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Distribution Capacity Distribution Capacity AnalysisAnalysis

P09721P09721MSD II Final PresentationMSD II Final Presentation

Distribution Capacity Distribution Capacity AnalysisAnalysis

P09721P09721MSD II Final PresentationMSD II Final Presentation

Aaron Heyman – Aaron Heyman – LeadLead

Jose RodriguezJose RodriguezAdam CookAdam Cook

Abraham TalebAbraham Taleb

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Project DescriptionProject DescriptionProject DescriptionProject Description

Problem Statement: What is the maximum # Problem Statement: What is the maximum # of orders/lines/units this facility can process in of orders/lines/units this facility can process in a given time period based on the current a given time period based on the current equipment/software?equipment/software?Processes In Scope:Processes In Scope: Receiving > Put Away Receiving > Put Away > Replenishment > > Replenishment > PickingPicking > > PackingPacking > > ShippingShippingPick and pack will likely be the first areas of Pick and pack will likely be the first areas of focus. Others can and will be added given the focus. Others can and will be added given the team’s ability to handle a broader scopeteam’s ability to handle a broader scope

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Customer Need #

Importance Description Comments/Status

CN1 5 The time required to train users is minimal. Met

CN2 5 The computer tool is user friendly. Met

CN3 3The computer tool is able to be upgraded and/or modified in the future.

Met

CN4 5 The computer tool represents the real world. Met

CN5 3 The computer tool identifies invalid data inputs. Met

CN6 1 The computer tool executes commands quickly. Met

CN7 3The computer tool alerts the user when a given demand input is not realizable given actual capacity.

Met

CN8 3The computer tool allows the user to visualize all the information on a single screen.

Met

CN9 3The computer tool provides the option to print a report of the output.

Met

Customer NeedsCustomer Needs

Importance Scale: 5= Must Have 3= Nice To Have 1= Preferential

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Metrics & SpecificationsMetrics & SpecificationsEngineering Specifications Metrics

1The training time is less than 30 minutes. Training Time2The computer tool is user friendly. Ease of use3The computer tool is able to be upgraded and/or modified in the future. Flexibility 4The system represents the real world. Validity Test5The system identifies invalid data inputs. Ease of use6The system executes a command in no more than 0.25 minutes. Execution Time

7The system alerts the user when a given demand input is not realizable given actual capacity. Validity Test

8The computer tool allows the user to visualize all the information on a single screen. Validity Test

9The computer tool provides the option to print a report of the output. Validity TestTable 1.1 Relationship of customer needs to metrics Target Specifications

Metrics Need Nos. Importance Units Ideal Value Marginal value1 Training Time 1 5 Minutes <30 <60

2 Ease of use 2,5 5Subjectiv

e 5 33 Flexibility 3 3 Binary Yes Yes4 Validity Test 4,7,8,9 1 Binary Pass Pass5 Execution Time 6 1 Minutes 0.05 0.25

Table 1.2 Target Specifications

Importance Scale: 5= Must Have 3= Nice To Have 1= PreferentialBinary: Pass or Fail.

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Goals for MSD IIGoals for MSD IIGoals for MSD IIGoals for MSD II Add Pack area to computer toolAdd Pack area to computer tool

Validate computer tool through historical data Validate computer tool through historical data and on floor trialsand on floor trials

Turn computer tool over to customer for Turn computer tool over to customer for implementationimplementation

Identify process improvement opportunities and Identify process improvement opportunities and present to customerpresent to customer

Implement desired process improvement Implement desired process improvement projects projects

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MSD II Project MSD II Project Description Description

MSD II Project MSD II Project Description Description

Capacity Analysis/Computer Tool Capacity Analysis/Computer Tool (Aaron and Adam)(Aaron and Adam)

Process Improvements (Abe and Jose)Process Improvements (Abe and Jose)

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Tool DescriptionTool DescriptionTool DescriptionTool Description Focuses on labor needed for given Focuses on labor needed for given demanddemand

Modifiable to accommodate future Modifiable to accommodate future changeschanges

Has the ability to calculate various input Has the ability to calculate various input structuresstructures

Has capacity analysis portion where user Has capacity analysis portion where user can experiment with different scenarioscan experiment with different scenarios

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Updates to ToolUpdates to Tool

•Pack addedPack added

•Picking validatedPicking validated

•Pack validatedPack validated

•Capacity Analysis of Pick and PackCapacity Analysis of Pick and Pack

•Added Printable SheetAdded Printable Sheet

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User InterfaceUser InterfaceUser InterfaceUser Interface

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Data ValidationData Validation

PickPick ADMADM PTLPTL VoiceVoice CarouselCarousel TotalTotal

CalculateCalculatedd

6.256.25 110.49110.49 106.75106.75 18.5418.54 241.7241.744

ActualActual 5.65.6 108.09108.09 104.95104.95 21.5521.55 240.1240.199

Labor hours per area over 25 day time periodLabor hours per area over 25 day time period

-0.64%-0.64%

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PackPack

Second sheet in Excel Workbook Contains Pack DataSecond sheet in Excel Workbook Contains Pack Data

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Packing ExplanationPacking Explanation

•The team chose to use Orders for pack The team chose to use Orders for pack calculations instead of lines.calculations instead of lines.

