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Presentation On Warehousing
- 1. R.Ramachandran Head-National Hubs TVS Logistics Services Limited, Chennai
- 2. Part 1- Basics of Logistics
- 3. What is Logistics? Logistics is that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption in order to meet customers' requirements.
- 4. Globalisation Continuous cost reduction Waste elimination Concentrated on Logistics Quality Cost Business Excellence - Need of the hour
- 5. Basics of Logistics Operation Manufacturing Cost Sales & Administration Margin MRP Logistics Cost Observations Logistics is a necessary cost It is a non-value added cost since it is a part of the margin customer is expecting for a value addition for the cost paid by him, besides the best service quality.
- 6. Traditional Profit Model COST Principle Cost + Profit = Selling Price Traditional Not-for-Profit (NFP) [Costs = Budget]
- 7. Lean Profit Model Market Principle Selling Price - Cost** = Profit ** To make a profit you have to keep costs below the price you can sell
- 8. EFFICIENCY -2% -.5% 1% 3% -.5% -2% -1% Work Processes 10% Reduction In Operating Expenses BUDGET 10% Cut Off The Top APPARENT REAL
- 9. 5 Key Concepts from LEAN Delivery of Value to the Customer Efficiency as a Way of Running a Business Elimination of Waste Problem Solving Building Performance Capability
- 10. The Purpose of a Work Process is to Deliver Value to a Customer… QUANTITY In the PROMISED PLANNED BY AN ORGANIZATION QUALITY - at the COST TIME QUANTITY
- 11. How to Assure Delivery as much as possible, as continuously as possible and with as much first time quality as possible FLOW
- 12. The focus of a Lean Enterprise is to increase EFFECTIVENESS and EFFICIENCY of work method and reduce costs while maintaining delivery of customer value Man Machine Material INPUTS PROCESSES Product/ Service OUTPUTS Work Method
- 13. Waste is: Anything other than the minimum amount of equipment, materials, parts, space, and worker time and effort which are necessary to add value to the product or service. Things to Remember about Waste : Waste is really a symptom of a problem in a value stream rather than the real problem Waste points to underlying problems within the system (at both the process and system levels)
- 14. Toyota’s 7 Types of Waste Motion Waiting Rework Inventory Conveyance Over-Processing Over-Production
- 15. Why Shorten Lead Time It reduces unnecessary use of resources It reduces waits, delays and “inventory” build-up It focuses attention on greater efficiency in actual hands-on processing time It forces attention to quality issues, their causes and their cost. It forces problems in the flow of the value stream as a whole to the surface
- 16. A Typical Value Stream Mapping
- 17. Problem Solving by Level Strategies Business Objectives Financial Performance Goals Ops/Project Plants Budgets Action Plans Production Schedules Targets Assignments Rates/Due Dates Standards Executive Manager Supervisor Team Leader Staff Team “ Good thinking.” “ Good Products.” A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D
- 18. Local Suppliers Local Vendor Vehicle Imported Parts Out side Container Yard Line Side Storage
- 19. Receipt Area 6.4 days Blanking 30 sec 0.5 day 50 sec 1 day 60 sec 2 days Forming Grinding Assembly 240 sec 2 hour Inspection Changing from Pallet to Bin 3 hours 15 mts 30 mts Oil spray 2 hours 20 mts loading Activity time Waiting time Value stream Mapping – Inhouse component – Part Number -03021508 / 03021510 1 day 1 day 1 hour Once assembly is over – the parts will be inspected, oil sprayed and directly put in to IMCT delivery bins 41 minutes 2.5 days
- 20. Any Questions?
