ICT ATELIER

ORGANISATION FOR

SYSTEM TO BE

Version 2.0

Kwinten Joly

CONTENTSSOURCE..............................................................................................................................................3

GENERAL VIEW......................................................................................................................3OBJECTIVES............................................................................................................................4KPI.............................................................................................................................................4WORKFLOWS..........................................................................................................................5

ACCEPT GOODS...............................................................................................................5COLLECT GOODS............................................................................................................5STOCK GOODS.................................................................................................................5SORTING GOODS.............................................................................................................6

ENABLE SOURCE..............................................................................................................................7GENERAL VIEW......................................................................................................................7OBJECTIVES............................................................................................................................8KPI.............................................................................................................................................8WORKFLOWS..........................................................................................................................8

PLAN TRANSPORT...........................................................................................................8MATERIAL OUT................................................................................................................9

DEFINITIONS...........................................................................................................................9PROCUREMENT..............................................................................................................................11

GENERAL VIEW....................................................................................................................11WAREHOUSE ORGANISATION..........................................................................................11

PRODUCT LOCALISATION............................................................................................................13DEPARTMENTS & TASKS..............................................................................................................13DEFINITIONS...................................................................................................................................16INVESTMENTS................................................................................................................................17REFERENCES...................................................................................................................................18

SOURCE

GENERAL VIEW

• Receive email / telephone call for collection of goods

• Contractual donor ?

• Quantity and quality of goods ?

• Create new collection order (1...n possible collections)

• Add donor list to database

• Add donor information (supplier)

• Execute collection order → collect goods

• Handle goods

• Make scrap decisions

• Mark collected goods (pallets) with collection ID

• Encode number of collected pallets / bins

• “Stock” goods in buffer zone

• Sort goods according to collection order !!

• Take the oldest goods (pallet) from the buffer zone (FIFO)

• Encode treatment of pallet

• Create standard UOS1 for the same material

• Produce products made to stock in UOS → ACCESORIES / CRT / ...

• Make scrap decisions

• Add material to stock (encode) per UOS

• Mark UOS with identifier

• Take UOS from sorting

• Add to physical stock

• Connect warehouse localisation with UOS ID

1 UOS → Unit Of Supply, standard quantity of items (see ENCODING ON LEVEL 0)

COLLECTGOODS

SORTGOODS

STOCKGOODS

ACCEPTGOODS

UNKNOWNGOODS ENTER

UNKNOWN STOCK

KNOWNGOODS ENTER

KNOWNSTOCK

COLLECTIONORDER

COLLECTIONREQUEST

OUT

OUT

PRODUCTSCAN BE

LOCATED INWAREHOUSE

OBJECTIVES

• Treatment of all goods !

• Direct encoding in all steps of source process

• Every product, UOS can be located, date of entry is known, origin is known

• Early scrap decisions → 1. arrival – 2. sorting – 3. liquidation

• Complete view on current stock

• Efficient use of transportation and warehouse resources

• Fast treatment of goods trough technological aids

• product database

• bar-code identifier + bar code scanners

• Follow flow of products from arrival to departure

• Better view on staff needs

KPI

CRITERIA MEASURE

SUPPLIERS

Quality of products received % of goods used

Amount of products received Number of items

Reliability of donations

COLLECTIONS

Percentage of collection orders completed on time % on time

Correct estimation of amounts – collections

FLOW OF GOODS

Occupancy of buffer zone % occupied

Average time spent in buffer zone Time spent

Average time spent from collection to stock Time spent

Number of pallets/bins received per unit of time Number of items

SORTING

Number of pallets treated per unit of time Number of pallets

Number of items treated per unit of time Number of items

WORKFLOWS

ACCEPT GOODS

COLLECT GOODS

STOCK GOODS

SORTING GOODS

ENABLE SOURCE

GENERAL VIEW

• Keep transport schedule for every transport resource (time sheet)• Have a standard (automatic) procedure to communicate transport

needs to demets and other centres• Keep track of resources spent for transports• Keep track of transportation cost• Use transport priority levels

• delayed / cancelled / important customer – supplier • Get transport request• Schedule transport

• Install product database • Database with product details for automatic encoding of recurring

items.• Use of on-line databases for automatic product entry by product id /

EAN/UPC code• icecat.biz (free)• spex (subscription)

• Negotiate product lists with supplier – to use supplier identification for automatic encoding – in future contract negotiations.

