9789144109176

Page 1

12 mm

Intralogistics Intralogistics (and warehouse planning) is a field with vast scope and high complexity. Handling this scope and this complexity is a challenge, but the rewards are potentially great. Using the correct warehousing solution provides a powerful leverage to reduce costs and fixed assets, and a tool to sustainably increase service quality. In order to provide a first stepping stone into the world of intralogistics the book focuses on the question on ”how to plan a warehouse for palletized goods?” and gives the reader a comprehensive scheme for achieving an optimal warehousing solution involving palletized goods. Intralogistics reviews and discusses in detail the most commonly used warehousing solutions, focusing on the elements needed for a wellplanned and well-functioning intralogistics operation. The book makes suggestions for warehousing solutions for any given circumstance, and furthermore provides the reader with tools to analyze these solutions. Last but not least it stresses the factors that ought to be taken into account when choosing the most beneficial warehousing solution. In short, Intralogistics provides an easy to use guide for palletized warehouse planning and thereby helps to improve the efficiency and effectiveness of intralogistics operations. This is a valuable tool for any logistics professional. The book also serves as an introduction to the complexities of intralogistics to be used in academic courses in logistics and warehouse planning.

|  Intralogistics – a guide to warehouse planning

a guide to warehouse planning

d . halbeisen   s . segerlund

Dominik Halbeisen and Stefan Segerlund have extensive international experience in warehouse planning from a large number of industries. With a specialization in process and supply chain management they have planned and implemented warehouse projects from varying perspectives, ranging from sales over procurement to project management.

Intralogistics a guide to warehouse planning

Art.nr 39034

dominik halbeisen   stefan segerlund www.studentlitteratur.se

978-91-44-10917-6_01_cover.indd Alla sidor

2015-06-26 10:54


We would very much like to thank Ivana Schaerer-Braccini and Patrizia Keller for their very valued and important support in illustrating this book. Moreover, we also want to say thank you to Nik Bouloudas for his contributions in correcting this book.

Copying prohibited All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage and retrieval system, without permission in writing from the publisher. The papers and inks used in this product are eco-friendly. Art. No 39034 isbn 978-91-44-10917-6 Edition 1:1 Š The Authors and Studentlitteratur 2015 www.studentlitteratur.se Studentlitteratur AB, Lund Printed by Interak, Poland 2015


CONTENTS

CHAPTER 1

1.1

Intralogistics – A Powerful Way of Improving Your Company’s Competitiveness 7

CHAPTER 2

2.1 2.2 2.3 2.4

4.2 4.3 4.4 4.5

System Choice Matrix 73

Overview of the Standard Solutions for Palletized Goods on the Market 73 System Choice Matrix 77 Further Shortening the List of Feasible Solutions 84 Suppliers 86 Example 87

CHAPTER 5

5.1

Important Variables for Planning a Warehouse 37

Starting Point: Your Process 37 Narrowing Down: Warehouse Environment 47 An Example as Template 63

CHAPTER 4

4.1

Definitions or Preparing the Foundation 15

The Most Important Definition 16 Basic Definitions 18 Definition of the Physical Units of Measurement 22 Other Important Definitions in Alphabetical Order 23

CHAPTER 3

3.1 3.2 3.3

Introduction 7

The Intralogistical Solutions Presented in Detail 99

Line Storage on the Floor 99

© T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R

3


contents

5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11

Selective Racking 103 Very Narrow Aisle Racking 106 Mobile Racking 111 Block Storage on the Floor 116 Drive-In Racking 120 Gravity Racking 125 Shuttle Racking 130 Stacker Crane, Single Deep 136 Stacker Crane, Double Deep 140 Stacker Crane, Shuttle 144

CHAPTER 6

6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9

Loading Aids / Pallets 151 Pallet Dimensions 151 Forklifts 154 Forks 158 Scales 159 Barcodes and Scanners 160 Software 161 Conveyors 163 Access to the Site 164

CHAPTER 7

7.1 7.2 7.3 7.4

8.3 8.4 4

Case Examples 165

Frozen Food Industry Case Study 165 System Choice Matrix 174 Automotive Industry Case Study 180 System Choice Matrix 187

CHAPTER 8

8.1 8.2

Making the System Work: Warehouse Equipment 151

Final Summary and Check List 193

Step 1 – Value Added Process 193 Step 2 – Palletized Warehouse – Value Added Operation Relationships 193 Step 3 – Palletized Warehouse Canvas 193 Step 4 – Crucial Customer Requirements 194 © T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R


contents

8.5 8.6 8.7 8.8 8.9

Step 5 – Risk and Opportunities 194 Step 6 – Restricting Environmental Factors 194 Step 7 – System Choice Matrix 197 Step 8 – Shortlist Screening 199 Step 9 – Decision 200

Dictionary English – Swedish 201

Bibliography 207

© T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R

5


CHAPTER 3

Important Variables for Planning a Warehouse

In this chapter a structured warehouse planning framework is presented. Its starting point is the individual value added process served by a warehouse project. Based on it, the main customer requirements to be fulfilled are identified using an adaptation of the Business Model Canvas toolbox. This toolbox is complemented by a detailed checklist of all important subject areas to be considered in every warehouse planning project. The chapter concludes with the toolbox and checklist applied to a concrete example.

3.1 Starting Point: Your Process Any planning of an intralogistics system must begin by breaking down the concrete challenge at hand, step by step, from top to bottom. In order to do so in a systematic manner we outline in this book a process-focused warehouse planning model which is guided by the following key principle: Every process is the customer of its preceding process – every process is a supplier of its subsequent process.

We are convinced it is of the utmost importance to understand that every process is made up of customers and suppliers, even if the process takes place entirely within the same company. Every unit of a productive or service enterprise has internal customers and must meet their expectations and demands; therefore, no process element should be seen as an isolated unit. For us this understanding is the basis for any warehouse planning.

