Applying Lean Concepts

Applying Lean Concepts in aWarehouse Operation

Applying Lean Concepts in aWarehouse Operation

Frank GarciaFrank GarciaPartnerPartner

ADVENT DESIGN CORPORATIONADVENT DESIGN CORPORATION

What Well CoverWhat Well Cover

++ Basic Lean Concepts for WarehouseBasic Lean Concepts for WarehouseImprovementImprovement

++ Using Value Stream Maps: Using Value Stream Maps: Current & Future StateCurrent & Future State

++ Implementing Process ImprovementsImplementing Process Improvements

++ Case Study Using and Ongoing Case Study Using and Ongoing Application (Pork Producer)Application (Pork Producer)

WHAT TO DO ABOUT THEWAREHOUSE?

WHAT TO DO ABOUT THEWAREHOUSE?

Too many peopleToo many people Excessive material handling Excessive material handling Inventory inaccuracies Inventory inaccuracies Dont ship the pounds Dont ship the pounds No space!!!! Need to Expand! No space!!!! Need to Expand!

WAREHOUSE CHALLENGESWAREHOUSE CHALLENGES++ Focus on Manufacturing.Focus on Manufacturing.

Warehouse is a box on theWarehouse is a box on theVSMVSM

++ Product pushed intoProduct pushed intowarehouse & pulled bywarehouse & pulled bycustomerscustomers

++ Application of LeanApplication of LeanPrinciples to an area thatPrinciples to an area thatexists because of waste inexists because of waste inthe value stream or customerthe value stream or customerdemand/lead timedemand/lead time

++ Warehouse is the crossroadsWarehouse is the crossroadsof conflicting requirementsof conflicting requirements

Office & Info FlowOffice & Info Flow

WarehouseWarehouse

ProductionProduction SuppliersSuppliers

Customer DemandsCustomer Demands

How Do We Use Lean Techniques for Warehouse Improvement?

How Do We Use Lean TechniquesHow Do We Use Lean Techniques for Warehouse Improvement? for Warehouse Improvement?

++ Assess the operation using a Value StreamAssess the operation using a Value StreamMap and/or Map and/or PFDsPFDs (Product families & Warehouse data)(Product families & Warehouse data)

++ Involve the operators & supervisorsInvolve the operators & supervisors++ Identify lean improvements & Identify lean improvements & kaizenskaizens)) Question every activity!Question every activity!)) Treat the warehouse like a large staging area Treat the warehouse like a large staging area

++ Develop justificationDevelop justification++ Implement lean improvements using VSMImplement lean improvements using VSM

planplan++ Start the cycle again!Start the cycle again!

Lean ManufacturingLean Manufacturing

Any activity or action which doesAny activity or action which doesnot add value to the product is anot add value to the product is a

form of waste and must beform of waste and must beeliminated or minimizedeliminated or minimized..

Fundamental Principle of Lean Manufacturing

In the Warehouse Customer Pays for ShippingIn the Warehouse Customer Pays for ShippingEverything Else Must Be Minimized !Everything Else Must Be Minimized !

What Do We Need to Know?What Do We Need to Know?

++ DemandDemand++ Material Flow & Handling Material Flow & Handling++ Information Flow to the Information Flow to the

Warehouse Warehouse++ How Material is Stored How Material is Stored++ Order Picking & Staging Order Picking & Staging++ How Shipped How Shipped

VALUE STREAM MAPPING!VALUE STREAM MAPPING!

Why Use VSM?Why Use VSM?

++ Road map for lean improvementsRoad map for lean improvements

++ Train team members in use of lean Train team members in use of lean conceptsconcepts

++ Integrated lean implementation plan Integrated lean implementation plan

++ Long term planning - Many Future States Long term planning - Many Future States

Current State MapCurrent State Mapproduct family

current state drawing

Future state drawing

plan and implementation

Understanding how the warehouse Understanding how the warehouse currently operates.currently operates.

