Applying Lean Concepts in a Warehouse Operation

Frank Garcia Partner ADVENT DESIGN CORPORATION

What Well Cover

Basic Lean Concepts for Warehouse Improvement Using Value Stream Maps: Current & Future State Implementing Process Improvements Case Study Using and Ongoing Application (Pork Producer)

WHAT TO DO ABOUT THE WAREHOUSE?

Too many people Excessive material handling Inventory inaccuracies Dont ship the pounds No space!!!! Need to Expand!

WAREHOUSE CHALLENGES

Focus on Manufacturing. Warehouse is a box on the VSM Office & Info Flow Customer Demands Product pushed into warehouse & pulled by customers Warehouse Application of Lean Principles to an area that exists because of waste in the value stream or customer Production Suppliers demand/lead time Warehouse is the crossroads of conflicting requirements

How Do We Use Lean Techniques for Warehouse Improvement?

Assess the operation using a Value Stream Map and/or PFDs (Product families & Warehouse data) Involve the operators & supervisors Identify lean improvements & kaizens
Question every activity! Treat the warehouse like a large staging area

Develop justification Implement lean improvements using VSM plan Start the cycle again!

Lean Manufacturing
Fundamental Principle of Lean Manufacturing

Any activity or action which does not add value to the product is a form of waste and must be eliminated or minimized. In the Warehouse Customer Pays for Shipping Everything Else Must Be Minimized !

What Do We Need to Know?

Demand Material Flow & Handling Information Flow to the Warehouse How Material is Stored Order Picking & Staging How Shipped

VALUE STREAM MAPPING!

Why Use VSM?

Road map for lean improvements Train team members in use of lean concepts Integrated lean implementation plan Long term planning - Many Future States

product family

Current State Map

Understanding how the warehouse currently operates. Material and information flows Start with the door to door flow Walk the flow and get real data * no standard times * draw by hand Get operators & supervisors involved Basis for the Future State

current state drawing Future state drawing

plan and implementation

Warehouse Current State

Value Stream Map
Blanket Orders with Daily Releases; Supplemented with Open Market Purchases

Hogs

Spices and Smokehouse Materials

Packaging Materials

Blanket Orders with Weekly or Bi-Weekly Releases

Production and Inventory Control (Computer System)

Randomly Placed Orders (Various Sizes)

Various Customers

Daily (about 400)

Weekly or BiWeekly

Weekly or BiWeekly

Daily Productio n Schedule Daily Shipping Orders & Freezer Release (5PM) Smokehouse Operations Smoke Aging Report

Demand: 131 to 242 orders per day Avg: 167/day 1 to 2 pallets/order 15 to 17 orders per truck 12 to 13 trucks per day 1 route per truck

Wrap & Pack Smoked Products

Off-Site Freezer Storage

Daily Shipments (12 to 13 routes)

I
Conveyor Staging Palletizing & Storage 1 to 2 pallets 3 People C/T = 7 sec per case or 10 min per pallet C/O = 0 min Rel. = 85% Avail. = 24.8 hrs (2 shifts)

I
1, 578K lbs

Multiple Operators

Multiple Operators

Kill & Cut

Wrap & Pack

Metal Detection

Strapping

Order Picking 1 to 2 pallets per order 6 to 8 People C/T = 10 - 35 minutes C/O = 0 min Rel. = 85% Avail. = 49.5 to 66 hrs (2 shifts)

Order Checking & Scanning

Shipping 1 to 2 pallets per order 2 People C/T = 4 hours C/O = 0 min Rel. = 85% Avail. = 16.5 hrs

Cut Products Multiple Operators

Cut Products Multiple Operators

I
Conveyor Staging 10 cases

1 to 2 Pallets

1 to 2 Pallet

I
Conveyor Staging 10 to 15 cases

I
Rack Storage 775 positions; 7 reefers; 610K lbs

I
Staging Palletizing & Dock 6 orders (12 pallets)

1 to 2 pallets

Order Lead Time 3.7 to 6.1 Days Order Processing Time: 6 Hrs Takt Time: 3 to 4 minutes
30 seconds

C/T =2 sec C/O =2 min Rel. = 95%

C/T = 2 sec C/O = 1 min Rel. = 80%

Staging 2 for Trucks People 2 orders C/T = 15 min (4 pallets) C/O = 0 min Rel. = 85% Avail. = 16.5 hrs

