1.Applying Lean Concepts in a Warehouse Operation Frank GarciaPartner ADVENT DESIGN CORPORATION

2. What Well CoverBasic Lean Concepts for WarehouseImprovementUsing Value Stream Maps:Current & Future StateImplementing Process ImprovementsCase Study Using and OngoingApplication (Pork Producer) 3. WHAT TO DO ABOUT THEWAREHOUSE? Too many people Excessive material handling Inventory inaccuracies Dont ship the pounds No space!!!! Need to Expand! 4. WAREHOUSE CHALLENGESFocus on Manufacturing.Warehouse is a box on theVSMOffice & Info Flow Customer DemandsProduct pushed intowarehouse & pulled bycustomersWarehouseApplication of LeanPrinciples to an area thatexists because of waste inthe value stream or customerProductionSuppliersdemand/lead timeWarehouse is the crossroadsof conflicting requirements 5. How Do We Use Lean Techniquesfor Warehouse Improvement?Assess the operation using a Value StreamMap and/or PFDs (Product families & Warehouse data)Involve the operators & supervisorsIdentify lean improvements & kaizens Question every activity! Treat the warehouse like a large staging areaDevelop justificationImplement lean improvements using VSMplanStart the cycle again! 6. Lean ManufacturingFundamental Principle of Lean ManufacturingAny activity or action which doesnot add value to the product is aform of waste and must beeliminated or minimized.In the Warehouse Customer Pays for Shipping Everything Else Must Be Minimized ! 7. What Do We Need to Know?DemandMaterial Flow & HandlingInformation Flow to the WarehouseHow Material is StoredOrder Picking & StagingHow ShippedVALUE STREAM MAPPING! 8. Why Use VSM?Road map for lean improvementsTrain team members in use of leanconceptsIntegrated lean implementation planLong term planning - Many Future States 9. product familyCurrent State MapUnderstanding how the warehousecurrent state drawing currently operates.Material and information flowsFuture stateStart with the door to door flowdrawing Walk the flow and get real data* no standard times* draw by hand plan and Get operators & supervisors involved implementation Basis for the Future State 10. Warehouse Current State Value Stream MapBlanket Orders with Daily Releases; Supplemented with Open Market Purchases Blanket OrdersProduction Spices and Packaging Randomly Placed Various Hogswith Weekly or and Inventory ControlSmokehouseMaterialsOrders (Various Sizes)Customers Bi-Weekly Releases(Computer System)Materials Demand: Daily 131 to 242 orders per Productio day n Avg: 167/day Schedule DailyWeekly Weekly1 to 2 pallets/orderor Bi- or Bi- Aging15 to 17 orders per(about Daily Shipping OrdersWeekly Weekly Report truck 400) & Freezer Release(5PM)12 to 13 trucks per day 1 route per truck Smokehouse Operations SmokeWrap & PackOff-Site Freezer Storage Daily Shipments Smoked(12 to 13 routes) ProductsI I MultipleMultiple 1, 578K lbs Operators OperatorsConveyor Staging Kill & CutWrap & PackMetal Detection StrappingPalletizing Order Picking Order Shipping & StorageChecking1 to 2& Scanning 1 to 2 1 to 2pallets 1 to 2 Cut ProductsCut Productspallets per I 1 to 21 to 2 IpalletsI order I pallets Iper Pallets Palletorder MultipleMultiple6 to 8 Operators Operators ConveyorConveyor Rack Staging Staging3People 2 2Staging StagingStorage Palletizingfor Trucks PeoplePeoplePeople 10 cases10 to 15775 & Dock2 ordersC/T = 7 secC/T = 10 - 35C/T = 15 minC/T = 4 hours C/T =2 secC/T = 2 sec casespositions; 6 orders (4 pallets)per case or 10minutes C/O = 0 min C/O = 0 min C/O =2 minC/O = 1 min7 reefers; (12 pallets)min per pallet C/O = 0 minRel. = 85%Rel. = 85% Rel. = 95%Rel. = 80%Order Lead Time 3.7 to 6.1 Days C/O = 0 min 610K lbs Rel. = 85% Avail. = 16.5 hrs Avail. = 16.5 hrsRel. = 85% Avail. = 49.5 toOrder