+ Material and information flows+ Start with the door to door flow+ Walk the flow and get real data * no standard times * draw by hand

+ Get operators & supervisors involved+ Basis for the Future State

Kill & Cut Metal Detection Strapping Palletizing& Storage

I I I

C/T =2 secC/O =2 min Rel. = 95%

C/T = 2 secC/O = 1 minRel. = 80%

C/T = 10 - 35 minutesC/O = 0 minRel. = 85%Avail. = 49.5 to66 hrs (2 shifts)

C/T = 7 secper case or 10min per palletC/O = 0 minRel. = 85%Avail. = 24.8hrs (2 shifts)

ConveyorStaging10 to 15

cases

RackStorage

775positions;7 reefers;610K lbs

MultipleOperators

VariousCustomers

Spices and Smokehouse

Materials

Demand:131 to 242 orders perdayAvg: 167/day1 to 2 pallets/order15 to 17 orders pertruck12 to 13 trucks perday1 route per truck

Productionand Inventory Control

(Computer System)

Randomly PlacedOrders (Various Sizes)

Blanket Orders with DailyReleases; Supplemented with

Open Market Purchases

Blanket Orderswith Weekly or

Bi-Weekly Releases

DailyProductio

nSchedule

Daily Shipping Orders& Freezer Release

(5PM)

Order Lead Time 3.7 to 6.1 DaysOrder Processing Time: 6 HrsTakt Time: 3 to 4 minutes

Warehouse Current StateValue Stream Map

DailyShipments

(12 to 13 routes)

Cut Products

Conveyor Staging10 cases

Hogs

Daily

(about400)

Weeklyor Bi-Weekly

40seconds

20minutes

40 seconds

30seconds

6 minutes 20minutes

2.9 to 5.3 days

(Freezerstorage:

6.7 to 14.5

1 to 2Pallets

1 to 2Pallet

3People

35minutes

5 sec

1 to 2pallets

perorder

PackagingMaterials

Weeklyor Bi-Weekly

Wrap & Pack

MultipleOperators

Cut Products

Smoke

MultipleOperators

Wrap & Pack

MultipleOperators

Smoked Products

I

ConveyorStaging

Order Picking

6 to 8People

I

I

StagingPalletizing

& Dock6 orders

(12 pallets)

1 to 2pallets

perorder

Shipping

Off-Site Freezer Storage

SmokehouseOperations

AgingReport

1 to 2pallets

2People

OrderChecking

& Scanning

I

2People

1 to 2pallets

Stagingfor Trucks2 orders

(4 pallets) C/T = 15 min C/O = 0 min Rel. = 85% Avail. = 16.5 hrs

C/T = 4 hours C/O = 0 min Rel. = 85% Avail. = 16.5 hrs

10minutes

15 minutes

4 hours

1, 578K lbs

Important Warehouse DataImportant Warehouse Data++ 60mm pounds per year60mm pounds per year++ 6.8 turns per month6.8 turns per month++ Seasonal production.Seasonal production.

Production exceedsProduction exceedsshipments by 20% Eastershipments by 20% Easter& Xmas& Xmas

++ Average 1.2 pallets perAverage 1.2 pallets perorder. Average 167order. Average 167orders/dayorders/day

++ 95% of picks are for less95% of picks are for lessthan a palletthan a pallet

++ Returns 1.9% of Returns 1.9% of lbslbsshippedshipped

2002 Product Picks (All)

609

31 16 8 5 1 1 0 0 0 0 10

100

200

300

400

500

600

700

1 to1000

1001 to2000

2001 to3000

3001 to4000

4001 to5000

5001 to6000

6001 to7000

7001 to8000

8001 to9000

9001 to10000

10000to

11000

11001to

12000

Number of Line Item Picks

N

u

m

b

e

r

o

f

P

r

o

d

u

c

t

I

t

e

m

s

10% products = 66% of picks20% products = 84% of picks

Opportunity: Material Flow & LayoutOpportunity: Material Flow & LayoutMany crossed flows !Many crossed flows !