3.1.1 YOUR VALUE ADDED PROCESS

Accordingly, the first step in planning a warehouse is to define the process of value added operations a palletized warehouse solution is planned for. Š T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R

37


3 important variables for planning a warehouse

In other words, outline the start and end points of the process and thereby draw clear border lines between the process analyzed and the outside world (not taken into account). There are numerous approaches for drawing a process sketch (for instance ISO 5807 or DIN 66001) or for scrutinizing a process (Kaufmann and Langenohl, 2005). Yet, what is essential is that it depicts all crucial operations, regardless of whether they add value, are necessary waste or pure waste, and which might be of any importance to the planning of a palletized warehouse solution. The scope of the value added process analyzed can, of course, range from a small feeding process from a warehouse to a machine (see Figure 3.1) to a complete and complex supply chain (see Figure 3.2). Once the sketch of the value added process one needs to plan for has been completed, the next step is to identify and mark within the process chain all operations adding value (see Figure 3.3). When this is accomplished, the next task is to highlight all palletized warehousing activities feeding the marked value added operations (see Figure 3.4). The result is a rough sketch of the value added process one is planning for, including all major activities adding value, and the palletized stocks supplying those activities. With this basis ready the next logical step is then to examine in detail, each and every palletized stock – subsequent value added operation relationship and apply the supplier (palletized stock) – customer (subsequent value added operation) methodology to it to define the needs of the customer and the resulting requirements for a palletized warehouse solution.

3.1.2 YOUR CUSTOMER’S REQUIREMENTS

In order to do so in a systematic manner we propose a simple yet powerful “needs definition tool” based on the effects of intralogistics (see Figure 1.1) discussed in Chapter 1 and derived from the Business Model Canvas (Business Model Alchemist, 2013) toolbox. This tool, which we call Palletized Warehouse Canvas, is two-fold. The first step is to assess for each palletized stock – subsequent value added operation relationship, by answering specific questions, the importance of the following five general factors to the customer: • Speed, leadtime • Modularity, flexibility • Variability, flexibility 38

© T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R


3 important variables for planning a warehouse

FIGURE 3.1

Small Value Added Process

• Availability, delivery dependability • Product range, flexibility Once this has been accomplished, those factors from these five which are crucial and must be fulfilled irrespective of circumstances are marked. In other words, where non-fulfillment would be unacceptable from a customer point of view. In addition, for each and every factor general risks and opportunities are screened in order to broaden the reflection on customer demands today and in the future. © T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R

39


3 important variables for planning a warehouse

FIGURE 3.2

40

Large Value Added Process Š T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R


3 important variables for planning a warehouse

FIGURE 3.3

Value Added Process with Steps Adding Value Identified by Circles

Š T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R

41


3 important variables for planning a warehouse

FIGURE 3.4

Value Added Process with Warehouses Marked Feeding Operations Adding Value

We therefore begin with Figure 3.5, which shows our Palletized Warehouse Canvas, and proceed through each of the five general factors in order to explain them step by step.

General factor 1: Speed / leadtime / reaction time = “leadtime” from Figure 1.1.

Question: How important is it to have short leadtime, high reactivity, high speed in last minute changes in customer orders?

42

© T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R


3 important variables for planning a warehouse

FIGURE 3.5

Palletized Warehouse Canvas

Aim of the question: To identify the reaction speed requirement of the palletized warehouse solution sought. This is a necessary factor if customer orders are changed at very short notice or only come in at very short notice, for instance, in a just in time delivery scheme in the automotive industry or in the pharmaceutical distribution industry (Hess, 2011, 21), where orders come in several times per day and must be fulfilled within several hours only.

General factor 2: Modularity / scalability / adaptability = “flexibility� from Figure 1.1.

Question: How important is modularity and scalability to mid- and longterm changes in levels of market demand?

Aim of the question: To measure the importance of the palletized warehouse solution to adapt to growing business or uncertain forecasts. This is a crucial requirement for new business models with a natural degree of unpredictability in future market demand or very successful, strongly growing businesses with a need for the infrastructure to be easily scalable to business growth.

Š T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R

43


3 important variables for planning a warehouse

General factor 3: Variability / adaptability = “flexibility” from Figure 1.1.

Question: How important is variability and adaptability to a quickly changing product range? Aim of the question: To focus on systems which are adapted to dealing with palletized goods of all types, so that rapid changes in the product range or supply base of a business, which often occur beyond the control of the warehouse operator, are not hampered by inflexible palletized warehouse solutions. This is a fundamental factor, for example, for trading businesses with restricted buying power, which must adapt to fast paced market fluctuations, but lack the purchasing power and resources to fine tune the logistical aspects of their supply chain to meet their needs.

General factor 4: Availability = “delivery dependability” from Figure 1.1.

Question: How important is the at-all-times availability of goods in stock? Aim of the question: To measure the acceptability of downtime for a system and the importance of resilience of a business to short supply shocks. Of course no business wants to accept unplanned downtime of a palletized warehouse solution. It should, however, be borne in mind that not all businesses have the same sensitivity to unexpected downtime and therefore not all business models will require heavy investments to achieve 100% downtime prevention. For instance, high value equipment manufacturers very often have leadtimes of several months, sometimes even years, in which case a day or two of unforeseen downtime in a warehouse might be a nuisance but is highly unlikely to put either company or project in jeopardy. On the other hand, downtime in a fast moving consumer goods environment or the automotive industry is considered unacceptable. In these sectors, every minute of downtime can mean significant loss (e.g: in penalties or lost revenue).

General factor 5: Breadth of product range = “flexibility” from Figure 1.1.

Question: How important is the diversity and breadth of the product range to be stored? 44

© T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R


3 important variables for planning a warehouse

FIGURE 3.6

Palletized Warehouse Canvas Filled In

Aim of the question: To estimate the degree to which the palletized warehouse solution needs to deal with a very large variety of stored products. This factor can be of importance for businesses with a broad and diverse product range to which a palletized warehouse solution has to fit (for instance, wholesale traders or e-commerce businesses offering products across quite different segments).

In order to analyze responses to these five questions we propose a simple three-option scale. It gives the choice among “yes = important” “partially yes = partially important” to “no = not important”. These simple answers allow clear differentiation in preferences, thereby eliminating grey areas and making clear choices inevitable in any palletized warehouse planning project. Figure 3.6 illustrates how the Palletized Warehouse Canvas from Figure 3.5 would appear once the five general factor questions have been, for purely demonstrative purposes, answered randomly with “yes”, “partially yes” or “no”, based on the palletized warehouse (warehouse A) – value added operation © T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R

45


3 important variables for planning a warehouse

Complete Palletized Warehouse Canvas Including Crucial Factors, Risk Potentials and Opportunities Applied to the Warehouse A – Machine 1 Relationship from Figure 3.4 FIGURE 3.7

(machine 1) relationship as depicted in Figure 3.4. The general planning foci derived from customer requirements can be swiftly identified.

