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

Techniques and Methods in Analyzing Data for use in Designing Warehouses and Distribution Centers

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Do you ever feel Squeezed from All Sides?

MANAGEMENT FOCUS • • •

Improve productivity Reduce cycle time Same day shipment

INTERNAL FORCES • • • • • •

CLIENT/CUSTOMER FORCES

Growth pains New derivatives Cost/service issues Space issues Commingled process flows Strained information infrastructure

• • • •

Increased service requirements Lower costs Growing business More product/material SKU’s

Customer Operations COMPETITIVE FORCES • • • •

Lower costs Innovative product and service offerings Speed to market Service levels

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Let the DATA Tell the Story of your Company!

• The data can determine the activity of every SKU. • SKU Activity (many follow 80/20 rule, 20% of SKUs represent 80% of Activity) • It can find your slow mover SKUs • It can find your dead stock, that hasn’t moved in over a year. (remember carrying costs on that stock is 25% per year) • It will tell you in what type of storage and/or pick medium to place your SKUs

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Let the DATA Tell the Story of your Company!

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

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

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

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What Kind of File Type is Needed • It is best to get data in a text file format.

• A large quantity of data can fit onto a text file.

• Files with less than a million lines can fit into an excel spreadsheet (MS-Excel 2007 or newer) • Summary data e.g. growth data can be placed onto a spreadsheet.

• Use MS-Access to run queries on files to gather results, > than 2Gb files use SQL. • Once queries are complete, then export results to Excel to graph and chart results.

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What Needs to be in the Data?

• Transaction History (Orders or picking history) • • • • • • • •

Order No, Date, Time (if available), SKU Number, Description, Line No., Quantity by Bottle and/or Cases, Pick Location,

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

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What Needs to be in the Data?

• Partmaster File • • • • • • •

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

• On-Hand Inventory • • • • •

SKU Number, Description, Quantity by Units Quantity by Cases Location

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What Needs to be in the Data?

• Receiving History (if not included in transaction history) • • • • • •

Order Number Date SKU Number, Description, Quantity by Units Quantity by Cases

• Shipping History (if different from transaction history) • • • • • • • •

Order Number Date SKU Number, Description, Lot (if applicable) Quantity by Units Quantity by Cases Customer 8

Types of Graphs & Charts

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Types of Graphs & Charts

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Summary of Data Analysis • Summary identifies: • Actual Data of each analysis • Average of Data • 1st Sigma of data, this compensates for highs and lows in the data, and allows you to design to a realistic level.

• Where applicable, use a moving average to identify seasonal trends

• By activity and cube of data, it can determine the amount of manpower required for your facility.

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

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Using Data to Design a System • Using data one can determine what kind of storage/pick medium each SKU should be placed.

PALLET FLOW: This storage medium is for very high active products, allowing the picker to pick complete cases and partial case picks.

For this analysis it is used for items where 2 or more cases are picked per day.

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

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

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

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

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

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Using Data to Design a System SKU Activity-Qty Invoiced May 2012-Sep 2012 20%

10%

150,000

30%

40%

50%

60%

70%

80%

90%

100.0%

95.4% 92.3%

135,000

90.0%

85.3% 120,000

80.0%

10% of Quantity Picked 38 SKUs Storage Medium Pallet Flow

90,000

70.0%

60.0%

68% of Quantity Picked 800 SKUs Storage Medium Case Flow

75,000

60,000

50.0%

40.0%

3% of Quantity Picked 4,665 SKUs Shelf pick or Static Pallet Rack

45,000

19% of Quantity Picked 3,865 SKUs Storage Medium Shelf Pick or ASRS

30,000

15,000

Cum %

Quanty Picked per SKU

105,000

30.0%

20.0%

10.0%

0

0.0% 1

938

1875

2812

3749

4686

5623

6560

7497

8434

SKU Sequence in order of Activity Qty Invoiced

Cum % of Activity

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Designing a System-VA / NVA Processes 37 Branch Store Staging

28

29 30 31

27

32 33 34

24 25 26

35

36

B Area Shelving & Picking

21 22 23

18 19 20

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A15 Area & Flow Rack 16 Picking 14 13 17 10

9

38 39 40

Small Order Staging

41 42 43

12

65 66 67

8

Branch Store Loading 44 45 46 64 68 69 70

62 63

Route 71Staging 72 73

Stretch Wrapping

101 103

74 75 76

106 107

7

Bulk Storage & Picking

Wire Storage & Picking

57 58 59 60 61

52 53 54 55 56

47 48 49 50 51

77 78 79 80

81 82 83 84

85 86 87 88

62

90 99 Truck Staging 100 102 104 105

Truck Loading

108

Receiving

Pipe Order Staging

6 4 5

91 92

1 2 3

95 96

97 98

93 94

89 Wire Order Staging

Pipe Storage & Picking

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Designing a System-VA / NVA Processes What is VA/NVA Flows?

1.

2.

3.

1.

2.

3.

4.

5.

6.

7.

8.

Follow the path of a typical part as it flows from receiving through shipping in a typical order.

Record every step where the product is touched or an action is taken upon it.

