...during the first five months of 2004 with performance in 2003, which warehouse shows the most improvement? St. Louis is the only one showing any improvement, using cost per unit shipped as the performance criterion. The cost for the first five months of 2003 was $9.97 and for the first five months of 2004, it fell to $9.07. Question 2: When comparing performance during the first five months of 2004 with performance in 2003, which warehouse shows the poorest change in performance? The worst change is the company’s own warehouse (located in Fargo), where costs per unit shipped increased 31%. Among the public warehouses used, Denver was the worst in terms of cost per unit handled. It is also the most expensive public warehouse that Brant uses. Question 3: When comparisons are made among all eight warehouses, which one do you think does the best job for the Brant Company? What criteria did you use? Why? Using the cost per unit handled criterion, St. Louis does the best job, closely followed by Chicago. Question 4: J.Q. is aggressive and is going to recommend that his father cancel the contract with one of the warehouses and give that business to a competing warehouse in the same city. J.Q. feels that when word of this gets around, the other warehouses they use will “shape up.” Which of the seven should J.Q. recommend be dropped? Why? Denver has the lowest volume and highest unit costs among all the public warehouses used. In addition, it had been closed by a strike which must have...
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...plus flex staff Variety of business systems – EDI Organizational structure and processes Relationship of Saddle Creek and G-3 Enterprises Saddle Creek began working with G-3 in 1997 Operate (3) RDC’s – DFW, ATL, FLA Warehouse, transportation & value-added 15MM cases annually throughput Metrics Program (KPIs) developed in 1999 Goals of this session What makes KPIs/Metrics Programs effective from Customer and Provider perspective? Case Study – Understanding the G-3 Metrics from both perspectives Determining if your KPIs are focused and standardized Distinguishing Metrics & KPIs G-3 Supply Chain Metrics Perfect Order Product Availability Inventory DOS Product Quality G-3 RDC KPIs Order Accuracy Inbound Timing Inventory Accuracy SCC Operation Metrics Damage/Hold Metrics/KPIs from the 3PL perspective What is an effective Metrics Program for the 3PL Operation? Relevant / Measurable / Focused / Timely Consistent across long time period Consistent across multiple “like” operations – drives competition Develops desired behaviors – no cheating to make numbers How does a good Metrics Program add value? Improves communication through the supply chain Identifies areas of needed improvement Promotes positive change and...
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...Review of Warehouse Receipt System and Inventory Credit Initiatives in Eastern & Southern Africa Final report commissioned by UNCTAD under the All ACP Agricultural Commodities Programme (AAACP) *The views expressed in this paper are those of the author and do not necessarily reflect the views of the United Nations September 2009 CONTENTS CONTENTS ............................................................................................................................................. i ACKNOWLEDGEMENT .....................................................................................................................iii GLOSSARY OF ABBREVIATIONS .................................................................................................. iv GLOSSARY OF ABBREVIATIONS .................................................................................................. iv SUMMARY ............................................................................................................................................ 1 Introduction ....................................................................................................................... 1 Observations on the different approaches ......................................................................... 1 Policy conclusions and recommendations ........................................................................ 3 Specific proposals .....................................................................
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...Applying Lean Concepts in a Warehouse Operation Frank Garcia Partner ADVENT DESIGN CORPORATION What We’ll Cover Basic Lean Concepts for Warehouse Improvement Using Value Stream Maps: Current & Future State Implementing Process Improvements Case Study Using and Ongoing Application (Pork Producer) WHAT TO DO ABOUT THE WAREHOUSE? • • • • • Too many people Excessive material handling Inventory inaccuracies Don’t ship the pounds No space!!!! Need to Expand! WAREHOUSE CHALLENGES Focus on Manufacturing. Warehouse is a box on the VSM Office & Info Flow Customer Demands Product pushed into warehouse & pulled by customers Warehouse Application of Lean Principles to an area that 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? 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 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...
