One particular section of the model deserves a closer look in the discussion of quality cycles. The flow of information in the upper left quadrant of the model changes depending on the type of quality improvement process involved. Two quality improvement terms borrowed from the Japanese are particularly relevant to this topic. The terms and their definitions are:
Hoshin:
A breakthrough innovation or dramatic change in level of performance. The Hoshin concept was developed in Japan to communicate company policy to everyone in the organization. Hoshin's primary benefit is to focus activity on the key things necessary for success. Japanese Deming Prize winners credit Hoshin as being a key contributor to their business success. Progressive US companies, like Hewlett-Packard and Xerox, have also adopted Hoshin as their strategic planning process. Hoshin plans, therefore, map out a framework for substantial increases in performance.
Kaizen:
Kaizen is the Japanese term for continuous improvement. It refers both to a statistical/quantitative evaluation of process performance and an adaptive framework of organizational values and beliefs that focuses workers and management alike on zero defects. Kaizen plans lay out an ongoing refinement process.
Hoshin and Kaizen, along with a Plan-Do-Check-Act (PDCA) cycle, will be used to describe the previously mentioned information flows and demonstrate the quality improvement cycles.
1. Breakthrough Innovation (Hoshin) Cycle
When Cp <=4/3, an unstable process is indicated and a major innovative change, or Hoshin, is suggested. A Hoshin could also be considered even when a process is stable. For a business firm to maintain its competitive edge and/or increase revenue, it may be necessary to initiate a Hoshin cycle for a process that is already at a high sigma level of quality. Figure 8 depicts the information flow within the model when a jump in productivity or level of performance is desired.
Through the use of the MBM component, a simulation of the physical layer is created so that the effects of altering process variables may be analyzed. It is probable that numerous simulations will be executed with differing variables until a path representing the breakthrough is discovered. At this point, the results of the simulation are implemented in the actual system with feedback flowing back through the management element for monitoring and adjustment. It may take a process several cycles to stabilize and begin the Kaizen cycles.
2. Continuous Improvement (Kaizen) Cycle
Generally speaking, when Cp >4/3 for a process, that process is considered stable [Mizuno, 1988]. Figure 9 depicts the information flow for Kaizen continuous improvement cycles. In this situation, feedback from the physical layer is monitored by the management component . Input from the MIS and DSS assist managers in making incremental improvements to the business processes.
3. PDCA Quality Cycles
In this view of quality improvement cycles, the upper and lower PDCA cycles of Figure 10 correspond to Hoshin and Kaizen respectively. For illustrative purposes we will assume an unstable process as a starting point and follow it through the 8 steps of this process improvement procedure [Eddlestone, 1992].
Beginning at the Plan element of the upper cycle, the steps are as follows:
Develop process innovation/breakthrough plans.
Implement plans.
Check impact on capability
Act on results (decision point). If Cp >4/3 , process has stabilized. Go to plan element of lower PDCA (Kaizen) cycle.
Develop process improvement plans.
Implement plans.
Check process variation.
Act on results (decision point). If Cp <=4/3 , process is now unstable. Go to plan element of upper PDCA (Hoshin) cycle.
4. A Simplified Example of Process Improvement
For the purpose of demonstrating a series of quality improvement cycles, the output of a modeling simulation under development at North Carolina State University will be presented1. It is beyond the scope of this paper to provide an in-depth description of the theory and formulae that form the basis of this simulation. The information provided here is for illustrative purposes only. The simulation requires variable values to be input for certain business competencies. The inputs are a decimal number ranging from 0 to 1and represent the percentage level of a particular competency. Of interest to this example are:
Information Technology Competencies: The business firm's level of competency in utilizing information technology. For this example, the variable has values of IT=0.45, IT=0.5, and IT=1.0.
Mission Critical Competencies: These are the core competencies vital to the success of critical business processes. This variable has values of MC=0.85, MC=0.5, and MC=1.0.
Learning Competency: The ability to incorporate learning from the changes to a business process. This variable has a value of L=0.5 for all three simulation runs.
The simulation scenario portrayed here is that of a major pharmaceutical company that has decided it must reduce the mean time for drug-to-market delivery. The delivery time units are in days and the company is seeking a reduction in mean delivery time from approximately 4000 to 2000 days over a period of four years.
Notice that the process is starting at a current level of six sigma. In essence, the trailing end of the distribution curve for longer delivery times is cut off. When the sigma level is recalculated under these conditions the result is that sigma = 3.
In the simulation, the start of each major Hoshin cycle corresponds with the beginning of a year. Four cycles are depicted within each major Hoshin cycle; each of these corresponds to a 3 month period (one quarter). During the period of four cycles (1 year), sigma builds from sigma =3 back to sigma = 6. Figure 11 is a graphic depiction of the simulation output for the mean delivery times over a period of four years. Each line on the graph represents the mean delivery time as impacted by the differing competency values.
The simulation shows that significant drops in mean delivery time occur at the beginning of each major Hoshin cycle. The values associated with business competencies also have a measurable effect on achieving the company goal. The main point here is that breakthrough innovation is a cyclic process with dependencies on business competency values.
1. Implementation of simulation model by T.L. Honeycutt and W.M. Waters, Department of Math, Science, and Technology Education
V. Conclusion
Quality improvement and information technology have an integral relationship in a business firm. The IT infrastructure is essential in tracking and monitoring the quality improvement process. The model of a business firm presented in this paper combines IT and quality improvement in an organized structure that exploits the synergy of the two concepts. Finally, the competency and quality of the management process carries more weight than the technology by which it is supported.
