Techiques & Methods in Analysing Data for use in Desiging Warehouse, DC's, or Factories

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Techniques and Methods in Analyzing Data for use in Designing

Warehouses and Distribution Centers

Do you ever feel Squeezed from All Sides?

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Customer Operations

CLIENT/CUSTOMER FORCES

• Increased service requirements

• Lower costs

• Growing business

• More product/material SKU’s

INTERNAL FORCES • Growth pains • New derivatives • Cost/service issues • Space issues • Commingled process flows • Strained information

infrastructure

COMPETITIVE FORCES • Lower costs • Innovative product

and service offerings • Speed to market • Service levels

MANAGEMENT FOCUS • Improve productivity • Reduce cycle time • Same day shipment

Let the DATA Tell the Story of your Company!

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• The data can determine the activity of every SKU. • SKU Activity (many follow 80/20 rule, 20%

of SKUs represent 80% of Activity) • It can find your slow mover SKUs • It can find your dead stock, that hasn’t moved

in over a year. (remember carrying costs on that stock is 25% per year)

• It will tell you in what type of storage and/or pick medium to place your SKUs

Let the DATA Tell the Story of your Company!

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• It can tell you how much “cube” is required for your facility.

• It can determine the amount of manpower required for your facility.

• It can also tell you how large your facility needs to be, now, and in the future.

What Kind of File Type is Needed

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• It is best to get data in a text file format. • A large quantity of data can fit onto a text

file. • Files with less than a million lines can fit into

an excel spreadsheet (MS-Excel 2007 or newer) • Summary data e.g. growth data can be placed

onto a spreadsheet. • Use MS-Access to run queries on files to gather

results, > than 2Gb files use SQL. • Once queries are complete, then export results

to Excel to graph and chart results.

What Needs to be in the Data?

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• Transaction History (Orders or picking history) • Order No, • Date, • Time (if available), • SKU Number, • Description, • Line No., • Quantity by Bottle and/or Cases, • Pick Location,

• Transaction code (pick, ship, transfer, etc).


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• Partmaster File • SKU Number, • Description, • Unit Type, • Units / Case • Cases / Pallet • Case Size (LxWxH) • Case Weight

• On-Hand Inventory • SKU Number, • Description, • Quantity by Units • Quantity by Cases • Location


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• Receiving History (if not included in transaction history) • Order Number • Date • SKU Number, • Description, • Quantity by Units • Quantity by Cases

• Shipping History (if different from transaction history) • Order Number • Date • SKU Number, • Description, • Lot (if applicable) • Quantity by Units • Quantity by Cases • Customer

Types of Graphs & Charts

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Types of Graphs & Charts

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Summary of Data Analysis

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• Summary identifies: • Actual Data of each analysis • Average of Data • 1st Sigma of data, this compensates for highs and lows in the

data, and allows you to design to a realistic level. • Where applicable, use a moving average to identify seasonal

trends

• By activity and cube of data, it can determine

the amount of manpower required for your facility.

• It can also tell you how large your facility needs to be, now, and in the future.

Using Data to Design a System

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• Using data one can determine what kind of storage/pick medium each SKU should be placed.

PALLET FLOW: This storage medium is for very high active products, allowing the picker to pick complete cases and partial case picks. For this analysis it is used for items where 2 or more cases are picked per day.

CASE FLOW: This storage medium allows the picker to pick individual items or full cases if required. This medium can pick items very quickly. For this analysis, any item that is picked at least once every 2 day should be placed in this medium.


PICK-TO-LIGHT: This pick medium is for “each picks” or “pre-bagged material”, where each item has a pick rate of 1+ picks per hour.

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AUTOMATED STORAGE & RETREIVAL SYSTEMS (AS/RS): This storage medium is for slow items. AS/RS systems are used when floor space is at a premium or the foot print of the building is very small, and going vertical makes sense. In this analysis, any item that is picked less that 1 pick every 4-5 days is located in this medium.

