The design of a large and modern warehouse is very complex and
requires a range of skills and disciplines. operations construction
materials handling information systems personnel finance project
management
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Define business requirements and design constraints. Define and
obtain data. Formulate a planning base. Define the operational
principles. Evaluate equipment types. Prepare internal and external
layouts. Draw up high-level procedures and information system
requirements. Evaluate design flexibility. Calculate equipment
quantities. Calculate staffing levels Calculate capital and
operating costs. Evaluate the design against business requirements
and design constraints. Finalize the preferred design.
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warehouse roles throughput levels and storage capacities
customer service levels specified activities government agencies
fire officer insurance company local authority
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product group quantity throughput value throughput seasonality
inventory turn characteristics number of order lines
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order profile order frequency number of order lines for each
SKU time profile unit load and packing requirements service
levels
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number of vehicles per day and by hour types of vehicle unit
load types and profile volume for dispatch route own vehicles or
third-party cross-docking profiles
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basic operations to be undertaken ancillary functions
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security facilities truck parking and manoeuvring areas vehicle
wash and fuelling points
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location, access and ground conditions drawing to show building
dimensions, columns, gradients, etc. drawing to show external area
services
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rent and rate building maintenance and security heat, light and
power wages rate and shift premiums equipment costs, depreciation
rules, maintenance costs
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size, condition, numbers
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This requires data analysis and needs to be presented to the
project team, Steering Group and external stakeholders as clearly
as possible; for example, by means of summary tables, graphs,
charts and drawings.
This process will have a number of objectives such as:
throughput efficiency building utilization safety
environmental
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Other layout considerations include: building spans, column
pitches, required clear operational, heights and floor flatness
tolerances dock area design for vehicle loading and unloading the
location
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Other external layout considerations include: roadway design;
parking areas; gatehouses, fences, barriers and landscaping;
vehicle wash, fuelling and maintenance facilities; fire assembly
area.
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The type of agility required may include the following facets:
volume time quantity presentation information
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This agility may be provided by a combination of available
warehouse resources; land or building equipment staff processes and
systems
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It is often useful to assemble these under the headings of:
building, including land, construction, local rates or taxes,
services and building security and maintenance equipment, including
static and mobile equipment capital costs, and maintenance running
costs staffing, including management, operatives, clerical staff
and maintenance staff information systems, including hardware, soft
ware and implementation costs.
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building: site search, building design, tendering and selection
of the construction company, detailed design, and construction, as
well as ancillary specialism's such as sprinklers and security;
materials handling: detailed design, tendering and supplier
selection, manufacture, installation and commissioning; information
systems: specification, selection, development and testing;
associated areas: for example, transport
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percentage of orders dispatched on time; percentage of orders
fully satisfied; accuracy of order fill; stock availability in the
warehouse; order lead time; returns and customer complaints.
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number of case picked per person hour; number of order lines
picked per person hour; equipment uptime.
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cost per case throughput; cost per pallet stored; conformance
to budget.
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percentage pallet storage capacity used; number of hours per
day equipment is used; number of standard hour worked.
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percentage of locations with correct stock; percentage of SKUs
with correct stock; stock-turn.
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average number of hours between arrival of goods on site and
put away to storage location average number of hours between
customer order receipt and dispatch of goods.
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number of days without an accident; number of days safety
training; adherence to safety audits and hazard monitoring.
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number of days skill training; percentage of staff
multi-skilled; absenteeism and sickness rates.
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electricity and gas usage; water recycling; percentage of
returned goods or packaging recycled.
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These measures serve different purposes and therefore may be
classified in different ways, for example: leading and lagging
indicators single and joint indicators external and internal
indicators
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It is particularly important to monitor the operational
parameters that define the context in which the warehouse is
operating. These operational parameters include: throughput; number
of SKUs; unit load characteristics; product characteristics; lines
per order; units per order line; added value requirements.
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The use of computer-based information technology is now the
norm in most warehouses, and is essential for the management of
large facilities. The WMS normally interfaces with the companys
main transaction system to access information such as purchase
orders and to download customer orders. In turn, the WMS will feed
back information such as goods received and dispatched.
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WMS functionality covers all the activities of the warehouse,
as shown in the examples below: receiving; put-away; replenishment;
picking; added value services; packing; cross-docking; sortation;
dispatch; management; stock counting.
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Bar codes are the most common form of capturing data by
automation. A bar code comprises a number of vertical bars of
varying thicknesses. Each combination of bars represents a letter
or number. There are a number of symbologies established by
different organizations for varying purposes.
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OCR labels can be read by both humans and text scanners.
However, this technology tends to be less reliable than bar coding
and data formats are limited. OCR technology is more common in
document handling.
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RFID is being applied increasingly in supply chain for the
tracking of unit loads, for carton identification and for security
and other purposes at item level. RFID is basically the
identification of items by means of radio waves. There are normally
four components of such a system: a tag an antenna a reader a host
station
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Error rates in automatic identification systems tend to be very
low.