Opportunity: Walking and Lifting inPalletizing

Opportunity: Walking and Lifting inPalletizing

++ Little caseLittle caseaccumulationaccumulation

++ Case lifting andCase lifting andwalkingwalking

++ Pallet cycle time tooPallet cycle time toolonglong

++ Cases missing strapsCases missing straps++ Area used for orderArea used for order

stagingstaging++ No visual controlsNo visual controls

Opportunity: Rack Storage andUtilization

Opportunity: Rack Storage andUtilization

++ Daily Product AgingDaily Product AgingCountsCounts

++ Insufficient pallet storageInsufficient pallet storagefor peak monthsfor peak months

++ No rack locator systemNo rack locator system++ Reefers used for overflowReefers used for overflow

storagestorage++ Product gets lostProduct gets lost++ Rely on operatorRely on operator

memories or supervisormemories or supervisorexpeditingexpediting

Opportunity: Order Picking & ShippingOpportunity: Order Picking & Shipping

++ Order picking too slowOrder picking too slow++ Must pick before finalMust pick before final

order confirmationorder confirmation++ Few operatorsFew operators

understand warehouseunderstand warehouse++ Dock staging too smallDock staging too small++ Inventory updated atInventory updated at

scanningscanning++ Not enough dock doorsNot enough dock doors

ORDER PICKING FLOW

SMOKED

STAGEORDER

FRESH FROZEN

GET PICKLIST

GET LOADPATTERN

LOCATE PALLETIN WAREHOUSE

MOVE PALLET

PICKCASES OR PALLETS CASES 95% OF TIME

STOREPALLET

MOVE PALLET

LOCATE PALLETIN DOCK RACKS

PALLETIZING AREA DOCK

CHECKORDER

SCANBAR CODES

LOADTRAILER

REPEATUNTIL

ORDERCOMPLETE

MOVE TO INSPECTION

MOVE TO TRUCK

Looking34%

outside interruption5%

Picking38%

reorganizing product-dates11%

Walking8%

computer-looking2% interference

2%

computer-looking

interference

Looking

outside interruption

Picking

reorganizing product-dates

Walking

Why is Order Picking Slow?Why is Order Picking Slow?

Opportunity: Case Flow Through MetalDetection & Strapping

Opportunity: Case Flow Through MetalDetection & Strapping

No gap between casesNo gap between cases Cases jam at metal detector Cases jam at metal detector Maintenance adjusts metal Maintenance adjusts metal

detectordetector Run out of strap Run out of strap No system status display No system status display

Opportunity: Production Scheduling Not inSync With Shipments or Warehouse CapacityOpportunity: Production Scheduling Not in

Sync With Shipments or Warehouse Capacity

++ Pallet storage in aislesPallet storage in aisles++ Insufficient palletInsufficient pallet

storage for peakstorage for peakmonthsmonths

++ Outside FreezerOutside FreezerWarehouse Used usedWarehouse Used usedfor overflow storagefor overflow storage

How Do We Fix It?How Do We Fix It?

++ Look at Application of Lean Look at Application of LeanConceptsConcepts

++ Future State Using Value Future State Using ValueStream Maps With & Stream Maps With & Without ExpansionWithout Expansion

Future State QuestionsFuture State Questions++ What is the What is the takt takt time?time?++ Will we build to shipping or to a supermarket?Will we build to shipping or to a supermarket?++ Where can we use continuous flow? How do we level theWhere can we use continuous flow? How do we level the

pacemaker process?pacemaker process?

SUPPORTING IMPROVEMENTSSUPPORTING IMPROVEMENTS++ What process improvements will be necessary to eliminateWhat process improvements will be necessary to eliminate

waste?waste?

TAKT TimeTAKT Time

Synchronizes pace of production to match pace of sales

Rate for assembling an order based on shipping schedule

TAKT = Effective Working Time per Shift Customer Requirement per Shift

Look for No Flow &WastesThey are in the warehouse too!

Look for No Flow &WastesThey are in the warehouse too!

++ Inventory (too much)Inventory (too much)++ Overproduction (more or Overproduction (more or soonersooner than needed) than needed)++ Correction (inspection and rework)Correction (inspection and rework)++ Material MovementMaterial Movement++ WaitingWaiting++ Extra MotionExtra Motion++ Non-Value Added ProcessingNon-Value Added Processing

Lean ManufacturingConcepts & Techniques in the Warehouse

Lean ManufacturingConcepts & Techniques in the Warehouse

++ Flow:Flow: Visual Workplace, Layout Visual Workplace, LayoutImprovement, Lean AutomationImprovement, Lean Automation

