basics of warehouse management
DESCRIPTION
Warehousing Management is part of a logistics management business process, which is itself is a facet of supply chain management. The general perception of the Warehouse is simply a place to store finished goods; semi-finished goods and raw material, inbound functions that prepare items for storage and feed manufacturing line and outbound functions that consolidate, pack and ship orders in order to provide important economic and service benefits to both the business and its customers. In my opinion Warehouse Management (WM) is not given required attention with the advent of Supply Chain. In my opinion, the WM is fundamental to supply chain success. The flow of material is very critical to supply chain and the flow is seamlessly managed by the Warehouse. WM is a science and an inefficient Warehouse could cause disasters to the business. This is a rudimentary attempt to familiarize the WH functions and its intricacies. Hope you enjoy the same and I sincerely appreciate your feedback.TRANSCRIPT
Warehouse Management in Nutshell
WH ObjectivesWH Objectives
WH ActivitiesWH Activities
Receiving;
Inspection;
Put-away;
Storage;
Value Addition
Order Pick
Packing;
Sortation;
Manifestation;
Unitizing and Shipping;
Data Processing
MANIFESTATION
WH Value Added ActivitiesWH Value Added Activities
Warehouse Value-added Services• Cross dcok/transloading
• Customer Returns
• Customization/Postponement
• Home or catalouge delivery
• In-transit merge
• Inventory control
• Kan Ban
• Kitting
• Labelling/pre-ticketing
• Lot Control
• Manufacuturing Support
• Order fulfillment
• Pick-n-pack
• Pool Distribution
• Repair/Refurbish
• Returnable Container Management
• Reverse Logistics
• Sequencing Metering
• Spcialty Packing
• Store Support/direct store delivery (DSD)
Warehouse Value-added Services• Cross dcok/transloading
• Customer Returns
• Customization/Postponement
• Home or catalouge delivery
• In-transit merge
• Inventory control
• Kan Ban
• Kitting
• Labelling/pre-ticketing
• Lot Control
• Manufacuturing Support
• Order fulfillment
• Pick-n-pack
• Pool Distribution
• Repair/Refurbish
• Returnable Container Management
• Reverse Logistics
• Sequencing Metering
• Spcialty Packing
• Store Support/direct store delivery (DSD)
Warehouse Value-added Services• Cross dcok/transloading
• Customer Returns
• Customization/Postponement
• Home or catalouge delivery
• In-transit merge
• Inventory control
• Kan Ban
• Kitting
• Labelling/pre-ticketing
• Lot Control
• Manufacuturing Support
• Order fulfillment
• Pick-n-pack
• Pool Distribution
• Repair/Refurbish
• Returnable Container Management
• Reverse Logistics
• Sequencing Metering
• Spcialty Packing
• Store Support/direct store delivery (DSD)
Factors Influencing WH Function Factors Influencing WH Function
Increasing Employee Training,
Impact of IT and Internet,
Automation,
JIT and Across-the-dock operations,
MRP and DRP,
Distribution Strategy optimization, Advanced material handling
technology,
Outsourcing,
Increase in value added services.
KPIs & Goals
Master Planning
War
ehouse
TechnologyHuman
Resources
Receiving
Put-aw
ayS
torageO
rder PickS
hipping
Investig
ate
Innovate
Imp
lem
ent
WH Master Planning MethodologyWH Master Planning Methodology
Receiving and Put-awayReceiving and Put-away Process Design Process Design
Key Questions:
Receiving mode
Put-away batch sizing
Put-way tour construction
Required Profile
Purchase Order Profile
Profile Components
Order mix distribution
Lines per receipt distribution
Lines and cube per distribution
WH sizing process designWH sizing process design
Key Questions:
Overall Warehouse space requirements
Required Profile
Inventory Profile
Profile Components
Item Family inventory distribution.
Handling unit inventory distribution
WH Lay-out & MaterialWH Lay-out & MaterialFlow designFlow designKey Questions:
Overall warehouse flow design
Required Profile Activity relationship profile
Profile Components Activity relationship distribution
Objectives: Maximize the Space utilization,
Product flow Optimization,
Efficient Order Pick,
Reduce operating Costs,
Improve WH productivity,
Efficient use of Warehouse equipment,
Inventory Protection,
Maximization of Customer satisfaction,
Provide for expansion,
Safe work environment.