Showing posts with label Warehouse. Show all posts
Showing posts with label Warehouse. Show all posts
Saturday
Tuesday
Timing Picking Waves in a Warehouse
Abstract
To facilitate eÆcient picking tours and worker supervision, warehouses often release
orders to workers in picking waves. The timing of these waves determines how long
orders sit in the queue waiting to be processed, and so provides some control over
average order cycle time. We show how to time picking waves in a warehouse to
minimize average order cycle time. We report on results at a warehouse in California,
which reduced average order cycle time by more than 25% after restructuring its picking
waves. We also argue that cycle time may not be the best metric for many distributors,
and propose a di_erent one based on the practices of a leading e-commerce distributor.
Keywords Warehousing, Distribution, Measurement and methodology, Personnel and shift scheduling
Background
Reducing cycle time in the supply chain means lower inventories and better response to
customers. As distribution _rms wring the last drops of ineÆciency out of their distribution channels, warehouses have focused on tightening up processes and reducing costs. Moreover, the need to satisfy increasingly demanding customers has led to new performance measures that will require even more emphasis on process optimization and cost cutting.
In the future, _rms will have to adapt to the world of e-commerce distribution: direct
customer orders via the Internet, precise order tracking, stringent performance measurement and even auction-based services. As many e-commerce retailers have found, customer satisfaction goes beyond the web experience to e_ective distribution and order delivery. The Internet has also bred the impatient customer, who expects delivery of products ordered on the web almost as quickly as the clicks it took to place the order. Firms are responding by
restructuring processes to reduce order cycle time in the warehouse. The thought is that
reduced order cycle time will improve customer service.
In the warehouse, one component of order cycle time is the time an order spends waiting
to be downloaded, or pulled, from the information system. Waiting time occurs because
work is not released to workers continuously, but rather in batches called picking waves.
Warehouses routinely use picking waves to improve the eÆciency of picking tours. When orders are batched, the _xed time that it takes to circumnavigate a picking area is amortized over more orders, thus reducing average cycle time; but if the batches are too large, cycletime goes up because orders wait excessively in the queue.
We investigate the e_ects of the number and timing of picking waves on average order
cycle time at a warehouse. We describe a simple model, which we solve with a genetic
algorithm, that _nds the optimal times to release work to the warehouse, given its speci_c
order arrival distribution. We report the use of the model at a large warehouse in California,which reduced average order cycle time by more than 25% after restructuring its pickingwaves. After presenting the results, we argue that minimizing cycle time in most cases is not the right objective. We present a superior objective and show how to modify our model to accommodate it.
Choosing picking waves
The test site for our study is a large, multi-warehouse complex (hereafter, \the warehouse")located in California, which supports customers throughout the United States and Asia.The warehouse handles all types of material, from pallet loads to individual piece parts, and employs several methods of storage and material handling, including block stacking, palletrack, man-aboard picking cranes, and mini-stackers.
Because the warehouse supports customers from such a geographically diverse region,
orders arrive throughout the 24-hour day. Customers order via an information system that
holds orders in a queue until the warehouse downloads, or pulls, them from the system. Oncethe orders are in the warehouse system, they are transmitted to handheld or mounted RFdevices maintained by the workers, creating a wave of orders. Workers then traverse their areas, picking orders into totes or onto pallets as appropriate. From the picking area, ordersmove to packing, then on to the shipping area, where workers sort them by customer andtransportation mode.
The number and timing of picking waves determine to some degree the cycle time for
orders, because they determine how long orders spend in the queue. The size of the wave
also determines how long a picking tour will be, which also a_ects cycle time.
Theory and practice
Why not release the work continuously? In theory, releasing the work in a continuous streamminimizes average order cycle time. Imagine that a new order arrives and is transmitted toa worker in an aisle at the moment he is about to pass the item's location.
Proposition 1 Passing over a pick always increases average order cycle time.
Proof Assume total travel in the aisle takes non-zero time s and there are n + 1 picks
remaining in an aisle, each of which takes time t. Assume, without loss of generality, that
we are considering whether or not to pick the next item in the aisle. Consider the average
cycle time delay experienced by all n + 1 items: if we pick the next item, then total delay ist for each of n items, and average delay is ntn+1; if we pass the next item and pick it on the3next tour, then total delay is at least s + nt for that item, and average cycle time delay is s+nt n+1 > nt n+1; therefore, average cycle time is greater if the pick is passed over. 2
Proposition 1 suggests that the optimal order picking strategy is to have workers circum-
navigate the warehouse continuously, picking orders as they appear on their handheld RF
devices. In practice, this is infeasible for a number of reasons. First, order pickers typically have other duties involving paperwork, cleaning, and stowing that are normally done be-tween picking waves. The wave structure allows supervisors to assign workers to other tasksbefore the next wave begins. Second, the warehouse management system must support thecontinuous feed, inserting and sorting orders appropriately as they arrive. (The warehouse management system at our test site was not con_gured to do this.) Third, workers could spend much more time traveling, especially during slow periods, thus wasting labor; that is, continuous picking minimizes cycle time, but at the expense of higher labor costs.What is the minimum time between waves? The answer depends on a number of things:the time required to circumnavigate each picking area, the time to pick an individual order, the order arrival pattern, and the amount of slack time needed by supervisors to accomplish other things with the workers. At the warehouse, managers suggested that picking waves separated by 2 hours were possible, but waves in consecutive hours were not.
The model
Consider a warehouse that receives orders continuously, but not necessarily uniformly, through-out every 24-hour cycle. Every hour the warehouse has an opportunity to release all orders in the queue to the warehouse, or it may delay until a future hour.
Assume that orders arrive to the warehouse every hour according to some distribution.
We seek a set of n picking waves that minimizes average order cycle time. Because total system throughput (orders/day) is _xed, we know by Little's Law that minimizing the average work in process inventory also minimizes the average cycle time.