Processing Time: 6 HrsAvail. = 24.866 hrs (2 shifts)hrs (2 shifts)Takt Time: 3 to 4 minutes 30 5 sec6 minutes 2.9 to 5.3 days2015 minutes seconds(Freezerminutesstorage:3510minutes40 seconds 40 20 6.7 to 14.5 minutes 4 hours secondsminutes 11. Important Warehouse Data 60mm pounds per year 2002 Product Picks (All) 6.8 turns per month700 Seasonal production.609Number of Product Items600500400Production exceeds300200shipments by 20% Easter & Xmas100311685 11 00 00 1 01 to 1001 to 2001 to 3001 to 4001 to 5001 to 6001 to 7001 to 8001 to 9001 to 10000 1100110002000 3000 4000 5000 6000 7000 8000 9000 10000Number of Line Item Picks toto 11000 12000 Average 1.2 pallets per order. Average 167 orders/day 10% products = 66% of picks 20% products = 84% of picks 95% of picks are for less than a pallet Returns 1.9% of lbs shipped 12. Opportunity: Material Flow & Layout Many crossed flows ! 13. Opportunity: Walking and Lifting inPalletizingLittle caseaccumulationCase lifting andwalkingPallet cycle time toolongCases missing strapsArea used for orderstagingNo visual controls 14. Opportunity: Rack Storage and UtilizationDaily Product AgingCountsInsufficient pallet storagefor peak monthsNo rack locator systemReefers used for overflowstorageProduct gets lostRely on operatormemories or supervisorexpediting 15. Opportunity: Order Picking & ShippingOrder picking too slowMust pick before finalorder confirmationFew operatorsunderstand warehouseDock staging too smallInventory updated atscanningNot enough dock doors 16. ORDER PICKING FLOW FRESH SMOKEDFROZEN GET PICK GET LOAD LIST PATTERNLOCATE PALLETIN WAREHOUSE LOCATE PALLET IN DOCK RACKS MOVE PALLET PICK CASES 95% OF TIMECASES OR PALLETSREPEATUNTIL MOVE PALLET ORDERCOMPLETE STORE PALLET PALLETIZING STAGE AREAORDER DOCK MOVE TO INSPECTIONCHECKORDERSCANBAR CODES MOVE TO TRUCKLOAD TRAILER 17. Why is Order Picking Slow? computer-looking 2% interference 2%Walkingreorganizing product-8% dates11% computer-lookingLooking interference34% Looking outside interruption Picking reorganizing product-dates WalkingPicking outside interruption38%5% 18. Opportunity: Case Flow Through Metal Detection & Strapping No gap between cases Cases jam at metal detector Maintenance adjusts metal detector Run out of strap No system status display 19. Opportunity: Production Scheduling Not inSync With Shipments or Warehouse Capacity Pallet storage in aisles Insufficient pallet storage for peak months Outside Freezer Warehouse Used used for overflow storage 20. How Do We Fix It?Look at Application of LeanConceptsFuture State Using ValueStream Maps With &Without Expansion 21. Future State QuestionsWhat is the takt time?Will we build to shipping or to a supermarket?Where can we use continuous flow? How do we level thepacemaker process?SUPPORTING IMPROVEMENTSWhat process improvements will be necessary to eliminatewaste? 22. TAKT TimeSynchronizes pace of production to match pace of sales Rate for assembling an orderbased on shipping scheduleTAKT = Effective Working Time per Shift Customer Requirement per Shift 23. Look for No Flow &Wastes They are in the warehouse too!Inventory (too much)Overproduction (more or sooner than needed)Correction (inspection and rework)Material MovementWaitingExtra MotionNon-Value Added Processing 24. Lean ManufacturingConcepts & Techniques in the WarehouseFlow: Visual Workplace, LayoutImprovement, Lean AutomationMaterials: Kanban Systems, Supply ChainManagement, Point of UsePerfection: Quality Systems, TrainingInformation: Just in Time, Lean Office 25. Warehouse AssessmentValue Stream Map (Future State) Without ExpansionBlanket Orders with Daily Releases; Supplemented with Open Market Purchases Blanket Orders Leidys Production Spices