ORDER PICKING IS THE HIGHEST PRIORITY IN A WAREHOUSE FOR PRODUCTIVITY IMPROVEMENTS Its the most...
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Transcript of ORDER PICKING IS THE HIGHEST PRIORITY IN A WAREHOUSE FOR PRODUCTIVITY IMPROVEMENTS Its the most...
ORDER PICKING IS THE HIGHEST PRIORITY IN A WAREHOUSE FOR PRODUCTIVITY IMPROVEMENTS
It’s the most costly activity (63% of operating costs) because:
• Labor intensive• Material & information system intensive• Decision support system and engineering projects
intensive• Many error occur in order picking
It’s increasingly difficult to manage because of new operating system programs
Chapter 8Order Picking Operations
NEW OPERATING SYSTEMS INCLUDE:
• JIT• CT reduction (cycle time)• QR (quick response• Micro-marketing strategies• Mega-brand strategies
•THESE REQUIRE:
• 1. smaller orders delivered more frequently & more accurately
• 2. more SKUs in system requires dramatic increase in throughput, storage, and accuracy
• 3. renewed focus on quality improvements & customer focus
Chapter 8Order Picking Operations
HIRING MORE PEOPLE (THE TRADITIONAL APPROACH) OR INVESTING IN MORE AUTOMATION HAVE BEEN STYMIED
Due to: • labor shortages & • high hurdle rates due to uncertain business
environment•Some strategies include:
• Issue pack optimization• Pick-from-storage• Pick task simplification• Order batching• Slotting optimization• Pick sequencing
Chapter 8Order Picking Operations
ISSUE PACK OPTIMIZATION:
• Encourage full or half pallet orders• Reduces counting• Reduces physical handling• Reduces extra packaging
• Requires balancing between holding and handling costs
Chapter 8Order Picking Operations
PICK FROM STORAGEGOAL IS TO PICK FROM RESERVE STORAGE AREAS – NO
FORWARD PICKING AREAS ARE REQUIRED
Example: Ford Service Parts Distribution Centers:• Automated – receipts arrive by rail in wire basket with
ID plate• Operator scans into WMS • WMS directs operator to distribute content into totes
(each with ID)• Totes assigned to & conveyed to one of 54 horizontal
carousels for putaway• WMS interleaves putaway & picking activities• Picking is light-directed – and order totes are light
directed
Chapter 8Order Picking Operations
THE CAROUSELS ARE THE RESERVE STORAGE-REQUIRES A HIGHLY SOPHISTICATED SYSTEM
• Uses random storage• Intelligent slotting• Activity balancing• Dynamic wave planning• High mechanization• Disciplined work force• Moves storage location to the picker
Chapter 8Order Picking Operations
PICK TASK SIMPLIFICATION:
• Eliminate / combine tasks when possible• Human elements involved in picking:
• 55% - traveling to, from, between pick locations• 10% - extracting material from locations• 20% - reaching/bending, documenting, sorting,
packing• 15% - searching for location
• Can be reduced through several approaches (next slide)
Chapter 8Order Picking Operations
STOCK-TO-PICKER:
• Reduce travel time• Carousels• Mini-loaders
• Design of system critical to minimize wait time
PERSON-ABOARD SYSTEMS AUTOMATICALLY GO TO PICK LOCATIONS
• Frees picker to document, sort, pack while machine is moving
Chapter 8Order Picking Operations
PICKING/SORTING/PACKING
More than one order at a timeUse carts with totes / dividersPick & pack simultaneouslyWorks well when order cube is small
Packing/shipping containers must be set-up ahead of time and placed on picking carts equipped with totes or dividers
Chapter 8Order Picking Operations
Chapter 8Order Picking Operations
Work Element Method of Elimination
Required Technology / Functionality
Traveling Bring pick locations to picker
STP System: Miniload ASRS Horizontal Carousels Vertical Carousels
Documenting Automate information flow
Computer-aided order picking: Automatic ID System Light-aided order picking RF Terminals Headsets
Reaching Present items at waist level
Vertical CarouselsPerson-aboard ASRSMiniload ASRS
Searching Bring pick locations to picker
STP SystemsPerson-aboard ASRSMiniload ASRS
Chapter 8Order Picking Operations
Work Element Method of Elimination
Required Technology / Functionality
Extracting Automated Dispensing Automatic Item PickerRobotic order picker
Counting Weigh countingPrepackage in issue quantities
Scales on picking vehicles
Restocking Automated look-ahead replenishment should ensure each location has sufficient pick-quantity before the picker reaches the location
Location min-max triggers
Excessive socializing Assign operators dedicated zones for picking and put-away
Idling / waiting for work Dynamic zone sizingPerpetual to-do list
Real-time WMS
ADVANTAGE OF SINGLE ORDER PICKING IS ORDER INTEGRITYDISADVANTAGE IS PICKER TRAVELERS GREATER DISTANCES
ORDER BATCHING (TO REDUCE TRAVEL TIME/LINE ITEM) More orders picked by a picker during a picking tour Especially effective for small orders (one to five line items) Batch small orders by picking zone
ZONE PICKING REQUIRES DOWNSTREAM SORTATION Pickers are assigned to a specific area, portion of an aisle,
multiple aisles, carousels, etc… (zones)
Chapter 8Order Picking Operations
STORAGE ZONES ARE DISTINGUISHED FROM PICKING ZONES
Designed for save, efficient storage Ie; bulky items, floor storage, small items, bar
stock, refrigerated, frozen, flammable, explosive, etc…
FREE-FORM PICKING IS THE OPPOSITE OF ZONE PICKING
Pickers responsible for picking every item in the order.
