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?
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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 >HL
Application of Lean
O
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
I
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)
I
I
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)