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STATIC PALLET RACK: This storage medium is for pallet storage and can be used to pick slow to “dead” items. In this analysis, any item that is picked less that 1 pick every 5 day or more is located in this medium.

SHELF PICK: This storage medium is for case storage and can be used to pick slow to “dead” items. In this analysis, any item that is picked less that 1 pick every 5 days or more is located in this medium.

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85.3%

92.3%95.4%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

0

15,000

30,000

45,000

60,000

75,000

90,000

105,000

120,000

135,000

150,000

1 938 1875 2812 3749 4686 5623 6560 7497 8434

Cu

m %

Qu

anty

Pic

ked

pe

r SK

U

SKU Sequence in order of Activity

SKU Activity-Qty InvoicedMay 2012-Sep 2012

Qty Invoiced Cum % of Activity

10% 20% 30% 40% 50% 60% 70% 80% 90%

19% of Quantity Picked 3,865 SKUs

Storage Medium Shelf Pick or ASRS

68% of Quantity Picked 800 SKUs

Storage Medium Case Flow

10% of Quantity Picked 38 SKUs

Storage Medium Pallet Flow

3% of Quantity Picked 4,665 SKUs

Shelf pick or Static Pallet Rack

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Designing a System-VA / NVA Processes

A Area & Flow Rack

Picking

Receiving

Wire Storage &

Picking

Bulk Storage &

Picking

B Area Shelving &

Picking

Branch Store Staging

Branch Store LoadingSmall

Order

Staging

Truck Loading

Pipe Order Staging

Pipe Storage &

Picking

Stretch

Wrapping

Route

Staging

Truck

Staging

Wire Order Staging

1

2

3

4

5

7

891011

121314

6

15

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28 29

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4344

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61 62

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Designing a System-VA / NVA Processes

1. Receiving

2. Verify received material against

3. Print Labels

4. Apply labels to pallet/carton

5. Separate items between A, B, Bulk, and Wire

6. Move products to specific putaway areas

7. Putaway items into rack position

8. Walk down pick aisles to identify SKUs that

require replenishment

9. Identify replenishment SKU

10. Pull SKU from putaway position

11. Place SKU into pick position

12. Get order form

13. Go to “A” pick area

14. Get Tote

Repeat 15-17 for 4 lines per Order in Area A

15. Read order form for 1st pick

16. Go to SKU location

17. Pick & place SKU into tote/pallet

27. When order is complete in zone past to next

zone or push onto take-away conveyor

Automated: If orders are ins Area B, a pusher

pushes the tote into Area B

28. Get Tote

Repeat 29-31 for 2 lines per Order in Area B

29. Read order form for 1st pick

30. Go to SKU location

31. Pick & place SKU into tote/pallet

35. When order is complete in zone past to next

zone or push onto take-away conveyor

Automated: Order/Tote is conveyed to end of

conveyor

36. Determine if order is a

a. Branch order,

b. small order,

c. Or to be palletized and continued

into the bulk area.

1. Follow the path of a typical part as it flows from

receiving through shipping in a typical order.

2. Record every step where the product is touched or

an action is taken upon it.

3. Identify each touch as a “Value-added” or “Non

Value-added” touch.

What is VA/NVA Flows?

Value Added

Touch

Non Value

Added Touch

= 11

= 97

Total Touches 108

Touch Summary

Branch Orders:

37. Pick up order from conveyor and move to

specific branch container

Small orders:


small order area

39. Get MT carton

40. Place order in carton

41. Close carton

42. Place order label onto carton

43. Place carton onto shelf for the specific Zip

Code

Orders with picks in bulk areas:

44. Get MT pallet


pallet.