Planning picking waves is similar to the well-studied production lot-sizing problem with
time-varying demand (see Nahmias, 1997, for a discussion of di_erent solution methodologies). In our case, inventory holding cost is simply one hour per unit per time period, but the notion of setup cost is di_erent. In the lot-sizing problem, one incurs a monetary setup cost each time a new lot is ordered. In our problem the warehouse incurs a _xed time penalty for each wave (in the form of a picking tour) that could prevent scheduling a wave in the next hour. We work around this issue by specifying the number of waves a priori. ( to be continued……………. )
Source : Kevin R. Gue Department of Systems Management
Naval Postgraduate School Monterey.
To facilitate eÆcient picking tours and worker supervision, warehouses often release
orders to workers in picking waves. The timing of these waves determines how long
orders sit in the queue waiting to be processed, and so provides some control over
average order cycle time. We show how to time picking waves in a warehouse to
minimize average order cycle time. We report on results at a warehouse in California,
which reduced average order cycle time by more than 25% after restructuring its picking
waves. We also argue that cycle time may not be the best metric for many distributors,
and propose a di_erent one based on the practices of a leading e-commerce distributor.
Keywords Warehousing, Distribution, Measurement and methodology, Personnel and shift scheduling
Background
Reducing cycle time in the supply chain means lower inventories and better response to
customers. As distribution _rms wring the last drops of ineÆciency out of their distribution channels, warehouses have focused on tightening up processes and reducing costs. Moreover, the need to satisfy increasingly demanding customers has led to new performance measures that will require even more emphasis on process optimization and cost cutting.
In the future, _rms will have to adapt to the world of e-commerce distribution: direct
customer orders via the Internet, precise order tracking, stringent performance measurement and even auction-based services. As many e-commerce retailers have found, customer satisfaction goes beyond the web experience to e_ective distribution and order delivery. The Internet has also bred the impatient customer, who expects delivery of products ordered on the web almost as quickly as the clicks it took to place the order. Firms are responding by
restructuring processes to reduce order cycle time in the warehouse. The thought is that
reduced order cycle time will improve customer service.
In the warehouse, one component of order cycle time is the time an order spends waiting
to be downloaded, or pulled, from the information system. Waiting time occurs because
work is not released to workers continuously, but rather in batches called picking waves.
Warehouses routinely use picking waves to improve the eÆciency of picking tours. When orders are batched, the _xed time that it takes to circumnavigate a picking area is amortized over more orders, thus reducing average cycle time; but if the batches are too large, cycletime goes up because orders wait excessively in the queue.
We investigate the e_ects of the number and timing of picking waves on average order
cycle time at a warehouse. We describe a simple model, which we solve with a genetic
algorithm, that _nds the optimal times to release work to the warehouse, given its speci_c
order arrival distribution. We report the use of the model at a large warehouse in California,which reduced average order cycle time by more than 25% after restructuring its pickingwaves. After presenting the results, we argue that minimizing cycle time in most cases is not the right objective. We present a superior objective and show how to modify our model to accommodate it.
Choosing picking waves
The test site for our study is a large, multi-warehouse complex (hereafter, \the warehouse")located in California, which supports customers throughout the United States and Asia.The warehouse handles all types of material, from pallet loads to individual piece parts, and employs several methods of storage and material handling, including block stacking, palletrack, man-aboard picking cranes, and mini-stackers.
Because the warehouse supports customers from such a geographically diverse region,
orders arrive throughout the 24-hour day. Customers order via an information system that
holds orders in a queue until the warehouse downloads, or pulls, them from the system. Oncethe orders are in the warehouse system, they are transmitted to handheld or mounted RFdevices maintained by the workers, creating a wave of orders. Workers then traverse their areas, picking orders into totes or onto pallets as appropriate. From the picking area, ordersmove to packing, then on to the shipping area, where workers sort them by customer andtransportation mode.
The number and timing of picking waves determine to some degree the cycle time for
orders, because they determine how long orders spend in the queue. The size of the wave
also determines how long a picking tour will be, which also a_ects cycle time.
Theory and practice
Why not release the work continuously? In theory, releasing the work in a continuous streamminimizes average order cycle time. Imagine that a new order arrives and is transmitted toa worker in an aisle at the moment he is about to pass the item's location.
Proposition 1 Passing over a pick always increases average order cycle time.
Proof Assume total travel in the aisle takes non-zero time s and there are n + 1 picks
remaining in an aisle, each of which takes time t. Assume, without loss of generality, that
we are considering whether or not to pick the next item in the aisle. Consider the average
cycle time delay experienced by all n + 1 items: if we pick the next item, then total delay ist for each of n items, and average delay is ntn+1; if we pass the next item and pick it on the3next tour, then total delay is at least s + nt for that item, and average cycle time delay is s+nt n+1 > nt n+1; therefore, average cycle time is greater if the pick is passed over. 2
Proposition 1 suggests that the optimal order picking strategy is to have workers circum-
navigate the warehouse continuously, picking orders as they appear on their handheld RF
devices. In practice, this is infeasible for a number of reasons. First, order pickers typically have other duties involving paperwork, cleaning, and stowing that are normally done be-tween picking waves. The wave structure allows supervisors to assign workers to other tasksbefore the next wave begins. Second, the warehouse management system must support thecontinuous feed, inserting and sorting orders appropriately as they arrive. (The warehouse management system at our test site was not con_gured to do this.) Third, workers could spend much more time traveling, especially during slow periods, thus wasting labor; that is, continuous picking minimizes cycle time, but at the expense of higher labor costs.What is the minimum time between waves? The answer depends on a number of things:the time required to circumnavigate each picking area, the time to pick an individual order, the order arrival pattern, and the amount of slack time needed by supervisors to accomplish other things with the workers. At the warehouse, managers suggested that picking waves separated by 2 hours were possible, but waves in consecutive hours were not.