3.1.3 CRUCIAL FACTORS, RISK POTENTIALS AND OPPORTUNITIES

The next logical step is then to review the five general factors further and identify those factors marked with a “yes”, which are, in addition to being important, indispensable from the customer’s standpoint. This could be, for instance, the availability of a palletized warehouse system in the automotive industry or the capability of a palletized warehouse system to deal with a broad product range in a trading business environment. Furthermore, we are convinced it is an absolute necessity to thoroughly reflect upon potential risks and opportunities related to the further development of the customer’s requirements for each of the five general factors. Once the in-depth analysis of the five general factors is finished, the completed Palletized Warehouse Canvas table, exemplified by applying it to the warehouse A – machine 1 relationship from Figure 3.4, would appear as depicted in Figure 3.7. As the Palletized Warehouse Canvas has to be filled in for each and every palletized stock – subsequent customer relationship, this can result in more than one Palletized Warehouse Canvas model, as exemplified in Figure 3.8. Here again the value added process from Figure 3.4 is taken as a basis and the second palletized stock – subsequent customer relationship (i.e., warehouse 46

© T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R


3 important variables for planning a warehouse

Complete Palletized Warehouse Canvas Applied to the Warehouse B – Machine 2 Relationship from Figure 3.4 FIGURE 3.8

B supplying machine 2) is completely analyzed using the same Palletized Warehouse Canvas approach.

3.2 Narrowing Down: Warehouse Environment Once the complete Palletized Warehouse Canvas process has been followed through for all palletized stock – subsequent value added operation relationships, planning restrictions resulting from the physical and legal environment should be discussed. Clearly, every palletized warehouse exists and operates within a physical and legal landscape which further narrows the degree of freedom one has in planning a warehouse. Moreover, the end user / buyer is legally and ultimately responsible for considering and respecting these factors in all his warehouse planning activities. Furthermore, environmental factors also represent important interfaces to any warehouse building designer and / or palletized warehouse solution supplier (Pekoz and Tilburgs, 2010, 35-38). Those interfaces are further addressed in the standards FEM 9.841 and EN 15620, EN 15629 and EN 15635 (see Fédération Européenne de la Manutention (2009)).

3.2.1 LOADING UNIT

In line with Chapter 2.1.1 and as already discussed in detail, the loading units which are intended to be, or need to be stored in a warehouse, are the single most important restrictive factor in the design of any palletized warehouse solution. The first step must therefore be to list all possible loading units © T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R

47


3 important variables for planning a warehouse

FIGURE 3.9

Bottom Stringers of a Pallet

that will require handling and then proceed through the following crucial questions in regard to each loading unit including all types of empty pallets or empty pallet stacks which will need to be stored or moved via the palletized warehouse solution planned for.

Questions

a. From which side is the pallet handled? Answer: Dimension of the pick face. b. What is the length of the bottom pallet boards / bottom stringers (see Figure 3.9)? Answer: Dimension of the bottom boards / bottom stringers measured in mm. c. Is the bottom board / bottom stringer length sufficient for the pallet to rest on beams only? This is the case if the length is greater than the distance between the outer edges of the pallet beams plus 2 x 50 (= 100 mm) (see Figure 3.10), as defined by the standard EN 15620 (CEN - European Committee for Standardization, 2008a, 26-28) Answer: If “yes”, no action is required; If “no”, special load supports such as mesh grate covers or L-profiles will be required. This requirement will need to be included in any quotation request for a racking (in short: RFQ). d. Are the bottom boards / bottom stringers strong enough to support the fully laden pallet on two beams only? Answer: If “yes”, no action is 48

© T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R


3 important variables for planning a warehouse

FIGURE 3.10

Minimum Pallet Stringer Length for a Pallet to be Freely Supportable by Two Pallet

Beams Only

e.

f. g.

h.

i. j. k.

required; If “no”, special load supports such as mesh grate covers or Lprofiles will be required. This requirement will need to be included in any RFQ for a racking. What are the maximum dimensions including any tilt or overhang of the loading unit? Answer: Dimensions width × depth × height. To be included in any RFQ for racking. What is the maximum gross weight of the loading unit? Answer: Weight in kg. To be included in any RFQ for racking. Is the pallet constructed from steel, wood or plastic? Explanation: Steel and plastic have a low friction coefficient on a steel surface and can therefore be problematic. Therefore information about this physical property must be provided in any RFQ for racking. What is the annual turnover of the loading unit (for a more detailed definition of turnover see Chapter 2.4.19)? Explanation: Required for the computation of inbound and outbound flows. On how many shifts per week is this pallet handled on inbound movements? Explanation: Required for the computation of inbound flows. On how many shifts per week is this pallet handled on outbound movements? Explanation: Required for the computation of outbound flows. How many weeks of the year are to be considered as working weeks? Answer: Usually somewhere between 45 and 50 weeks. Required for the computation of inbound and outbound flows.

© T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R

49


3 important variables for planning a warehouse

l. Is the loading unit handled according to the “first in, first out (FIFO)” or the “last in, first out (LIFO)” principle? Explanation: Whether a loading unit is to be handled as FIFO or LIFO will have a major impact on acceptable warehousing solutions simply because FIFO requires that any pallet moved into a palletized warehouse system be accessible without undue or wasteful repositioning of other pallets. m. How many SKUs are to be stored on average at any given time? Explanation: To ensure warehouse operations are efficient and process waste is minimized each SKU should be directly accessible in the warehouse. This direct accessibility requirement is one of the main distinguishing features of palletized warehouse solutions. n. How many pallets of this loading unit type are to be stored on average? Explanation: A number describing the pallet locations to be provided in the warehouse planning for this loading unit type. With this information the average inbound and outbound flows can be computed: Hourly average in- or outbound flow = Number of pallets × turnover per annum ÷ number of working weeks per year ÷ by number of shifts per week ÷ 8 hours.

