© 2005 Georgia Tech Warehouse Operations: Performance Assessment and Benchmarking.
-
Upload
gabriel-clarke -
Category
Documents
-
view
217 -
download
2
Transcript of © 2005 Georgia Tech Warehouse Operations: Performance Assessment and Benchmarking.
© 2005 Georgia Tech
Warehouse Operations: Performance
Assessment and Benchmarking
© 2005 Georgia Tech
Leon F. McGinnisSchool of Industrial
and Systems Engineering
Georgia Tech
© 2005 Georgia Tech
Competition
© 2005 Georgia Tech
Collaboration
© 2005 Georgia Tech
It makes good economic sense to collaborate on infrastructure standards that “lift all boats”
It also makes good economic sense to collaborate on
improving warehousing and distribution infrastructure
© 2005 Georgia Tech
Warehousing in general is 2-5% of cost of goods sold
A 20% improvement in warehouse efficiency goes straight to the
bottom line…
© 2005 Georgia Tech
Old Way to Improve Warehousing
© 2005 Georgia Tech
New Way to Improve Warehousing
www.isye.gatech.edu/ideas
© 2005 Georgia Tech
Warehouse Operations
Receiving Function
Unload
Inspect
Put Away
Shipping Function Pack
Order Pick
StorageFunction
• Consume resources:– Space– Equipment (and
software)– Labor– Inventory
• Produce services– Customer orders
filled– Replenishment
orders received– Value adding services– Returns processedLoad
© 2005 Georgia Tech
iDEAs Provides:
• An “SAT-like” score, evaluating overall resource efficiency, based on “fantasy league” warehouse constructed from a large peer group ONLINE
• A comparative analysis of partial productivities, relative to the best in the peer group, identifying the “true” opportunity for improvement ONLINE
• An industry-level analysis of key factors affecting resource efficiency OFFLINE
© 2005 Georgia Tech
Htmldocuments
Solver
Database
At your siteAt your site
Georgia Tech ServerGeorgia Tech Server
Over the InternetOver the Internet
Your data is private and
secure
How Does iDEAs Work?
© 2005 Georgia Tech
Key Points
• Process is secure: nobody ever sees individual company data, except for the research team
• Process is inexpensive:– Free version:
www.isye.gatech.edu/ideas– BISG-sponsored version: contact Jeff
Abraham at BISG to subscribe– These two versions are different!
© 2005 Georgia Tech
© 2005 Georgia Tech
© 2005 Georgia Tech
© 2005 Georgia Tech
© 2005 Georgia Tech
Your Warehouse “SAT”
© 2005 Georgia Tech
Now you know how you compare
What drives your performance?
•To the “best possible”•Ranking in the peer group
© 2005 Georgia Tech
Partial Efficiency (PE) Analysis
• PE can be decomposed into 7 multiplicative factors including DEA.
• Partial Efficiency
=Technical Efficiency
Technical Change
Scale Efficiency
Input Slack Factor
Input Substitution Factor
Output Slack Factor
Output Substitution Factor
waste
can be fixed, long term
not a warehouse issue
excessive resourceswrong mix of resources
overproduce some services
wrong mix of services
© 2005 Georgia Tech
© 2005 Georgia Tech
The Basic iDEAs
• One system efficiency score• Relative to the “best possible” based on a
specified peer group• Partial efficiency analysis
© 2005 Georgia Tech
Over 600 warehouse records in our database
Over 180 qualified users
Roughly 60 “extended” warehouse records
© 2005 Georgia Tech
Benchmarking and Best Practices
Illust
ratio
n Purp
oses O
nly!
© 2005 Georgia Tech
Are there measurable factors that “explain” efficiency
performance?
Quality of laborNumber of customers
Response time requirementsInventory turnover
etc
© 2005 Georgia Tech
Seasonality Data
0
0.2
0.4
0.6
0.8
1
1.2
1 1.5 2 2.5 3 3.5 4 4.5 5
Seasonality (Peak Month Demand divided by Average Month Demand)
Effic
iency
_
© 2005 Georgia Tech
Seasonality EffectAverage Effi ci ency (Based on 52
DMUs and 4x5 model ) vs Seasonal i ty
0. 4
0. 5
0. 6
0. 7
0. 8
0. 9
1
1. 1
1. 2
0 0. 5 1 1. 5 2 2. 5 3 3. 5 4Seasonal i ty
Effici
ency
© 2005 Georgia Tech
Labor Turnover Effect
Average (over 31 DMUs) Efficiency (Based on 54 DMUs
and 4x5 model) vs. Labor Turnover without 1s
0
0.2
0.4
0.6
0.8
1
0 20 40 60 80 100
Labor Turnover (%)
Effi
cien
cy
© 2005 Georgia Tech
Inventory Turnover EffectAverage (over 42 DMUs) Effi ci ency (Based on 42 DMUs and 4x5 model )
vs. I nventory Turns
y = 0. 0574x + 0. 5062R2 = 0. 9993
0
0. 5
1
1. 5
2
2. 5
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31
I nventory Turns
Effici
ency
© 2005 Georgia Tech
Where do we go from here?