By Omar YoussefWarehouse Manager E-mail: [email protected]: [email protected]
Warehouse Operations
Training Session
Mission Statement
“The warehouse is our strongest asset.
Dedication, accountability and reliability are at the heart of our business philosophy. Focussed on our restaurants needs, we provide integrated logistics of outstanding product quality, Product quantity, and delivered on time. we are the extension of your business.”
Warehouse Objectives
1. Maximize effective use of space. 2. Maximize effective use of equipment.3. Maximize effective use of labor.4. Maximize accessibility of all items.5. Maximize protection of all items. 6. Maximize effective use of information.7. Maximize the protection of company’s assets.8. Minimize goods Handling.9. Minimize the company operating Cost.
Warehouse Functions
1. Unloading2. Receiving & Checking inbound goods3. Internal product movement4. Storing5. Order-picking 6. Stock Sortation7. Stock Rotation8. Packing 9. Loading & Shipping10. Cycle Counting11. Replenishement12. Handling Returns13. Maintenance & Loss Prevention
Operational Process
Picking
Inbound Activities
Outbound Activities
ProcessActivities
Put-away PackingStorageReceiving Shipping
1 - Unloading2 - Counting3 - Identifying4 - Marking5 - Quality Control6 - Registering goods
7 – Put away11 – Product
Category12 – Palletize
13 – Stocking 14 – Cycle Counting15 – Replenishment16 – Stock Rotation17 – Space Planning
18 – Routing19 – Directing20 – Zoning21 – Dunnaging
22 – Confirmation23 – Invoicing24 – Sealing25 – Staging26 – Loading
Receiving
• Receiving Objectives
• Right Product • Right Quality• Right Quantities• Right Weight• Right PPB.• Right Condition• Right Standards• Right Time
Receiving
• Prepare to receive goods and materials• Check Temperature • Unload the product (manual or
automated)• Count the product• Check the product (quality, quantity &
expiry)• Check Methods(100 % accept,100
%check, 10% sample check)• Identify the product• Mark the product• Enter the product on the receipt
register• Transfer the product to stage area• Enter the product in stock• Re-Stack the product
• Receiving Procedures
Put away & Stacking
• Stack according to First in First out
• Stack according to standards
• Method of stacking
- Manual Stacking
- Automated Stacking
• Keep stacked goods neat
• Boxes to be stacked evenly
• Keep Identity sticker visible
• Keep expiry date visible
• Stack goods in a safe way
Picking Time Consumption
Source: John J. Bartholdi, III, Steven T. Hackman, 1998
Pickers Time Breakdown
Traveling55%
Paperwork and other activities
20%
Extracting
10%
Searching
15%
Traveling
SearchingExtracting
Paperwork
Picking
• 50-60% of time spent traveling
• - Optimize picking workload• - Optimize work force assignment• - Optimize picking route • - Use of labor standards
• Apply First in First out• Use the right picking equip• Pick the right item (accuracy)• Picking the right qty (accuracy)
• Keep the Picking area neat• Picking Method
• - Manual Picking• - Automated picking
This is wrong
This is Right
Shipping
• Invoicing
• Staging
• Categorizing
• Checking
• - the right product
• - in the correct quantity
• - in good condition
• - and on scheduled time
• Confirming
• Loading
Cold Storage Standards
• Proper Storage Temperature
• - Dry Storage from 55 to 70 F(13-21 C).• - Refrigerator from 34 to 38 F(1-4 C).• - Freezers from 0 to -22 F(-18 - -30 C).
• A relative humidity of
• - 50-60 % in the storeroom• - 75-85 % in the refrigerators for meats, fish,
chicken, dairy products• - 85-95 % for fruits and vegetables
• Good ventilation provides clean air at the required temperatures and humidity.