5 sec

6 minutes

2.9 to 5.3 days (Freezer storage: 6.7 to 14.5

40 seconds

40 seconds

20 minutes

35 minutes

20 minutes

15 minutes 10 minutes

4 hours

Important Warehouse Data

2002 Product Picks (All)
700 609

600 500 400 300 200 100 0 31 16 8 5 1 1 0 0 0 0 1

1 to 1001 to 2001 to 3001 to 4001 to 5001 to 6001 to 7001 to 8001 to 9001 to 10000 11001 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 to to 11000 12000

Number of Line Item Picks

10% products = 66% of picks 20% products = 84% of picks

60mm pounds per year 6.8 turns per month Seasonal production. Production exceeds shipments by 20% Easter & Xmas Average 1.2 pallets per order. Average 167 orders/day 95% of picks are for less than a pallet Returns 1.9% of lbs shipped

Number of Product Items

Opportunity: Material Flow & Layout

Many crossed flows !

Opportunity: Walking and Lifting in Palletizing

Little case accumulation Case lifting and walking Pallet cycle time too long Cases missing straps Area used for order staging No visual controls

Opportunity: Rack Storage and Utilization

Daily Product Aging Counts Insufficient pallet storage for peak months No rack locator system Reefers used for overflow storage Product gets lost Rely on operator memories or supervisor expediting

Opportunity: Order Picking & Shipping

Order picking too slow Must pick before final order confirmation Few operators understand warehouse Dock staging too small Inventory updated at scanning Not enough dock doors

ORDER PICKING FLOW

FRESH SMOKED FROZEN

GET PICK LIST

GET LOAD PATTERN

LOCATE PALLET IN WAREHOUSE

MOVE PALLET CASES 95% OF TIME MOVE PALLET

LOCATE PALLET IN DOCK RACKS

PICK CASES OR PALLETS

REPEAT UNTIL ORDER COMPLETE

STORE PALLET

PALLETIZING AREA DOCK

STAGE ORDER
MOVE TO INSPECTION

CHECK ORDER

SCAN BAR CODES

MOVE TO TRUCK

LOAD TRAILER

Why is Order Picking Slow?

computer-looking 2% Walking 8% reorganizing productdates 11% Looking 34%
computer-looking interference Looking outside interruption Picking reorganizing product-dates Walking

interference 2%

Picking 38%

outside interruption 5%

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

Opportunity: Production Scheduling Not in Sync With Shipments or Warehouse Capacity

Pallet storage in aisles Insufficient pallet storage for peak months Outside Freezer Warehouse Used used for overflow storage

How Do We Fix It?

Look at Application of Lean Concepts Future State Using Value Stream Maps With & Without Expansion

Future State Questions

What is the takt time? Will we build to shipping or to a supermarket? Where can we use continuous flow? How do we level the pacemaker process?

SUPPORTING IMPROVEMENTS What process improvements will be necessary to eliminate waste?

TAKT Time

Synchronizes pace of production to match pace of sales Rate for assembling an order based on shipping schedule

TAKT = Effective Working Time per Shift Customer Requirement per Shift

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 Movement Waiting Extra Motion Non-Value Added Processing

Lean Manufacturing Concepts & Techniques in the Warehouse

Flow: Visual Workplace, Layout Improvement, Lean Automation Materials: Kanban Systems, Supply Chain Management, Point of Use Perfection: Quality Systems, Training Information: Just in Time, Lean Office

Warehouse Assessment
Value Stream Map (Future State) Without Expansion
Blanket Orders with Daily Releases; Supplemented with Open Market Purchases

Hogs

Spices and Smokehouse Materials

Packaging Materials

Blanket Orders with Weekly or Bi-Weekly Releases

Leidys Production and Inventory Control (CSB System)

Randomly Placed Orders (Various Sizes)

Various Customers

Aging Data
Demand: 131 to 242 orders per day Avg: 167/day 1 to 2 pallets/order 15 to 17 orders per truck 12 to 13 trucks per day 1 route per truck

Daily (about 400)

Weekly or BiWeekly

Weekly or BiWeekly

Daily Productio n Schedule Bar Code Scan Warehouse Input Daily Shipping Orders & Freezer Release (5PM) Bar Code Scan Inventory Updates

Smokehouse Operations Smoke

Wrap & Pack Smoked Products

Off-Site Freezer Storage

Daily Shipments (12 to 13 routes)

I
Conveyor Staging Palletizing & Storage 1 to 2 pallets 3 People

I
1, 578K lbs

Multiple Operators

Multiple Operators

Kill & Cut

Wrap & Pack

Metal Detection

Strapping

Order Picking 1 to 2 pallets per order 6 to 8 People C/T = 10 to 15 minutes C/O = 0 min Rel. = 85% Avail. = 49.5 to 66 hrs (2 shifts) Scan bar codes