•This was chosen due to the high variability in This was chosen due to the high variability in the size of lines being packed.the size of lines being packed.

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Packing ValidationPacking Validation

PackPack Week 1Week 1 Week 2Week 2 Week 3Week 3

CalculatedCalculated 380.07380.07 394.15394.15 378.62378.62

ActualActual 420.12420.12 408.99408.99 386.73386.73

DifferenceDifference 40.0540.05 14.8414.84 8.118.11

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Overall Capacity ViewOverall Capacity View

Third sheet in Excel Workbook Contains Overall Third sheet in Excel Workbook Contains Overall Capacity ViewCapacity View

Based on Demand %, the Max Total Demand Supported is

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Maximum Outputs for Maximum Outputs for Pack AreasPack Areas

Fourth sheet in Excel Workbook Contains Detailed Fourth sheet in Excel Workbook Contains Detailed Pack CapacityPack Capacity

ADM Kaizen • Initial meeting

–April 17, 2009 9:00 am

–People present• Inventory control

•Replenishment personnel

•ADM operators

•Pick Supervisors

•RIT Students

•Meeting was very productive, everyone contributed with good suggestions and critiques.

Ideas Discussed

• Ideas discussed–Single label with color coding, and barcode included

–Two labels: one with barcode and another with three digits and colors

Ideas Discussed–Re-slotting carton flow racks

–Incorporate a flag system

v.s.

Meeting Conclusions

•Single label with barcode

•Re-slotting carton flow racks, not agreed–The benefits obtained from this are not so large when compared to the effort to be invested

•Flags are to be incorporated only for the high movers as having 500 flags will drive operators crazy

Final Label Design

• Two sizes, one for ADM and one for carton flow racks

• If white background is allowed next to barcode, number of colors can increase

Cost/Benefit Analysis

•Assumptions–Define a defect as replenishing a slot in the ADM with wrong product. Considered only locations with <95% accuracy

–Sample cycle counted is representative of the state of whole system

–Labor costs $10/hr

–Assume 920 slots currently being used

Cycle Count ADM - Results

# of locations <95% accurate # of Locations <95%

Nov.08 920 16% 147.2

Dec.08 920 17% 156.4

Jan.09 920 20% 184

Feb.09 920 33% 303.6

Total defects 791.2

Costs - ResultsNumber of defects (1) 792Number of hours per defect (2) 0.4

Cost of labor hour (3) $

10.00

Total cost of defects (1x2 x3) $

3,168.00

Time spent on a single defect Time

(mins)2 Packing defect recognition3 Packing notifies the search and rescue team

12 Fill out form and travel to and from ADM to pick the right product2 Repack the order5 Check the slot that contained the wrong product potentially remove

items that are not supposed to be there.TOTAL minutes per

defect 24

Cost of labels $ 1,200.00

Cost of defects $ 3,168.00

Payback period (months) 4.55

Cost/Benefit Analysis

Implementation Plan

• If approval is not obtained within timeframe, transition document will be developed.

• If approval is obtained in time and product is received before Thursday may 14th, the implementation will be executed.

–To minimize potential errors, no two stickers will be removed at the same time.

ADM Replenishment FlagsSolution that all parties want but difficult to implement

Other Solutions involved showing the current levels of all channels

Idea for spring activated flag was generated but mechanics are difficult

Advantage would be flag would only show when current channel needed product.

Refilling channels before they become empty would increase productivity

Current Prototype

Shipping Conveyor Kaizen Event

The Shipping Conveyor Kaizen was attended by representatives from packing, shipping and engineering.

Quick decision was made to add Spring-loaded bottoms to re-sort bins, especially in light of the recent injuries.

Discussion of mechanical solution lead to mostly dead ends. Most solutions have been tried before (Adding chutes instead of rollers, speeding up/down conveyors).

Shipping Conveyor Kaizen Event

The final discussion focused on boxes being placed on the conveyor incorrectly

Lisa defended that it is difficult to place the box correctly every time with the expectation to ship so many orders per hour

Solution was generated to remind packers at weekly meetings to place boxes label side up and vertically oriented

Shipping Conveyor TodaySpring bottoms have arrived and installed in the re-sort bins

UPS blue bins will be switched out of those locations and replaced with either red or green bin

Labeling has also been designed for bin stating “DO NOT REMOVE”

Movement of MTO to a spot on the shipping conveyor will go a long way to reduce the number of packed boxes that need resorted.

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QuestionsQuestions

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