Warehouse Operations

1. Warehouse Operations

2. What is Warehouse ? อ้างอิงจาก http://www.wisegeek.com • A warehouse is a large building where goods are stored, and where they may be catalogued, shipped, or received, depending upon the type. Though in the past, many warehouses, often located in industrial areas sometimes next to major shipping ports, were teeming with workers, the modern warehouse may be either completely or totally automated depending upon how advanced the company is.

3. What is Warehouse ? • Warehouses have existed for several centuries, and the word itself is not hard to understand. “Wares” were the things possessed by a seller and to house these in a central location meant your were storing your wares.getting in new products, and shipping out products already stored.

4. What is Warehouse ? • Another important part of maintaining a good warehouse is keeping inventory of what products are presently in the warehouse, what has been shipped and what has been received.

5. Warehouse Functions • Provide temporary storage • Put together an order • Serve as a customer service facility • Protect goods • Perform value added services • Inventory

6. The Value Chain Inbound Logistics Firm Structure Human Resource Development Supporting Activities Technology Development Procurement Operations Outbound Logistics Marketing and Sales Services

7. Warehouse Functions - Warehouse organizes and repackages product - Product arrives packaged on a large scale and leaves packages on a smaller scale “The smaller the handling unit, the greater the handling cost”

8. Processes of reorganization of product • Inbound Processes • Receiving • Put away/Storage • Outbound Processes • Processing customer orders • Order-picking • Checking • Packing • Shipping

9. Receiving • Unloading and staging for put away • Inspection (Sampling and/or 100%) • Scanned for registering to • Confirm its availability • Confirm ownership • Normally, receiving is accounted for about 10% of W/H operations cost.

10. Put-away “Before product can be put away, an appropriate storage location must be determined” “Where the product is stored is directly related to how quick and what cost to retrieve it later”

11. Put-away • W/H manager must know at all time that: • Which storage locations are available • How large they are • How much weight they can take After product is put away, its location must be recorded Cost of put away is about 15% of W/H operating expenses

12. Process of customer orders • On receipt of customer orders the warehouse must perform checks such as to verify that inventory is available to ship • The warehouse must produce a “pick list” to guide the order picking • The order picking include assigning operators and sequence of order picking and shipping

13. Order Picking • Order picking account for 55% of warehouse operations cost, it can be broken down to: • Traveling 55% • Searching 15% • Extracting 10% • Paper work and other 20% *% of total order picking cost

14. Order Picking • Depend on type of storage and retrieval system • Person-to-item • Item-to-person • Manual or ASRS • Terminology used in order picking operations • Pick-sheet or pick line • Pick/visit • Pick face • Pick density (# of picks per foot of travel)

15. Order Picking • Flow time is a main indicator for picking performance • Short flow time can lead to better service and responsiveness • Flow time depend on • how large the unit load, serial or parallel pickers • Number of pickers

16. Order Picking • If the total work to pick and load a truck is small, one picker may be assign to each order • If the orders to pick and load are large or span distant region, several pickers are needed to shorten the flow time

17. Order Picking • For a warehouse that move a lot of small products for each of many customers, such as shipping to retail stores, order picking may be organized as an assembly line • The assembly line needs to be balance using some line balancing techniques

18. Checking and Packing • Packing can be very labor intensive • Every item needs to be handled but with minimal walking • Then, checking can be performed simultaneously to make sure completeness of order • Incomplete order leads to return which is expensive

19. Checking and Packing • Packing must aim at minimizing broken space when shipping • Also, customers want orders in as few containers as possible to avoid excessive handling cost

20. Shipping • Shipping generally handles larger units than picking • Less labor intensive • Goal is to • minimize transportation cost • Protect goods • Ease load and unloading

21. Warehouse Management Systems • -Highly automated system that runs day-to-day operations of a DC • -Controls item putaway, picking, packing, and shipping • -Features • transportation management • order management • yard management • labor management • warehouse optimization

22. A WMS

23. Vendor-Managed Inventory Manufacturers generate orders, not distributors or retailers Stocking information is accessed using EDI A first step towards supply chain collaboration Increased speed, reduced errors, and improved service