Order Verification 1 to 2 pallets 2 People C/T = 10 min C/O = 0 min Rel. = 85% Avail. = 16.5 hrs FIFO

Shipping 1 to 2 pallets per order 2 People C/T = 2 hours C/O = 0 min Rel. = 85% Avail. = 16.5 hrs

Cut Products Multiple Operators

Cut Products Multiple Operators

I
Conveyor Staging 10 cases Gap cases

1 to 2 Pallets

1 to 2 Pallet

I
Staging Dock 2 orders (4 pallets)

C/T =2 sec C/O =2 min Rel. = 95%

Order Lead Time: 3 to 4.9 Days Order Processing Time: 3 Hrs Takt Time: 3 to 4 minutes 30 seconds
40 seconds

Conveyor Staging 30 to 50 C/T = 2 sec cases C/O = 1 min 3 separate Rel. = 90% Zones Bar code scan

Rack Storage 883 positions; C/T = 7 sec Locator system, per case or 6.8 A items on first min per pallet tier, additional C/O = 0 min rack above Rel. = 85% palletizing Avail. = 24.8 610K lbs hrs (2 shifts) 2.6 to 4.5 days (Freezer storage: 6.7 to 14.5 days) 13 minutes

5 sec

6 minutes

15 minutes

40seconds

20 minutes

8 minutes

2 hours

What Happened in the Future State VSM Without Expansion?

Implemented rack locator system & organized storage based on product turns Revised order picking methods Implemented WMS Improved palletizing system Reduced job classifications & cross trained operators Established operational metrics Closer to Takt Time.but not there yet!

FUTURE STATE PALLETIZING FLOW

FRESH

WMS TEMP WAREHOUSE

Transfer WMS WAREHOUSE MANAGEMENT

Production Cases

PRINT LABELS SCAN CASES

SMOKED

Count Cases

Location

Pallet Number

GET CASE FROM CONVEYOR MOVE CASE PLACE ON PALLET

WALK TO CONVEYOR

Yes

SPACE TO FIT ALL PALLETS

No PRINT & APPLY PALLET LABEL Pallet Number Random

STAGE PALLET

MOVE PALLET

Zone

Location FRESH SMOKED

LOCATE EMPTY STORAGE POSITION

MOVE PALLET

Visual Display of System Status

STRETCH WRAP MOVE PALLET STAGE PALLET

GET STRETCH WRAP MOVE PALLET IN TUNNEL FOR FORKLIFT PICKUP

SCAN LOCATION

ADD PRODUCT TO RACK, RETURN TO PALLETIZING LINE

SCAN PALLET LABEL

PUT AWAY MOVE PALLET FRESH SMOKED MOVE TO TRUCK LOAD FRESH TRAILER LOAD FROZEN TRAILER MOVE TO TRUCK

FUTURE STATE ORDER PICKING FLOW

FRESH WMS Truck Route Wave Pick

SMOKED GET PICK LIST

LOCATE PALLET IN WAREHOUSE MOVE PALLET SCAN LOCATION

FROZEN GET LOAD PATTERN

WMS

REPEAT UNTIL ORDER COMPLETE WMS Next location

LOCATE PALLET IN DOCK RACKS

CASES 95% OF TIME WMS

PICK CASES OR PALLETS

MOVE PALLET SCAN CASES STORE PALLET

PALLETIZING AREA DOCK WMS Truck Route

STAGE ORDER CHECK ORDER VERIFICATION SCAN LOAD TRAILER

MOVE TO INSPECTION

TRUCK ROUTE MOVE TO TRUCK

PROPOSED PALLETIZING & STORAGE IMPROVEMENTS

PROPOSED PALLETIZING IMPROVEMENTS

Future State Benefits Step 1: Without Expansion

Improved order picking and material flow

Reduced cycle time 15% in 3 months. Going to 30%

Reduced material handling Saved rack space (10% reduction in 2 weeks) Reduced lead time 50% Handle peak periods with less congestion (108 positions) Better trained and flexible workforce Capital Payback of 1.8 years

How Do We Implement the Future State VSM?

