Post on 06-Jan-2016
description
Warehouse Layout Analysis for Ferro Electronics
By
Roberto E. Estrada
Rajan Batta
Rakesh Nagi
April 13, 2001
Contents
• Motivation
• Current Situation
• Data Collection
• Alternatives
• Recommended Alternatives
• Suggestions on Implementation
• Suggestions on Racks/Trucks
• Acknowledgements
• References
Motivation
• Lease on “other” warehouse expiring
• Additional manufacturing space needed
• Improve organization of materials
• Improve utilization of space
Current Layout
• Area A—finished goods ceramic division– 17 rows– Door walkway– 36 more rows– Each row fits 10 pallets deep on ground
Current Layout…
• Areas B and C—center of warehouse– Divided into two sides– Each side has 31 rows– Each row can hold 7 or 8 pallets deep
• Area D—WIP from Electronics division– 18 rows, door walkway, 38 more rows– 10 pallets deep on ground in each row
Current Layout…
• Area E—3 rows of 10 pallets each– Mostly products that are to be shipped soon
• Area F—each end of warehouse– Fits 30 rows– First 20 rows—8 pallets deep on ground– Remaining rows used half deep– Mostly raw material stored
Current Layout…
• Areas G1, G2 and G3 have four ground spaces each
• Racks PR1-PR4 hold several products– Organized in 43”X36” pallets– Mostly finished products in totes and paper
bags
• New Rack—144 spaces
Current Layout…
• Total of 4804 pallet spaces
• An additional 585 pallets will be transferred to the warehouse
Data Collection
• Dimensions of warehouse
• Current forklift trucks used
• Required aisle width
• Dimensions of current racks
• Dimensions of materials to be stored
• Average holding quantities of raw materials, WIP and finished products
Data Collection…
• Information also gathered on:– Available push-back racks– Available fork-lift trucks
Alternatives
• Three models were initially generated.
• Model 1: Places aisles length wise – Narrow aisles so turret truck is needed– Able to view warehouse from front (safety
advantage)– Capacity: 5446 pallets
Alternatives…
• Model 2:– Makes use of current racks– Places racks longwise on one side– Horizontal on other side– 3 deep racks for pallets– Makes necessary the use of a turret rack– Capacity: 5185 pallets
Alternatives…
• Model 3:– Places one central aisle longwise– Either side has racks with various pallet depths– Uses narrow aisles– Capacity: 6208 pallets
New Alternative
• Use current racks
• Rack material that is currently stored at 1 or 2 pallets high
• Leave 600 rack spaces for WIP; 200 in single racks, 400 in 3 and 4 deep racks
• Leave 30 long rows (10 deep) for 8.5 gallon and 6.5 gallon drums for ground storage
New Alternative…
• Place rack along end side of warehouse
• Currently there are 5 rows of 4000 lbs totes, at 2 high.
• Leave 100 rack spaces for these (wide; 52”)
• 6 more specific requirements
Recommended Alternative
• Model 4A:– Capacity is 5268 pallets– Uses narrow aisles (Turret forklift)
• Model 4B:– 13 feet wide aisles (regular forklift)– Capacity is 4963 pallets
Is new truck justified?
• Cost of turret truck is $75,000
• Get 305 pallets extra
• Work out economics based on cost of leased space
Suggestions on Implementation
• Requires a careful and graduated plan
• When one area is being re-racked the material needs to be temporarily stored
• Installation needs to be done from the rear of the building
• Revised practices in storage
Suggestions on Racks and Forklift Trucks
• Cost per rack space=$125
• Model 4A: $343,750 + turret forklift ($75K)
• Model 4B: $315,250
Acknowledgments
• Close contact with company personnel
• Special thanks to company main contact (kept minutes) and person whom we got data from
• Weekly meetings
References
• Tompkins, White,…, Facilities Planning, Wiley (1996).
• Tompkins and Smith (eds.), The Warehouse Management Handbook, McGraw Hill (1998).