and Packaging Randomly PlacedVarious Hogswith Weekly orand Inventory ControlSmokehouseMaterialsOrders (Various Sizes) Customers Bi-Weekly Releases(CSB System)Materials Aging DataDemand: Daily131 to 242 orders per day ProductioAvg: 167/day n1 to 2 pallets/order Schedule 15 to 17 orders per truck DailyWeekly WeeklyBar Code Scan Bar Code Scan 12 to 13 trucks per dayor Bi- or Bi- Daily Shipping Orders(aboutWarehouse Input Inventory 1 route per truckWeekly Weekly& Freezer Release 400)Updates (5PM) Smokehouse Operations SmokeWrap & PackOff-Site Freezer StorageDailyShipments Smoked (12 to 13 routes) ProductsI I MultipleMultiple1, 578K lbs Operators Operators ConveyorStaging Kill & CutWrap & PackMetal Detection Strapping PalletizingOrder PickingOrder Shipping& StorageVerification1 to 21 to 21 to 2 pallets 1 to 2 Cut ProductsCut Products pallets per I 1 to 21 to 2Ipallets I order I pallets FIFOper order Pallets Pallet 32 MultipleMultiple6 to 8 Conveyor People RackPeople2 Operators Operators ConveyorPeople StagingStaging StoragePeopleStaging Dock 10 cases 883 positions; 30 to 50C/T = 7 sec Locator system, C/T = 10 to 15 2 orders C/T = 10 minC/T = 2 hoursGap casesC/T =2 secC/T = 2 sec cases (4 pallets) per case or 6.8 A items on first minutesC/O = 0 min C/O = 0 min C/O =2 minC/O = 1 min 3 separate min per pallet tier, additional C/O = 0 min Rel. = 85%Rel. = 85% Rel. = 95%Rel. = 90% ZonesC/O = 0 min rack aboveRel. = 85%Avail. = 16.5 hrs Avail. = 16.5 hrsOrder Lead Time: 3 to 4.9 Days Bar code scan Rel. = 85% palletizingAvail. = 49.5 to Avail. = 24.8 610K lbs66 hrs (2 shifts)Order Processing Time: 3 Hrs hrs (2 shifts)Scan bar codes 2.6 to 4.5 daysTakt Time: 3 to 4 minutes30 seconds 5 sec 6 minutes (Freezer storage: 15 minutes6.7 to 14.5 days) 2040 seconds 40seconds13 minutesminutes 8 minutes 2 hours 26. What Happened in the Future State VSM Without Expansion?Implemented rack locator system & organizedstorage based on product turnsRevised order picking methodsImplemented WMSImproved palletizing systemReduced job classifications & cross trainedoperatorsEstablished operational metrics Closer to Takt Time.but not there yet! 27. FUTURE STATE PALLETIZING FLOWFRESH Production CasesWMS TEMP PRINT WAREHOUSELABELSSMOKEDSCANTransferCount CasesCASESWMS WAREHOUSEGET CASE FROMLocation MANAGEMENT CONVEYORWALK TOPallet Number MOVE CASECONVEYORPLACE ON PALLET Yes SPACE TO FIT No MOVE PALLETVisual DisplayALL PALLETS PRINT & APPLY PALLET LABELZone Location FRESH RandomPallet NumberSTAGE MOVE PALLETof System SMOKEDStatusPALLET LOCATE EMPTY STORAGE POSITIONSTRETCHWRAP GET STRETCH WRAP MOVE PALLET SCAN MOVE PALLET LOCATION STAGE IN TUNNELPALLET FOR FORKLIFT PICKUP ADD PRODUCT TO RACK, RETURN TO PALLETIZING LINE SCANPALLET LABELPUT AWAY MOVE PALLET FRESH SMOKED MOVE MOVE TO TRUCK TO TRUCKLOAD LOAD FRESHFROZENTRAILER TRAILER 28. FUTURE STATE ORDER PICKING FLOWFRESHSMOKED FROZENGET PICK LISTGET LOADWMS PATTERN Truck Route Wave PickLOCATE PALLETIN WAREHOUSELOCATE PALLET MOVE PALLETREPEAT IN DOCK RACKS SCAN UNTIL WMS LOCATION ORDERCOMPLETE PICK CASES OR CASES 95% OF TIME PALLETS WMSNext location MOVE PALLETWMSSCAN CASES STORE PALLETSTAGE PALLETIZINGORDER AREA MOVE TO INSPECTION DOCKCHECK ORDER VERIFICATION WMSSCAN TRUCK ROUTETruck RouteLOAD MOVE TO TRUCK TRAILER 29. PROPOSED PALLETIZING & STORAGEIMPROVEMENTS 30. PROPOSED PALLETIZING IMPROVEMENTS 31. Future State Benefits Step 1: Without ExpansionImproved order picking and material flowReduced cycle time 15% in 3 months. Going to30%Reduced material handlingSaved rack space (10% reduction in 2weeks)Reduced lead time 50%Handle peak periods with less congestion(108 positions)Better trained and flexible workforceCapital Payback of 1.8 years 32. How