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 to implement

Organizing the Lean Solutions

Process Problem Solution

Metal Detection & Strapping

M1. Cases not metered into machines causing jams and backup of product M2. Metal detector setting has to be changed manually P1. Product is handled twice, once to palletize then once to pick Operator walking several feet to obtain correct case of product to palletize Product is moved to be shrink wrapped prior to put away

M1. Create space between cases with metering device increases reliability of strapper and metal detector M2. Scan product to set metal detection setting increases reliability of metal detector P1. P2. P3. Rearrange high moving product to allow case stacking in flow racks Shorten walking distance by separating product onto shorter conveyors *Automate the shrink wrapping process with conveyor and automatic wrapper

Palletizing

P2. P3.

Storage Racks and Staging

ST1. Searching for open position for putaway ST2. Product must be rotated from top to bottom resulting in several pallet moves ST3. Need forklift to put bottom row away. Need ladder to pick from second tier. O1. O2. O3. Pickers searching for product due to no location system W alking from aisle to aisle with no logical sequence of picks Rotating stock to bring oldest date to front

ST1. Implement W arehouse Management System for putaway ST2. Rearrange racking for whole pallet flow racks on high moving product ST3. Remove lower rail on certain aisles to allow pallet jack putaway instead of forklift. Lower second tier to pick height without ladder. O1. O2. O3. Put pick locations on pick ticket after W arehouse Management System is installed Sort products by frequency of pick then by weight in warehouse to minimize walking *Use pallet flow racks to automatically rotate stock

Order Picking

Shipping SH1. Insufficient space to stage multiple pallets leads to double moves of product SH2. Operator is dedicated to verifying picked pallet prior to scan SH3. Occasionally additional product gets shipped to customer SH1. *Increase floor space for dock staging. Long term plan would be to reorganize when building is expanded SH2. Improve picking operation through training and scanning at pick location with bar code scanners. SH3. Confirmation check by scanning once prior to loading truck

PROPOSED IMPROVEMENTS: Costs & Savings

P rocess
M eta l D et e c tio n & S tr a p p in g M 1. M 2. P1. P a lletiz in g P2. P3.

P r o b le m
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 s a nd b a cku p o f product 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 a n u a lly 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 o n c e t o p ic k 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 t c a s e o f p r o d u c t to p a llet iz e 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 put away M 1. M 2. P1. P2.

S o l u ti o n
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 es r elia b ility o f s tra p p er a n d m eta l d et e c to r 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 r elia b ility o f m eta l d et e c t o r * 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 flo w r a c k s 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 e in 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 g con vey or * 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 r a n d a u to m a tic p a lle tizin g

C y c le T im e (R e d u c e d )
.3 3 m in /p a l .3 3 m in /p a l

A nnual S a v in g s $
3 ,5 0 3 3 ,5 0 3

C o s t to I m p le m e n t
2 ,0 0 0 2 0 ,0 0 0

1 o p e r /y e a r 1 .3 3 m in /p a l 2 m in /p a l

*TBD 1 4 ,0 2 4 * 2 1 ,0 4 2

*TBD 9 5 ,0 0 0 ( v e r t ic a l c o nve yo rs) * 6 2 5 ,0 0 0

P3.

S to r a g e R a cks a nd S ta g in 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 y 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 r es u lt in g in s e v er a l p a lle t m o v es 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 la d d er to p ic k fr o m s ec o n d tier . 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

S 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 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 h m o v in g p r o d u c t 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 . 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 o n e p a llet lo c a tio n . 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 e O 1. O 2. O 3. 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 e M a n a g e m e n t S y s t e m is in s ta lle d 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 in w a r e h o u s e to m in im iz e w a lk in g * 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

.7 5 m in /p a l 5 m in /p a l 0 .3 3 m in /p a l

7 ,8 9 1 ^ 2 6 ,3 0 3 3 ,4 7 9

S e e b e lo w 4 0 ,0 0 0 3 ,0 0 0 3 0 ,0 0 0 S e e b e lo w S e e b e lo w TBD TBD S e e b e lo w

0 m in /p a l 1 0 m in /p a l 5 m in /p a l 1 m in /p a l 3 m in /p a l 2 m in /p a l Increase 1 7 .8 m in /p a l TBD

0 1 0 5 ,2 1 0 ^ 5 2 ,6 0 5 ^ * 1 0 ,5 2 1 * 3 4 ,7 2 0 2 1 ,0 4 2 ^

O 1. O r d er P ic k in g O 2. O 3.

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 n system 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 s e q u e n c e o f p ic k s 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 t

S h ip p in g

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 s to d o u b le m o v e s o f p r o d u c t 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 llet p r io r to s c a n 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 c u s to m er 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 ta

S 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 n 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 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 t 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 . 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

D 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 d in s ta ll o n w a r e h o u s e flo o r . 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 l 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 .

