ValueStreamMapping Warehouse Essay example

Submitted By prati1
Words: 5250
Pages: 21

Applying Lean Concepts in a
Warehouse Operation
Frank Garcia
Partner
ADVENT DESIGN CORPORATION

What We’ll Cover
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Basic Lean Concepts for Warehouse
Improvement

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Using Value Stream Maps:
Current & Future State

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Implementing Process Improvements

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Case Study Using and Ongoing
Application (Pork Producer)

WHAT TO DO ABOUT THE
WAREHOUSE?







Too many people
Excessive material handling
Inventory inaccuracies
Don’t ship the pounds
No space!!!! Need to Expand!

WAREHOUSE CHALLENGES
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Focus on Manufacturing.
Warehouse is a box on the
VSM
Office & Info Flow
Customer Demands
Product pushed into warehouse & pulled by customers >HˆL
Application of Lean
O†‹Œ
Principles to an area that
L
exists because of waste in the value stream or customer
Production
Suppliers demand/lead time
Warehouse is the crossroads of conflicting requirements

How Do We Use Lean Techniques for Warehouse Improvement?
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Assess the operation using a Value Stream
Map and/or PFDs (Product families & Warehouse data)
Involve the operators & supervisors
Identify lean improvements & kaizens
) Question every activity!
) Treat the warehouse like a large staging area

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Develop justification
Implement lean improvements using VSM plan Start the cycle again!

Lean Manufacturing
Fundamental Principle of Lean Manufacturing

Any activity or action which does not add value to the product is a form of waste and must be eliminated or minimized.
In the Warehouse Customer Pays for Shipping
Everything Else Must Be Minimized !

What Do We Need to Know?
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Demand
Material Flow & Handling
Information Flow to the
Warehouse
How Material is Stored
Order Picking & Staging
How Shipped

VALUE STREAM MAPPING!

Why Use VSM?

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Road map for lean improvements

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Train team members in use of lean concepts +

Integrated lean implementation plan

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Long term planning - Many Future States

product family

current state drawing

Current State Map
Understanding how the warehouse currently operates.

Future state drawing + Material and information flows
+ Start with the “door to door” flow
+ Walk the flow and get real data
* no standard times
* draw by hand

plan and implementation + Get operators & supervisors involved
+ Basis for the Future State

Warehouse Current State
Value Stream Map
Blanket Orders with Daily
Releases; Supplemented with
Open Market Purchases

Spices and
Smokehouse
Materials

Hogs

Daily

Weekly or BiWeekly

(about
400)

Blanket Orders with Weekly or
Bi-Weekly Releases

Packaging
Materials

Weekly or BiWeekly

Daily Shipping Orders
& Freezer Release
(5PM)

Wrap & Pack
Smoked
Products

Multiple
Operators

Cut Products
Multiple
Operators

Wrap & Pack

Multiple
Operators

Multiple
Operators

Metal Detection

Cut Products

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Various
Customers

Demand:
131 to 242 orders per day Avg: 167/day
1 to 2 pallets/order
15 to 17 orders per truck 12 to 13 trucks per day 1 route per truck

1 to 2
Pallets

1 to 2
Pallet

C/T =2 sec
C/O =2 min
Rel. = 95%

30 seconds C/T = 2 sec
C/O = 1 min
Rel. = 80%

1, 578K lbs

Conveyor
Staging
Palletizing
& Storage

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Conveyor
Staging
10 to 15 cases 1 to 2 pallets 3
People
C/T = 7 sec per case or 10 min per pallet
C/O = 0 min
Rel. = 85%
Avail. = 24.8 hrs (2 shifts)

Order Picking

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Rack
Storage
775
positions;
7 reefers;
610K lbs

40 seconds 1 to 2 pallets per order 6 to 8
People
C/T = 10 - 35 minutes C/O = 0 min
Rel. = 85%
Avail. = 49.5 to
66 hrs (2 shifts)

2.9 to 5.3 days
(Freezer
storage:

40 seconds

Daily
Shipments
(12 to 13 routes)

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6 minutes

5 sec

Aging
Report

Off-Site Freezer Storage

Strapping

Conveyor
Staging
10 cases

Order Lead Time 3.7 to 6.1 Days
Order Processing Time: 6 Hrs
Takt Time: 3 to 4 minutes

Randomly Placed
Orders (Various Sizes)

Daily
Productio
n
Schedule

Smokehouse
Operations
Smoke

Kill & Cut

Production and Inventory Control
(Computer System)

20 minutes 6.7 to 14.5

35 minutes Order
Checking
& Scanning

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Staging
Palletizing
& Dock
6 orders
(12 pallets)…