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Vol 32 - No 03 - May 2006 National events: Unlocking Supply Chain Benefits through Effective Warehousing Being a Lean Six Sigma Black belt assigned to improve the order picking process within our finished goods distribution centre, the timing of this workshop could not have been more apt. On arriving, I spotted a delegate clutching a ‘Theory of Constraints’ folder from the Goldratt Institute. Naturally, I was in good company. The workshop began with 20 or so delegates sharing their workshop learning expectations, ranging from leveraging existing distribution processes, understanding alternative picking activities to new warehouse building projects. They were not to be disappointed. Derek Thomason led an enthusiastic introduction, covering the IOM and the experience of Unipart Solutions Practice (USP). To be exemplified by the delegates providing examples of their observed good practice warehousing techniques. Gerry Heaton fired off the main workshop with a disturbing statistic showing the trebled cost of warehouse rental in South East London compared to prime locations in the EU. Gerry continued, describing the 4 step methodology approach to warehouse design and redesign. Step 1 Begins with preparation. The key to successful preparation, Gerry commented, is data gathering (as any self respecting Black Belt should know), together with techniques such as Value Stream Mapping to understand material flow. This provided the introduction of the CLASS industrial tool for layout modelling and process simulation. A demonstration was provided by Andrew Robinson at the end of the workshop. Step 2 Requires understanding all your process options, from storage through to picking strategy and MHE. Gerry urged using caution regarding designing for change, studying business scenarios and mitigating risk. Step 3, Selection and costing of preferred options Step 4, Detailed design, requires a plausible alternative selection. To be followed by a systematic approach to layout, storage, processes and technology to test sensitivities. Mike Buckingham followed, with a review of the different methods of storage and their suitability from effective to prohibitive. The learning was enforced by means of a simple game, calculating the relationships between the varying process methods. He stressed that storage efficiency can be maintained by keeping it modular, enabling the movement of your SKU’s from one storage zone to another. After lunch, Derek stepped in to proceed with ‘Outbound’ and an energetic ‘Picking Game’. The game advanced through 3 types of picking activity. Single order, multi-order and order forwarding. By measuring productivity, cycle time and accuracy, the advantages/disadvantages of each became apparent. From our own business perspective, the take away here was that there is not one single optimum picking method for all items in our warehouse, but a combination.The module concluded with the effect of mechanisation and automation. Although with initial capital investment and the feared costs of maintenance programs, automation can offer much in space utilisation, accuracy and increase throughput. A case study was soon to follow. What ensued was most probably the pinnacle of effective warehouse design. Roger Peart of Van Der Lande Industries, kindly took the delegates through the VI methodology of - Process Data & Analysis - System Design - Implementation - Service & Support. Roger reflected on the benefits of using simulation, such as tracing bottlenecks, testing system performance and gaining customer confidence. This led to the VI case study of handling growth with the Argos experience, providing the case for automation. With such high activity levels that accompany growth of this proportion, Roger talked through how VI methodology was applied. He was able to display the Order Distribution System (ODS) stations. These present static orders at a picking cell, with the goods being brought to the picker, providing valuable space savings. The day also provided the added pleasure of witnessing Unipart, Nigel Mansell and his two sons, Leo and Greg, launch the Formula BMW UK championship 2006. In all, a very valued adding day. Thank you to the IOM and USP. Stephen Woodward, MIOM Related Topics:
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