46. Get pallet with forklift

Repeat 47-51 for 3 lines per Order in Bulk Area

47. Read order

48. Move pallet to bulk areas for picks

49. Locate pick

50. Pick specific qty of SKU

51. Place pick on Pallet

62. When order is complete move pallet to

stretch wrappers

63. Stretch wrap pallet

64. Place pallet on floor in order of Route

65. QC to inspect each SKU on pallet (9 SKUs)

66. Repeat 65 for 8 more SKUs

74. Manually sort invoices by trucks

75. Move and sort 2 pallets per order by trucks in

routes as designated by #69

For Wire Area

77. Read order

78. Get Pallet

79. Go to Location

80. Get wire spool (pick wire)

81. Get empty wire spool

82. Place onto wire spooler to measure required

amount

For Wire Area

83. Measure wire

84. Cut wire

85. Disassemble spooler

86. Place measured wire spool onto pallet

87. Move take-off spool back to original pick

location

88. Tag measured spool

89. Move pallet to stage location

When orders are complete

90. Sort pallet to correct delivery truck

For Conduit Piping Area

91. Read order

92. Go to location /w forklift

93. Select required qty of pipe (pick pipe)

94. Tag Qty picked

95. Move picked qty to outside cantilever rack

96. Place pipe onto cantilever rack

Sort Conduit Piping

97. Find specific order/Truck/Route pick in Piping

area

98. Place onto dock in order of Truck

Load Trucks

99. Find specific orders by truck location in Bulk

100. Get 1st pallet from A, B, & Bulk area

101. Place onto truck

102. Get 2nd pallet from A, B, & Bulk area


104. Find specific orders by truck location in Wire

Area

105. Get pallet from Wire Area


107. Get Piping for order


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Designing a System-Flow Charts

BULK

AREA

AREA

A

ReceivingVerify

Invoice

against

Received

Material

Move to

Putaway

Putaway

In A Area

Re-

plenish

Putaway

in B Area

Putaway

In Bulk

Area

Putaway

In Wire

Area

Putaway

In Pipe

Area

Re-

plenish

Re-

plenish

Pick Pick Pick Pick Pick

Are

there any more

picks in A

Yes

Are

there any more

picks in B

Yes

No

No

Are

There any

picks in

Bulk

What

is Size of

Order?

Carton SizeSort by

Zip Code

PalletPallet

Required

Are

there any more

picks in

Bulk?

Yes

Place in

Carton

Stretch

Wrap

Are

there any more

picks in

Wire?

Yes

Are

there any

more picks in

Pipe?

Yes

Stage

Outside

Is this

order for a

Branch

Store?

NoPlace in

Green

Store

Container

Move to

Truck

Load

Branch

Trucks

Stage

Route #1

No

Stage

Route #2

Stage

Route #3

Stage

Route #4

Stage

Route #5

Stage

Route #6

Sort to

Truck

Move to

Stage Area

Move to

Sort Area

Stage

Route #1

Stage

Route #2

Stage

Route #3

Stage

Route #4

Stage

Route #5

Stage

Route #6

Sort to

Truck

Move to

Sort Area

Move to

Truck

Load

Trucks

Move to

Truck

Move to

Wrapper

Are t

here Picks in B

for this

order?

Yes

WIRE

AREA

PIPE

AREA

Print Label

Place

Label on

Pallets

AREA

B

Consolidate Pallets

to Routes & Trucks

Consolidate Pipe

to Routes & Trucks

Inspect

Invoices to

Pallets

Are orders

correct?

Correct

Order

No

yesNo

No

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Designing a System Conventional Warehouse Design

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Designing a System Conventional Warehouse Design

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Designing a System Small Hybrid Distribution Center Design

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Designing a System Large Automated Distribution Center Design

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Designing a System Factory Automation Buffer Design

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Designing a System Factory Automation Buffer Design

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The Desired Results

• By using data analysis, all critical decisions are objective and based upon statistical data.

• A layout design that is dynamic, and can be modified as the sales and market conditions change.

• Reduction of Non-Value Added touches • Improved Cycle time from order to ship • A Customer that is satisfied and will be a

repeat Customer.

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Documents

Techiques & Methods in Analysing Data for use in Desiging Warehouse, DC's, or Factories