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...Patterson Warehouse Katina Taylor Florida State College of Jacksonville Warehouse Management TRA2098 Prof. Jonny Bowman, Jr. Patterson Warehouse is an industry-leading specialty vendor serving dental, veterinary and rehabilitation supply markets. Determined to meet up the needs of healthcare professionals in the rising markets, Patterson provides a total-package approach to doing business. Patterson has always upheld an easy value to help build our customers’ success: providing the majority new products at reasonable prices, delivered with special service and a 100-percent satisfaction guarantee (Courchene, 2012). Presently, three of additional than 20 amenities in this system – Mount Joy, Pa., Dinuba, Calif., and Jacksonville, Fla. – fulfill orders for all three Patterson business units (Courchene, 2012). Patterson Warehouse time after time achieves 98-percent fill rates to customers and time after time evaluates and implements the most original technologies and techniques to improve service efficiencies and additional get better customer service. In today’s highly competitive global business environment, Patterson meets the needs of customers through leading products and unequaled personal service. But we meet, and frequently go beyond, customer outlook through full-service division offices and 24- to 48-hour delivery to the majority cities in North America (Patterson Companies Inc., 2012) A brief description of our industry: * Dental market as Patterson’s...
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...Company Background Dakota Office Products (DOP) was a regional distributor for office supplies to institution and commercial business, their product are pens, pencils, markers, and paper for copier and printers. At the end of year 2000 they suffer Net Loss amounted to USD 470,000 and this is the first time of their history DOP suffer Loss. DOP operated several distribution centers. They bought the supplies from many different manufacturers and keep their inventory at the storage. When the customer order comes, they ship the order to the customer by using 2 ways: 1. Shipment using commercial truck 2. Desktop delivery to individual customer with delivery truck driven by warehouse personnel to deliver with additional 2% markup Pricing calculation on DOP: 1. Mark up 15% from product cost (to cover Warehouse Expense) 2. Another markup which determined based on actual expenses in prior years and general industry & competitive trends (to cover General and Selling Expense and allowance for Profit) 3. Price adjustment based on long-term relationship and competitive situation Dakota had introduced Electronic Data Interchange and corporate website which allow the customer to place order. The people on the distribution center can be divided into 2 teams, which is distribution center team and data entry team The Problem Is Although the company had introduced innovation in desktop delivery and electronic order entry, they couldn’t earn profit, what action should be taken to regain...
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...PLEASE REVIEW THIS ARTICLE BASED ON EMBEDDED COMMENTS/QUESTIONS. Harvard Business Review January 1987 / February 1987 How to Measure Yourself Against the Best Frances Gaither Tucker; Seymour M Zivan; Robert C Camp ABSTRACT: The Logistics and Distribution unit of Xerox's Business Systems Group was gaining 3% to 5% a year in productivity not good enough in light of industrywide price cuts in business machines. One solution, benchmarking, measures L&D's warehouse and distribution performance against comparable activities in other industries. Comparing oneself with competitors (as well as with internal units) is useful, but doesn't necessarily get the benefit of the best practice, not to mention the benefit of cooperation. Benchmarking against non-competitors is the answer. After a search, L&D found the best warehousing and materials handling organization was at L.L. Bean, the outdoor-clothing retailer and mail-order house. With Bean's cooperation, L&D benchmarked its operation against the best and learned a lot. By looking closely at the operation of Bean and other noncompetitors, L&D has raised its productivity 10% each year and gained a better position against its real competition. BODY: One way to judge the performance of an organization is, of course, to compare it with other units within the company. But these measurements often merely reinforce complacency or generate "not invented...
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...Lean Manufacturing in Milk Industry of Pakistan: An Analysis of a Distribution Warehouse. Nimra Masood1, Sara Shahid2,Muhammad Asim3 1 NUST Business School, National University of Science and Technology, Islamabad, Pakistan. 2 NUST Business School, National University of Science and Technology, Islamabad, Pakistan. 3 Center for Advance Studies in Engineering, Islamabad, Pakistan. (1n_masood@gmail.com),(2ss_sjm6@yahoo.com)(3a007pk@yahoo.com) Abstract – This Paper aims to apply Lean Manufacturing Tool to the Distribution Center of a Milk Industry in Pakistan. A survey to the Distribution Warehouse was made to identify different activities involved in the distribution process. A Process activity Map was Applied to further divided in to four main categories to indentify the effectiveness and efficiency of the whole process. Milk Industry is one of those industries which have its importance all over the world including Pakistan. The results indicate that there is a lot of room for improvement and expansion in the process. There is consistent increase in the need of milk in Pakistan with the Companies to benefit a lot from this region. The Findings suggested in this paper can help the milk manufacturers to effectively satisfy the customers and decrease the overall cost of production. Keywords – Lean Manufacturing, Process Activity Map, Distribution Warehouse of Milk Industry, Pakistan I. INTRODUCTION Milk industry is one of those industries which has its presence...