WH Layout PhilosophiesWH Layout Philosophies
Family Group Philosophy,
Product Rotation Philosophy,
Rack Row and Aisle Direction of Flow Philosophy,
Aisle Length Philosophy,
Building height Philosophy,
Storage Method Philosophy,
Storage Vehicle Philosophy,
Customer Order pick Philosophy,
Order Sortation Philosophy,
Internal Transportation Philosophy,
Building construction Philosophy,
Facility shape Philosophy,
Product flow pattern philosophy,
Material handling system philosophy.
Factors Influencing Layout PhilosophiesFactors Influencing Layout Philosophies
Type of SKU handled,
SKU popularity or Pareto’s law (80/20 rule),
Travel distance for the transportation vehicle,
Family grouping,
SKU rotation,
Rack row and aisle direction,
Aisle length,
Building height,
Storage method,
Storage vehicle,
Order- pick method,
Internal transportation method,
Sortation method,
Handling of returns and out-of-season product transfers,
Receiving and shipping dock design,
Facility construction,
Building size and shape, and
SKU flow pattern.
WH Facility Layout PrinciplesWH Facility Layout Principles
Provide adequate aisles and aisle width in the key warehouse function areas.
Consider the product flow and volume through the reserve area; pick area, and other functional areas.
Provide adequate SKU accumulation prior to each workstation.
Provide adequate ceiling height for warehouse equipment.
Provide required space for fire protection and security equipment.
Locate all support or administrative activities. Locate the building facilities on the site for excellent
present utilization and future expansion. Locate the key warehouse functions for future expansion. Design space building columns and bay size to facilitate
space utilization, product flow, and employee productivity. Use gravity-propelled transportation in combination with
mechanized or automated equipment.
WH Automation & StaffingWH Automation & StaffingDesignDesign
Key Questions:
Staffing Requirements
Capital-Labour substitution
Level of Mechanisation
Required Profile
Automation Profile
Profile Components
Economic Factors distribution
Slotting DesignSlotting Design
Key Questions:
Zone Definition
Storage mode selection & Sizing
Put-away tour construction
Required Profile
Item Activity Profile
Profile Components
Popularity Profile
Cube Movement/Volume Profile
Order Completion Profile
Demand correlation profile
Demand Variable profile
Order Picking & ShippingOrder Picking & Shipping
Pre-order-pick activities:
1.Yard Control Activity,2.Unloading Activity,3.Product Quantity and Quality Verification activity,4.Receiving activity,5.Product identification activity,6.Ticketing Activity,7.Packaging Activity,8.Horizontal and Vertical Transportation activity,9.JIT and Across-the-Dock Activity,10.Deposit Activity.
Order Pick Activity:
1.Pick ticket generation,2.Product Identification,3.Pick.
Post-Order Pick Activity:
1.Sorting activity,2.Replenishment activity,3.Packaging activity,4.Package Weigh activity,5.Manifest activity,6.Loading and Shipping activity,7.Monitoring delivery,8.Customer returns.
Shipping Activity:
1.Checking, 2.Packing, 3.Sealing, 4.Securing, 5.Manifesting, 6.Loading.
Order Picking and shippingOrder Picking and shippingProcess DesignProcess Design
Key Questions:
Order Batch Size
Pick wave planning
Pick tour construction
Shipping mode disposition
Required Profile
Customer order profile
Profile Components
Order mix distribution
Lines per order distribution
Lines and cube per order distribution
Material Handling Equipment
Material Handling Equipment
Classification
Material handling equipment (MHE) is used for the movement of material within a facility or at a site. MHE can be classified into the following four major categories:
Transport Equipment
Positioning Equipment
Unit Load Formation Equipment
Identification and Control Equipment
Conveyers
Cranes
Trucks
Transport EquipmentTransport Equipment
Transport EquipmentTransport Equipment
Hand Truck
Dolly
Floor Hand Truck
Manual or Powered Pallet Jacks
TrucksNarrow Aisle Truck
Lift/Tilt/Turn Table:
Used when positioning involves the lifting, tilting, or turning of a load. Can be used to reduce or limit a worker’s lifting and/or reaching motions Pallet load levellers are lift and turn tables used in manual palletizing to reduce the amount of bending and stooping involved with manually loading a pallet by combining a lifting and turning mechanism with a device that lowers the table as each layer is completed so that loading always takes place at the optimal height of 30 inches.
Positioning Equipment Positioning Equipment
Dock Leveller
Used at loading docks to compensate for height differences between a truck bed and the dock
Contd.Contd.
