PTS CONSOLIDATION ACTION PLAN

MIA MONTILLA

ACTION PLAN OVERVIEW• Monitor capacity daily• Plan CTS 3 times a week • Take stock of necessary materials• Set up• Create a separate pick region • Process/Method• Safety • Maintenance (Implementing 5S)• SWOT• Review

CTS• In order to work collaboratively with sorters, we propose

that we phase in additional CTS. We will phase it in over the course of three weeks to make the idea more palatable for sorters. The ultimate goal is to have CTS occur three times a week by the third week of implementation of this plan. • Week 1: CTS once a week• Week 2: CTS twice a week• Week 3: CTS three times a week

In order to maximize space in these areas, we need to take inventory on the areas that can use additional support beams, racks, & labels

When maximized, there should be approximately 12 or more available locations for single unit cases

In addition to the set up of the storage areas, there should be signage included to avoid confusion as well as a print out of the SOP for F1/F3

MATERIALS & SET UP

Creating a separate pick region solely for single units, will ensure that units are reallocated promptly. Currently reallocation does not occur until the units are reprocessed (indirect time).

CREATE A NEW PICK REGION

Beyond the utilization of the P&D areas, there is also an opportunity to convert the racking above the conveyors in each zone (with the exception of Zone 27) into additional storage space.

ADDITIONAL STORAGE

ADDITIONAL STORAGE

METHODPicking:

• Picking will assume responsibility and ownership of folding in the flaps of those cases with one unit remaining.

• Picking assumes responsibility and ownership of pushing the single unit cartons down the conveyor or putting them aside with flaps folded in for stocking to put away.

• These changes can be added to the picking SOP to ensure accountability for the department and individuals

Stocking: • Stocking will follow function 3 procedure. Stockers will be expected to put away

single unit cartons in the appropriate locations. • Create signage to eliminate confusion regarding the P&D storage areas.

• Accountability: if cases that do not belong in the single unit storage areas, a report of their activity history can be taken to hold the associate accountable.

• When picking to throw on the line, check SKUs. Wearable should ring when the wrong case is scanned.

SAFETYIn order to ascertain that this process, specifically the racks above the conveyors, would fit with Gap Inc.’s safety standards, we spoke with Rich Gunn to find out what he thought would create safety issues. Rich said at first sight that he does not see an issue with including the racks above the conveyors. This is based on the assumption that stockers are not moving too quickly, and that there is not an excessive amount of reps per hour. Requested that we find the height, weight, duration of procedure, and reps per hour for the process. After giving this information, we received approval.

MAINTENANCE (5S)Consistently work with sorters to ensure that CTS is going smoothlyDaily capacity reports should be run

• Confirmed by Sean that it will be possible to generate and include in the capacity reports that are currently sent out daily

Periodically check that labels are intact • Ask associates to call regarding any label problems

Weekly audits to ensure accuracy and integrity of the P&DsInclude any updates or concerns in the shift turnover or SOS

SWOT ANALYSIS• Readily available resources so

there are no additional buying costs• Diverse team of people working to

solve the problem• Currently run daily capacity reports

• Lack of communication between departments

• Possible safety issues that can arise from utilizing the space above the conveyors

• Plenty of unused storage space• Above conveyors, behind 22,

P&D’s• Creating a separate pick region to

eliminate the processing of single units

• Incoming volume with each wave may exceed capacity

• SKU count• Potential to add additional time and

errors to the F3 process

Strengths Weaknesses

Opportunities Threats

REVIEWING THE PLANIn order to measure success, we should take the following steps after implementation:

• Compare statistics from before and after in terms of capacity, turnover, productivity, etc.

• Meet with sorters and review how CTS and residual capacity has impacted them

• Revisit the SWOT to see what has changed, and if we have been able to convert opportunities into strengths