1 8 6 ,7 4 8 TBD

2 4 0 ,0 0 0

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 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 .

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
( 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 S d ata)

$ 2 3 4 ,0 8 1

$ 4 3 0 ,0 0 0

PROPOSED IMPLEMENTATION PLAN

Without Expansion
Phase 1. Simple modifications 1. 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)

PROPOSED IMPLEMENTATION PLAN

Without Expansion Phase 2. Moderate improvements to computer system and operations 1. Implement warehouse wide standards on order accuracy, line items shipped on time, orders shipped complete. Post the results weekly to begin continuous improvement philosophy in warehouse activity.(June 2003) 2. Install static racking above the existing palletizing area, leaving sufficient head room for the palletizing operation. (September 2003) 3. Install new vertical recirculation conveyor palletizing station and lift tables. (September 2003) 4. Consider implementation of CSB locator screen using move tickets if automated scanning will be delayed. (September 2003) 5. Install flow through pallet rack on bottom tiers of existing racks to eliminate top-down pallet rotation on high movers. (October 2003) 6. Change configuration of metal detection conveyor to scan labels prior to entering metal detection equipment. Use barcode scan to change settings on the metal detector. (2004) Phase 3. Major improvements to computer system and operations 1. Upgrade CSB system to include Warehouse Management System for locating product and install equipment to bar code scan case labels. (1 st quarter 2004)

Warehouse Assessment
Value Stream Map (Future State) With Expansion
Blanket Orders with Daily Releases; Supplemented with Open Market Purchases

Hogs

Spices and Smokehouse Materials

Packaging Materials

Blanket Orders with Weekly or Bi-Weekly Releases

Leidys Production and Inventory Control (CSB System)

Randomly Placed Orders (Various Sizes)

Various Customers

Aging Data
Demand: 131 to 242 orders per day Avg: 167/day 1 to 2 pallets/order 15 to 17 orders per truck 12 to 13 trucks per day 1 route per truck

Daily (about 400)

Weekly or BiWeekly

Weekly or BiWeekly

Daily Productio n Schedule Bar Code Scan Warehouse Input Daily Shipping Orders & Freezer Release (5PM) Bar Code Scan Inventory Updates

Smokehouse Operations Smoke

Wrap & Pack Smoked Products

Off-Site Freezer Storage

Daily Shipments (12 to 13 routes)

I
Conveyor Staging Palletizing & Storage 1 to 2 pallets

I
1, 578K lbs

Multiple Operators

Multiple Operators

Kill & Cut

Wrap & Pack

Metal Detection

Strapping

Order Picking 1 to 2 pallets per order 6 to 8 People

Order Verification 1 to 2 pallets FIFO 2 People C/T = 5 min C/O = 0 min Rel. = 95% Avail. = 16.5 hrs

Shipping 1 to 2 pallets per order 2 People C/T = 1. 5 hours C/O = 0 min Rel. = 95% Avail. = 16.5 hrs

Cut Products Multiple Operators

Cut Products Multiple Operators

I
Conveyor Staging 10 cases Gap cases

1 to 2 Pallets

1 to 2 Pallet

Order Lead Time: 2.5 to 4.4 Days Order Processing Time: 2.5 Hrs Takt Time: 3 to 4 minutes

C/T =2 sec C/O =2 min Rel. = 95%

Conveyor Staging 30 to 50 C/T = 2 sec cases C/O = 1 min 3 separate Rel. = 90% Zones Bar code scan

Rack 3 Storage People 1100 positions; C/T = 7 sec Locator system, per case or 6.8 A items on first min per pallet tier, additional C/O = 0 min rack above Rel. = 85% palletizing Avail. = 24.8 610K lbs hrs (2 shifts) 2.6 to 3.5 days (Freezer storage: 6.7 to 14.5

Staging Dock C/T = 10 to 15 5 orders minutes (10 pallets) C/O = 0 min Rel. = 85% Avail. = 49.5 to 66 hrs (2 shifts) Scan bar codes 8 minutes

30 seconds

5 sec

6 minutes

40 seconds

40 seconds

13 minutes

10 minutes

8 minutes

1.5 hours

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

PROPOSED PALLETIZING & STORAGE IMPROVEMENTS

expansion1.wmf

PROPOSED PALLETIZING & STAGING IMPROVEMENTS

The Warehouse Improvement Cycle

Assessment (VSM)

Recommended Solutions

Continuous Improvement
DO IT! Implementation Plan

Methods Layout Material Handling Visual Controls Automation Information Systems