++ Materials:Materials: KanbanKanban Systems, Supply Chain Systems, Supply ChainManagement, Point of UseManagement, Point of Use

++ Perfection:Perfection: Quality Systems, Training Quality Systems, Training

++ Information:Information: Just in Time, Lean OfficeJust in Time, Lean Office


I I I



C/T = 10 to 15 minutesC/O = 0 minRel. = 85%Avail. = 49.5 to66 hrs (2 shifts)Scan bar codes

C/T = 7 secper case or 6.8 min per palletC/O = 0 minRel. = 85%Avail. = 24.8hrs (2 shifts)


cases3 separate

ZonesBar code scan

RackStorage

883 positions;Locator system,A items on firsttier, additional

rack abovepalletizing610K lbs

MultipleOperators

VariousCustomers


Materials

Demand:131 to 242 orders per dayAvg: 167/day1 to 2 pallets/order15 to 17 orders per truck12 to 13 trucks per day1 route per truck

Leidys Productionand Inventory Control

(CSB System)





Bi-Weekly Releases

DailyProductio

nSchedule


(5PM)

Order Lead Time: 3 to 4.9 DaysOrder Processing Time: 3 HrsTakt Time: 3 to 4 minutes

Warehouse AssessmentValue Stream Map (Future State) Without Expansion

DailyShipments

(12 to 13 routes)

Cut Products


Gap cases

Hogs

Daily

(about400)

Weeklyor Bi-Weekly

40seconds 13 minutes40 seconds

30 seconds 6 minutes 15 minutes2.6 to 4.5 days

(Freezer storage:

6.7 to 14.5 days)

1 to 2Pallets

1 to 2Pallet 3

People

20minutes

5 sec

1 to 2pallets

perorder

PackagingMaterials

Weeklyor Bi-Weekly

Wrap & Pack

MultipleOperators

Cut Products

Smoke

MultipleOperators

Wrap & Pack

MultipleOperators

Smoked Products

I

ConveyorStaging

Order Picking

6 to 8People

I

I

StagingDock

2 orders(4 pallets)

1 to 2palletsper order

Shipping



1 to 2pallets

2People

OrderVerification

2People

1 to 2pallets

FIFO

C/T = 10 min C/O = 0 min Rel. = 85% Avail. = 16.5 hrs

C/T = 2 hours C/O = 0 min Rel. = 85% Avail. = 16.5 hrs

8 minutes 2 hours

1, 578K lbs

Aging Data

Bar Code ScanInventoryUpdates

Bar Code ScanWarehouse Input

What Happened in the Future StateVSM Without Expansion?

What Happened in the Future StateVSM Without Expansion?

++ Implemented rack locator system & organizedImplemented rack locator system & organizedstorage based on product turnsstorage based on product turns

++ Revised order picking methodsRevised order picking methods

++ Implemented WMSImplemented WMS

++ Improved palletizing systemImproved palletizing system

++ Reduced job classifications & cross trainedReduced job classifications & cross trainedoperatorsoperators

++ Established operational metricsEstablished operational metrics

Closer to Closer to Takt Takt Time.but not there yet!Time.but not there yet!