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...WAREHOUSE ACTIVITY PROFILING: MINING FOR GOLD CHAPTER 2 Warehouse activity profiling • Warehouse activity profiling is the systematic analysis of item and order activity. • The activity profiling process is designed to quickly identify root causes of material and information flow problems, to pinpoint major opportunities for process improvements, and to provide an objective basis for project-team decision making. PROFILING MOTIVATIONS AND MINEFIELDS • Profiling Pays ▫ Done properly, profiling quickly reveals warehouse design and planning opportunities that might not naturally be in front of you. • You can drown in a shallow lake — on average ▫ If we are not careful to plan and design based on distributions as opposed to averages, the entire planning and design process will be flawed. That is why it is so important to go to the extra step to derive these profile distributions. As you start to look at the profiles of customer orders, purchase orders, item activity, inventory levels, and so on, the creative juices begin to flow for everyone on the project team. Everyone on the project team starts making good decisions and generating new ideas. In profiling, we are trying to capture the activity of the warehouse in pictorial form so we can present the information to management and so we can make quick consensus decisions as a team. A full, yet minimum set of profiles required to plan and design warehouse operations follows. This profile set is a synthesis of profiles...
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...Pass 2 - explain the process of distributing goods through different channels from the manufacturer to the customer In the last four hundred hears distribution methods have changed. This is because of changes in technology as well as how goods are now transported and stored. An example of an improvement to storage is that the products can now be refrigerated or even whilst being transported as well. Technology has changed distribution methods as products such as music and films are now able to be downloaded from the internet, creating a digital distribution method. Hard goods, perishable goods and digital information products all require different storage and transportation methods. One of the most traditional distribution methods for transportation is by land – this can be either by lorry or by train. Land distribution is good for relatively short transport times (short and medium distances). It is also ideal for transporting heavy and bulk goods and is suitable for products with a long shelf life. On the other hand, land transportation doesn’t have very fast delivery times; this can be due to traffic jams, for example. It can also be quite costly because of petrol and maintenance costs and the land distribution will have a limited transport volume. Another traditional distribution method is by sea. This is also good for transporting heavy and bulk goods but, unlike land transportation, distributing by ship means that there is no need for special architecture such as roads...
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...Barilla: Coordinating Supply and Demand OPIM: 615, Class 8 Kunal Mahajan (Penn ID: 56704329) Question 1: Diagnose the underlying causes of the difficulties that the JITD program was created to solve. What are the benefits and drawbacks of this program? JITD was targeted at solving two issues in the supply chain- high inventory and stock outs in stores. A. High Inventory Barilla, distributors and retailers were all carrying excess inventories which caused a drain on profits in the entire business chain because of the high cost of carrying inventory- warehousing, transportation, scrapping etc. The underlying reasons for the high inventory were: SKU & Supply Chain Complexity: The safety stock/inventory required in the supply chain increases with increased complexity. Barilla made Pasta in 200 different shapes and sizes and was sold in over 470 different packaged SKUs. Additionally, the Barilla products were in 100,000 stores in Italy, which also increased the overall complexity. Demand Fluctuation: The fluctuations in end demand for Pasta meant that there was a bullwhip effect across the supply chain leading to increased inventory at all points. o Lack of proper demand forecasting: The Distribuzione Organizzata’s (DO’s) did not employ any sophisticated forecasting methodologies to place order with Barilla. Instead the orders were based on replenishment of stock on need basis. o Over dependence on promotions: The Barilla sales teams used trade promotions...
