Mid-Quarter Design ReviewApril 7, 2009

Aaron HeymanAdam Cook

Agenda• Capacity Model (3.0)

• Changes since 2.8• Validation Process• Overall Capacity• What’s Next

Capacity Tool Global Changes

Removal of Global units per line

Added “Delay Allowance” Calculated Effective Shift Length

Added color coding to Max Workers

Capacity Tool ChangesPick Areas

Removed unnecessary ADM input fields

Identified and fixed error in ADM labor hour calculations

New Pick Times (excludes breaks and lunch)

Validation• Compared our calculated numbers against a

one month sample of actuals

• Used Total Labor Hours as metric

• Calculated based on daily demand

• Results: Calculated labor hours were 5.5% less than actuals (avg. of all areas)

Calculated Actual Difference Calculated Actual Difference Calculated Actual Difference Calculated Actual Difference

5.6 7.83 2.23 99.01 126.64 27.63 95.39 100.76 5.37 16.62 24.08 7.46

5.84 5.52 -0.32 103.27 115.28 12.01 99.49 110.21 10.72 17.33 24.75 7.42

6.71 5.70 -1.01 118.55 123.43 4.88 114.21 104.27 -9.94 19.89 21.85 1.96

6.63 4.85 -1.78 117.19 123.77 6.58 112.91 114.90 1.99 19.67 24.11 4.44

6.46 5.20 -1.26 114.18 100.05 - 14.13 110.01 106.45 -3.56 19.16 19.78 0.62

6.34 6.77 0.43 112.01 142.57 30.56 107.92 128.66 20.74 18.80 27.36 8.56

7.64 7.65 0.01 134.92 125.36 - 9.56 129.99 126.42 -3.57 22.64 22.70 0.06

7.48 4.63 -2.85 132.18 120.59 - 11.59 127.35 125.61 -1.74 22.18 24.08 1.90

6.61 5.02 -1.59 116.89 123.80 6.91 112.62 116.76 4.14 19.62 20.69 1.07

5.07 5.10 0.03 89.62 107.39 17.77 86.24 96.49 10.25 15.04 14.83 - 0.21

0.00 111.75 135.11 23.36 107.67 116.32 8.65 18.75 28.79 10.04

5.92 3.62 -2.30 104.62 109.34 4.72 108.00 119.25 11.25 17.56 20.44 2.88

7.15 5.13 -2.02 126.33 111.25 - 15.08 121.72 102.95 -18.77 21.20 23.76 2.56

5.26 4.93 -0.33 92.99 106.12 13.13 89.59 95.36 5.77 15.60 19.87 4.27

5.18 5.17 -0.01 91.55 92.52 0.97 88.21 91.13 2.92 15.36 16.09 0.73

5.94 8.02 2.08 104.91 140.40 35.49 101.07 107.65 6.58 17.60 25.65 8.05

6.38 5.75 -0.63 112.81 128.15 15.34 108.69 108.41 -0.28 18.93 24.57 5.64

6.59 4.83 -1.76 116.44 113.38 - 3.06 112.18 122.91 10.73 19.54 21.09 1.55

6.75 4.63 -2.12 119.33 110.30 - 9.03 114.97 127.24 12.27 20.02 25.55 5.53

5.60 5.18 -0.42 98.97 98.58 - 0.39 95.36 99.33 3.97 16.61 20.04 3.43

6.52 7.42 0.90 115.28 116.98 1.70 111.26 108.85 -2.41 19.35 22.91 3.56

6.33 5.75 -0.58 111.81 112.65 0.84 107.73 119.43 11.70 18.76 22.60 3.84

6.59 5.08 -1.51 116.42 104.10 - 12.32 112.17 126.70 14.53 19.54 20.18 0.64

6.04 5.17 -0.87 106.66 103.68 - 2.98 102.76 100.59 -2.17 17.90 20.30 2.40

5.35 5.35 0.00 94.61 105.62 11.01 91.15 106.39 15.24 15.88 23.94 8.06

6.25 5.60 110.49 115.88 106.75 111.32 18.54 22.40

Off by (avg) -0.65 5.39 4.58 3.86

LABOR HOURS

ADM PTL VOICE CAROUSEL

Labor Hours

Calculated Actual Difference

216.6 259.31 42.71

225.9 255.76 29.86

259.40 255.25 -4.15

256.40 267.63 11.23

249.80 231.48 -18.32

245.10 305.36 60.26

295.20 282.13 -13.07

289.20 274.91 -14.29

255.70 266.27 10.57

196.10 223.81 27.71

244.50 280.22 35.72

228.90 252.65 23.75

276.40 243.09 -33.31

203.40 226.28 22.88

200.30 204.91 4.61

229.50 281.72 52.22

246.80 266.88 20.08

254.70 262.21 7.51

261.10 267.72 6.62

216.50 223.13 6.63

252.20 256.16 3.96

244.60 260.43 15.83

254.70 256.06 1.36

233.40 229.74 -3.66

207.00 241.30 34.30

241.74 254.98 13.24

5.5%

Overall Capacity Provided four options of presentation

MTBF/MTTR

Upper & Lower Bounds

Independent Areas

Bottleneck Identification

Selection was a combination of Independent areas and Bottleneck ID

Overall Capacity ADM @ 95% uptime: 534 orders/hr

PTL: 260 lines/hour/person

Voice: 101 lines/hour/person

Carousel: 206 lines/hour/person

Bottleneck is a factor of pick times, people and demand in area

Next Steps Finalize Documentation for Capacity Tool

Focus on Overall Capacity Analysis

Addition of Pack to Capacity Tool (If time allows)

Questions

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