Move throughout the warehouse
Chapter 8Order Picking Operations
BENEFITS OF ZONE PICKING Reduced travel time Minimal congestion Product-location familiarity Operator-zone accountability
MAY OR MAY NOT PAY FOR ITSELF (INCREASED CONTROL COMPLEXITIES)
Order assembly requirements across zones (pass from zone to zone or wave picking with down-stream sortation)
Imbalances in workload, bottlenecks, gridlock, low morale
Chapter 8Order Picking Operations
COTTER & CO – LOGISTICS SUBSIDIARY OF TRUE VALUE HARDWARE Has conveyer down center of each zone Picker has roll of pick labels sorted in location
sequence Enables picker to make one pass thru zone during
a pick wave Picker pulls item, put barcode on it, puts it on the
conveyer and moves to the next location Conveyor transports to downstream sortation Metrics are posted at the end of each zone –
productivity, pick accuracy, and housekeeping
Chapter 8Order Picking Operations
PROGRESSIVE ORDER ASSEMBLY (PICK AND PASS)
Order passed from one zone to next until order is picked
Uses totes, pan, conveyor, carton, etc. Moves on conveyor or manually on a cart, or
pallets on a towline conveyor, AGV, lift truck, pallet jack
INTELLIGENT PROGRESSIVE ORDER ASSEMBLY SYSTEMS
Only move containers to a zone if there is a SKU for that order in that particular zone (called zone-skipping)
Chapter 8Order Picking Operations
DOWNSTREAM SORTATION
No order designation during picking Pickers make pass thru zone during pick wave Items bar-code labeled when picked Placed in cart or on conveyor Picked items go to sorting system where they are
placed into ordersSORTATION SYSTEMS RUN INTO THE MILLIONS OF DOLLARS
Benefits need to out weigh the cost
Chapter 8Order Picking Operations
SLOT OPTIMIZATION:
SLOTTING IS DETERMINING–
Appropriate storage mode Appropriate allocation of space within its storage
mode Appropriate storage location within its storage
mode
Chapter 8Order Picking Operations
SLOTTING HAS SIGNIFICANT IMPACT ON WAREHOUSE KEY PERFORMANCE INDICATORS:
Productivity Shipping accuracy Inventory accuracy Dock-to-stock time Warehouse order cycle time Storage density Level of automation
Chapter 8Order Picking Operations
SLOTTING GENERALLY HAS MORE INFLUENCE ON OVERALL WAREHOUSE PERFORMANCE THAN OTHER ASPECTS OF WAREHOUSE MANAGEMENT
MOST WAREHOUSES ARE IMPROPERLY SLOTTED:
Due to lack of dataMIS resourcesNo way to keep slotting currentNo methodology for slotting
Chapter 8Order Picking Operations
TEN STEP METHOD FOR SLOTTING:
1) Perform whse performance & whse gap analysis a) See how slotting could improve the operationsb) Won’t work if…
i. Poor managementii. Poor moraleiii. Undisciplined workforceiv. Union-management tensionv. Poor housekeepingvi. Inadequate computer training/support
Chapter 8Order Picking Operations
Chapter 8Order Picking Operations
TEN STEP METHOD FOR SLOTTING:
2) Populate slotting databasea) Describing activity, dimensions, storage
characteristicsb) Include:
i. Item Numberii. descriptioniii. Material typeiv. Storage environment (frozen, flammable, etc)v. Shelf lifevi. Dimensions, cube, weightvii. Units/carton – cartons/palletviii. Unit of Measure
Chapter 8Order Picking Operations
TEN STEP METHOD FOR SLOTTING:
3) Compute slotting statisticsa) Popularity (# times hit) (P)b) Turn-over (T)c) Unit Cube (C)d) Unit velocity (V = TC)e) Pick density (D = P/V)f) Demand Increment (I = T/P)g) Standard Deviation of Demand (S)h) Slotting Period (R) - (years, months, etc)
Chapter 8Order Picking Operations
TEN STEP METHOD FOR SLOTTING:
4) Conduct Warehouse Activity Profile (Ch 2) – include:a) Picking mode profileb) Operations Planning Profile
5) Assign items to familiesa) Storage environment family b) Order completion zones, within environment
family, based on order completions and demand correlation profile
c) Item activity profile, within order completion zones.
Chapter 8Order Picking Operations
TEN STEP METHOD FOR SLOTTING:
6) Assign Item Activity Families to Storage Mode Families – based on least cost storage mode option for each item
7) Map individual warehouse locations within each storage mode into Picking Activity Zones.a) Plot Pick Path
i. Serpentineii. Main line with side tripsiii. Pod of 2 or 3 carousels
Chapter 8Order Picking Operations
TEN STEP METHOD FOR SLOTTING:
8) According to Pick Density assign items to Storage Mode Activity ZonesBegin with highest density in A locations, then B
locations, then C
9) Specify Re-slotting Rules Rules for when or if an item should be re-slottedUse From-To chart to compute cost savings by moving
from a zone to every other zone
Chapter 8Order Picking Operations
TEN STEP METHOD FOR SLOTTING:
10) Pick sequencinga) Sequence pick locations visits to reduce travel time