24. Warehouse Management System (WMS) • The main function of WMS are to track all product arriving and shipping out • It most fundamental capability is to record receipt of inventory into the warehouse and register its shipment out(including financial transaction)

25. Warehouse Management System (WMS) • Another important function are: • Ability to do storage allocation • Routing of material handling equipment • Track every place that product can be stored • Known as stock locator system

26. Manu Features of WMS • Basic features • Appointment scheduling • Receiving • Quality assurance • Put away • Location tracking • Work-order management • Picking • Packing and consolidating • Shipping

27. Manu Features of WMS • High-end features • Cycle counting • Replenishment • Yard management • Labor management • Value-added service • Etc.

28. Manu Features of WMS • WMS’s are extending their functionality to support activities in supply chain both upstream and downstream like: • EXE technologies • Manhattan Associates • MARC Global System • Swisslog Software • etc

29. Materials Handling

30. Materials Handling • Material handling is an activity that uses the right method to provide the right amount of the right material at the right place, at the right time, in the right sequence, in the right position and at the right cost

31. Materials Handling (Cont) • Systems perspective • 20-70% of product cost attributed to material handling

32. Unit Load • Unit load - number of items or bulk material arranged so they can be picked up and delivered as one load • Large or small? • If large, cost/unit handled decreases • But, depending upon • cost of unitizing, de-unitizing

33. Unit Load (Cont) • space required for material handling • material handling carrier payload • work-in-process inventory costs • storage and return of empty pallets or containers used to hold the unit load • smaller unit load may be desired

34. Unit Load (Cont) • Seven steps to design a unit load • Unit load concept applicable? • Select the unit load type • Identify most remote source of load • Determine farthest practicable destination for load

35. Unit Load (Cont) • Establish unit load size • Determine unit load configuration • Determine how to build unit load

36. Material Handling Device Types • Conveyors • Palletizers • Pallet Lifting Devices • Trucks • Robots

37. Material Handling Device Types (Cont) • AGVs • Jibs, Cranes and Hoists • Warehouse MHSs

38. Conveyors • Accumulation • Belt • Bucket • Can • Chain

39. Conveyors (Cont) • Chute • Gravity • Pneumatic or vacuum • Power and free • Roller

40. Conveyors (Cont) • Screw • Skid • Slat • Tow line • Trolley • Wheel

41. Trucks • Hand truck • Fork-lift truck • Pallet truck • Platform truck • Counterbalanced truck • Tractor-trailer truck • AGV

42. Robots • Point-to-point • Contouring or continuous path • Walkthrough or teach • Lead through or teach pendant • Hydraulic • Servo-controlled

43. MHSs in Action • Europe Combined Terminals (ECT) • ECT - one of largest in world and largst in Europe • Goods shipped from and to Europe • Built on reclaimed land in the North Sea • Large and Small containers

44. MHSs in Action (Cont) • Trucks wait to be off-loaded by straddle carrier • Carrier takes container to holding area • Shipped in approximately 2 days • Mobile gantry cranes on tracks deposit containers in forward area

45. MHSs in Action (Cont) • Mobile gantry cranes hold containers in top four corners and deposit on waiting AGVs • Fleet of AGVs in forward area take containers to tower cranes • Tower cranes deposit load on ship bed • Procedure reversed for off-loading ship

46. AGVs • Classification of MHS • Synchronous systems • Asynchronous systems • Synchronous systems, e.g. conveyors, used in continuous processes or heavy traffic, discrete parts environments

47. AGVs (Cont) • Asynchronous systems, e.g., AGV, AS/RS, fork-lift trucks, monorails, cranes and hoists used in light traffic, discrete parts environments when material handling flexibility desired

48. Design and Control Problems in AGVSs • Material flow network • Location of pick-up/drop-off (P/D) points • Number and type of AGVs • AGV Assignments to material transfer requests • AGV routing and dispatching

49. Design and Control Problems in AGVSs (Cont) • Strategies for resolving route conflicts, so AGV throughput rate is maximized, an other costs (purchase, maintenance and operating costs of AGVs, computer control devices, and the material flow network, as well as inventory costs and production equipment idle costs incurred due to excessive material transfer and wait times), are minimized