Do We Implement the Future StateVSM? Dont Wait Until Its Perfect! Use future state VSM to highlight changes Break up the future state into sections Develop a VSM implementation plan Tie plan to business objectives & show savings Assign projects to team members toimplement 33. Organizing the Lean Solutions ProcessProblem SolutionMetal M1. Cases not metered into machines causing jams and M1. Create space between cases with metering device increasesDetection backup of productreliability of strapper and metal detector&Strapping M2. Metal detector setting has to be changed manuallyM2. Scan product to set metal detection setting increases reliability of metal detectorP1. Product is handled twice, once to palletize then once to P1. Rearrange high moving product to allow case stacking in flowpick racksPalletiz-P2. Operator walking several feet to obtain correct case ofP2. Shorten walking distance by separating product onto shorteringproduct to palletize conveyorsP3. Product is moved to be shrink wrapped prior to put P3. *Automate the shrink wrapping process with conveyor andaway automatic wrapperST1. Searching for open position for putaway ST1. Implement W arehouse Management System for putawayStorage ST2. Product must be rotated from top to bottom resulting in ST2. Rearrange racking for whole pallet flow racks on high movingRacks andseveral pallet moves productStaging ST3. Need forklift to put bottom row away. Need ladder toST3. Remove lower rail on certain aisles to allow pallet jack putaway pick from second tier. instead of forklift. Lower second tier to pick height withoutladder.O1. Pickers searching for product due to no location systemO1. Put pick locations on pick ticket after W arehouse ManagementOrder O2. W alking from aisle to aisle with no logical sequence of System is installedPicking picksO2. Sort products by frequency of pick then by weight in warehouseO3. Rotating stock to bring oldest date to front to minimize walking O3. *Use pallet flow racks to automatically rotate stockShippingSH1. Insufficient space to stage multiple pallets leads to SH1. *Increase floor space for dock staging. Long term plan would be double moves of productto reorganize when building is expandedSH2. Operator is dedicated to verifying picked pallet prior to SH2. Improve picking operation through training and scanning at pick scan location with bar code scanners.SH3. Occasionally additional product gets shipped to SH3. Confirmation check by scanning once prior to loading truck customer 34. PROPOSED IMPROVEMENTS: Costs & Savings C y c le T im e A nnualC o s t toP rocess P r o b le m S o l u ti o n (R e d u c e d ) S a v in g s $ I m p le m e n tM eta lM 1. C a s es n o t m et er e d in t o m a c h in es c a u s in g ja m sM 1. C r ea te s p a c e b etw e e n c a s es w it h m et er in g d e v ic e in c r ea s es3 ,5 0 3 2 ,0 0 0 .3 3 m in /p a lD et e c tio na nd b a cku p o f productr elia b ility o f s tra p p er a n d m eta l d et e c to r& 3 ,5 0 32 0 ,0 0 0S tr a p p in gM 2. M eta l d e t e c t o r s ettin g h a s to b e c h a n g e d M 2. S c a n p r o d u c t to s et m eta l d et ec t io n s ettin g in c r ea s es.3 3 m in /p a lm a n u a lly r elia b ility o f m eta l d et e c t o r P1.P r o d u c t is h a n d le d tw ic e, o n c e to p a lle tiz e th e n P1.* R ea r r a n g e h ig h m o v in g p r o d u c t to a llo w c a s e s ta c k in g in 1 o p e r /y e a r *TBD*TBDo n c e t o p ic kflo w r a c k sP a lletiz - P2.O p e r a to r w a lk in g s ev er a l f e et to o b ta in c o r r ec tP2.S h o r t e n w a lk in g d is ta n c e b y s o r tin g p r o d u c t b y b a r c o d e1 .3 3 m in /p a l1 4 ,0 2 4 9 5 ,0 0 0in gc a s e o f p r o d u c t to p a llet iz ein to c o n v e y o r z o n e s o r u s in g a v er tic a l r ec ir c u la tin gcon vey or ( v e r t ic a l P3.P r o d 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 to c o nve yo rs)put away P3.