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

Receiving Verify received material against Print Labels Apply labels to pallet/carton Separate items between A, B, Bulk, and Wire Move products to specific putaway areas Putaway items into rack position Walk down pick aisles to identify SKUs that require replenishment 9.

Identify replenishment SKU 10.

Pull SKU from putaway position 11.

Place SKU into pick position 12.

Get order form 13.

Go to “A” pick area 14.

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

Read order form for 1st pick 16.

Go to SKU location 17.

Pick & place SKU into tote/pallet 27.

When order is complete in zone past to next zone or push onto take-away conveyor Automated: If orders are ins Area B, a pusher pushes the tote into Area B 28.

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

Read order form for 1st pick 30.

Go to SKU location 31.

Pick & place SKU into tote/pallet 35.

When order is complete in zone past to next zone or push onto take-away conveyor Automated: Order/Tote is conveyed to end of conveyor 36.

Determine if order is a a.

Branch order, b. small order, c.

Or to be palletized and continued into the bulk area.

Branch Orders: 37.

Pick up order from conveyor and move to specific branch container Small orders: 38.

Pick up order from conveyor and move to small order area 39.

Get MT carton 40.

Place order in carton 41.

Close carton 42.

Place order label onto carton 43.

Place carton onto shelf for the specific Zip Code Orders with picks in bulk areas: 44.

Get MT pallet 45.

Pick up order from conveyor and move to pallet.

46.

Get pallet with forklift Repeat 47-51 for 3 lines per Order in Bulk Area 47.

Read order 48.

Move pallet to bulk areas for picks 49.

Locate pick 50.

Pick specific qty of SKU 51.

Place pick on Pallet 62.

When order is complete move pallet to stretch wrappers 63.

Stretch wrap pallet 64.

Place pallet on floor in order of Route 65.

QC to inspect each SKU on pallet (9 SKUs) 66.

Repeat 65 for 8 more SKUs 74.

Manually sort invoices by trucks 75.

Move and sort 2 pallets per order by trucks in routes as designated by #69 For Wire Area 77.

Read order 78.

Get Pallet 79.

Go to Location 80.

Get wire spool (pick wire) 81.

Get empty wire spool 82.

Place onto wire spooler to measure required amount

For Wire Area 83.

Measure wire 84.

Cut wire 85.

Disassemble spooler 86.

Place measured wire spool onto pallet 87.

Move take-off spool back to original pick location 88.

Tag measured spool 89.

Move pallet to stage location When orders are complete 90.

Sort pallet to correct delivery truck For Conduit Piping Area 91.

Read order 92.

Go to location /w forklift 93.

Select required qty of pipe (pick pipe) 94.

Tag Qty picked 95.

Move picked qty to outside cantilever rack 96.

Place pipe onto cantilever rack Sort Conduit Piping 97.

Find specific order/Truck/Route pick in Piping area 98.

Place onto dock in order of Truck Load Trucks 99.

Find specific orders by truck location in Bulk 100. Get 1st pallet from A, B, & Bulk area 101. Place onto truck 102. Get 2nd pallet from A, B, & Bulk area 103. Place onto truck 104. Find specific orders by truck location in Wire Area 105. Get pallet from Wire Area 106. Place onto truck 107. Get Piping for order 108. Place onto truck

Touch Summary Value Added Touch

= 11

Non Value Added Touch

= 97

Total Touches 108

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Designing a System-Flow Charts Verify Invoice against Received Material

Receiving

AREA A

Print Label

AREA B

Putaway In A Area

BULK AREA

Putaway in B Area

Replenish

Pick

Pick

Yes

Place Label on Pallets

WIRE AREA

PIPE AREA

Putaway In Bulk Area

Putaway In Wire Area

Replenish

Replenish

Pick

Pick

Are t here Picks in B for this order?

No

Yes

Are there any more picks in B

Putaway In Pipe Area

No

Pick

Stage Outside

Stage Route #1

Stage Route #1

Stage Route #2

Stage Route #2

Stage Route #3

Stage Route #3

Stage Route #4

Stage Route #4

Stage Route #5

Stage Route #5

Stage Route #6

Move to Sort Area

Sort to Truck

Move to Truck

Load Trucks

Move to Truck

Load Branch Trucks

Yes

Yes

Are there any more picks in A

Consolidate Pipe to Routes & Trucks

Move to Putaway

Yes

Are there any more picks in Pipe?

Yes

No

Are There any picks in Bulk

Are there any more picks in Bulk?

Is this order for a Branch Store?

Are there any more picks in Wire?

Consolidate Pallets to Routes & Trucks

Stage Route #6

No

Move to Sort Area

Sort to Truck

No

No

No

Place in Green Store Container

yes

Are orders correct?

What is Size of Order?

Pallet Required

Pallet

Carton Size

Move to Wrapper

Stretch Wrap

Place in Carton

Sort by Zip Code

Move to Stage Area

Correct Order

Inspect Invoices to Pallets

Move to Truck

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Designing a System Conventional Warehouse Design

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Designing a System Conventional Warehouse Design

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Designing a System Small Hybrid Distribution Center Design

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Designing a System Large Automated Distribution Center Design

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Designing a System Factory Automation Buffer Design

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Designing a System Factory Automation Buffer Design

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

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

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

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