Given the low margin nature of most distribution organizations, it is vital to keep the bottom feasible hard work expenses. This paper will show the way to use Lean and Six Sigma equipment to decrease the hard work required to select, percent and ship orders from a warehouse.
Background
This distribution employer embraced Lean as a part of their employer’s method to continuously lessen expenses and enhance customer support. They commenced their adventure through making use of Lean and Six Sigma gear to their number one operation, warehousing, selecting, packing and shipping packaged goods to customers.
This task used three Lean Six Sigma Tools:
Spaghetti Maps
Pareto Analysis
5S Visual Management
Visualizing the Problem with Spaghetti Maps A EDI 940 Spaghetti Map is a easy Lean tool to help visualize greater movement of people within a procedure. It establishes baseline overall performance, indicates the need for development and affords insight into a way to remodel the format of a piece-area. They can every now and then be blended with time research to interrupt down every step and its length.
The Lean Team at this Distributor commenced the mission with the aid of creating a Spaghetti Map of the cutting-edge kingdom. For 3 orders, with a complete of seven gadgets, the warehouse attendant travelled all over the warehouse, overlaying from one cease to the other and almost all 4 corners. This is lots of movement for 7 objects.
At the Pack & Ship location there was repetitive and un-essential movement. One desk is for packaging, a exceptional table has the USApc, a exceptional table has the inner ERP system pc (that closes the order and actions it to the invoice queue) and yet some other table has the price tag printer. Finally, they stored boxes approximately 25 toes from the packaging location. Each order required a separate ride to field storage.
The Spaghetti Maps make the case that this warehouse can be progressed; lowering the exertions required to pick out, p.C. And deliver orders.
Using Pareto Analysis to Make Improvements They next moved to the usage of a Six Sigma tool, Pareto Analysis, to research the way to reduce the flow-time required to pick, % and ship an order. Pareto Charts were evolved inside the past due 1800’s with the aid of an Italian Economist, Vilfredo Pareto. He used this evaluation to decide that wealth changed into skewed to a small part of the populace. In his time, 80% of the land in Italy turned into owned by means of 20% of the households in Italy. From Vilfredo we derived the Pareto Principal or 80/20 rule. This is generally used in income, with 80% of income generated via only 20% of customers.
They created a Pareto Table for the number of times an item was on an order (or became “picked”). Quantity or Sales $ changed into not crucial for this assignment as we have been involved with reducing circulate-time. Therefore, how in many instances a warehouse attendant had to go to that item to pick it, changed into the crucial metric.
Item Code, Orders, % Total, Cum %
CW-932-42, 476, 1.08%, 1.08%
CW-half-forty four, 433, 0.Ninety eight%, 2.06%
AW-255-19, 432, zero.98%, 3.04%
WE-823-09, 330, 0.75%, three.Seventy nine%
TW-114-02, 297, 0.Sixty seven%, four.Forty six%
AW-255-31, 263, 0.60%, five.06%
NW-115-45, 258, zero.Fifty eight%, five.64%
HW-040-27, 255, 0.Fifty eight%, 6.22%
TW-332-seventy two, 251, zero.57%, 6.79%
SW-008-32, 248, zero.Fifty six%, 7.35%
TW-134-11, 227, 0.51%, 7.87%
TW-124-12, 222, zero.50%, 8.37%
MW-000-68, 215, zero.49%, eight.86%
AW-744-fifty four, 207, zero.47%, 9.33%
VW-330-06, 200, 0.Forty five%, 9.78%
SW-201-60, 197, zero.Forty five%, 10.2%
This table indicates the items that make up the pinnacle 10% of “alternatives”. There had been approximately 6000 items saved in this warehouse. Sixteen items accounted for 10% of all picks! The attention of the top objects became tons better than 80/20. It become clearly 80/10, with 10% of the gadgets accounting for 80% of the picks.
Warehouse Re-Layout The team then mapped the vicinity of those top 500 objects. The top dealers, in terms of “picks”, have been positioned all over the warehouse.
To view the Spaghetti Maps and this area-diagram visit http://supplyvelocity.Com/whitepapers.Asp.
To lessen the flow time required these pinnacle 500 objects have been moved as near as viable to the Pack & Ship Area. Many of the smaller gadgets have been moved right into the Pack & Ship region on shelves subsequent to the packing desk.
Then the Pack & Ship Area turned into rearranged. The bins had been moved proper next to the packing table. The ERP and UPS computer systems were placed on the same table. Everything become as close as feasible.