The model
Consider a warehouse that receives orders continuously, but not necessarily uniformly, through-out every 24-hour cycle. Every hour the warehouse has an opportunity to release all orders in the queue to the warehouse, or it may delay until a future hour.
Assume that orders arrive to the warehouse every hour according to some distribution.
We seek a set of n picking waves that minimizes average order cycle time. Because total system throughput (orders/day) is _xed, we know by Little's Law that minimizing the average work in process inventory also minimizes the average cycle time.
Planning picking waves is similar to the well-studied production lot-sizing problem with
time-varying demand (see Nahmias, 1997, for a discussion of di_erent solution methodologies). In our case, inventory holding cost is simply one hour per unit per time period, but the notion of setup cost is di_erent. In the lot-sizing problem, one incurs a monetary setup cost each time a new lot is ordered. In our problem the warehouse incurs a _xed time penalty for each wave (in the form of a picking tour) that could prevent scheduling a wave in the next hour. We work around this issue by specifying the number of waves a priori. ( to be continued……………. )
Source : Kevin R. Gue Department of Systems Management
Naval Postgraduate School Monterey.
Wednesday
How to be a good warehouse employee
very employee in every position wants to do a good job. However, I found we
often need reminding about what a good job is, more than we need teaching about
what a good job is. And, since everyone and their mother are constantly telling us
how to be good leaders, I decided to tell those that aren.t in leadership positions,
.YET,. what they can do to be a good employee.
Below are 16 tidbits I put together while researching and writing a white paper
with the same title. I decided to shorten it up and this is what I came up with:
1. Work While At Work: The average American worker wastes 2.9 hours per
day. When you include lunch and breaks that means the average employee
works for 4.5 hours a day.
2. Charge Your Cell Phone at Home: I have seen order pickers have to stop
working and get off of the Forklift, because someone cell phone was
charging and they could not get by without moving the cell phone and the
charger out of the way.
3. Stop Complaining About Your Pay: You negotiated it or accepted it, if you
are not happy with it, find another job. It is disruptive when one employee
talks about their salary. Ben Franklin said, .If you want to get rich, diminish
your wants or augment your means.. It is best to do both simultaneously.
4. Help Out Your Boss: Ask them what projects they are working on and can
you help. If your boss replies no, then he or she is an idiot and you should
start looking for another job anyway. Any supervisor worth their salt will
gladly accept the assistance and the opportunity to assist with your career
advancement.
5. Stay Away From Negative Individuals: For two reasons, everyone in the
organization already knows how negative they are and you don.t want to be
associated with them. My mother always told me, .You are known by the
company you keep!. Two, if you are around them enough, you will
ultimately begin believing what they are saying.
6. Find Out What Average is And Beat it By 10%: No one wants to be
average, therefore to move away from the pack and do more. Every week
monitor your progress. Average people are the ones on the news
complaining about the company laying-off half of its work force.
7. Find Out What Your Best Day Was and Beat it By 10% Consistently: It
amazes me to see our culture engulfed with mediocrity, then when there is
an incentive we always do better. Do better on your own without anyone
telling you.
8. Clean Up: Don.t walk past that Coke can today: Tell someone about the
ladder that is broken today. Tell someone about the blown light bulb today.
The problem with most warehouses is not a lack of productivity but the lack
of a broom. Most shipping errors happen because the packing area is a mess.
Most inventory errors happen because the aisles are a mess. Most receiving
errors happen because the receiving area is a mess. Do something about it
today!
9. Read an Industry Magazine Article Twice a Week: After high school the
average American worker never picks up a book. In order to .Earn More
You Must Learn More!. Warehouse Management Systems, RFID, Pick-to-
Light, Voice Directed Picking they are all coming to your warehouse sooner
or later. The more you know about them before they get to you, the more
valuable you are once they arrive. Side Note: I read somewhere that most
people only learn 5 new words a year. And without fail in study after study
the highest paid people in the organization have the best vocabulary. What
better way to improve your vocabulary, and potentially your salary, than to
read.
10. Find Out the Progression Within the Warehouse: That means if you are a
picker what is the next position above that. Document what position you
want next. If the next position from picking is receiving, then when a
position for inventory control becomes available, and you are a picker, you
will know why you may not be considered. But also you need to ask what it
takes to move to the next position and begin working on it.
11. Stay Out of The Customer Service Office: Inside Sales personnel get paid to
take sales calls not talk to warehouse personnel. That does not mean they are
better than you, it means they have a job to do. And customers should not be
placed on hold because the person who should be taking the call is chit-
chatting with a warehouse guy about the game the night before.
12. Learn The Names of The Company.s Top 25 Customers: You have to
know who patronizes your organization. But you really have to know who
spends the most with your organization. I know ever small customer has the
potential to become a big customer. But as Bear Bryant said, .Potential
Means You Ain.t Done It Yet!.
13. Complete What You Start: When assigned a task complete it! Then tell your
supervisor, who assigned it to you, that it was completed and they can
scratch it off of their list. After they scratch it off, ask, .What.s Next!.
14. Keep a Note Pad and Take Notes With It: A lot of warehouse supervisors
do not keep accurate notes. They think they can remember everything.
Therefore make it your responsibility to take notes of the tasks you are
assigned. This shows your supervisor that you care enough to write it down.
It also shows their supervisor that you are a conscientious employee.
15. Go To Lunch With Your Supervisors Boss: Believe it or not, .Business is
emotional.. People trust people they know. When your supervisor puts your
name in for a new position, it is good if the person responsible for approving
it already knows who you are.
16. Keep Track of The Amount of Work You Produce: Most of us are self
motivated individuals. If you pick 100 orders today, and you know it, you
will not pick less tomorrow. Without anyone telling you to, you will always
try to do better than you did the previous day.
often need reminding about what a good job is, more than we need teaching about
what a good job is. And, since everyone and their mother are constantly telling us
how to be good leaders, I decided to tell those that aren.t in leadership positions,
.YET,. what they can do to be a good employee.