Unit Load Racking
44
-48
”
40” 40” 40”
132”
40”40”40”
3-6
”
• 3-6” between unit loads• 3-6” between unit load and bay member• 4-6” between unit load and wall• 18” between unit load and first ceiling obstacle• 6” off the floor
001
002
003
004
005
006 008 010
009 011
012 014
013
016
015
018
017007
002
001003005007009011013015017
004006008010012014016018
Aisle 12
Aisle 1111-A-L1-002
11-A-L1-001
11-A-L1-004
11-A-L1-003
11-A-L1-006
11-A-L1-005
Location & Aisle Numbering for Ground Storage
A B C
Location and Aisle Numbering for Rack Storage
AIS
LE
- 0
2
Aisle Entry
Left Right
02-L-01A
02-L-01B
02-L-01C
02-L-01D
02-L-03A
02-L-03B
02-L-03C
02-L-03D
02-L-05A
02-L-05B
02-L-05C
02-L-05D
02-L-07A
02-L-07B
02-L-07C
02-L-07D
02-R-08A
02-R-08B
02-R-08C
02-R-08D
02-R-06A
02-R-06B
02-R-06C
02-R-06D
02-R-04A
02-R-04B
02-R-04C
02-R-04D
02-R-02A
02-R-02B
02-R-02C
05-R-02D
Drivers Duties
• Loyalty to company is very important • To implement all job description• Cars, daily check up for maintenance• Cars, Cleaning on weekly basis• Cars, Damage resulting of omission • No eating or drinking while driving • Complying w/warehouse rules & regulations• To execute information delivered to you• Smoking is not allowed in warehouse• Cooperation w/colleagues and direct managers• Deal w/rests. representative Like the only customer• Handling returns as per policy
Key Inventory Terms
• Lead time. Time interval between ordering and receiving the order
• Holding (carrying) costs. Cost to carry an item in inventory for a length of time, usually a year
• Ordering costs. Costs of ordering and receiving inventory
• Shortage costs. Costs when demand exceeds supply
Inventory Costs
• Ordering costs.
• Includes monitoring costs, order preparation. order transmittal, order receipt (unpacking, shelving, loss and damage).
• Holding (Carrying) costs.• Includes interest, insurance, depreciation,
obsolescence, deterioration, spoilage, pilferage, breakage and warehousing costs.
• Warehousing costs.• Energy, Space, Labor, Equipment security
• Stock out costs. • Includes opportunity cost of not making a
sale (lost profit), lost customer goodwill, backorder costs, lateness charges.
COMPONENTS OF CARRYING COSTS
• Capital Costs. Cost of Money.
• Storage Costs. Is the cost of space, personnel, and equipment.
• Risk Costs. It is the costs of obsolescence, Damage, pilferage, insurance, etc.
• Records & Handling costs.
Total Cost
AnnualHoldingcost
PurchasingcostTC = +
Q
2H
D
QSTC = +
+Annualorderingcost
DC+
TC Total annual cost D Annual DemandC Cost per unit Q Order quantityS Cost of placing an orderH Annual holding and storage cost per unit of inventory
The Total-Cost Curve is U-Shaped
Ordering Costs
An
nu
al
Cost
Holding Costs
Total Costs
Cost Minimization Goal
Optimal Order Quantity
Re-ordering Point
L L
Q
S
TimeR = Reorder point = L*D + S Q = Economic order quantityL = Lead time D = Demand per Unit of TimeS = Safety Stock
L
Qu
anti
ty
Reorder point Reorder point Reorder point Reorder point
L
Safety Stock (SS)
WD Cost Breakdown
Figures based on October 31, 2005
Average Company
% of SalesTransportation & Maintenance ………………………… 0.19%Warehousing ………………………………………………………0.61%Salaries & Wages………………………………………………. 1.07%Total WD Cost ……………………………... 2.72%
WD Opportunity
• To be Improved• Inventory Accuracy
• Picking Accuracy
• Picking & Replenishment Efficiency
• Control of Products
• Space Utilization
• Stock Rotation
• Backorder Handling
• Resource Planning & Scheduling
• Labor & Equipment Productivity
• Performance Management
• Reduced• Inventory• Workforce• Damage / Shrinkage Product• Lost Stock & Safety Stock• Search Times• Paperwork / Human Error• Physical Inventory Taking• Labor, Equipment & Utility Costs• Driver / Delivery Costs• Worker Accidents• Warehousing Costs• Outside Warehousing
WD Opportunity
Warehouse Controls
•Personnel Safety and Health• Reduce all risks • Follow procedure for security risk• Report all accidents• Handle any accident• Report any security risk• Promote good housekeeping• Maintain a clean, neat personnel hygiene • Maintain a clean workplace• work according to standards• Dispose of waste in timely way• Effectively mark aisles & maintain their• integrity• Have adequate lighting• Apply all rules adopted in your organization
Fire Prevention and Protection
Warehouse Controls
Is smoking permitted in the warehouse?
Warehouse Controls
•Theft and Pilferage
•Product Damage & Contamination
•Storing Hazardous Materials
Equipment & Tools
Any Questions?