• All waste handling centralised in one location, one responsibility• Receive waste• Check product value• Encode waste• Create waste pallets• Weigh waste pallets• Transport request

• Collection order• Bar codes• Encoding on level 0

• Product data• UOS• Identifier

• Transport request

PLANTRANSPORT

PRODUCTDATABASE

MATERIALOUT

DEFINITIONS

TRANSPORTREQUESTOUT & IN

TRANSPORTDATE

UNKNOWNPRODUCT

SCRAP /WASTE

KNOWNPRODUCT

READY TO

SHIP

OBJECTIVES

• Enable fast an easy encoding of goods trough product database

• Every shipment (IN & OUT) has a planned shipment date

• Transport requests are are made for every movement of goods IN & OUT

• For every product, detailed information is present

• Pictures

• Technical specifications

KPI

CRITERIA

TRANSPORT

Percentage of transports effectuated on time % of transports

Use of transport resources % used

PRODUCT DATABASE

Percentage of products found automatically % found

Correctness of retrieved data Number of faults

WASTE MANAGEMENT

Number of kilos treated per unit of time Kg per unit of time

Occupancy of waste zone % occupied

WORKFLOWS

PLAN TRANSPORT

MATERIAL OUT

DEFINITIONS

COLLECTION ORDER• Every collection is done according to a collection order• For every collection a collection order is made• Data

• Estimated number of pallets – Date of pick up • Supplier• Real pick up date – number of pallets

ENCODING ON LEVEL 0

CLASS PACKAGE STD UOS ENCODING DETAILS

SCREENS

TFT CARDBOARD BOX

5 BOX NUMBER#2 - INCH – ED3

CRT PALLET 18 PALLET NUMBER# - INCH – ED

NO-PC ITEM 1 ITEM NUMBERTYPE – INCH – ED

PC

PC-DPALLET 20 - 24 PALLET NUMBER

# - TYPE – ED PC-T

PC-SM

LAPTOP CARDBOARD BOX

5 – 10 BOX NUMBER# - TYPE – ED

PRINTER

PR-SMPALLET 8 - 40 PALLET NUMBER

# - TYPE – ED PR-NO

PR-LA

ACCESORIES

KEYBOARD CARDBOARDBOX 10 - 50

BOX NUMBER# - TYPE - EDMICE

CABLES

VGACARDBOARD

BOX

10 - ?( by

Weight)BOX NUMBER# - TYPE - ED

POWER

PRINTER

MISC4 (HIGH VALUE)

MISC ITEM | BOX | PALLET

1 - ? ITEM-BOX-PALLET NUMBER # - TYPE – ED

2 # → QUANTITY3 ED → ENTRY DATE4 MISC → COPIER – SCANNER – BEAMER – HI-FI – SERVER – SMARTPHONE

PRODUCT ENTRY – LEVEL 0

BAR CODES• Every item (product, UOS) or (sales, picking, collection) order has a bar code as

identifier• System can automatically recognize supplier bar codes• Use of CODE 39 bar codes• Bar code labels are printed in house

TRANSPORT REQUEST• Every shipment need in or out uses a transport request• Introduce levels of priority (low-high)

• for delayed shipments• for cancelled shipments• for important customers

PROCUREMENT

GENERAL VIEW

• Stockable Product : this product is used in stock management and its replenishment is more or less automated as defined by the rules established in the system.