Of course, the average inbound and outbound flows into a palletized warehouse can differ, particularly if the number of inbound working shifts differ from those on the outbound side, which is not at all uncommon. Moreover, the maximum peak movements per hour must also be considered as the system must be capable of supporting peak pallet movement demands which are often considerably higher than average flows. Any palletized warehouse system should consequently be designed to deal with peak as well as average flows in the most cost-effective way, providing just as many peak capacities as needed for a (predetermined) time period while at the same time attempting to satisfy an optimum for average flows. Once these questions have been addressed for each and every loading unit type used, including empty pallets that will flow through the system, the result will be a complete census of the loading unit population to be planned for. The next step will then be to create stereotypical loading unit categories from this pallet census data around the following five to six characteristics, which must all be the same for all loading units in one category. The result 50

© T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R


3 important variables for planning a warehouse

from this operation will be a finite number of categories to be considered for the palletized warehouse planning stage. • • • • •

Turnover, ranging from low to medium to high. FIFO or LIFO. Pallet load support required or not. A predefined dimension and weight range. A predefined weight range (sometimes it might be necessary to see weight as a separate characteristic). • Picking required or not. After having reached this point in the assessment and analysis phase, the final question to be considered is whether all these loading units categories are to be handled and stored in the same palletized warehouse solution or whether there should be individual solutions for the different loading unit categories? This decision is of the utmost importance because any palletized warehouse solution must always be adapted to the most stringent requirements of the loading unit categories to be stored. Yet, any requirement increment has an immediate and direct impact on the investment and also often on the operating costs of the warehouse solution selected. The cost drivers are thereby: • • • • • •

Higher turnover > lower turnover = speed of the system. FIFO > LIFO = suitability for many SKUs. Pallet load support > no pallet load support. Larger dimensions > smaller dimensions. Higher weights > lower weights. Picking > no picking.

For this reason it might very often make sense to combine several different palletized warehouse solutions in order to achieve the most usable and costeffective solution for each loading unit category (or at a least a certain number of categories). Yet, on the other hand, it may also be reasonable to install a system capable of coping with the most demanding load category because the future load category mix is not always foreseeable. The basis for the answer to these reflections should largely lie in the customer’s requirements discussed earlier in this chapter. © T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R

51


3 important variables for planning a warehouse

3.2.2 PICKING

In intralogistics the correct design of picking procedures and strategies is one of the most, if not the most complex, challenges. However, in purely pallet based logistics flows, picking does not appear as often as it does in the planning of small load warehouses or trading unit based flows. Nevertheless, dictated by the fact that customers demand just the quantity they need when they need it, picking is an issue which, if required, has to be considered thoroughly in order to minimize the amount of working capital tied up in the infrastructure and picking process (see the discussion in Chapter 1). Moreover, picking is a major cost driver and therefore many companies attempt to move picking work to the final customer by, for example, displaying whenever possible full loading units in the sales area (Straube, 2008, 23) or by stipulating minimum ordering quantities which correspond to full loading units. Further, when picking operations are carried out, consideration should be given to the amount of space required to store picked goods before pick-up as space consumption increases considerably when less than full loading unit dimensions are picked. Consequently, the following questions should be asked whenever palletized warehouses encompassing picking operations are planned: a. How many orders are to be picked per hour on average and as a maximum? Explanation: The higher the volume of orders, the greater the demand for space in the warehouse for picked goods. b. What is the average order pick-up time in hours? Explanation: The higher the time, the greater the volume of warehouse space that will be required. c. How many pallets are picked per order on average? Explanation: The higher the number, the more space is required. In general: orders per hour Ă— hours until pick-up Ă— pallets per order = minimum pallet locations requirement for a picked goods storage location / warehouse.

d. How many lines have to be picked on average per order? Explanation: The more orders per hour and the more lines per hour, the more sophisticated the picking strategies that will be required to reduce the traveling salesman problem (i.e., to minimize the travel distances between different picking locations). 52

Š T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R


3 important variables for planning a warehouse

e. How many articles have to be picked on average per line? Explanation: A small number of articles requires systems for case-picking, a medium number of articles requires systems to pick full layers of product from pallets, and a high picking demand per line, mostly resulting in picks of full pallets loads, requires fast palletized warehouse systems (Breu, 2014). f. How many articles need to remain accessible for picking on average and as maximum? Explanation: Those articles must be stored within easy reach. This ordinarily implies storage at ground or lower levels or the use of technical picking solutions, thereby increasing, with the number of articles, either demand for warehouse floor space or system cost.

3.2.3 IT SYSTEMS

The flow of information is, as our definition of the term supply chain describes, one of the three key elements of any logistics activity. Consequently, even the most meticulously planned palletized warehouse system is bound to fail if it is not properly integrated into the IT structure of the value added process. Of course, not all companies use the most sophisticated IT systems perfectly suited to deal with complex intralogistics processes. Therefore, full integration of the IT department into any warehouse planning, based on the following fundamental questions, is absolutely pivotal: a. Can the IT system deal with FIFO / LIFO flows? b. Can the IT system supply different pallet storage strategies (for instance: chaotic warehousing, fill from bottom to top, storage location assignment to reduce driving distances, etc.)? c. Can the IT system support re-shuffling strategies to make best use of idle times? d. Can the IT system deal with picking (for instance: creation of new pallets out of existing pallets)? e. Can the IT system support different picking systems (for instance: pickby-voice, pick-by-light, etc.) and different picking strategies? f. Can the IT system support dynamic assignment of storage locations (for instance: multiple and dynamic pallets per pallet location in gravity racks)? Š T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R

53


3 important variables for planning a warehouse

In short, can the IT system in place support the palletized warehouse solution planned?

3.2.4 BUILDING

Let us now turn to the building. Here the decisive question is: Will the building be a.) newly erected around the warehouse and follow warehouse requirements or will b.) the warehouse solution have to fit into a given infrastructure framework? If the answer is a.) then the building design should follow the requirements dictated by the palletized warehouse solution. If, on the other hand, the answer is b.) then the success of any palletized warehouse solution will naturally be limited by the restrictions of the building. The main requirements (case a.)) or restrictions (case b.)) are ordinarily the following: The clear height of the building. That is, clear, usable vertical dimension into which the warehouse solution will fit or must be made to fit. Building columns. Structural columns are an obstruction for the purposes of an efficient palletized warehouse. To eliminate the obstruction, columns should be sandwiched between racking rows positioned back to back (see Figure 3.11). Other obstacles. That is, any structural element resulting in a non-rectangular warehouse area, should be omitted by defining space used for any warehousing solution to be a best fit rectangle (or several rectangles). Source / direction of all inbound flows. The palletized warehouse solution should be adapted to ensure minimum traveling distances and forklift turns from the origin of inbound pallets. Direction of all outbound flows. The palletized warehouse solution should also be adapted to allow for minimum travel distances and forklift turns to the exit of outbound pallets. Floor flatness. That is, the palletized warehouse system requirement dependent upon floor flatness. Several warehouse solutions require very strict floor flatness tolerances to function properly (see, for instance, EN 15095 or SSI Schaefer (2013)). Total loads of the system in N/sqm, N/sqmm and N/base plate. That 54