FUTURE STATE PALLETIZING FLOW

SPACE TO FIT ALL PALLETS

ADD PRODUCT TO RACK,RETURN TO PALLETIZING

LINE

LOADFRESH

TRAILER

PUT AWAY

LOADFROZENTRAILER

MOVE TO TRUCK

FRESH SMOKED

MOVE TO TRUCK

LOCATE EMPTYSTORAGEPOSITION

FRESH SMOKED

SCANLOCATION

GET CASE FROMCONVEYOR

PLACE ONPALLET

MOVE CASE

MOVE PALLET

STAGEPALLET

GET STRETCH WRAPSTRETCH

WRAP

STAGEPALLET

IN TUNNEL FOR FORKLIFT PICKUP

MOVE PALLET

SCANPALLET LABEL

PRINT & APPLY PALLETLABEL

SCANCASES

SMOKED

FRESH

PRINTLABELS

WALK TOCONVEYOR

WMS WAREHOUSE

MANAGEMENT

WMS TEMPWAREHOUSE

Count Cases

Pallet Number

MOVE PALLET

MOVE PALLETPallet NumberRandomZone

Yes No

Location

Production Cases

Transfer

Location

MOVE PALLET

Visual Displayof System

Status

FUTURE STATE ORDER PICKING FLOW

SMOKED

STAGEORDER

FRESH FROZEN

GET PICK LIST GET LOADPATTERN

LOCATE PALLETIN WAREHOUSE

MOVE PALLET

PICK CASES ORPALLETS CASES 95% OF TIME

STOREPALLET

MOVE PALLET

LOCATE PALLETIN DOCK RACKS

PALLETIZING AREA DOCK CHECK

ORDER

VERIFICATIONSCAN

LOADTRAILER

REPEATUNTIL

ORDERCOMPLETE

MOVE TO INSPECTION

MOVE TO TRUCK

SCANLOCATION

SCAN CASES

TRUCK ROUTE

WMS

WMS

WMS

WMS

WMS

Next location

Truck Route Wave Pick

Truck Route

PROPOSED PALLETIZING & STORAGEIMPROVEMENTS

PROPOSED PALLETIZING IMPROVEMENTSPROPOSED PALLETIZING IMPROVEMENTS

Future State BenefitsStep 1: Without ExpansionFuture State BenefitsStep 1: Without Expansion

++ Improved order picking and material flowImproved order picking and material flow)) Reduced cycle time 15% in 3 months. Going to Reduced cycle time 15% in 3 months. Going to

30%30%++ Reduced material handlingReduced material handling++ Saved rack space (10% reduction in 2Saved rack space (10% reduction in 2

weeks)weeks)++ Reduced lead time 50%Reduced lead time 50%++ Handle peak periods with less congestionHandle peak periods with less congestion

(108 positions)(108 positions)++ Better trained and flexible workforceBetter trained and flexible workforce++ Capital Payback of 1.8 yearsCapital Payback of 1.8 years

How Do We Implement the Future StateVSM?

How Do We Implement the Future StateHow Do We Implement the Future StateVSM?VSM?

++ Dont Wait Until Its Perfect! Dont Wait Until Its Perfect!++ Use future state VSM to highlight changes Use future state VSM to highlight changes++ Break up the future state into sections Break up the future state into sections++ Develop a VSM implementation plan Develop a VSM implementation plan++ Tie plan to business objectives & show Tie plan to business objectives & show

savingssavings++ Assign projects to team members to Assign projects to team members to

implementimplement

Process Problem Solution

MetalDetection&Strapping

M1. Cases not metered into machines causing jams andbackup of product

M2. Metal detector setting has to be changed manually

M1. Create space between cases with metering device increasesreliability of strapper and metal detector

M2. Scan product to set metal detection setting increases reliability ofmetal detector

Palletiz-ing

P1. Product is handled twice, once to palletize then once topick

P2. Operator walking several feet to obtain correct case ofproduct to palletize

P3. Product is moved to be shrink wrapped prior to putaway

P1. Rearrange high moving product to allow case stacking in flowracks

P2. Shorten walking distance by separating product onto shorterconveyors

P3. *Automate the shrink wrapping process with conveyor andautomatic wrapper

StorageRacks andStaging

ST1. Searching for open position for putawayST2. Product must be rotated from top to bottom resulting in

several pallet movesST3. Need forklift to put bottom row away. Need ladder to

pick from second tier.

ST1. Implement Warehouse Management System for putawayST2. Rearrange racking for whole pallet flow racks on high moving

productST3. Remove lower rail on certain aisles to allow pallet jack putaway

instead of forklift. Lower second tier to pick height withoutladder.

OrderPicking

O1. Pickers searching for product due to no location systemO2. Walking from aisle to aisle with no logical sequence of

picksO3. Rotating stock to bring oldest date to front

O1. Put pick locations on pick ticket after Warehouse ManagementSystem is installed

O2. Sort products by frequency of pick then by weight in warehouseto minimize walking

O3. *Use pallet flow racks to automatically rotate stock

ShippingSH1. Insufficient space to stage multiple pallets leads to

double moves of productSH2. Operator is dedicated to verifying picked pallet prior to

scanSH3. Occasionally additional product gets shipped to

customer

SH1. *Increase floor space for dock staging. Long term plan would beto reorganize when building is expanded

SH2. Improve picking operation through training and scanning at picklocation with bar code scanners.

