products and accommodate new packaging equipment for improved processes and profit margins.

1. Project Name:
WarehouseExpansion,07/21/2015
Current Problem(s):
Due to the current sizeof the warehouse, there are
many issues with chemical proximity,inability to
proactively complete orders, production efficiency,
and production growth. After completing many
process improvement suggestions,I was always stuck
on the question, “But where would you put it?” which
I couldn’t answer, due to the lack of available
warehouse space. I also noticed that the plantis
currently running10ish hours per day, usually 6 days a
week. The lack of spacehas hindered production and
allowed very little,if any room for growth.
Suggested Solutions(s):
A larger warehouse would allowfor segregation of
chemicals,ensuringcomplete EPA complianceand
minimization of risk for disastrous occurrences.A
larger warehouse would also allowus to produce and
store more of each individual product,potentially
eliminatingthe need to run the product for each
individual work order.For example, the ammonia
products can be stored for up to a year before they
must be shipped off and sold.Becauseof that,
ammonia could potentially run 2-3 times per year like
it used to as opposed to the 8 times that it has been
run this year already.Minimizingthe need to run
ammonia could also potentially save10-15 hours of
labor in changeover time alone, and with half gallon
bottles of ammonia being run twice as often as the full
gallon ammonia,the days which require4-5 extra
temps would be drastically reduced.
In addition to segregation of chemicals and product
storage, a larger warehouse would allowroomfor
growth in the business.Due to the excellent location
on the railroad,this branch would be perfect for bulk
sulfuric and HCLpackaging.Unfortunately, that is
most likely not feasiblewith the current sizeof the
facility.A larger warehouse would also allowspacefor
additional packagingequipment (filler,unscrambler)
that would improve the process substantially and
increasethe profit margin of our products.
Suggested Products & Quotes:
N/A
Savings/Results:
Discussingfinances alone,a larger warehouse would
drastically improveefficiency and reduce labor costs.For
example, CSS-5 has been run 45 different days,CSS-12
has been run 35 different days,and VC has been run 32
different days so far this year. From an efficiency
standpoint,those numbers arecringe-worthy, but it is
the best that can be done due to the lack of storage
space.Realistically, I think thatthe labor costs could be
cut by 25%-30% when runningthe more popular
products if there was additional roomto run them all at
once and store the excess for future orders.I
understand that certain orders are placed lastminuteso
production is interrupted and changes have to be made,
but havinga strong supply of the more popular products
duringtheir heavier months would resultin fewer
changeovers, less downtime, and a much greater shift
efficiency.
ROI Calculation:
N/A