- 21. Part 2- Warehouse Selection
- 22. New Warehouse Proposal Form Warehouse Particulars 1 Address 2 Details of the owners Represented by: 3 Present contact address 4 Description of Land 5 Original Owners 6 Description of Building a) Age of the building No. of Years: b) Building dimensions Area Length Width Height i) Total Area ii) Warehouse area iii) Office area iv) Open area c) Height from the Ground level d) Fencing 7 Type of roof 8 Type of Flooring Load bearing capacity: 9 Warehouse Layout Enclosed
- 23. 10 Specific details a) Power:(KVA) i) Capacity ii) No. of phases 11 Lighting points & Fittings Tube Lights Fans LAN a) Lighting points b) Fittings i) Warehouse area ii) Office area 12 Generator facility 13 Water source a) Storage capacity 14 Toilets 15 Drinage ( Open / Closed ) 16 A/C Provision 17 Telephone connections 18 Approach road width 19 Distance from Customer point / hub 20 Waste disposal area ( in sq.ft. ) 21 Kms. From the nearest bus stop Place: Distance: 22 Kms. From the bus station Place: Distance: 23 Kms. From the Railway station Place: Distance: 24 Nearest Airport Place: Distance: 25 Nearest Police Station Place: Distance: 25 Ramp - Loading facility
- 24. B. Check list Sl. No Documents / Details to be checked Copy obtained Deed dated Enclosure Remarks 1 Original sale deed a) Title of the lessor b) Provision for sub-letting c) Conditional clauses (if any) 2 Previous tenent 3 Payment status Status Upto Date Remarks a) Electricity payments Cleared / Pending b) Water cess Cleared / Pending c) Property tax Cleared / Pending d) Corporation / Panchayat tax Cleared / Pending e) Telephone dues Cleared / Pending 4 ESI -Notified area YES / NO 5 Shop Act Notified Area YES / NO 6 Octroi Limits YES / NO Describe which limit: 7 Catering facility YES / NO Distance from the warehouse :
- 25. C. Physical Verification: Verification report Checked Remarks 1 Power connection Yes / No 2 Functioning of Fittings Yes / No 3 Telephone Yes / No 4 Water line & Pipes Yes / No 5 Motor Yes / No 6 Toilets Yes / No 7 Floor damages Yes / No 8 Walls damages Yes / No 9 Painting Yes / No 10 Doors & Windows Yes / No 11 12 13 14 15
- 26. S No D.Financial Deals / Negotiations 1 Rentals Proposed by the owner Date Rate / sq. ft Done by / Remarks a) Warehouse Area b) Office Area c) Open Area d) Amenities e) Fixed Rentals f) Total f) Advance / security deposit No of months Amount Remarks Particulars 2 Final Negotiation a) Warehouse Area Done by / Remarks b) Office Area c) Open Area d) Amenities e) Fixed Rentals f) Total f) Advance / security deposit No of months Amount Remarks Particulars a) Brokerage (if any) Name of the broker 3 Contract period 4 Seperation clause 5 Date of possession 6 Agreement Responsibility Due on Remarks Agreement Processing
- 27. Types of Warehouses In plant Warehouse Spare Part Warehouse Vehicle Stockyard Transit Warehouse (Hub)
- 29. Any Questions?
- 30. Part 3 Modern Warehousing with Automation
- 31. Why Automation ? Flexible manufacturing and reduced costs Improved product quality Extreme volatile market with newer products Increasing trend in globally dispersed manufacturing processes. Design and deliver better and cost effective Solution faster Improve process and system scalability Eliminate all internal , routine and operational tasks Shift focus and harness energies of employees.
- 32. Purpose of Automation Productivity - Increase in Production - Modernization of existing system - New line set up - Line flexibility to handle various sizes Quality - Final inspection on 100% products - Stage inspection (Poke Yoke) Safety - Handling of Hot products - Handling of Hazardous products - Continuous handling of heavy objects Warehousing - Airports/ Ports - Raw material/ Finished goods store - Third party warehouse - Transshipment Godowns
- 33. Products : Overview Intelligent Vehicles (AGV, RGV, LGV) Conveyor System Inventory Computer System Stacker Crane Storage Rack Sorter DPS APS Gantry Robot Palletizer B C D A E F G H I J A B C D E J F I G H
- 34. Logistic & Warehouse Third party Dynamic Warehousing. Airports/ Ports/ Cold storage Raw material/ WIP (including inventory control). FIFO and LIFO management. Finished goods warehouse. Transshipment warehouse. SCM (Supply chain Management) Solutions
- 37. Advantages of AS/RS (Automated storage & Retrieval system) Higher stock keeping capacity within limited space Protection of storage goods from theft and damage Automation of dangerous and hard work of storage and retrieval process Prevention of safety accident Real-time & Easy inventory control with computer system Simple expansion of warehouse Faster and more reliable operation of warehouse Comfort and convenient work environment Easy and faster maintenance through modular and standard design Economy in investment and operation Finished product storage Raw material storage Partly manufactured goods Storage for distribution Advantages Applications