Š T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R


3 important variables for planning a warehouse

FIGURE 3.11

Racking with Integrated Building Pillars

is, the palletized warehouse system restriction based upon floor compression strength. Building design. Is the building completely enclosed and are all operations protected from outside atmospheric conditions? Is the building partially exposed to the elements? Partially open warehouse solutions require very careful planning with respect to temperature and humidity management, especially in terms of corrosion protection and protection of any electrical installations against meteorological conditions. This information must be incorporated into any RFQ. Building temperature. The overall temperature range of any warehouse operation planned is a critical consideration. Standard warehouse solutions are designed to operate optimally between +5○ C and +40○ C. Outside this range, special (i.e., costly) measures are required to accommodate plant and equipment. Moreover, assembly in a live cold store environment with temperatures below −20○ C is a major cost driver and can inflate costs for any installation by a factor of two or even three, depending on local work safety regulations. Building atmosphere. Building atmosphere (as distinct from temperature) must also be considered. When a building contains corrosive, aggressive or even explosive substances any goods stacked and any warehousing equipment used will need to be adapted and protected appropriately. Especially for explosive atmospheres very extensive and specific regulations apply. © T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R

55


3 important variables for planning a warehouse

Not unexpectedly special atmospheres are major cost drivers and often make standard palletized warehouse systems completely unsuitable. Based on the above mentioned requirements / restrictions the interfaces to the building can be properly discussed and managed and inappropriate palletized warehouse solutions eliminated from the range of possible choices.

3.2.5 EARTHQUAKES

A factor to be taken very seriously in any warehouse planning is the risk of earthquakes, or so called seismic risks. In order to correctly incorporate this risk factor, potential racking providers must be required to include in their quotations any applicable local seismic risk protection as well as industry standards relevant to the proposed racking system design and to clearly state the standards used. The most common norm catalogues and standards in Europe are EN 1998 (Eurocode 8) and FEM 10.2.08. For a quick introduction in seismic design consult, for instance, Pekoz and Tilburgs (2010).

3.2.6 ESCAPE ROUTES

Another major concern of warehouse planning is escape routes, which are usually defined by a.) minimum escape route width at any location, b.) maximum escape route length including the method of calculation and c.) the number and direction of the escape routes (see, for instance, French legislation, Code Du Travail (2013)). These three parameters are normally governed by fire safety standards, whether they are national or local. They vary widely from country to country. In order to avoid violation of such legal norms, thorough research before warehouse construction is an absolute must. All too often inadequate safety features are discovered after construction of a facility or even after the commencement of operations, usually resulting in extensive and very costly rework (Kaiser, 2013). Therefore, we strongly recommend consulting the main building planner (in case of a newly erected building) or the local fire safety inspector, and in parallel in any RFQ clearly outline the responsibility of any racking provider to respect all fire safety and escape route standards in force at time of the warehouse solution installation.

56

Š T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R


3 important variables for planning a warehouse

3.2.7 FLOOR ISSUES

The floor is the basis of any palletized warehouse solution and has to be clearly specified before any solution is installed or even chosen. Generally there are four important considerations to note (as already partially discussed in Chapter 3.2.4): a.) floor compression strength, b.) floor flatness, c.) expansion joints and d.) heating pipes / armoring irons / other obstacles to racking anchors. • Floor compression strength, which is a function of the concrete quality used, the foundation of the concrete, the underground on which a building is erected and other factors, is a very important variable and should be considered carefully. According to the standard EN 15629 (CEN - European Committee for Standardization, 2008b, 16), if no information is available, then any racking provider may assume [...] that the floor is solid concrete, without a surface screed, and has a minimum strength of class C20/25 [...].

Therefore, if the floor on which the warehouse solution will come to rest does not correspond to the above, this information must be communicated and included in any RFQ. For general reference CEN - European Committee for Standardization (2008b, 16) lists the information required for a solid and correct warehouse racking design. • The same as for floor compression is also valid for floor flatness. Racking, floor, loading units and material handling equipment form an interdependent system which demands that each of those elements remains within certain tolerances in order to assure the correct functioning of the complete system. Any palletized warehouse solution therefore requires a floor that adheres to clearly specified tolerances. Hence, racking providers usually base their offers on the European standard EN 15629 (CEN - European Committee for Standardization, 2008b, 16). In any case, it is necessary for the floor tolerance requirement for the system to be clearly communicated in an RFQ. • Expansion joints need to be clearly indicated in any RFQ because such joints are intended to make floor slabs work against each other. Therefore racking connecting two floor slabs across an expansion joint must be prevented to avoid undue stress on the warehouse solution, possibly well beyond the limits of its structural design. © T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R

57


3 important variables for planning a warehouse

• As any warehousing solution based on racking has to be fixed to the ground by means of anchors, it must be ensured that these anchors can be introduced into the floor without damaging any heating systems, pipes or other structure. It is also necessary to ensure that armoring irons do not obstruct racking anchors as this could significantly increase installation times and therefore also drive the cost of a warehouse solution higher.

3.2.8 FIRE SAFETY

Fire safety is a very complex topic which carries a major risk for any warehouse planning and which is impossible to correctly assess without in-depth knowledge of the local regulations applicable to the business and warehousing solution in question. Hence, we strongly suggest always involving the local fire safety inspector or at least the main building planner (in the case of a newly erected building). The consequences of fire safety regulations can be far-reaching and usually rest on two to three base variables (see, for instance, French legislation: Ministre de l’Aménagement du Territoire et de l’Environnement (2000)). a. What type of goods are to be stored? Dangerous substances like chemicals, explosives, frozen goods or goods with high calorific value? b. What is the total fire load of the products to be stored including the packaging material and loading units? In other words, what total calorific value does the total warehouse content represent? Please note: Plastic pallets and packaging have a very high calorific value and can pose major problems for fire safety. c. How will these goods be stored? How dense, how far away from each other, mixed in what way? Based on the above questions different measures might result ranging from different sprinkler concepts (or none at all) to special building requirements (fire resistance of the walls, doors and cable ducts, smoke screens, smoke ventilators, water collection tanks, floor impermeability and chemical resistance), from restrictions on the total warehouse size reducing the fire load by requiring fire compartments of a certain maximum size, to minimum distances between storage blocks. 58

© T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R


3 important variables for planning a warehouse

From the above it becomes immediately evident that fire safety is one of the major factors influencing warehouse design and driving costs and therefore needs to be assessed professionally, so that total investment cost and fire risk can be reduced as far as practicable and total system cost be calculated correctly from the outset of a project.