SH3. Confirmation check by scanning once prior to loading truck

Organizing the Lean Solutions

PROPOSED IMPROVEMENTS: Costs & Savings

P r o c e s s P r o b le m S o lu tio nC y c le T im e(R e d u c e d )

A n n u a lS a v in g s $

C o s t toIm p le m e n t

M eta lD ete c tio n&S tr a p p ing

M 1 . C a ses no t m eter e d in to m a c h in es c a u s in g ja m sa nd b a ck u p o f p r od u c t

M 2 . M eta l d e te c to r s ett in g h a s to b e c h a n g e dm a n u a lly

M 1 . C r ea te sp a c e b etw e e n c a s es w ith m eter in g d e v ic e in c rea s esr el ia b il ity o f s tra p p er a n d m eta l d et e c to r

M 2 . S c a n p r od u c t to s et m eta l d et ec t io n sett in g in c r ea s esr elia b il ity o f m eta l d et e c to r

.3 3 m in /p a l

.3 3 m in /p a l

3 ,5 0 3

3 ,5 0 3

2 ,0 0 0

2 0 ,0 0 0

P a llet iz -in g

P 1 . P r od u c t is h a n d le d tw ic e, o n c e to p a lle t iz e th e no n c e to p ic k

P 2 . O p era to r w a lk in g s ev era l f e et to o b ta in c o r rec tc a se o f p r o d u c t to p a llet iz e

P 3 . P r od u c t is m o v e d to b e s tr e tc h w r a p p ed p r io r top u t a w a y

P 1 . *R ea r r a ng e h ig h m o v in g p r od u c t to a llo w c a s e s ta c k in g inflo w r a c ks

P 2 . S h or t e n w a lk in g d is ta nc e b y so r t in g p r o d u c t b y b a r c o d ein to c o n v e y o r z o n e s o r u s in g a ver t ic a l r ec irc u la tin gc o n v e y or

P 3 . * A u to m a te th e s tr e tc h w ra p p in g p ro c e ss w ith c o n v e y o ra n d a u to m a tic pa lle t izin g

1 o p e r /ye a r

1 .3 3 m in /p a l

2 m in /p a l

* T B D

1 4 ,0 2 4

* 2 1 ,0 4 2

* T B D

9 5 ,0 0 0(v e r t ic a l

c o n v e yo r s )* 6 2 5 ,0 0 0

S to ra g eR a c k s a ndS ta g in g

S T 1 . S ea rc h in g f o r o p e n p o s it io n fo r p u ta w a yS T 2 . P r od u c t m u s t b e ro ta te d fr o m to p to b o tto m

r esu lt in g in s e v er a l p a lle t m o v esS T 3 . N e e d fo rk lif t to p u t b o tto m r o w a w a y . N e e d

la d d er to p ic k fr o m s ec o n d t ier .S T 4 . N e e d a d d it io n a l r a c k sp a c e fo r p r od u c t

S T 1 . I m p le m e n t W a r eh o u s e M a n a g e m e n t S y s t e m f o r p u ta w a yS T 2 . R ea r ra n g e ra c k in g fo r w h o le p a llet flo w r a c k s o n h ig h

m o v in g p r o du c tS T 3 . L o w er se c o n d t ier to p ic k h e ig h t w ith o u t la d d er .

R e o rg a n iz e s h e lv in g h e ig h t to a llo w se v era l S K U s to fit ino n e p a llet loc a tio n .

S T 4 . A d d r a c k in g o v er h ea d o n p a llet iz in g lin e

.7 5 m in /p a l5 m in /p a l

0 .3 3 m in /p a l

0 m in /p a l

7 ,8 9 1 ^

2 6 ,3 0 3

3 ,4 7 9

0

S e e b e lo w

4 0 ,0 0 0

3 ,0 0 0

3 0 ,0 0 0

O r d erP ic k in g

O 1 . P ic k ers s ea rc h in g f o r p ro du c t d u e to n o lo c a tio nsy s t e m

O 2 . W a lk in g fro m a is le t o a is le w ith n o lo g ica lse q u e n c e o f p ic k s