- 39. A stacker crane is the automatic machine installed inside rack to serve storage and retrieval operation. It critically influences AS/RS performance developed from SMC with know how achieving low-price, high speed, light- weight & stabilization. Advantages Stability of load handing through smooth acceleration & deceleration controls by S-Curve Increased load weight by super high-speed type Stabilized structure design featured by low noise & low vibration Easy maintenance through checking error code history & Trouble shooting by monitor Precision controlling driving & lift location through distance measurement by Laser sensor and flexible correspond to lean of rack Slim Fork development in European Load area (Thickness 65mm) – Minimalization of Fork Thickness Products : STACKER CRANE
- 40. This system sorts individual materials to a designated place according to its own information specified by the bar-code or RFID attached to them by automatically distributing and collecting with the conveyor and sorter. Advantages: High performance on product assortment by requirements (customer, area, size, etc) Stability of sorting (Reduction of errors) ` Products : SORTER
- 41. Products : DPS (Digital Picking system) Picking systems perform complex order assignments in a fully automatic, reliable way and in shortest time. Fast order handling at the highest quality level guarantees maximum productivity in your warehouse. Advantages : High productivity at peak times Reduction of time consumption for picking relying on manual bills Less personnel for picking thanks to location management and minimized working route Efficient use of space thanks to high product density
- 42. Picking systems perform complex order assignments in a fully automatic, reliable way and in shortest time. Fast order handling at the highest quality level guarantees maximum productivity in your warehouse. Advantages : High productivity at peak times High profitability thanks to elimination of time consuming manual picking Constant high quality and reliability even during peak times Efficient use of space thanks to high product density Products : APS (Automatic Picking system)
- 43. Products : GANTRY Gantry is to provide greater volume coverage, limitless layout options and flexible work envelopes. Gantry also supports diverse pick-up and delivery points, variety of end effectors available. Advantages: Adaptation to different crate and case sizes and types Error-free picking Stock in order and Flexible operations Easy maneuvering Low system noise level Easy cleaning of the equipment and floor
- 44. ROBOT PALLETIZER Robotic palletizing systems allow for more flexibility to run products for longer periods of time. Robot Palletizer can be integrated towards any project. With current advancements in end of arm tooling, robot palletizes have been introduced to many factories and they have benefited from this robot palletizing systems. Advantages : Can be Operated within a small area Multiple end effector applications for bags, boxes, cases, etc. Innovative, user-friendly Control Saves time and increases reliability Automatic diagnostics instantly identify errors Increases uptime & operating efficiency Flexible layout capabilities increase efficiency and profitability
- 45. Car Engine (Warehousing) Beer (Warehousing) DPS(Digital Picking System)
- 46. Tyre (Warehousing) AGV (Automated Guided Vehicle Paper reel handling
- 47. (note) TD : stands for Traslo Device. Traslo is Italian which means 'transfer‘ Cage with trolley Car Parking Solution Robot Parking TD
- 48. Part 4 - M atrices
- 49. Data Updation Systems THE VARIOUS SYSTEMS PRESENTLY USED ARE: SAP ERP WMS RFID BAR CODING etc
- 50. Matrices – Transportation Performance Measure Formula Unit On-Time Delivery On-Time Delivery Total Delivery Days Damage Shipment Damage Total Shipment Value Demurrage Demurrage cost Total transportation cost Value Freight Bill Accuracy Bill Error Total transportation cost % Value Freight cost per unit shipped Total Freight Cost No. of units shipped Outbound freight costs as % of net sales Outbound freight cost Net sales Inbound freight costs as % of Purchases Inbound freight cost Purchase cost
- 51. Matrices – Transportation Performance-(Contd) Measure Formula Unit Transit Time accuracy Actual transit time Standard transit time agreed % of truckload capacity utilized Total volume/weight shipped Maximum Load capacity Truck Turnaround Time Measure between arrival of the truck & its departure No. of carriers per mode Total number of carriers used in a given period, by mode Shipment visibility/traceability % Total No. of shipments via carriers with order tracking system Total No. of shipments sent during a period On-Time pickups No. of Pickups on time Total No.of shipments
