Chapter 02 - Profiling-1

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    WHEN PROBLEMS OCCUR IN WAREHOUSE OPERATIONS:REENGINEERING IS OFTEN DONE

    LAYOUT PROJECTS ARE COMMENCED

    WITH NO IDEA OF THE ROOT CAUSE OF THE PROBLEMS

    DUE TO:LACK OF KNOWLEDGE

    LACK OF TOOLS

    LACK OF TIME

    Investigating Wareh!se O"eratinsCha"ter #

    A$tivit% Pr&i'ing( Mining Fr G')

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    Wareh!se A$tivit% Pr&i'ing

    S%ste*ati$ ana'%sis &

    ite* a$tivit% + r)er a$tivit%

    Pr&i'ing is )esigne) t rea)i'% i)enti&% rt $a!ses O& *ateria' &', "r-'e*s

    O& in&r*atin &', "r-'e*sPin"int ""rt!nities &r "r$ess i*"rve*entPrvi)e an -.e$tive -asis &r )e$isin *a/ing

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    A)vantages & Pr&i'ing

    Can 0!i$/'% Revea'(

    Design an) P'anning O""rt!nities Crre$t 1ase'ine &r J!sti&%ing Ne, Invest*ents

    Pe"'e Fee' a Sense & Inv've*ent

    Pi$t!re is Wrth a 2333 Wr)s Ca"t!re the a$tivities & the ,areh!se in "i$tria' &r*

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    CAUTION

    Dn4t get st!$/ nAnalysis Paralysis Pr&i'ing -e$*es the ga'

    Frget t s've the "r-'e*s

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    5 Ke% P'anning + Design Iss!es

    26 Or)er Pi$/ing + Shi""ing

    #6 Re$eiving + P!t7a,a%

    86 S'tting96 Materia' Trans"rtatin S%ste*

    :6 La%!t + Materia' F',

    ;6 Wareh!se Si

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    Pi$/ing + Shi""ing

    Or)er 1at$h Si

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    Re$eiving + P!t7a,a%

    Re$eiving M)e Dis"sitin

    P!t7a,a% 1at$h Si

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    S'tting

    =ne De&initin

    Strage M)e Se'e$tin + Si

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    Materia' Trans"rtatin S%ste*

    S%ste* Se'e$tin

    S%ste* Si

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    Wareh!se La%!t + Materia' F',

    Overa'' Wareh!se F',

    Re'ative F!n$tina' L$atins

    1!i')ing Cn&ig!ratin

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    Wareh!se Si

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    Leve' & A!t*atin

    Sta&&ing Re>!ire*ents

    Ca"ita'7La-r S!-stit!tin

    Leve' & Me$hani

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    What ) C!st*ers Want?

    their orders filled

    S*e $!st*ers are @igh De*an)

    Use a 'arge "rtin & ,areh!se a$tivit% @ave high $!st*er servi$e re>!ire*ents

    Ma% )e)i$ate a "rtin & the ,areh!se t that$!st*er r -!siness !nit 8r)Part% Prvi)ers )e)i$ate ais'es t a $!st*er

    Cntra$t Wareh!ses have $*"'ete s!""rt t a $!st*er

    Wareh!se ,ithin a Wareh!se

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    A)vantages & a Wareh!se ,ithin a Wareh!se

    S*a''er ,areh!ses are *re e&&i$ient

    Prvi)e -etter $!st*er servi$e

    Can s!-7)ivi)e the ,areh!se int se'&7$ntaine)

    "r$essing !nits ie( Divi)e + Cn>!erB

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    T%"es & Pr&i'es( C!st*er Or)er Pr&i'e

    Or)er *i )istri-!tins

    LinesOr)er )istri-!tin

    C!-esOr)er )istri-!tin

    Lines + C!-es Or)er )istri-!tin

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    Or)er Mi Distri-!tin

    There are severa' r)er *i )istri-!tins that arehe'"&!' in "'tting ,areh!se "erating strategies6

    Fa*i'% Mi vera'' ,areh!se "erating strateg% is )i$tate)-% r)er *i I& P!re 7 r)ers ten) t -e &r* ne Pr)!$t Fa*i'%B

    in)i$ates an a)vantage & virt!a' ,areh!sing ,ithin a,areh!se

    Res!'ts in g) "r)!$tivit% + $!st*er servi$e

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    Fa*i'% Mi Distri-!tin

    35% 25% 15% 5% 5% 5% 10%

    A On'% 1 On'% C On'% A + 1 A + C 1 + C A 1 + C

    35

    15

    5 5 5

    10

    25

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    @an)'ing Unit Mi Distri-!tin