O 3 . R o ta tin g s to c k to b r in g o ld e s t d a te to fro n t

O 1 . P u t p ic k lo c a tio n s o n p ic k t ic k et a f ter W a reh o u s eM a na g e m e n t S ys t em is in s ta lle d

O 2 . S o r t p r od u c ts b y fre q u e n c y o f p ic k th e n b y w e ig h t inw a re h o u s e to m in im iz e w a lk in g

O 3 . * U s e c a se flo w r a c k s to au to m a tic a l ly ro ta te s to c k

1 0 m in /p a l

5 m in /p a l

1 m in /p a l

1 0 5 ,2 1 0 ^

5 2 ,6 0 5 ^

* 1 0 ,5 2 1

S e e b e lo w

S e e b e lo w

T B D

S h ip p in g

S H 1 . Ins u ff ic ie n t sp a c e t o s ta g e m u ltip le p a llets lea d sto d o u b le m o v e s o f p ro d u c t

S H 2 . O p era to r is d ed ic a te d to v er if y in g p ic k e d p a lletp r io r to s c a n

S H 3 . O c c a s io n a lly a d d it io n a l p r o du c t g ets sh ip p e d toc u s to m er

S H 1 . * I n c re a se f lo o r sp a c e fo r do c k s ta g in g . L o n g te rm p la nw o u ld b e to r e o rg a n ize w h e n b u ild in g is e x p a n d e d

S H 2 . I m p ro v e p ic k in g op era tio n th r ou g h tra in in g a n d sc a n n in g a tp ic k lo c a tio n w ith b a r c od e sc a n n er s .

S H 3 . C o n fir m a tio n c h ec k b y sc a nn in g o nc e p r io r to lo a d in g tru c k

3 m in /p a l

2 m in /p a l

In c re a s e

* 3 4 ,7 2 0

2 1 ,0 4 2 ^

T B D

S e e b e lo w

W M S

U t il iz e s p ro b le m S T 1 + O 1 + O 2 + S H 2 sa v in gs da ta

O r ga n iz a tio n a l h ier a rc h y to o sp e c ia liz e d . C a n t tra c kh o u rs c o r rec tly d u e to c la s s if ic a tio n o f w or k er s .

D es ig n so ftw a r e, p u rc h a se h a rd w a re , in t e g ra te sys t em s a n din s ta ll o n w a r e h o u s e flo o r .

C r os s tra in op era to r s to fil l m u lt ip le ro le s d u r in g o n e s h ift . P oo la ll la b o r a n d r e du c e a s n e e d e d . T ra c k la b or b y g ro u p p ro du c tiv ityv er s es in d iv id u a l p r od u c tiv ity .

1 7 .8 m in /p a l

T B D

1 8 6 ,7 4 8

T B D

2 4 0 ,0 0 0

T o ta l o f a ll p r o je c ts w ito u t e x p a n s io n(U s in g p ro b le m M 1 , M 2 , P 2 , S T 3 , S T 4 , a n d W M Sd a ta )

$ 2 3 4 ,0 8 1 $ 4 3 0 ,0 0 0

PROPOSED IMPLEMENTATION PLAN

Without Expansion

Phase 1. Simple modifications

1. Remove bottom rail to allow pallet jack access. (Target dateMay 2003)

2. Lower second tier to remove the need for ladder access. (May2003)

3. Match shelf size with average pallet height to increase thenumber of

pick locations. (May 2003)4. Change speed of conveyor in metal detection room to space

product cases properly or implement as part of palletizingrelocation. (May 2003)

5. Balance flow of orders transferring from the order pickers toverifiers during the entire shift. This can be accomplished bytraining more utility operators as outlined in theorganizational restructuring matrix shown in Section 4. (May2003)

6. Label all pallet rack storage locations to begin transition towarehouse management system(May 2003)

7. Place 135 high moving SKUs on first or second tier of thepallet rack. (May 2003)

PROPOSED IMPLEMENTATION PLAN

Without Expansion

Phase 2. Moderate improvements to computer system andoperations

1. Implement warehouse wide standards on order accuracy, lineitems shipped on time, orders shipped complete. Post theresults weekly to begin continuous improvement philosophy inwarehouse activity.(June 2003)