3.2.9 STATICS

Even though statical questions are predominantly the responsibility of racking providers (CEN - European Committee for Standardization, 2008b, 34), final users also bear responsibility (CEN - European Committee for Standardization, 2008b, 33), of which the following are of particular significance: • Regular safety inspection of any palletized warehouse system based on EN 15635 (CEN - European Committee for Standardization, 2008b, 33). • Provision of a safe working environment (see Chapter 3.2.11). • Clear marking and / or control of storage weight limitations in pallet racking via scales and warehouse management systems. Moreover, understanding basic statics will allow the limitation of investment in planning, as two simple factors are cost drivers in pallet racking. • Weight to be supported by the pallet racking. Obviously, stronger pallet racks involving the use of more steel are needed to store heavier loads at height. It therefore makes good economic sense to plan for floor placement of the heaviest pallets. • Buckling length of the pallet racking (see Chapter 2.4.2). Taller pallets stored at floor level require higher placement of the first beam level, and hence increase buckling length and material use for rack fabrication. Consequently, taller pallets stored at higher rack levels have a cost reducing effect.

Simply taking these two simple factors into account at the racking design phase can have a considerable impact on pallet racking pricing and should be incorporated into any palletized warehouse planning. © T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R

59


3 important variables for planning a warehouse

3.2.10 THE FUTURE USERS

The ultimate success of even the most carefully planned palletized warehouse solution depends upon its acceptance by the end user. With this fact in mind the following questions should be reflected upon: a. Ergonomics: Will the personnel using the warehouse system be of different physical stature than the assumed standard user? Explanation: Most intralogistics systems are based on European standards and therefore on the average, standardized European body (see EN ISO 7250 or DIN 33402). For instance, in eastern Asia, people are usually slightly shorter and of slighter stature. Therefore, for instance, certain lifting heights still acceptable or ergonomically feasible in Europe are unlikely to remain so in an east Asian environment. b. Workforce: Will the workforce possess the appropriate skills to correctly operate the warehouse system? Explanation: Operating a fully automated warehouse or storing a pallet at a beam height of 11 meters requires sharper skills and experience than working block storage at a maximum of 4 meters. If therefore high personnel turnover is expected or unskilled personnel will operate a planned warehouse solution, either an alternative warehouse solution of lower complexity should be chosen or appropriate counter measures taken. This might include an intensive training programme for instance. c. Culture: Are there any cultural or special environmental factors carrying a risk to system availability? Explanation: For example, future users might be afraid, despite sufficient skills, to place pallets at elevated heights due to inexperience or worse; to a bad experience in a similar working environment. Although these questions may initially seem trivial, yet such factors can severely undermine the acceptance and success of a palletized warehouse solution.

3.2.11 WORK SAFETY

Another factor reducing warehouse planning freedom is work safety regulations. These regulations are, at any rate in continental Europe, usually covered at a national level by mandatory Occupational Health and Safety 60

Š T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R


3 important variables for planning a warehouse

insurance schemes and operate in conjunction with national and European standards (such as, for instance, the EN 15620). More specifically, the main items in relation to work safety for pallet racking are (INRS Institut National de Recherche et de Sécurité, 2001)(BGHW Berufsgenossenschaft Handel und Warendistribution, 2006): • Protection against falling goods. i. Passages beneath racking are to be protected by wire or mesh grating against goods falling from above. ii. Single faced racking rows with an operational aisle to the rear are required to have their rearward side completely secured by appropriate fencing and back stops. iii. Outer frames are to have a height sufficient to prevent pallets from falling sideways. iv. Clearances in the racking are to be sufficient to allow for safe placement of goods. v. Loading aids are to be safe and kept in good condition. • Protection against collisions. i. Sufficient width of operational aisles. ii. Sufficient lightning. iii. Clear marking of driveways and walking areas. iv. Clear and safe work organization. v. Clear separation of machines (automated or powered warehouse systems) from workers. • Protection against racking collapse. i. Sufficient width of operational aisles. ii. Protection of racking frames with impact protectors against impact by forklift. iii. Clearances in the racking are to be sufficient for safe placement of goods. iv. Clear marking and / or control of maximum weights allowed for storage in the racking. • Protection against a dangerous environment. i. Fire safety rules (see Chapter 3.2.8) including escape routes need to be on prominent display. ii. Sufficient lightning. © T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R

61


3 important variables for planning a warehouse

iii. Atmospheric conditions are to be such as to prevent packaging collapse (humidity) or corrosion (salty, humid air). Of course any racking provider is compelled to abide by these rules in his planning of any warehouse installation. Nevertheless, the final responsibility, according to the law, lies with the buyer and operator of the installation. Therefore, it is strongly recommend that the most recent copy of the relevant local work safety regulations for warehouse operations be obtained and made available at all times. Furthermore, the substance of those regulations should be incorporated into the planning and then implemented into operational processes of the facility.

3.2.12 STEEL PRICE

Any palletized warehouse solution requiring racking uses steel as its production material. Hence, any sizable fluctuation in the underlying steel price will eventually directly influence the total cost of a racking based warehouse solution. It is also worth noting that by virtue of its disproportionately high cost, the more automation a certain solution requires, the less prone the total system cost is likely to be to steel price fluctuations. Thus, taking advantage of favorable (i.e., lower) steel prices will ultimately minimize the overall cost of a racking system thereby freeing funds for upgraded plant and equipment in other areas. For example, 30% to 40% of the cost of a conventional pallet racking is driven solely by production material procurement. So a 10% reduction in the steel base price might be expected to result in a cost reduction for a pallet racking of 4% to 5%, of course depending on the seller’s margin policy. In order to track developments in steel base price we recommend two MEPS based indices (MEPS, 2013a): • “Medium Sections and Beams” for all H-section beams. • “Cold-Rolled Coils” for all box beams and frames. For instance, from August 2012 to August 2013 the price for those two indices fluctuated from a maximum of 646 Euros / tonne (Medium Section and Beams) and 589 Euros / tonne (Cold-Rolled Coils) to a minimum of 581 Euros / tonne (Medium Section and Beams) and 523 Euros / tonne (Cold-Rolled Coils), which corresponded to a price fluctuation band of roughly 10% to 11% in a single year (MEPS, 2013b). 62

© T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R


3 important variables for planning a warehouse

It is therefore a worthwhile option to start an RFQ for a warehouse solution as early as possible and in parallel carefully monitor steel base prices so that a procurement decision can be made at the most opportune moment.

