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ECSCIA, European Centre of Supply Chain Information Architecture
EA perspective on generic warehouse performance management
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
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
ECSCIA, European Centre of Supply Chain Information Architecture
Generic warehouse (Source : APICS)
Receiving dock
Bulk storage
area
Picking area
Assembly area
Shipping dock
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
ECSCIA, European Centre of Supply Chain Information Architecture
Use the cube well
Layout
Position Accessibility
Flow
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
ECSCIA, European Centre of Supply Chain Information Architecture
Indicate the flow
Entry Process(ing..) Exit
Resource
Flow
State
StateState
State
StateState
State
StateState
ECSCIA, European Centre of Supply Chain Information Architecture
Define the resources
Resource
Attribute
Attribute
Attribute
Resources process materials
ECSCIA, European Centre of Supply Chain Information Architecture
Define the materials
Material
Attribute
Attribute
Attribute
Materials are processed, they do not process
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
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”
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
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
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