• Consumable : handled in stock management, you can receive it, deliver it and make it. But its stock level isn’t managed by the system.

• Make to Stock : your customers are supplied from available stock. You procure a set quantity of each product when its stock is too low.• Make to Order : when a customer order is confirmed, you then procure or manufacture the products for this order.

• Produce : when the product or service is supplied from internal resources• Buy : when the product is bought from a supplier.

PRODUCTTYPE

PROCUREMETHOD

SUPPLYMETHOD

WAREHOUSE ORGANISATION

Storage capacity: 210 PALLETS (420 PALLETS PC-D / PC-SM = ± 10080 PC-D )• Current ORDERS zone → 20 to 30 PALLETS• Current WASTE zone → 20 to 30 PALLETS

Storage cost: 6550 + (24750 / 3) = 8250 € / year for ground floor5

→ 8250 / 210 + 20 + 20 = 33€ / year per pallet→ 33 / 365 = 0,09 € / day per pallet

Organisation To Be:

• BUFFER ZONE• Intermediate stocking of donations• Encoding of pallets → date of entry & collection number • ¼ of total STOCK capacity (~50 Pallets)• FIFO

• SORTING ZONE• For sorting and encoding of incoming goods

• STOCK ZONE• ¾ of total STOCK capacity (~150 Pallets)• RESOURCES AND FINISHED PRODUCTS• Only Pallets• All pallets are encoded → connection Pallet location (Zone, Rack) to Pallet

number • NICHE ZONE

• Small capacity (~10 Pallets)• For special items• Ebay• All items are encoded

• ACCESSORIES ZONE• Stock boxes of accessories in piles by type• Do(not) use pallets for this• All boxes are encoded (level 0)

• WASTE ZONE• All waste arrives here• Encoding and packing of waste• Shipment of waste from this location

• ORDER ZONE• Place for picked orders• Shipment of orders from this location

5 Based on document K:\COMPANY\Tweedehands-SecondeMain\ATELIER\Gestion Commune\Prix de Revient (2007-2008) – used as indication only

PRODUCT LOCALISATION

• Every encoded product can be found in (and outside) the organisation

1. Internal Localisation• Create localisation on different departments

• Warehouse / Production / Logistics• Follow products trough production chain

2. External Localisation• Create localisation in different warehouses

• 4VENTS → subdivided in internal localisation• Shops• Centres• Customers

• Follow products trough supply chain

PRODUCT DEFINITIONS

• No more product status levels (net, brut, …)• Definition of products (→ resources) and configurations (→ finished products)

PRODUCT PRODUCT TYPE PROCURE METHOD

SUPPLY METHOD

SCREENS

CRT STOCKABLE MAKE TO STOCK PRODUCE

TFT STOCKABLE MAKE TO STOCK PRODUCE

ACCESORIES

BOX MOUSE CONSUMABLE MAKE TO STOCK PRODUCE

BOX CABLE CONSUMABLE MAKE TO STOCK PRODUCE

BOX KEYB CONSUMABLE MAKE TO STOCK PRODUCE

PRINTERS

PR-SM STOCKABLE MAKE TO ORDER6 PRODUCE

PR-NO STOCKABLE MAKE TO ORDER PRODUCE

PR-LA STOCKABLE MAKE TO ORDER PRODUCE

PC

FORMATTED STOCKABLE MAKE TO ORDER PRODUCE

CONFIGURATED STOCKABLE MAKE TO ORDER PRODUCE

DEPARTMENTS & TASKS• Every department has a responsible• Every department is responsible for a set of tasks/operations• System 'to be' takes care of flow of data between departments• Departments

1. LOGISTICS2. WAREHOUSE3. WASTE MANAGEMENT4. PRODUCTION5. SALES6. COORDINATION

6 MAKE TO ORDER REQUIRES BILL OF MATERIALS !

1. LOGISTICS → IN & OUT LOCATED WHERE GOODS ENTER AND LEAVE !

• Plan transport for DELIVERIES• customer• shops / centre• poudrière• internal

• Plan transport for DONATIONS• expected numbers of pallets• expected number of employees needed for material handling• expected number of trips