3.3 An Example as Template In this Chapter we will step by step go through a fictional example of an intralogistics value added process using the Palletized Warehouse Canvas model developed earlier in this chapter. As a value added process example we will use a fictional business model of a logistics provider offering value added logistics services for consumer electronics in the computer peripherals sector. This provider receives from a worldwide brand of consumer electronics full container loads of eight different articles of computer peripherals from Eastern Asia and stores them centrally for distribution in European markets. Once daily, five days a week, 48 weeks a year, the logistics provider receives rolling shipping schedules for the following five days, with 24 hours notice. Of course, only the following day is in principle fixed; the other four days are completely nonbinding forecasts. Further we assume that even the forecast for the next day’s delivery could be changed at short notice if necessary be (final cutoff is four working hours before shipment), so the ability to adapt to changes is a crucial element of the business model. Yet, the core of the business model is to retrofit the eight computer peripherals, as needed according to the shipping schedules, to the different power plug and socket standards used in Europe (Breu, 2014). For the ease of the example we can assume use of ten different power plug and socket standards, though the actual situation in Europe is more complex. We further assume that the computer peripherals already arrive equipped with the most common power plug and socket type and therefore only 60% of all peripherals will require retrofitting. The goods are then finally dispatched per the most recent valid shipping schedules to the distribution centers that belong to the clients of the company that the logistics provider is providing the described service for.

Š T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R

63


3 important variables for planning a warehouse

Value Added Process of a Consumer Electronics and Computer Peripherals Central Distribution Warehouse Including Plug and Socket Retrofit FIGURE 3.12

3.3.1 VALUE ADDED PROCESS

This leads us to the value added process illustration: Figure 3.12. As can be seen the main process, storage and / or retrofitting in fact comprises two mutually exclusive sub-processes: Process A: Goods are removed from stock, go through the socket and plug retrofit process and are returned to stock. Process B: Goods are not removed from stock and picked directly for despatch without any retrofit, as these goods are already equipped with the required plug and socket. Further analyzing the depicted flow allows identification of the following two value added processes requiring palletized warehouse solutions: 64

Š T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R


3 important variables for planning a warehouse

FIGURE 3.13

Palletized Warehouse Canvas Applied to Process A and Process B

Process A: Warehousing before the retrofit of the sockets and plugs (here the retrofit operation is the customer). Process B: Warehousing before shipment of the goods (here the distribution centers of the clients of the company that the logistics provider is working for are the process customer).

3.3.2 PALLETIZED WAREHOUSE CANVAS

To these two intralogistics processes we now apply the Palletized Warehouse Canvas. This results in Figure 3.13. As can be seen speed, modularity and overall availability are crucial customer requirements of both processes in view of the logistics provider’s business model. Those requirements therefore need to direct any palletized warehouse planning.

3.3.3 CRUCIAL FACTORS, RISK POTENTIALS AND OPPORTUNITIES

Based on the general factor assessment we further consider availability as an absolutely essential criterion in view of a cut-off time of only four hours for shipping schedule changes. Further, adding flexibility via the palletized warehouse choice beyond customer requirements (general factors three and five) is an opportunity in view of quickly evolving markets and demand scope. Last but not least, we consider making too great a compromise on general factor three, the variability of the system, as a potential cost risk Š T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R

65


3 important variables for planning a warehouse

Palletized Warehouse Canvas Applied to Process A and Process B Expanded by a Risk, Opportunities and Crucial Factors Analysis FIGURE 3.14

due to the fact that the computer peripherals originate from Eastern Asia, where the control over loading unit design and loading unit quality continues to represent something of a major challenge. Higher system flexibility in terms of variability should therefore allow additional cost for re-palletizing of incoming goods to be kept to a minimum. The analysis of crucial factors, risks and opportunities leads eventually to an enhanced Palletized Warehouse Canvas, as shown in Figure 3.14.

3.3.4 LOADING UNITS

Let us now continue with a detailed analysis of the loading units, where each of the articles to be stored corresponds to a different pallet type. a. Pick Face: Pallet type A: 800 mm. Pallet type B: 800 mm. Pallet type C: 1000 mm. Pallet type D: 1000 mm. Pallet type E: 1000 mm. Pallet type F: 1000 mm. Pallet type G: 800 mm. Pallet type H: 800 mm. b. Bottom Stringer Length: All pallet types: 1200 mm. c. Bottom Stringer Length ≼ 1200 mm: All pallet types: yes. d. Bottom Stringer Strength: All pallet types: sufficient strength for storage on two beams only. 66

Š T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R


3 important variables for planning a warehouse

e. Total Pallet Dimensions: All pallet types: 1300 mm in depth and 2000 mm in height. f. Gross Weight: Pallet type A: 600 kg. Pallet type B: 700 kg. Pallet type C: 900 kg. Pallet type D: 500 kg. Pallet type E: 550 kg. Pallet type F: 600 kg. Pallet type G: 750 kg. Pallet type H: 800 kg. g. Loading Unit Material: All pallet types: pallets made out of wood. h. Turnover Rate: Pallet type A: 14 times per year. Pallet type B: 13 times per year. Pallet type C: 13 times per year. Pallet type D: 12 times per year. Pallet type E: 10 times per year. Pallet type F: 8 times per year. Pallet type G: 6 times per year. Pallet type H: 3 times per year. i. Inbound Shifts per Week: All pallet types: 6.25 inbound shifts per week. j. Outbound Shifts per Week: All pallet types: 6.25 outbound shifts per week. k. Working Weeks per Year: All pallet types: 48 weeks per year. l. FIFO or LIFO Handling: All pallet types: FIFO handling based on inbound date. m. Number of SKUs: 8 pallet types are to be stored. Each pallet type can be delivered with 10 different power plugs and sockets. For the ease of the example we assume that pallets of a given type with a certain power plug and socket category are one SKU only. Therefore there are 80 SKUs in stock. Š T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R

