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EA perspective on generic warehouse performance management ECSCIA, European Centre of Supply Chain Information Architecture

Ea perspective on generic warehouse performance management v2

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Page 1: Ea perspective on generic warehouse performance management v2

ECSCIA, European Centre of Supply Chain Information Architecture

EA perspective on generic warehouse performance management

Page 2: Ea perspective on generic warehouse performance management v2

ECSCIA, European Centre of Supply Chain Information Architecture

No matter how LEAN an operation is and no matter choice of manufacturing strategy, there is always

some aspects of inventory & logistics management that requires visibility of warehouse performance. Not even with fully outsourced supply chains can companies ignore warehouse performance as the

choices made by partners affects the service level to customer and consumer

Page 3: Ea perspective on generic warehouse performance management v2

ECSCIA, European Centre of Supply Chain Information Architecture

Warehouse efficiency is a matter of utilizing

people, space and resources to provide an as accurate service level to customer as

possible through efficient flows . Warehousing

efficiency isn´t a matter of storing things well. It´s

a matter of moving them well.

Capex

OpexService level

Page 4: Ea perspective on generic warehouse performance management v2

ECSCIA, European Centre of Supply Chain Information Architecture

Generic warehouse (Source : APICS)

Receiving dock

Bulk storage

area

Picking area

Assembly area

Shipping dock

Page 5: Ea perspective on generic warehouse performance management v2

ECSCIA, European Centre of Supply Chain Information Architecture

Receiving dock

Bulk storage

area

Picking area

Assembly area

Shipping dock

Receive

Inspect

Put away

Hold Pick DispatchMarshall

Retrieve

Put away

Page 6: Ea perspective on generic warehouse performance management v2

ECSCIA, European Centre of Supply Chain Information Architecture

Use the cube well

Layout

Position Accessibility

Flow

Page 7: Ea perspective on generic warehouse performance management v2

ECSCIA, European Centre of Supply Chain Information Architecture

Measure to tune the flow

Measure to sense current state Immediate operative action/comfort

Indicator

Calculated measurements to relate to longer term objectives

Strategic/tactical target setting and holistic monitoring

Key Performance Indicator

Page 8: Ea perspective on generic warehouse performance management v2

ECSCIA, European Centre of Supply Chain Information Architecture

Indicate the flow

Entry Process(ing..) Exit

Resource

Flow

State

StateState

State

StateState

State

StateState

Page 9: Ea perspective on generic warehouse performance management v2

ECSCIA, European Centre of Supply Chain Information Architecture

Define the resources

Resource

Attribute

Attribute

Attribute

Resources process materials

Page 10: Ea perspective on generic warehouse performance management v2

ECSCIA, European Centre of Supply Chain Information Architecture

Define the materials

Material

Attribute

Attribute

Attribute

Materials are processed, they do not process

Page 11: Ea perspective on generic warehouse performance management v2

ECSCIA, European Centre of Supply Chain Information Architecture

Define the layout rulesWhat can be connected to what in what order

Resource Resource

Resource

Resource

Route

Route

Route

Materials flow between resources through routes

Page 12: Ea perspective on generic warehouse performance management v2

ECSCIA, European Centre of Supply Chain Information Architecture

Within the resource and layout framework, define the actual

instances of resources and the actual layout.

”This is what a dispatch area is in this warehouse””This is what bulk storage is in this warehouse”

”This is what an APS is in this warehouse”

Page 13: Ea perspective on generic warehouse performance management v2

ECSCIA, European Centre of Supply Chain Information Architecture

Generic template for measurement

Entry Process(ing..) Exit Event

Level (of material)

Time

resources

Location

Resource AResource B

Resource X Resource YResource X

Page 14: Ea perspective on generic warehouse performance management v2

ECSCIA, European Centre of Supply Chain Information Architecture

Apply the generic template to the actual resources in the actual layout

Actual resources

Actual Layout

Generic layout

Generic resources

Entry Process(ing..) Exit

Page 15: Ea perspective on generic warehouse performance management v2

ECSCIA, European Centre of Supply Chain Information Architecture

Example• ”All” warehouses do picking in a picking area. • That picking is done either manually or automated.

This means that some of the involved resouces are either some kind of APS or manual pickers

• From a measurement perspective, no matter APS or pickers, 1)a material enters, 2) a pick process executes and 3) another material exits (to another resource). The levels, times and locations can be presented in the same indicator although the actual underlying representation is different