* A u to m a te th e s tr e tc h w r a p p in g p r o c e s s w ith c o n v e y o r2 m in /p a l* 2 1 ,0 4 2* 6 2 5 ,0 0 0a n d a u to m a tic p a lle tizin g S T 1 . S ea r c h in g f o r o p e n p o s itio n fo r p u ta w a yS 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 y.7 5 m in /p a l7 ,8 9 1 ^S e e b e lo w S T 2 . P r o d u c t m u s t b e r o ta te d fr o m to p to b o tt o m S T 2 . R ea r ra n g e r a c k i n g f o r w h o le p a llet flo w r a c k s o n h ig h5 m in /p a lS to r a g e r es u lt in g in s e v er a l p a lle t m o v es m o v in g p r o d u c tR a cks a nd 2 6 ,3 0 3 4 0 ,0 0 0 S T 3 . N e e d f o r k lift to p u t b o tto m r o w a w a y . N e e d S T 3 . L o w er s e c o n d tier to p ic k h e ig h t w ith o u t la d d er .S ta g in g0 .3 3 m in /p a l la d d er to p ic k fr o m s ec o n d tier .R e o r g a n iz e s h e lv in g h e ig h t to a llo w s e v er a l S K U s to fit in S T 4 . N e e d a d d it io n a l r a c k s p a c e f o r p r o d u c t o n e p a llet lo c a tio n .3 ,4 7 9 3 ,0 0 0 S T 4 . A d d r a c k in g o v e r h e a d o n p a lletiz in g lin e0 m in /p a l0 3 0 ,0 0 0 O 1. P ic k er s s ea r c h in g f o r p r o d u c t d u e to n o lo c a tio nO 1. P u t p ic k lo c a tio n s o n p ic k tic k et a fter W a r eh o u s e1 0 m in /p a l1 0 5 ,2 1 0 ^ S e e b e lo wO r d ersystemM a n a g e m e n t S y s t e m is in s ta lle dP ic k in gO 2. W a lk in g fr o m a is le t o a is le w ith n o lo g ic a l O 2. S o r t p r o d u c ts b y fr e q u e n c y o f p ic k th e n b y w e ig h t in5 m in /p a l5 2 ,6 0 5 ^ S e e b e lo ws e q u e n c e o f p ic k sw a r e h o u s e to m in im iz e w a lk in g 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 fr o n tO 3. * U s e c a s e flo w r a c k s to a u to m a tic a l ly r o ta te s to c k 1 m in /p a l* 1 0 ,5 2 1TBD S H 1 . In s u ff ic ie n t s p a c e t o s ta g e m u ltip le p a llets lea d sS H 1 . * I n c r e a s e flo o r s p a c e fo r d o c k s ta g in g . L o n g te r m p la n3 m in /p a l* 3 4 ,7 2 0TBD to d o u b le m o v e s o f p r o d u c t w o u ld b e to r e o r g a n iz e w h e n b u ild in g is e x p a n d e d S h ip p in g S H 2 . O p e r a to r is d ed ic a te d to v er if y in g p ic k e d p a lletS H 2 . I m p r o v e p ic k in g o p er a tio n th r o u g h tra in in g a n d s c a n n in g a t2 m in /p a l2 1 ,0 4 2 ^ S e e b e lo w p r io r to s c a n p ic k lo c a tio n w it h b a r c o d e s c a n n er s . S H 3 . O c c a s io n a lly a d d itio n a l p r o d u c t g ets s h ip p e d to S H 3 . C o n fir m a tio n c h ec k b y s c a n n in g o n c e p r io r to lo a d in g tr u c k c u s to m er Increase U t iliz e s p r o b le m S T 1 + O 1 + O 2 + S H 2 s a v in g s d a taD es ig n s o ft w a r e, p u r c h a s e h a r d w a r e , in t e g r a te s y s t e m s a n d1 7 .8 m in /p a l 1 8 6 ,7 4 8 2 4 0 ,0 0 0 in s ta ll o n w a r e h o u s e flo o r .WMS O r g a n iz a tio n a l h ier a r c h y to o s p e c ia liz e d . C a n t tra c k C r o s s tra in o p er a to r s to fill m u ltip le r o le s d u r in g o n e s h ift. P o o lTBDTBD h o u r s c o r r ec tly d u e t o c la s s if ic a tio n o f w o r k er s .a ll la b o r a n d r e d u c e a s n e e d e d . T ra c k la b o r b y g r o u p p r o d u c tiv ity v e r s es in d iv id u a l p r o d u c tiv ity . T o t a l o f a ll p r o je c ts w i t o u t e x p a n s i o n$ 2 3 4 ,0 8 1$ 4 3 0 ,0 0 0( U s in g p r o b le m M 1 , M 2 , P 2 , S T 3 , S T 4 , a n d W M Sd ata) 35. PROPOSED