- 52. Matrices – Full Fillment Performance Measure Formula Unit On Time Delivery Orders on Time Total Orders shipped Order Fill Rate Orders filled complete Total Orders shipped Order Accuracy Error Free Orders Total Orders Shipped Line Accuracy Error Free Lines Total Lines Shipped Order Cycle Time Actual ship date-Customer order date Line Count Fill Rate No. of order lines shipped Total No. of lines ordered SKU Fill rate No. of SKUs shipped in the initial shipment Total No. of SKUs ordered
- 53. Matrices – Inventory Performance Measure Formula Unit Inventory Accuracy Actual Qty. per SKU System reported Qty Damaged Inventory Total damaged value Total inventory value Inventory Turns (Inventory Turnover) Annual cost of Sales Average Inventory Level Inventory Months of Supply Inventory on hand Average monthly usage
- 54. Matrices – Warehouse Performance Measure Formula Unit Orders per hour Orders picked/packed per hour Total WH labour hours Lines per hour Lines picked/packed per hour Total WH labour hours Order Accuracy Error Free Orders Total Orders shipped Line Accuracy Error Free Lines Total Lines Shipped Order Cycle Time Actual ship date-Customer order date Perfect Order Completion Perfect Deliveries Total Orders Shipped
- 55. Various Warehouse Tools Kanban System Perpetual Inventory Bin Audit Dock Audit Shut Down Inventory 5 S Concepts of House Keeping G8D Root Cause Analysis
- 56. KANBAN SYSTEM - INTRODUCTION Kanban Benefits: Pull System Reduces Inventory Improves Material Flow Simplifies Operations Allows Visibility into the schedule Reduces or eliminates unexpected Visual tracking and Control Schedule changes
- 57. Card Card Card Card Card Card Card Card Card Card Card Card Card Card Card SUPPLIERS RECEIVING STORES ASSEMBLY CARD DROP BOX & TRIGGER Card Card Card Transport
- 58. Step 1 : Place the “Kanban Card” on the Side Face of the Carton Step 2 : Fix “Kanban Card” on the Carton using Transparent adhesive tape Step 3 : “Kanban Card” on the Carton fixed properly Fix “KANBAN CARD” On Carton Box
- 59. G8D Guidelines & Process Objectives
- 60. G8D Process Problem solving process A standard that commits to solving problems at root cause level and preventing the problem from happening again A reporting format that describes the team's progress at each step Rational approach - Promotes use of facts and figures "If you can't prove it, you should not say" People oriented approach Use the experience of those who do the work Creative approach Dismantle the status quo Brainstorming
- 61. G8D Process Symptom complexity exceeds the ability of one person to resolve the problem To prevent customer from adverse effects of the problem Supplementary tools Benchmarking Cause and effect diagram Critical path method Pareto chart Brainstorming Action plan
- 62. Objectives " What is wrong with what" Describe the problem in quantifiable terms Use only one G8D per problem D2 Describe the problem Small group Product/process knowledge Team leader Team synergy D1 Team As per symptom, provide Emergency Response Action to protect the customer Initiate the G8D process D0 Symptom
- 63. Objectives cntd... Implement ICA to isolate the effects of problem until PCA Formal temporary Fix Validate effectiveness Optional step "Buy Time" to solve the root cause of the problem Contain the problem from a cost, quality, timing perspective Works against the problem, not the root cause Increases costs while the ICA is used. D3 Interim Containment Action (ICA)
- 64. Identify the root cause Cause and effect diagram Potential root cause list The single verified reason that accounts for the problem Escape point The earliest location in the process, where the problem should have been detected, but was not Problem solving step D4 Root cause/escape point Objectives cntd...
- 65. Making the best decision, based on benefits and risks Verify that the choice will work Not rushing into implementation More than one PCA may be required to resolve 100% of the problem D5 Chosen Permanent Corrective Action Remove ICA Implement decision made at D5 Cross functional participation Update all the documents, procedures etc Train the workforce Seek feedback from the customer D6 Implement Permanent Corrective Action (PCA) Objectives cntd...
- 66. Modify necessary systems (Practices/Procedures) to prevent recurrence of this problem or a similar problem The goal is to change the system that allowed the problem to occur in the first place Enables lessons learned can be shared Conserves resources by saving rework on other problems D7 Prevent recurrence Complete the team experience Sincerely recognize both team and individual contributions Encourage a repeat of the behavior D8 Recognize Team Objectives
- 68. 5S CONCEPT OF HOUSE KEEPING
- 69. Work place becomes popular, clean & better organised Shop floor and office operations become easier and safer Results are visible to everyone - insiders and outsiders Visible results enhance generations of more new ideas People are automatically disciplined People become proud of a clean and organised work place Resultant good company image generates more business etc., Why popular?