Below are 16 tidbits I put together while researching and writing a white paper
with the same title. I decided to shorten it up and this is what I came up with:
1. Work While At Work: The average American worker wastes 2.9 hours per
day. When you include lunch and breaks that means the average employee
works for 4.5 hours a day.
2. Charge Your Cell Phone at Home: I have seen order pickers have to stop
working and get off of the Forklift, because someone cell phone was
charging and they could not get by without moving the cell phone and the
charger out of the way.
3. Stop Complaining About Your Pay: You negotiated it or accepted it, if you
are not happy with it, find another job. It is disruptive when one employee
talks about their salary. Ben Franklin said, .If you want to get rich, diminish
your wants or augment your means.. It is best to do both simultaneously.
4. Help Out Your Boss: Ask them what projects they are working on and can
you help. If your boss replies no, then he or she is an idiot and you should
start looking for another job anyway. Any supervisor worth their salt will
gladly accept the assistance and the opportunity to assist with your career
advancement.
5. Stay Away From Negative Individuals: For two reasons, everyone in the
organization already knows how negative they are and you don.t want to be
associated with them. My mother always told me, .You are known by the
company you keep!. Two, if you are around them enough, you will
ultimately begin believing what they are saying.
6. Find Out What Average is And Beat it By 10%: No one wants to be
average, therefore to move away from the pack and do more. Every week
monitor your progress. Average people are the ones on the news
complaining about the company laying-off half of its work force.
7. Find Out What Your Best Day Was and Beat it By 10% Consistently: It
amazes me to see our culture engulfed with mediocrity, then when there is
an incentive we always do better. Do better on your own without anyone
telling you.
8. Clean Up: Don.t walk past that Coke can today: Tell someone about the
ladder that is broken today. Tell someone about the blown light bulb today.
The problem with most warehouses is not a lack of productivity but the lack
of a broom. Most shipping errors happen because the packing area is a mess.
Most inventory errors happen because the aisles are a mess. Most receiving
errors happen because the receiving area is a mess. Do something about it
today!
9. Read an Industry Magazine Article Twice a Week: After high school the
average American worker never picks up a book. In order to .Earn More
You Must Learn More!. Warehouse Management Systems, RFID, Pick-to-
Light, Voice Directed Picking they are all coming to your warehouse sooner
or later. The more you know about them before they get to you, the more
valuable you are once they arrive. Side Note: I read somewhere that most
people only learn 5 new words a year. And without fail in study after study
the highest paid people in the organization have the best vocabulary. What
better way to improve your vocabulary, and potentially your salary, than to
read.
10. Find Out the Progression Within the Warehouse: That means if you are a
picker what is the next position above that. Document what position you
want next. If the next position from picking is receiving, then when a
position for inventory control becomes available, and you are a picker, you
will know why you may not be considered. But also you need to ask what it
takes to move to the next position and begin working on it.
11. Stay Out of The Customer Service Office: Inside Sales personnel get paid to
take sales calls not talk to warehouse personnel. That does not mean they are
better than you, it means they have a job to do. And customers should not be
placed on hold because the person who should be taking the call is chit-
chatting with a warehouse guy about the game the night before.
12. Learn The Names of The Company.s Top 25 Customers: You have to
know who patronizes your organization. But you really have to know who
spends the most with your organization. I know ever small customer has the
potential to become a big customer. But as Bear Bryant said, .Potential
Means You Ain.t Done It Yet!.
13. Complete What You Start: When assigned a task complete it! Then tell your
supervisor, who assigned it to you, that it was completed and they can
scratch it off of their list. After they scratch it off, ask, .What.s Next!.
14. Keep a Note Pad and Take Notes With It: A lot of warehouse supervisors
do not keep accurate notes. They think they can remember everything.
Therefore make it your responsibility to take notes of the tasks you are
assigned. This shows your supervisor that you care enough to write it down.
It also shows their supervisor that you are a conscientious employee.
15. Go To Lunch With Your Supervisors Boss: Believe it or not, .Business is
emotional.. People trust people they know. When your supervisor puts your
name in for a new position, it is good if the person responsible for approving
it already knows who you are.
16. Keep Track of The Amount of Work You Produce: Most of us are self
motivated individuals. If you pick 100 orders today, and you know it, you
will not pick less tomorrow. Without anyone telling you to, you will always
try to do better than you did the previous day.
Sunday
Guide to inventory accuracy
Having problems with inventory accuracy? Implementing technologies such as bar coding systems, RFID, and pick-to-light are often assumed to be the solutions to inaccurate inventories. If properly implemented these technologies can help reduce errors, however, none of them will eliminate all errors, and a poorly implemented system can leave you worse off than you were before. Whether you are planning on implementing additional systems or not you should consider taking care of the basics first.
The Basics
There is nothing revolutionary about my list of "The Basics", it's simply a series of steps which define a process for achieving higher levels of inventory accuracy. Your success or failure will be determined by your implementation of these steps. This is not something that should be rushed; throwing a quick fix approach together to alleviate an immediate need may be more damaging in the long run since the success of this plan requires a cooperative effort by many people within your organization. If your first attempt fails, you will find it more difficult to get a high level of cooperation for your next try. Take the time and do it right.
Attitude. Maintaining inventory accuracy must be an integral part of the attitude of the organization. Like quality, customer service, and plant safety, accuracy must be promoted throughout the organization as everyone's responsibility. This attitude must start at the top levels. Yeah I know all you managers and execs out there want an accurate inventory but are you doing your part through your decisions and business practices to promote it. Processes are often shortcut in the name of "Customer Service" (this also applies to processes for Quality, Inventory Management, and Production Plans) that reduce or eliminate the effectiveness of the plan, which in the long run will reduce your ability to service your customers. Remember that these plans are designed to meet the needs of the customer, don't compromise them.