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...and what exactly her leadership role was. She explained to me that her company manufactures heavy-duty commercial locks and security systems. Her role specifically is in the Accounting and Finance department because of her background education in Finance. She is in charge of daily accounting transactions, evaluating the performance of the company based on numerous performance metrics, and constantly cutting costs for the organization. She was tasked with the role of leading a small group of individuals throughout her organization to reduce inventory by $125,000 dollars in a time span of about 2 weeks. This group was comprised of individuals from numerous departments throughout her organization, including Purchasing, Product Management, Warehouse Control, Engineering, and others within her own Accounting department. When I asked Ms. May why she was chosen to lead this group she explained to me that she had the background knowledge of the costs of the inventory, the necessary skills to generate reports off of the organization’s enterprise resource planning (ERP)...
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...replenishment of picking location stock throughout the night. * Implement "inventory-by-location" at receiving, warehouse and shipping operations * Move transactional processing and posting receipts, issues, and inventory balance updates from the office to the functional locations at receiving, warehouse, and shipping. * Implement bar coding applications within receiving, warehouse, and shipping. * Begin cycle counting during downtime to increase balance accuracy to 98% * Develop written operating policies, procedures, job instructions, and job descriptions for warehouse operations to stabilize operations, provide sustainability, and to be used to train workers. * Convert the job of the person in the office posting transactions to a full time inventory auditor * Use a separate audit team during monthly physical inventories checking 10% of counts, and requiring a recount when physical count discrepancies are found * Program the current system to automatically produce shipping/delivery invoices * Program the current system to include manual transactions such as pick-up and reship memos, and to sort them with picking lists. The results from the implementation of our recommendations were: * Productivity improvements of 20-30% in warehouse receiving, picking, and shipping operations * Annual operational savings due * The warehouse is your go-to place to get inventory to move back onto the showroom floor or to distribute to customers...
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...POOL STORES Background The National Authority of Civil Aviation, NACA, is a public sector undertaking reporting to the Ministry of Civil Aviation, Government of India. It is responsible for maintaining the facilities and services at 72 civilian airfields across the country. These airfields are categorized as A, B or C, depending on the facilities available there as well as the time required for these facilities to come on in case of an emergency such as power failure, breakdown, failure of equipment, etc. At any given time, the main idea behind functioning of the two systems was to be available at any given point of time. Apart from NACA, the Indian Air Force manages 54 airfields in the country and requires a high quantum of spares. With rapid advances in technology and a change of philosophy from repair to replacement, the chances of breakdown have reduced considerably, also the cost of spares have hiked. Both NACA and Air Force identified their respective non-moving stores that store spares for airfields from which items had not been used in the past 40 months. The summary of the number of items and costs associated with them are as follows- | NACA | Air force | Number of NON- moving item | 2012 | 2007 | Cost (in crores of rupees) | 902 | 777 | Issues The Non-moving spares are highly costly One of the major concerns of both NACA and Air Force is the high cost of nonmoving spares which may become a dead stock in future. 67% of the maintenance stores of NACA which...
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...inventory within our building. At this time we were bring in more fright into our warehouse, then what we were shipping out, because we were getting ready for “Prime Day” event at work. There was 6 of us on this team, 3 from days and 3 from night shift. We will all meet for an hour before/after our normal work schedule and we will discuss what we could do and what will work or not. We came up with many ideas that involved us cherry picking inbound fright as in we will only unload trucks with fast selling items, consolidate pallets from having 4 pallets of items down into 1 pallets to save room in our VNA(very narrow aisle), downsizing other departments that were not utilizing all the space that they did have. After a few weeks gone by and talking to other building in our network on what they were doing. We have decided to try 2 ideas and not the others. We choose not to do the cherry picking idea, due to the fact we don’t want to run into the issue of dealing with unhappy buyers and sellers. Because if we don’t third-party merchants inventory they don’t make money and more likely their product will just destroy by us. So that would not be the best route to take. We did go with the consolidating and downsizing other departments and we give those to options a try for a weeks. We were all impressed by the improvement we have done and we were back to running at full speed again, Before the improvements were in place our building use to house 40,000 Pallets of products at 6 feet tall...
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