IMPLEMENTATION PLANWithout ExpansionPhase 1. Simple modifications1. Remove bottom rail to allow pallet jack access. (Target date May 2003)2. Lower second tier to remove the need for ladder access. (May 2003)3. Match shelf size with average pallet height to increase the number of pick locations. (May 2003)4. Change speed of conveyor in metal detection room to space product cases properly or implement as part of palletizing relocation. (May 2003)5. Balance flow of orders transferring from the order pickers to verifiers during the entire shift. This can be accomplished by training more utility operators as outlined in the organizational restructuring matrix shown in Section 4. (May 2003)6. Label all pallet rack storage locations to begin transition to warehouse management system(May 2003)7. Place 135 high moving SKUs on first or second tier of the pallet rack. (May 2003) 36. PROPOSED IMPLEMENTATION PLANWithout Expansion Phase 2. Moderate improvements to computer system and operations 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) 37. Warehouse AssessmentValue Stream Map (Future State) With ExpansionBlanket Orders with Daily Releases; Supplemented with Open Market Purchases Blanket Orders Leidys ProductionSpices andPackagingRandomly Placed VariousHogs with Weekly orand Inventory Control Smokehouse Materials Orders (Various Sizes)Customers Bi-Weekly Releases(CSB System) Materials Aging DataDemand: Daily131 to 242 orders per day ProductioAvg: 167/day n1 to 2 pallets/order Schedule 15 to 17 orders per truckDailyWeeklyWeeklyBar Code Scan Bar Code Scan 12 to 13 trucks per day or Bi-or Bi- Daily Shipping Orders (about Warehouse Input Inventory 1 route per truck WeeklyWeekly& Freezer Release400) Updates (5PM) Smokehouse Operations SmokeWrap & PackOff-Site Freezer StorageDailyShipments Smoked (12 to 13 routes) ProductsII MultipleMultiple1, 578K lbs Operators Operators ConveyorStagingKill & CutWrap & Pack Metal Detection Strapping Palletizing Order PickingOrderShipping& Storage Verification 1 to 21 to 21 to 2pallets 1 to 2Cut ProductsCut Productspalletsper I 1 to 21 to 2IpalletsI order Ipallets FIFO per Pallets Pallet orderMultipleMultiple6 to 8 ConveyorRackOperators OperatorsConveyor3PeopleStaging2 2Staging StorageStaging People Dock PeoplePeople 10 cases1100 positions; 30 to 50C/T = 7 sec Locator system,C/T = 10 to 15 5 ordersC/T = 5 min C/T = 1. 5 hoursGap casesC/T =2 secC/T = 2 sec cases per case or 6.8 A items on firstminutes (10 pallets)C/O = 0 min C/O = 0 min C/O =2 minC/O = 1 min 3 separate min per pallet tier, additionalC/O = 0 minRel. = 95%Rel. = 95% Rel. = 95%Rel. = 90% ZonesOrder Lead Time: 2.5 to 4.4 Days Bar code scan C/O = 0 min Rel. = 85% rack above Rel. = 85%Avail. = 49.5 to Avail. = 16.5 hrs Avail. = 16.5 hrs palletizingOrder Processing Time: 2.5 Hrs Avail. = 24.8 610K lbs 66 hrs (2 shifts) hrs (2 shifts) Scan bar codesTakt Time: 3 to 4 minutes 30 seconds 5 sec 6 minutes 2.6 to 3.5 days 8 minutes (Freezer storage:40 seconds 40 13 minutes 10 minutes8 minutes1.5 hours seconds6.7 to 14.5 38. What Happens in the Future State VSM With Expansion? Expand warehouse to provide staging areas Most pallets are staged on floor not in racks Revised order picking methodsPick from pallets not racks Robotic palletizing system based on previously upgraded system Improved production scheduling & planning New markets for frozen products to increase turns 39. PROPOSED PALLETIZING & STORAGE IMPROVEMENTSexpansion1.wmf 40. PROPOSED PALLETIZING & STAGING IMPROVEMENTS 41. The Warehouse Improvement Cycle Assessment RecommendedMethods (VSM)SolutionsLayout Material Handling Visual ControlsContinuousImprovement AutomationImplementationInformationDO IT! Plan Systems