Ball Transfer Table:
Used in conveyor systems to permit manual transfer to and from machines and conveyors and between different sections of conveyors. Since loads are pushed on the table, ball friction limits the maximum load weight to 600 lbs.
Air Film Device
Used to enable precision positioning of heavy loads. Sometimes referred to as "air pallets“. Can be used in place of cranes and hoists.
Requires a smooth floor surface against which air streams underneath the device can push. Can be used in warehousing as the mechanism to convert stationary racks into sliding racks.
Unit Load Formation Equipment
Pallets
Platform with enough clearance beneath its top surface (or face) to enable the insertion of forks for subsequent lifting purposes
Materials: Wood (most common), paper, plastic, rubber, and metal
Size of pallet is specified by its depth (i.e., length of its stringers or stringer boards) and its width (i.e., length its deck-boards)—pallet height (typically 0.127 m.) is usually not specified; orientation of stringers relative to deck-boards of pallet is specified by always listing its depth first and width last: Depth (stringer length) x Width (deck-board length)
1.2 x 1 m. pallet is most popular in US (27% of all pallets—no other size over 5%) because its compatibility with railcar and truck trailer dimensions
1200 x 800 mm "Euro-Pallet" is the standard pallet in Europe.
ULFE contd.
Platform (typically metal) with enough clearance beneath its top surface to enable a platform truck to move underneath for subsequent lifting purposes.
Forks can also be used to handle skids since the clearance of a skid is greater than that of a pallet.
Compared to a pallet, a skid is usually used for heavier loads and when stacking is not required; a metal skid can lift heavier loads than an equal-weight metal pallet because it enables a platform truck to be used for the lifting, with the platform providing a greater lifting surface to support the skid as compared to the forks used to support the pallet
Skids
ULFE contd.
Slip sheets
Thick piece of paper, corrugated fibre, or plastic upon which a load is placed.
Handling method: tabs on the sheet are grabbed by a special push/pull lift truck attachment.
Advantages: usually used in place of a pallet for long-distance shipping because their cost is 10–30% of pallet costs and their weight and volume is 1–5% of a pallet.
Disadvantages: slower handling as compared to pallets; greater load damage within the facility; special lift truck attachment reduces the vehicle’s load capacity.
ULFE contd.Others
Tote Pans Pallet Boxes/Skid Boxes
Cartons Liquid load containers
ULFE contd.ULFE contd.
In shrink-wrapping, a film or bag is placed over the load and then heat is applied to shrink the film or bag; allows irregular loads to be stabilized; manual or automatic; most shrink-wrap applications are being replaced by stretch-wrapping.
In stretch-wrapping, a film is wound around the load while the film is stretched; allows irregular loads to be stabilized; manual or automatic; as compared to shrink-wrapping, stretch-wrapping has lower material, labour, and energy costs
Used for load stabilization
Inter modal Containers
Reusable container used to unitize and protect loose discrete items. Enables a load to be handled as a single unit when it is transferred between road, rail, and sea modes of transport; e.g., the container can be unloaded from a cargo ship and loaded onto a truck as a single unit.
It is not as common to use inter-modal containers for airfreight transport because of aircraft shape and weight restrictions. The standard outside dimensions of inter-modal containers are: 20 or 40 ft. in length; 8 ft. in width; and 8, 8.5, or 9.5 ft. in height.
ULFE contd.ULFE contd.
Identification and Control Equipment Identification and Control Equipment
Bar Codes
Unique bar/space patterns represent various alphanumeric characters. Bar code system consists of bar code label, bar code scanner, and bar code printer. Contact bar code scanners use pen or wand to read labels.
Radio Frequency (RF) Tag
Data encoded on chip encased in a tag. Non-contact: can be read when the tag is within 30 ft. of an antenna.
Tags can either be attached to a container, or permanently or temporarily to an item. RF tags have greater data storage capability than bar codes
Handheld, arm-mounted, or vehicle-mounted data storage and communication device.
Communicates with a host computer via a radio frequency or infrared linkVariety of input devices available: keyboard, bar code scanner, voice headset
Portable Data Terminal
Identification and Control Equipment Identification and Control Equipment
EDI
Key ANSI ASC X12 EDI Codes:
810 Invoice850 Purchase Order855 Purchase Order Acknowledgment856 Shipment Notice/Manifest894 Delivery/Return Base Record997 Functional Acknowledgment