Lean Supply Chain Management - Chapter 4 PDF

Lean Supply Chain Management CH#4: Lean Warehouse 1  Contents A. Lean Thinking in the Warehouse B. “Assembling” Orders C. Value Stream Mapping in the Warehouse D. Lean Tools in the Warehouse E. Lean Warehouse Examples...

Lean Supply Chain Management CH#4: Lean Warehouse 1  Contents A. Lean Thinking in the Warehouse B. “Assembling” Orders C. Value Stream Mapping in the Warehouse D. Lean Tools in the Warehouse E. Lean Warehouse Examples 2  A. Lean Thinking in the Warehouse Lean is still in its early stages in supply chain and logistics, so it is sometimes difficult finding a place to start it. A place that many companies have found as a good place to start is the warehouse. The warehouse is becoming a strategic tool to be used for a competitive advantage. 3  A. Lean Thinking in the Warehouse Warehouses today are distribution centers supporting a JIT supply chain that is low cost, flexible, and efficient, especially in the rapidly growing world of e-commerce. E-commerce growth affects both the warehouse and the inbound and outbound logistics. 4  A. Lean Thinking in the Warehouse Five-step process as to implementing Lean principles applied to the distribution environment and manufacturing: 1. Identify what your customers expect and determine what value you add to the process. 2. Plot the Value Stream. Identify all the steps involved in moving goods through the system. 5  A. Lean Thinking in the Warehouse 3. Make the Process Flow. Eliminate activities that prevent the free flow of materials through the facility. 4. Pull from the Customer. Lean system is a pull system, drawing materials and merchandise into the distribution network based on customers wants not on forecasts. 5. Pursue perfection. 6  Contents A. Lean Thinking in the Warehouse B. “Assembling” Orders C. Value Stream Mapping in the Warehouse D. Lean Tools in the Warehouse E. Lean Warehouse Examples 7  B. “Assembling” Orders Warehouse operations seem to be very active, with people and equipment in constant motion, but it does not mean they are productive. Orders may pile up and sit, waiting between processing steps, causing clutter and taking up space in which all are forms of waste. 8  B. “Assembling” Orders To improve this type of performance, warehouse orders should be “assembled” in the most efficient manner, minimizing non-value activities including delays in warehouse operations like receiving, putting away and picking 9  B. “Assembling” Orders The orders could be assigned based on “batches” that it takes to pick line items, instead of just giving an entire order to a picker. Pickers would be assigned zones. They would then feed workstations in regular intervals to keep products flowing smoothly. 10  B. “Assembling” Orders Aisle and rack layout should improve space utilization to make sure products are arranged so that the most frequently used items are closest to shipping to reduce travel distance. 11  Contents A. Lean Thinking in the Warehouse B. “Assembling” Orders C. Value Stream Mapping in the Warehouse D. Lean Tools in the Warehouse E. Lean Warehouse Examples 12  C. Value Stream Mapping in the Warehouse The value stream map will give employees an overall view of all warehouse activities, which allows them to suggest improvements in different areas. It displays the current and future state maps in the warehouse so that employees are able to see previous improvements and take part in the ongoing effort. 13  C. Value Stream Mapping in the Warehouse To assess the operation using a value stream map, you need to involve the operators and supervisors, identify Lean improvements, question every activity, implement the Lean improvements using the VSM plan, and then start the cycle again. 14  Contents A. Lean Thinking in the Warehouse B. “Assembling” Orders C. Value Stream Mapping in the Warehouse D. Lean Tools in the Warehouse E. Lean Warehouse Examples 15  D. Lean Tools in the Warehouse A team approach and lean tools such as problem solving and error proofing with standardized work are necessary to identify the wastes in areas such as errors, inventory inaccuracy, damage, safety, and lost time. Pull systems using kanbans are a “natural” in a warehouse for everything from packing materials to forms, as well as product assembly. 16  D. Lean Tools in the Warehouse Total Productive Maintenance (TPM or equipment-related waste) is a tool that may be used in the warehouse as there is many equipment (some automated) that might not be running as efficiently as possible (e.g., carousels, forklifts and hand trucks). 17  Contents A. Lean Thinking in the Warehouse B. “Assembling” Orders C. Value Stream Mapping in the Warehouse D. Lean Tools in the Warehouse E. Lean Warehouse Examples 18  E. Lean Warehouse Examples Menlo Logistics, a major 3PL provider, has not only implemented Lean at many of its facilities, but also uses it as a competitive weapon as can be seen at their website under “Lean Logistics”. They point out the following areas where they look for waste: 19  E. Lean Warehouse Examples Mapping Material Flows. In studying material flows from raw material vendors to customer finished goods, we challenge each point at which material flow is stopped. Keeping Drivers and Tractors Moving. The interface between warehousing and transportation can often result in waste. 20  E. Lean Warehouse Examples Through careful dock scheduling and synchronization of warehouse workflows, we can load shipments quickly, minimizing driver time. Using Milk Runs. Milk Runs: is a method where mixed loads from different suppliers is transported to one customer. 21  E. Lean Warehouse Examples Milk runs reduce transportation costs and build more consistency into an inbound supply network. Electronic Data Interchange (EDI). Menlo Worldwide Logistics makes extensive use of EDI and RosettaNet to pass data among supply chain partners. 22  E. Lean Warehouse Examples RosettaNet is a group of major Computer and Consumer Electronics, Electronic Components, Semiconductor Manufacturing, Telecommunications and Logistics companies working to create and implement industry-wide, open e-business process standards. 23  E. Lean Warehouse Examples Warehouse Efficiency. Menlo Worldwide Logistics’ team of industrial engineers designs warehouse layouts that streamline inbound and outbound flows, maximize labor efficiency, and deliver high space utilization. 24  E. Lean Warehouse Examples Optimize Transportation Routes. Menlo Worldwide Logistics’ LMS application optimizes each load to meet delivery dates with low-cost mode and carrier selection. Packaging optimization. We work with customers to explore the use of returnable containers for repetitive shipments to factories. 25  E. Lean Warehouse Examples For finished goods, we can study packaging sizes to uncover ways to increase pallet and trailer utilization. Small changes in carton sizes can facilitate better storage utilization and lower transportation costs. 26 27  t5 ELEMENTS OF 5S Sort Straighten Shine Standardize Sustainten Shine Standardize WHY 5S? Sustain WHY 5S? To eliminate the wastes that result from “uncontrolled” processes. To gain control on equipment, material & inventory placement and position. Apply Control Techniques to Eliminate Erosion of Improvements. Standardize Improvements for Maintenance of Critical Process Parameters. TYPES OF WASTE Overproduction Delays (waiting) Transportation Process Inventories Motions Defective Products Untapped Resources Misused Resources ELIMINATION OF WASTE WASTE IDENTIFICATION What waste can be identified in the following photos?. AFTER 5S Clear, shiny aisles Color-coded areas Slogans & banners No work in process WORKPLACE OBSERVATION Clearly define target area Identify purpose and function of target area Develop area map Show material, people, equipment flow Perform scan diagnostic Photograph problem areas Develop a project display board (area) THE END 35