- 70. Happier employees with high morale Greater people involvement Low employee turnover Increased number of suggestions Better use of floor space Less work-in-progress and inventories Significant benefits
- 71. Better flow of work Low machine break down rates Low accident rates High yield of materials High product quality Significant benefits
- 72. SEIRI SEITON SEISO SEIKETSU SHITSUKE 5 S
- 73. Sort out unnecessary items in the workplace and discard them SEIRI
- 74. FIVE QUESTIONS ABOUT SEIRI Do you find items scattered in your work place? Are there boxes, paper and other items left in a disorganised manner? Are there equipment and tools placed on the floor? Are all items sorted out and placed in designated spots? Are tools and stationery properly sorted and stored? SEIRI
- 75. Arrange necessary items in good order so that they can be easily picked for use “ A place for every thing and every thing in its place” SEITON
- 76. 5 QUESTIONS ABOUT SEITON Are passage ways and storage places clearly indicated? Are commonly used tools and stationery separated from those seldom used? Are containers and boxes stacked up properly? Are fire extinguishers and hydrants readily accessible? Are there grooves, cracks or bumps on the floor which hinder work or safety? SEITON
- 77. Clean your work place thoroughly so that there is no dust on floors, machines and other equipments SEISO
- 78. 5 QUESTIONS ABOUT SEISO Are the floor surfaces dirty? Are machines and equipment dirty? Are wires and pipes dirty or stained? Are machine nozzles dirtied by lubricants and ink? Are shades, light bulbs and light reflectors dirty? SEISO
- 79. Maintain high standards of house keeping at work place at all time. SEIKETSU
- 80. 5 QUESTIONS ABOUT SEIKETSU Is anyone’s uniform dirty or untidy? Are there sufficient lights? Is the noise or heat at your workplace causing discomfort? Is the roof leaking? Do people eat at designated places only? SEIKETSU
- 81. Train people to follow good house keeping disciplines automatically SHITSUKE
- 82. 5 QUESTIONS ABOUT SHITSUKE Are regular 5s checks conducted? Do people clean up without reminders? Do people follow rules and instructions? Do people wear their uniforms and safety wear properly? Do people assemble on time? SHITSUKE
- 83. Employees will be disciplined to be more aware of untidy workplaces and motivated to improve the level of cleanliness. Greater team spirit and cooperation can be built up through involvement of all within an organisation. Employees will be disciplined to follow safer and better ways of work, resulting in lesser risks to accidents. Employees would be more conscious of improvement which leads to greater efficiency and effectiveness. TANGIBLE RESULTS From the People
- 84. Machine troubles can be detected at an earlier stage to prevent a major breakdown when machines are cleaned daily by people operating them. Daily cleaning of measuring instruments will ensure accuracy and reliability. Life of machines and tools can be extended significantly when they are handled with care and placed in the designated locations. TANGIBLE RESULTS FROM MACHINES AND TOOLS
- 85. Flow of materials and work-in-progress will become smoother. Floor space will become organised and possible areas for improvement can be identified by quick observation. Inventory of materials and work-in-progress will become clearly visible and easily handled. Material yield ratios can be improved. Reduced material handling will result. TANGIBLE RESULTS From the Materials & WIP
- 86. Clean workplace will ensure that final products will be free from dust. Sales people will be eager to show customers the plant as a marketing tool. TANGIBLE RESULTS FROM PRODUCTS AND CUSTOMERS
- 87. MONITORING A daily Activity Step by Step Approach Displays and Disseminations Involvement of Management & CEO Consistency in Audit PDCA Rewards
- 88. General Warehouse Practices & Visual Display
- 89. Proper Stacking
- 90. Empty Clearance
- 91. Empty Box Movement Check inside before Shifting Make Sure the Box is Empty Empty
- 92. Dust Bins Hazardous/Non Hazardous Safety Corner
- 93. Stacking Wrong X Correct No Support - Safety issue Ladder Support
- 94. Aisle Discipline Wrong X Correct Keep the aisle free for Fork lift movement
- 95. Aisle Discipline Wrong X Correct Keep the Aisle Free Trolley & Scrap Kept in Aisle
- 96. FIFO – Not maintained Stage –1 Stage -2 Stage -3 FIFO sticker FIFO sticker kept On wrong side FIFO sticker not Visible.
- 97. Stacking & Retrieving Retrieve and Replenish always from Left to Right
- 98. Wrong Way of Stacking Box kept wrong way Safety issue
- 99. Wrong Way of Stacking Kept next to Rails Fallen in the Canal Stacking height
Editor's Notes
- #5: AA - MILKRUN SYSTEM IMPLEMENTATION TVS LOGISTICS SIAM LTD.