Process Definition. You'll struggle to make any progress if you have not clearly defined the processes throughout the organization that affect inventory. While defining the processes, you should be looking for opportunities for errors and implementing changes to eliminate or reduce them. Even the most accurate employee will make errors, I suggest placing formal checks in place for critical operations. Get as many people involved in this step to ensure you have a complete and accurate understanding of the processes. Anything missed in this step will require new procedures and additional employee training later, so once again, "take the time and do it right".
Procedure Documentation. This is the part where you use the previously defined processes to document the procedures the employees will follow to maintain inventory integrity. The procedures documented here should not be limited to inventory issues; they should be the complete procedure including quality, physical aspects, and safety. This documentation should be as clear and comprehensive as possible. It should be written for a specific task within a specific job responsibility, it should include everything the employee needs to know to complete the task and nothing else. For example: if a stock clerk's responsibility is to notify the supervisor of any discrepancies, that is all it should state in the procedure for the stock clerk even though there will be additional procedures for dealing with the discrepancy. Procedures should also include the correct method for filling out and processing paperwork, the sequence and timing of entering data, and any checks that are required to be performed. If there are any exceptions to a procedure they should be specified in the document, allowing undocumented exceptions to a procedure will decrease its effectiveness. Be realistic, procedures are not a "wish list", they are the documentation of the requirements of a specific task. You must be prepared to enforce compliance to all procedures. Once you are completed with the documentation, I suggest you first distribute the procedures to a few key employees, then take a couple of weeks for you and the key employees to monitor existing operations to see if anything was missed or if anything is incorrect. Once this is done, the procedures should be officially put into effect and distributed to all employees.
Employee Training. Handing out a written procedure does not constitute employee training. It is important to set a training schedule to go through all the procedures with groups of employees. Take whatever time is necessary to ensure they have a thorough understanding of the procedures. Make it clear that the procedure document is the only way to perform the task. If you did your job correctly in defining the processes and documenting the procedures you shouldn't run into many surprises during the training. Try to refrain from making changes or exceptions to the documentation at this time (unless there is a critical error). Last minute changes or exceptions will cause confusion and diminish the value of the documents. Make notes for possible future revisions of the procedures instead. Set a timetable for publishing and putting into effect revisions (every quarter or six months). Frequent revisions of procedures tend to cause confusion and make it difficult to enforce adherence.
Employee Testing. I am a big advocate of formal testing of employees on procedures. This is the only way to know if they understand them (or have even read them). Be prepared, this will scare the hell out of your staff. Do not make the tests too difficult, I suggest multiple choice questions and maybe some true/false. You may also need testing which requires the employee to perform the task in the presence of the tester. Make a point to include items in the test that are known to have been issues in the past. There should not be any penalties for incorrect answers on the test. Any incorrectly answered questions should be discussed with the employee to ensure that he/she now understands the correct answer. You may need to make arrangements to conduct the test verbally for employees with inadequate reading skills or other arrangements if language is an issue.
Monitoring Processes for Compliance. You must begin to monitor the processes for compliance to the procedures immediately. Any actions observed which do not comply with the written procedures must be addressed immediately with the employees involved. As stated earlier, the written procedures are the only way to perform the task. Allowing employees to "do it their own way" (even if their way is a better way) will make it impossible to enforce compliance on other issues and will create problems when changes are made to processes. If they have a better way, consider it for the next revision at which point it would then become "the only way".
Setting Standards. I am also a big advocate of setting minimum accuracy and production standards wherever feasible. Do your research to ensure the standards set are high enough yet still achievable. You will have to enforce these standards so it is critical to set them correctly. If in doubt, set them lower, you can always increase them later when more data is available. If you set them too high you have put yourself in a difficult position when it comes time to enforce them. Standards should be set for the specific task being performed. For example, the accuracy standard for a stock clerk stocking in random storage area would be lower than for one stocking in fixed locations. Setting standards requires tracking of the accuracy and productivity of the tasks being performed which makes it more viable when you have several people performing the same tasks.
Tracking Accuracy. Whether you have set standards or not I still suggest you track accuracy organizationally and individually. Accuracy tracking should always be measured as a percentage of total transactions. Tracking accuracy as flat numbers (number of errors) puts your more productive employees at a disadvantage, and at an organizational level will be skewed by variances in business activity. Accuracy tracking should be communicated to staff in a positive manner; it is a tool to facilitate improvement in processes and people. I have found that by simply tracking and communicating accuracy to employees you will see immediate reductions in errors even if standards are not set. The fact is we all want to be accurate; the problem is we all think that we are accurate and it's always the other guy who is making all the mistakes.
Accountability. People must be held accountable for following documented procedures. You have spent the time to document the procedures, provide the training, and the testing. If someone is not following the procedures they must be dealt with applying appropriate disciplinary action. It's that simple. You may be amazed as to how much just one individual not following procedures can screw up your inventory. If you don't hold the employees accountable you may as well throw out everything you have done to this point. Mistakes are mistakes and everyone makes them, however, not following a specified procedure is a conscious decision made by the employee to not do what he/she was instructed to do.
Count, Count, Count. We would like to believe that since we have taken the above steps we should now assume our inventory is accurate. Not necessarily. You will have to count it to determine the accuracy, as well as determining areas needing additional evaluation. Year-end physical inventories are tools used by accountants and do very little for inventory accuracy. You should count your inventory on a continuous basis (cycle counting) to maintain high levels of accuracy. This is one of the best ways of identifying problem areas on a timely basis and providing an environment conducive to continuous improvement. The way you count and the frequency of your counts should be designed for your specific type of operation.