• Manage transport independently • Truck demets 2 days per week• Van atelier

• Communicate transport needs with demets (centre)• Common planning demets - 4vents

• Reception of customers• Encode number of pallets received → date / donor• Maintain donations database• Maintain transport schedule

2. WAREHOUSE → SORT & STOCK

• Reception of goods• Sorting of goods• Encode products as BRUT • Picking of orders• Stock products with status BRUT & NET

3. WASTE MANAGEMENT LOCATED WHERE GOODS ENTER AND LEAVE !

• Handing of waste• Create scrap pallets• Encode waste• Check waste status → return to STOCK

4. PRODUCTION

• Test & configuration of products made-to-order• Test & configuration of products made-to-stock• Products:

• computers• screens• printers• laptop• scanners• servers

• niche products (e.g. Hi-Fi, beamer, non-computer LCD, pocket PC, …)• Focus on key products & high value• Create and maintain product database

• used for BRUT encoding• Create and maintain technical database

• procedures• used for formation of employees

• Encode detailed product information• Keep and control (standard) stock levels of different products• Control flow of goods to and from production department• Only work on production orders !

5. SALES

• Coordinate all sales• CRM

• Donors• Internal customers → Oxfam / Shops• Other

• Sales issues• Shops• Wholesale• Internal• Easy-(e)-spacE• Web Sales (Ebay)

• Treatment and decisions concerning niche products• Decisions of liquidations• Order input

• make to stock → WAREHOUSE → LOGISTICS • make to order → PRODUCTION → WAREHOUSE → LOGISTICS

• Definition of configurations and products → MTO• Definition of standard stock levels → MTS

6. COORDINATION

• General management• Define KPI's and follow up • HR-management

• Install system for formation and evaluation of employees• Install motivators

• Business scope diagram

DEFINITIONS• Product

• Goods that can be sold• Can be composed of different products (configuration)• Has a unique identifier• Has a location• Has a state

• Collection• Goods that are coming in• Can be multiple pick ups

• Pallet• Composition of products (minimum 1)• Can be a mixture of product types• Unit of transport between departments• Has a location• Has a unique identifier → Bar code

• Sales Order• Composition of products• Composition of pallets• Has a status• Has a client

• Has a unique identifier• Can be return order• Can be backorder• Can be repair order

• Shipment• Unit of transportation to customers• Composition of orders• Has a previewed shipment date• Has an actual shipment date• Has an unique identifier

• Collection• Has a previewed pick up date• Has an actual pick up date• Is a composition of pallets• Has a unique identifier

INVESTMENTS1. First stage

2. Second Stage

• Touch screens for product encoding• Mobile devices for drivers → encoding at collection

PRODUCT QUANTITY PRICE TOTAL

Bar code readers 9 100,00 € 900,00 €

Production Tables PC: 4Production SCREENS: 1Production PRINTER: 1Warehouse sorting: 1Waste management: 1Logistics: 1Label printers 6 6 140,00 € 840,00 €

Pallet labels: 3 (every floor) Number labels: 3 (every floor) Workstations 10 -> Internal resource

?

?

1.740,00 €

Production Loss -> To Take into account !!Training -> To Take into account !!

REFERENCES

(1) “Stores & Warehouse Operations and Management”A free on-line course and reference

http://www.gmcs.co.uk/stores.htm#ch1.9.6

(2) “Open ERP, a modern approach to integrated business management”Release 1.0 F. Pinckaers, G. Gardiner

http://doc.openerp.com/book/index.html#books-link

(3) “Supply-Chain Operations Reference-Model”Supply-Chain Council

http://www.supply-chain.org/f/SCOR 90 Overview Booklet.pdf

(4) “