67


3 important variables for planning a warehouse

n. Number of Pallet Locations and Pallet Movements per Hour: In total 12’500 pallets are to be stored. On average retrofitted pallets remain in stock for 8 days before shipment. This results in the following loading unit list: Pallet type A: 21% of all pallets Ð→ 2600 pallets to be stored. Pallet type B: 19% of all pallets Ð→ 2400 pallets to be stored. Pallet type C: 14% of all pallets Ð→ 1800 pallets to be stored. Pallet type D: 8% of all pallets Ð→ 1000 pallets to be stored. Pallet type E: 6% of all pallets Ð→ 800 pallets to be stored. Pallet type F: 5% of all pallets Ð→ 600 pallets to be stored. Pallet type G: 5% of all pallets Ð→ 600 pallets to be stored. Pallet type H: 2% of all pallets Ð→ 200 pallets to be stored. Retrofitted pallets: 20% of all pallets Ð→ 2500 pallets to be stored. As to pallet movements per hour the following picture emerges. In summer (July, August) normally only 80% of average movements occur. On the other hand in December before Christmas movements peak at 140% of the average. This results in the following scheme: Pallet type A: 30 in- and outbound movements per hour on average, 24 minimum, 42 in peak times. Pallet type B: 26 in- and outbound movements per hour on average, 21 minimum, 36 in peak times. Pallet type C: 19 in- and outbound movements per hour on average, 16 minimum, 27 in peak times. Pallet type D: 10 in- and outbound movements per hour on average, 8 minimum, 14 in peak times. Pallet type E: 7 in- and outbound movements per hour on average, 5 minimum, 9 in peak times. Pallet type F: 4 in- and outbound movements per hour on average, 3 minimum, 5 in peak times. Pallet type G: 3 in- and outbound movements per hour on average, 2 minimum, 4 in peak times. Pallet type H: 1 in- and outbound movements per hour on average, 0.4 minimum, 1 in peak times. Retrofitted pallets: additional 60% of all in- and outbound pallet move68

© T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R


3 important variables for planning a warehouse

FIGURE 3.15

Grouped Loading Unit Categories

ments Ð→ 60 movements per hour on average, 48 minimum, 84 in peak times. Overall: 160 in- and outbound movements per hour on average, 128 movement minimum and 224 movements at peak times. o. Loading Unit Categories: The loading units can be grouped into the following categories, distinguished primarily by turnover.

3.3.5 PICKING

Only full pallet units are shipped due to the fact that in our scenario the minimum ordering quantity corresponds to a full pallet load.

3.3.6 IT SYSTEMS

a. b. c. d. e. f.

FIFO/LIFO handling: Yes. Different storage strategies: Yes. Re-shuffling strategies: Yes. Picking: Yes. Picking strategies: Yes. Dynamic storage locations: Yes.

3.3.7 BUILDING

a. Clear height: 13 meters. © T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R

69


3 important variables for planning a warehouse

FIGURE 3.16 Rough Warehouse Sketch Including the Direction and Source of all Material Flows as Well as the Location of Expansion Joints

b. c. d. e. f. g. h. i.

Building columns: Are present. Other obstacles: None. Source and direction of all outbound flows: See Figure 3.16. Source and direction of all inbound flows: See Figure 3.16. Floor flatness: According to EN 15620. Floor compression strength: C20/25 quality as per standard EN 15620. Building design: Building closed on all sides. Building temperature: Ambient, maintained within tolerance +5○ C and +40○ C. j. Building atmosphere: Normal atmosphere devoid of corrosive, aggressive or explosive substances.

3.3.8 EARTHQUAKES

The warehouse is in a zone with no seismic risk.

3.3.9 ESCAPE ROUTES

The warehouse is located in Germany, so German regulations apply.

3.3.10 FLOOR ISSUES

a. Floor compression strength: See Chapter 3.3.7 g. 70

© T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R


3 important variables for planning a warehouse

b. Floor flatness: See Chapter 3.3.7 f. c. Expansion joints: Present in the building. See Figure 3.16. d. Obstacles in the floor: None present.

3.3.11 FIRE SAFETY

a. Dangerous or highly calorific goods stored: Yes, high combustion value. Computer peripherals are made of plastic, packed in cardboard and handled on wooden pallets. b. Combustion value: To be calculated according to local German legislation. Fire safety inspector should be consulted. c. Goods storage layout: Goods can be stored very densely.

3.3.12 STATICS

a. Heaviest loading units: Loading Unit categories B and E are heaviest and should be placed at the bottom of any racking. b. Highest loading units (buckling length): All loading units are of the same height. Therefore no relevance for planning purposes.

3.3.13 THE FUTURE USERS

a. Ergonomics: Western European users. b. Workforce: Core workforce on open duration contracts. Fluctuations in demand covered by temporary workforce with potentially low skill level. c. Culture: Western European plant location to be considered for planning purposes.

3.3.14 WORK SAFETY

To be planned according to German regulations.

3.3.15 STEEL PRICE

While this book was being written, the steel price was at an historically very low level and displayed an imminent probability to rise. Therefore, a quick Š T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R

71


3 important variables for planning a warehouse

planning, definition and purchase decision would have been of paramount importance. In the chapters to follow, we will further elaborate on this example in order to show how the detailed application of the Palletized Warehouse Canvas pays back in the system choice and layout definition phase.

72

Š T H E A U T H O R S A N D S T U D E N T L I T T E R AT U R


12 mm

Intralogistics Intralogistics (and warehouse planning) is a field with vast scope and high complexity. Handling this scope and this complexity is a challenge, but the rewards are potentially great. Using the correct warehousing solution provides a powerful leverage to reduce costs and fixed assets, and a tool to sustainably increase service quality. In order to provide a first stepping stone into the world of intralogistics the book focuses on the question on ”how to plan a warehouse for palletized goods?” and gives the reader a comprehensive scheme for achieving an optimal warehousing solution involving palletized goods. Intralogistics reviews and discusses in detail the most commonly used warehousing solutions, focusing on the elements needed for a wellplanned and well-functioning intralogistics operation. The book makes suggestions for warehousing solutions for any given circumstance, and furthermore provides the reader with tools to analyze these solutions. Last but not least it stresses the factors that ought to be taken into account when choosing the most beneficial warehousing solution. In short, Intralogistics provides an easy to use guide for palletized warehouse planning and thereby helps to improve the efficiency and effectiveness of intralogistics operations. This is a valuable tool for any logistics professional. The book also serves as an introduction to the complexities of intralogistics to be used in academic courses in logistics and warehouse planning.

|  Intralogistics – a guide to warehouse planning

a guide to warehouse planning

d . halbeisen   s . segerlund

Dominik Halbeisen and Stefan Segerlund have extensive international experience in warehouse planning from a large number of industries. With a specialization in process and supply chain management they have planned and implemented warehouse projects from varying perspectives, ranging from sales over procurement to project management.

Intralogistics a guide to warehouse planning

Art.nr 39034

dominik halbeisen   stefan segerlund www.studentlitteratur.se

978-91-44-10917-6_01_cover.indd Alla sidor

2015-06-26 10:54


Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.