Reevaluate. You should be regularly reevaluating your processes and procedures. Results of your cycle count program should point you in the direction of areas where enhancements are needed. Business conditions often change and new processes are added which will require evaluation. As previously mentioned try to refrain from frequent revisions to procedures (the memo of the day), it is more effective to plan a revision date and group multiple revisions into a revised release of the procedures. These revisions should be implemented with the proper training and testing as was done during initial implementation.
As you may have noticed, each of the above steps is highly dependent on the successful implementation of the previous steps. Although this process for improving inventory accuracy is not very complicated, the implementation can prove to be demanding. Depending on the environment you are working in, it can sometimes seem to be an insurmountable task to change the attitudes of people towards inventory accuracy. It will require a high level of effort and diligence to ensure success.
Additional recommendations.
The following are some additional suggestions that may help in your quest for a more accurate inventory.
Dedicate positions for managing inventory. Make sure you have control of which employees are affecting your inventory. This is especially true in manufacturing operations where the priorities of machine operators and production supervisors are meeting the production schedule, keeping the machines running, and ensuring the quality of the product being produced. Inventory accuracy will never be a primary responsibility of these types of positions. Once you come to this realization, it is easy to see the benefits of putting your inventory and material handling responsibilities in the hands of people whose primary responsibility is inventory. Also, within your material handling/warehouse positions you should limit the people doing miscellaneous type inventory adjustments.
Control employee turnover. I know, easier said than done. You've invested the time into training them, now figure out what you need to do to keep them. Once you have your processes and procedures under control you will find that new employees will become your #1 source of errors. My experience shows a new employee generally makes 2 to 5 times as many mistakes as a one-year employee and 5 to 10 times as many mistakes as a five-year employee. These numbers are based on operations that track accuracy and promote continuous improvement. If you're not tracking accuracy, your five-year employees may be making as many mistakes as they did during their first year. Also high employee turnover results in operations that are frequently short staffed which will almost always lead to increased errors.
Be prepared to dismiss or reassign employees. May sound like a contradiction to the previous suggestion, however, if you have made every effort to assist an employee in improving their accuracy and insufficient progress is being made you will need to get them away from your inventory. Again, don't underestimate the damage that can result from just one employee's errors.
Don't be afraid to put Checks in place. Some people feel that checking or rechecking work is admitting failure or is a waste since it "should be done right the first time", so I'll say it once again, everyone makes mistakes, that means everyone. If you find there are certain areas that are highly prone to errors (such as random stocking areas) or critical parts of your operation where a mistake can have significant detrimental effect, consider putting checks in place. A check may be an employee checking their own work or a specific checking operation. Outbound shipments should always have some type of check in place, the specific type of check will vary from operation to operation. In a high-volume, low-value shipping operation a simple looking over the shipment may be all that's feasible, while in a lower-volume, high-value shipping operation I've had as many as three people performing redundant checks of each shipment prior to loading.
Storage Areas. How you store your product will also affect accuracy. Crowded unorganized areas become "black holes" for missing product. Crowded areas also cause increase damage to product that is often disposed of without inventory corrections being made. High-density storage makes it very difficult to accurately count the product. Maintaining proper lighting, shelf and product labeling, and organization makes it easier to stock, pick, and count product thus increasing levels of accuracy.
Know your inventory system. The more you know about how your specific inventory system works, the more successful you'll be in optimizing its features. Computer systems are regularly blamed for things that are usually turn out to be human error, however, occasionally your computer system can be the source of the problem. Bugs, glitches, hiccups or whatever you want to call them do occur and changes to system parameters to optimize functionality in one area can create havoc in a seemingly unrelated area. The only way to determine the source and correct these problems is to have a thorough understanding of how your system is set up and how the specific programs process the information. The bigger advantage to acquiring a high level of system knowledge lies in the amount of information you'll be able to extract from your system. Today's larger software systems maintain enormous amounts of data and contain far more functionality than most users realize. Managers need to be taking more active roles in system set up and implementations if they want to optimize the system to meet their business needs. The days of leaving it all up to the IS department are gone, the staffing levels of most IS departments are inadequate to deal with the complexity and the enormity of software packages today. IS personnel tend to spend the majority of their time making sure the system runs rather than optimizing its features.
The end result in accuracy improvement will be directly related to the effort put forth to achieve it. Building a sound consistent inventory accuracy plan will get people in the habit of being accurate, as the entire organization gets in the habit of being accurate you will find the accuracy plan starts to run itself. Until then, it will require a lot of work by those implementing it.
Source : Dave Piasecki, logistic management.
The Basics
There is nothing revolutionary about my list of "The Basics", it's simply a series of steps which define a process for achieving higher levels of inventory accuracy. Your success or failure will be determined by your implementation of these steps. This is not something that should be rushed; throwing a quick fix approach together to alleviate an immediate need may be more damaging in the long run since the success of this plan requires a cooperative effort by many people within your organization. If your first attempt fails, you will find it more difficult to get a high level of cooperation for your next try. Take the time and do it right.
Attitude. Maintaining inventory accuracy must be an integral part of the attitude of the organization. Like quality, customer service, and plant safety, accuracy must be promoted throughout the organization as everyone's responsibility. This attitude must start at the top levels. Yeah I know all you managers and execs out there want an accurate inventory but are you doing your part through your decisions and business practices to promote it. Processes are often shortcut in the name of "Customer Service" (this also applies to processes for Quality, Inventory Management, and Production Plans) that reduce or eliminate the effectiveness of the plan, which in the long run will reduce your ability to service your customers. Remember that these plans are designed to meet the needs of the customer, don't compromise them.
Process Definition. You'll struggle to make any progress if you have not clearly defined the processes throughout the organization that affect inventory. While defining the processes, you should be looking for opportunities for errors and implementing changes to eliminate or reduce them. Even the most accurate employee will make errors, I suggest placing formal checks in place for critical operations. Get as many people involved in this step to ensure you have a complete and accurate understanding of the processes. Anything missed in this step will require new procedures and additional employee training later, so once again, "take the time and do it right".
