Lean Warehousing - Fact or Fiction?
Many companies are talking about Lean with their Third Partly Logistics service provider, according to John Hogg, Managing Director of Supply Today.
So what is it and would it work for a new Third Partly Logistics client warehouse?
(PRWEB) June 6, 2007 -- John has heard many stories over the last 18 years about new "methodology" to solve all the problems in the warehouse. When John hears these stories, it is often because the client or Third Partly Logistics provider has been sold a good story but maybe this time it's true.
John was recently involved in a new warehouse implementation that used lean for the entire warehouse set up from scratch: 6 weeks from go to go-live.
The warehouse is a pick and pack operation, 1100 plus items with more than 70% of all orders being split case picking and packing. Orders are provided from the clients ERP software via ftp into the warehouse management system and confirmation returned from the warehouse via ftp to the client.
Agreement was reached on the critical key performance indicators with the client and the Third Partly Logistics provider. Simple but effective measurements were documented.
*Orders received by 12:00 were to be shipped by close of business next day.
*Inventory accuracy was set at 99%
*Goods received within 24 hours
*Costs of course had to be at budget or better.
The Third Partly Logistics provider selected the Lean philosophy (5 S's) for the implementation from day one of the project said John.
Sort - (Seiri), The first S focused on eliminating unnecessary items from the warehouse.
Paper work in a warehouse is common but not effective. Radio Frequency technology was selected (terminals with large screens) to eliminate all paperwork from the warehouse from day one.
A single button automated stretch wrap machine was installed at the end of the pick path to wrap pallets.
Warehouse management software was selected for the warehouse and configured with weights and measures (per item) to eliminate the need for scales and to allow auto calculation for transport.
Walk paths were set up with no loop back during order picking to complete an order. Product was placed into locations with heavy products being the 1st items to be picked and the smaller lighter items later in the process to avoid any need to restack pallets.
All fork lifts can operate anywhere in the warehouse. Man up order pickers were used to eliminate the need for ladders and to assist with order picking from level 2 and 3.
Set In Order (Seiton) is the second S and focuses on efficient and effective storage methods.
Racking was purchased and erected in the warehouse. Given the shape and size of the warehouse wide isles were used to allow fast movement for picking and replenishment (and use all available space) and to support the ability to use all materials handling equipment in all areas of the warehouse.
The racking was set up with the first 3 levels being pick faces and the top 2 being for bulk or replenishment stock for the pick faces. The pick faces were fitted with chipboard to allow small cartons to be stored on levels 2 and 3.
The bin location system was set up to allow X and Y coordinates and for a standardized gird of locations in the warehouse to assist casual employees to understand the warehouse layout within minutes of arriving on site.
All locations were bar coded and all isles had large visible signs to enable quick and effective orientation on site.
Pick trolleys were purchased and fitted with a knife, calculator and a tape gun. A packing bench was set up to allow mixed cartons to be packed and cartons completed. The bench has cartons, tape and packaging material within arms reach.
A single high speed thermal printer was selected for all labels and a standard single label used for all uses in the warehouse. When an order is completed and all cartons packed the store person can print all dispatch labels for the shipments. The picking confirmation also creates the consignment notes for the carriers and adds a bar code to the dispatch label for easy tracking for carriers.
"A place for everything and everything in its place."
Shine: (Seiso) Once the clutter and junk was removed from the design, the next step was to thoroughly clean the warehouse.
All racking and benches were fixed to the floor and each location labeled.
No product was allowed in the isles, no products are allowed into the pick face from bulk until all stretch wrap is removed and pyramid picking is not allowed.
Outsourced cleaners look after the warehouse office and all amenities on site. Endless towels are used in the toilets and changed as needed to eliminate the need for paper towels in the warehouse.
Floor cleaning is done using an electric sweeper by the warehouse staff and a contract floor scrubber is used to remove ground in dirt from the concrete floor.
Daily cleaning is part of the process. Workers take pride in a clean and clutter-free work area and take ownership in the equipment and facility
Standardize: (Seiketsu) Once the first three 5S's have been implemented, concentrate on standardizing best practice in your warehouse.
Standardization for all RF units and PC's were selected for there ease of use and black in color for the environment.
When orders are received from the client they update the warehouse management system and are ready for picking.
Warehouse staff pick up there RF unit and log on. Pickers select order pick and the system directs them to the first pick location needed for that order in the pick path.
Scan. pick, check, scan and on to the next location. At the end of the order the Radio Frequency units asks for the number of cartons or pallets and when updated allows the process to be completed and labels and consignment notes to print.
When the order is complete it is automatically sent to the clients ftp mail box ready for invoice confirmation. When the confirmation is completed the invoice (or delivery note) prints in the warehouse and it is attached to the order ready for dispatch.
Menu's are specific for each function to assist staff with their functions. Pickers can see the pick menu, receiving the receipt menu and dispatch sees the information for dispatch. The warehouse manager and customer service can see all information based on their security and access level.
Receiving requires items to be booked in and a pallet ID attached to all inbound items. This is then used for put-a-way, replenishment and picking as items move around the warehouse.
Stock takes, cycle counting and returns to the client are all managed via the Radio Frequency units and the pallet ID labels.
Sustain: (Shitsuke) This is by far the most difficult S to implement and achieve.
Human nature is to resist change and more than a few organizations have found themselves with a dirty cluttered warehouse a few months following their attempt to implement 5S. The tendency is to return to the status quo and the comfort zone of the "old way" of doing things. Sustain focuses on defining a new status quo and standard of warehouse organization.
Being a new implementation with new staff there is no "old way" of doing things. With the removal of paperwork and the need to use Radio Frequency units to perform tasks in the warehouse the status quo is the process.
The warehouse staff are motivated by the lack of fuss and ease of performing their tasks and enjoy the recognition that they receive for a job well done.
All KPI's are being exceeded after 6 months of operation.
John said the implementation and set up were effective from day one. More detailed work was needed on master file information however this is part of continuous improvement in both the client and Third Partly Logistics systems.
Ultimately however, John says a lot of the results are built into the process and the most difficult of the 5's "Sustain" is now the base line defaults for the warehouse.
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