2. Problem Description
XXXXX Warehouse experiences extreme cases of Inventory discrepancy and FIFO violation. The system that is
used for all inventory (IFS a Sweden Designed Software) for calculation, disbursement, shipping and receiving is
difficult to manipulate for proper balance. Therefore too many factors add to the failure of Inventory system
flow within the warehouse.
When material is received, the material is verified for quantity and staged for Quality Inspection. Once quality
Inspection is conducted it is then marked for Put Away for the Receiving Driver. He then finds an empty location
available and then the Put Away occur, there is not a Default location. Then the material location and quantity is
uploaded into IFS. Which is then calculated through the system with date of entry and quantity so when a
customer’s request is input from corporate, it is then supposed to pull from latest date and location for purpose
of FIFO and calculate down from inventory.
When the Pick Order Request is sent to the Warehouse with this information, it is mostly inaccurate due to the
lack of integrity of operators both putting away and lack of integrity by the pickers who seek the most
convenient location to pull from. The first inaccuracy causes a snowball effect that continues until it spirals
throughout every part for these same reasons.
Operator after operator have to spend countless hours every shift searching for parts with 3 to 20 locations that
has been uploaded into IFS. There are some racks with 6 levels of inventory that we are searching through to
find material that IFS has scattered uploads of entries. IFS is unawares of what is actually in that location which
causes a lot of wrong part picks that reach our customer.
3. 1. What is the specific problem? 2. Who is the internal or external customer?
3. what is the primary metric 4. where is this problem occuring
5. when was the problem first observed 6. what was the extent or magnitute of this observation?
7. how do you know this is a problem 8. what is a defect?
9. Estimate the Baseline 10. Estimate the Entitlement
11. Estimate the Original Forecast 12. Strategic Impact
2 weeks to collect all data and review
Increased Productivity and Increased Warehousing
accuracy
Unable to complete order picking wrong part that is in wrong location
.020666666 or 20,667
Designate Established Delivery Locations based on Build
trends.
Warehouse Innaccuracies with Inventory and Inventory
location Warehouse
First pick order Unable to locates parts to complete order
Project 12 Square
Any project going to a Prioritization Meeting need to have this completed prior to the meeting.
Inventory Inaccuracy, wrong parts picked and long takt time
for pickers Internal Customer is CLC (Production)
5. Inventory
Inaccuracy
in locations
and quantities
(7) Picker Failure
(8) Supplier Issues (2) Receiving
XXXXX WAREHOUSE BRAINSTORM
Cant find material
when picking
Manual inaccurate
upload of material
placement
Quantity
Shipped
Incorrect
Orders are picked wrong
because wrong material
is in the location versus
the pick sheet
(1) Transactional
Discipline
Personnel
Deviating from
Process to not
pick in order
Personnel
failing to follow
process to
inform of
inventory
discrepancies
Personnel
Deviating from
Process to pick
for other depts.
Designated
Homes reduce
losing material
(3) Warehouse
Layout
Picker fail to follow
IFS order. Easier
to find quickest
location to pick
from
Picker fail to inform
management of
incorrect locations
to make
adjustments
(6) Unauthorized
Personnel in
Warehouse
Other Departments
removing material
without informing
to reconcile
inventory
Running out of
boxes unaware
of missing
quantities
(5) Oversight
Enforcement
Holding
personnel
accountable for
process
deviations
(4) Knowledge and
Awareness
Training All
Departments
Accordingly
6. To Do List and Who
1. Find highest running product-(XXX,XX)
2. Analyze for Location String- (XXX)
3. Analyze Receiving Process. (XX, JB)
4.Determine Timeline of Implementation of
optimized picking setup for high runner and
new receiving process.
5.Transactional Discipline and Oversight.-
(XX,XX,XX,JB)
7. XXXXX Warehouse Pareto Analysis
Top Warehouse Failures
Error (Cause) Count Cumulative Count Cumulative %
Transactional Discipline 8 8 21.9
Receiving Errors 7 15 41.1
Warehouse Layout 6.5 21.5 58.9
Cultural Knowledge / Awareness 5 26.5 72.6
Oversight Enforcement 4 30.5 83.6
Unauthorized Personnel in Warehouse 3 33.5 91.8
Picker Integrity 2 35.5 97.3
Supplier Issues 1 36.5 100.0
0 36.5 100.0
0 36.5 100.0
Draw a line at 80% on the y-axis running parallel to the x-axis. Then drop the line at the point of intersection with the curve on the x-axis. This point on the x-axis
separates the important causes on the left (vital few) from the less important causes on the right (trivial many).
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
0
1
2
3
4
5
6
7
8
CountofErrors
Warehouse Failures
Count
Cumulative %
8. Takt Time for Product 0804-001
• Current Cycle Time • Proposed Cycle Time
Proposed Takt Time for Commodity
Part No. Location Takt Time
Retrieve
Order Desk 1:12
1492124 H011 :49
66037 H031 :55
52232 H051 1:09
48305 J131 0:44
1509107 H015 1:14
Package and Deliver to CLC 3:50
8:09 Min.
Utilization 89%
Current Takt Time for Commodity # 0804-001
Part No. Location Takt Time
Retrieve
Order Desk 1:12
1492124 C315-D091-D322-D043 9:00
66037 F011-J114-H224 9:00
52232 J081 1:06
48305 J131 0:44
1509107 K165 2:15
Package
and
Deliver 3:50
27:07 Min.
Utilization 27.9%
9. Pt 1
Pt 3
Pt 2
Pt 4
Pt 5
Current Pick Map For Commodity 0804-001Desk
10. Pt 1 Pt 3Pt 2 Pt 5
Proposed Pick Map For Commodity Family 0804-001DESK
Pt 4
11. Bill Of Material for M304 Product Family
0802-001 M3044-V
Quantity per
Assembly Component Part Part Description UoM
Common/Unique to Prod
Family
Incoming Last 3
months
Qty per
Pallet/Box Racks or Spaces
1 1453100 UNIT ASS 2.8MM M3044-V E1 PCS Unique 10000 800 / 40 6 Pallet Foot
1 48305 L-KEY TORX10 PCSD Common
Location
Maintained
1 52232
CAM AUTHENT LETTER SINGLE
AVHS 3.0 PCSD Common
Location
Maintained
1 66037
CARTON
M3044V/M3045V/M3046V PCS Unique 20625 2500 3 Pallet Space
1 1509107 IG M3044-V/45-V/46-V EN 1601 PCS Unique 60000
Location
Maintained
0804-001 M3045-V
Quantity per
Assembly Component Part Part Description UoM
Common/Unique to Prod
Family
Incoming Last 3
months
Qty per
Pallet/Box Racks or Spaces
1 1492124 UNIT ASS 2.8MM M3045-V E1 PCS Unique 10000 800 / 40 6 Pallet Foot
0806-001 M3046-V
Quantity per
Assembly Component Part Part Description UoM
Common/Unique to Prod
Family
Incoming Last 3
months
Qty per
Pallet/Box Racks or Spaces
1 1497500 UNIT ASS 2.4 MM M3046-V E1 PCS Unique 10490 800 / 40 6 Pallet Foot