2. Install static racking above the existing palletizing area, leavingsufficient head room for the palletizing operation. (September2003)

3. Install new vertical recirculation conveyor palletizing stationand lift tables. (September 2003)

4. Consider implementation of CSB locator screen using movetickets if automated scanning will be delayed. (September2003)

5. Install flow through pallet rack on bottom tiers of existing racksto eliminate top-down pallet rotation on high movers. (October2003)

6. Change configuration of metal detection conveyor to scanlabels prior to entering metal detection equipment. Use barcodescan to change settings on the metal detector. (2004)

Phase 3. Major improvements to computer system and operations

1. Upgrade CSB system to include Warehouse ManagementSystem for locating product and install equipment to bar codescan case labels. (1 st quarter 2004)


I I I



C/T = 10 to 15 minutesC/O = 0 minRel. = 85%Avail. = 49.5 to66 hrs (2 shifts)Scan bar codes

C/T = 7 secper case or 6.8 min per palletC/O = 0 minRel. = 85%Avail. = 24.8hrs (2 shifts)


cases3 separate

ZonesBar code scan

RackStorage

1100 positions;Locator system,A items on firsttier, additional

rack abovepalletizing610K lbs

MultipleOperators

VariousCustomers


Materials

Demand:131 to 242 orders per dayAvg: 167/day1 to 2 pallets/order15 to 17 orders per truck12 to 13 trucks per day1 route per truck

Leidys Productionand Inventory Control

(CSB System)





Bi-Weekly Releases

DailyProductio

nSchedule


(5PM)

Order Lead Time: 2.5 to 4.4 DaysOrder Processing Time: 2.5 HrsTakt Time: 3 to 4 minutes

Warehouse AssessmentValue Stream Map (Future State) With Expansion

DailyShipments

(12 to 13 routes)

Cut Products


Gap cases

Hogs

Daily

(about400)

Weeklyor Bi-Weekly

40seconds

13 minutes40 seconds

30 seconds 6 minutes 8 minutes2.6 to 3.5 days

(Freezerstorage:

6.7 to 14.5

1 to 2Pallets

1 to 2Pallet

3People

10 minutes

5 sec

1 to 2pallets

perorder

PackagingMaterials

Weeklyor Bi-Weekly

Wrap & Pack

MultipleOperators

Cut Products

Smoke

MultipleOperators

Wrap & Pack

MultipleOperators

Smoked Products

I

ConveyorStaging

Order Picking

6 to 8People

I

I

StagingDock

5 orders(10 pallets)

1 to 2pallets

perorder

Shipping



1 to 2pallets

2People

OrderVerification

2People

1 to 2pallets

FIFO

C/T = 5 min C/O = 0 min Rel. = 95% Avail. = 16.5 hrs

C/T = 1. 5 hours C/O = 0 min Rel. = 95% Avail. = 16.5 hrs

8 minutes 1.5 hours

1, 578K lbs

Aging Data

Bar Code ScanInventoryUpdates

Bar Code ScanWarehouse Input

What Happens in the Future State VSMWith Expansion?

What Happens in the Future State VSMWith Expansion?

++ Expand warehouse to provide staging areasExpand warehouse to provide staging areas

++ Most pallets are staged on floor not in racksMost pallets are staged on floor not in racks

++ Revised order picking methodsPick fromRevised order picking methodsPick frompallets not rackspallets not racks

++ Robotic palletizing system based on previouslyRobotic palletizing system based on previouslyupgraded systemupgraded system

++ Improved production scheduling & planningImproved production scheduling & planning

++ New markets for frozen products to increaseNew markets for frozen products to increaseturnsturns

expansion1.wmf

PROPOSED PALLETIZING & STORAGE IMPROVEMENTS

PROPOSED PALLETIZING & STAGINGPROPOSED PALLETIZING & STAGINGIMPROVEMENTSIMPROVEMENTS

The Warehouse Improvement CycleThe Warehouse Improvement Cycle

Assessment(VSM)

ImplementationPlan

RecommendedSolutions

DO IT!

ContinuousImprovement

MethodsLayoutMaterial HandlingVisual Controls

Automation

Information Systems

Applying Lean Concepts

Documents

Transcript of Applying Lean Concepts