    F!'' r Partia' Pa''etCase Mi

    Se"arate "i$/ areas &r &!'' "a''ets "artia' "a''ets $artns

    Se"arate areas &r &!'' vs -r/en $ase *i "i$/ing

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    @an)'ing Unit Mi Distri-!tin

    % of Order 50 30 20 55 25 20

    & 'ines 5: 23 2: ;3 83 23

    Lse$artn

    F!'' "a''et Mie) 1r/enCase

    F!'' Case Mie)

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    Or)er In$re*ent Distri-!tin

    Deter*ine "rtin & &!'' !nit 'a) "a''ets $artnsB

    vs "artia' !nit 'a)s H "a''et "a''etB

    1!i') "artia' !nit 'a)s( At the s!""'ier i& "ssi-'e

    U"n re$ei"t in ne$essar%

    Strage s"a$e *a% -e sa$ri&i$e)

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    P!r$hase Or)er Pr&i'e

    Fr in-!n) *ateria' vi$e !t-!n) *ateria'

    Use sa*e )istri-!tin ana'%ses as &r !t-!n)

    "r&i'ing

    S!""rts the sa*e -at$hing an) "r$essingstrategies &r re$eiving an) "!ta,a%

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    Ite* A$tivit% Pr&i'ing

    Use) t s't the ,areh!se What strage *)e sh!') -e assigne)

    @, *!$h s"a$e sh!') -e a''$ate)

    Where sh!') it -e '$ate)

    T%"es & A$tivit% Pr&i'ing( P"!'arit%

    C!-e Mve*ent'!*e

    P"!'arit%7'!*e Or)er C*"'etin

    De*an) Crre'atin

    De*an) aria-i'it%

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    Ite* P"!'arit% Distri-!tin

    C'se t the )rC'se t the &'r Minrit% & ite*s generate *a.rit% & the "i$/s

    Uses Paret Ana'%sis r A1C Ana'%sis A a!t*ate)7high'% "r)!$tive strage *)e

    G')en =ne $'se t ais'e at r near ,aist high

    1 se*i7a!t*ati$ *)erate'% "r)!$tive strage"i$/ing*)e

    Si'ver =ne net *st rea)i'% a$$essi-'e

    C *an!a' &&ers high )ensit% strage

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    Ite* P"!'arit% Distri-!tin

    P"!'arit% *a% -e -ase) n(

    D''ars & Sa'es

    '!*e

    & Re>!ests

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    C!-e Mve*ent Mnth

    G&Ite*s

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    P"!'arit%7C!-e Mve*ent Mi

    @igh P"!'arit%7@igh C!-e( Uses $artn &', ra$/s '$ate) &r ease & re"'enish*ent

    @igh P"!'arit%7L, C!-e( Man% "i$/s !nit & s"a$e !se 'ight )ire$te) $ar!se's

    $ar!se's are nt eas% t rest$/ are e"ensive "er &t &strageB

    L, P"!'arit% L, C!-e( Len)s itse'& t -in strage

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    Ite*7Or)er C*"'etin Distri-!tin

    S*a'' gr!"s & ite*s that &i'' 'arge gr!"s & r)ers(

    List *st t 'east ""!'ar

    Deter*ine "r"rtin & r)ers a s!-set $an $*"'ete Fr ea*"'e 23 & the ite*s *a% &i'' :3 & the r)ers6 net

    s'i)e is an ea*"'eB

    Assign these t small order completion zones: Pr)!$tivit%, "r$essing rate "r$essing >!a'it% t%"i$a''% #7: ti*e

    *re e&&i$ient than genera' ,areh!se

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    Ite*7Or)er C*"'etin Distri-!tin

    50% of the orders are

    completed by 10% of the items

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    De*an) Crre'atin Distri-!tin

    I)enti&% re'atinshi" a&&init%B & )e*an) -et,eenin)ivi)!a' ite*s r &a*i'ies6

    Deter*ine) -ase) n &re>!en$% & -eing re>!este)

    tgether n r)ers O&ten -ase) n sa*e st%'e r si

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    De*an) Crre'atin Distri-!tin

    I!e" N#"$er I!e" N#"$er P&r Fre'#e()*

    27#79 27#72 :

    987#72 987#7 9:

    3357878 335787# 8;

    227#72 227#75 83

    727 727; ##

    #35797# #357979 2:

    ;;#727 ;;#7272 2#887579 57#7

    22#787 22#7879 ;