Procedure Documentation. This is the part where you use the previously defined processes to document the procedures the employees will follow to maintain inventory integrity. The procedures documented here should not be limited to inventory issues; they should be the complete procedure including quality, physical aspects, and safety. This documentation should be as clear and comprehensive as possible. It should be written for a specific task within a specific job responsibility, it should include everything the employee needs to know to complete the task and nothing else. For example: if a stock clerk's responsibility is to notify the supervisor of any discrepancies, that is all it should state in the procedure for the stock clerk even though there will be additional procedures for dealing with the discrepancy. Procedures should also include the correct method for filling out and processing paperwork, the sequence and timing of entering data, and any checks that are required to be performed. If there are any exceptions to a procedure they should be specified in the document, allowing undocumented exceptions to a procedure will decrease its effectiveness. Be realistic, procedures are not a "wish list", they are the documentation of the requirements of a specific task. You must be prepared to enforce compliance to all procedures. Once you are completed with the documentation, I suggest you first distribute the procedures to a few key employees, then take a couple of weeks for you and the key employees to monitor existing operations to see if anything was missed or if anything is incorrect. Once this is done, the procedures should be officially put into effect and distributed to all employees.
Employee Training. Handing out a written procedure does not constitute employee training. It is important to set a training schedule to go through all the procedures with groups of employees. Take whatever time is necessary to ensure they have a thorough understanding of the procedures. Make it clear that the procedure document is the only way to perform the task. If you did your job correctly in defining the processes and documenting the procedures you shouldn't run into many surprises during the training. Try to refrain from making changes or exceptions to the documentation at this time (unless there is a critical error). Last minute changes or exceptions will cause confusion and diminish the value of the documents. Make notes for possible future revisions of the procedures instead. Set a timetable for publishing and putting into effect revisions (every quarter or six months). Frequent revisions of procedures tend to cause confusion and make it difficult to enforce adherence.
Employee Testing. I am a big advocate of formal testing of employees on procedures. This is the only way to know if they understand them (or have even read them). Be prepared, this will scare the hell out of your staff. Do not make the tests too difficult, I suggest multiple choice questions and maybe some true/false. You may also need testing which requires the employee to perform the task in the presence of the tester. Make a point to include items in the test that are known to have been issues in the past. There should not be any penalties for incorrect answers on the test. Any incorrectly answered questions should be discussed with the employee to ensure that he/she now understands the correct answer. You may need to make arrangements to conduct the test verbally for employees with inadequate reading skills or other arrangements if language is an issue.
Monitoring Processes for Compliance. You must begin to monitor the processes for compliance to the procedures immediately. Any actions observed which do not comply with the written procedures must be addressed immediately with the employees involved. As stated earlier, the written procedures are the only way to perform the task. Allowing employees to "do it their own way" (even if their way is a better way) will make it impossible to enforce compliance on other issues and will create problems when changes are made to processes. If they have a better way, consider it for the next revision at which point it would then become "the only way".
Setting Standards. I am also a big advocate of setting minimum accuracy and production standards wherever feasible. Do your research to ensure the standards set are high enough yet still achievable. You will have to enforce these standards so it is critical to set them correctly. If in doubt, set them lower, you can always increase them later when more data is available. If you set them too high you have put yourself in a difficult position when it comes time to enforce them. Standards should be set for the specific task being performed. For example, the accuracy standard for a stock clerk stocking in random storage area would be lower than for one stocking in fixed locations. Setting standards requires tracking of the accuracy and productivity of the tasks being performed which makes it more viable when you have several people performing the same tasks.
Tracking Accuracy. Whether you have set standards or not I still suggest you track accuracy organizationally and individually. Accuracy tracking should always be measured as a percentage of total transactions. Tracking accuracy as flat numbers (number of errors) puts your more productive employees at a disadvantage, and at an organizational level will be skewed by variances in business activity. Accuracy tracking should be communicated to staff in a positive manner; it is a tool to facilitate improvement in processes and people. I have found that by simply tracking and communicating accuracy to employees you will see immediate reductions in errors even if standards are not set. The fact is we all want to be accurate; the problem is we all think that we are accurate and it's always the other guy who is making all the mistakes.
Accountability. People must be held accountable for following documented procedures. You have spent the time to document the procedures, provide the training, and the testing. If someone is not following the procedures they must be dealt with applying appropriate disciplinary action. It's that simple. You may be amazed as to how much just one individual not following procedures can screw up your inventory. If you don't hold the employees accountable you may as well throw out everything you have done to this point. Mistakes are mistakes and everyone makes them, however, not following a specified procedure is a conscious decision made by the employee to not do what he/she was instructed to do.
Count, Count, Count. We would like to believe that since we have taken the above steps we should now assume our inventory is accurate. Not necessarily. You will have to count it to determine the accuracy, as well as determining areas needing additional evaluation. Year-end physical inventories are tools used by accountants and do very little for inventory accuracy. You should count your inventory on a continuous basis (cycle counting) to maintain high levels of accuracy. This is one of the best ways of identifying problem areas on a timely basis and providing an environment conducive to continuous improvement. The way you count and the frequency of your counts should be designed for your specific type of operation.
Reevaluate. You should be regularly reevaluating your processes and procedures. Results of your cycle count program should point you in the direction of areas where enhancements are needed. Business conditions often change and new processes are added which will require evaluation. As previously mentioned try to refrain from frequent revisions to procedures (the memo of the day), it is more effective to plan a revision date and group multiple revisions into a revised release of the procedures. These revisions should be implemented with the proper training and testing as was done during initial implementation.
As you may have noticed, each of the above steps is highly dependent on the successful implementation of the previous steps. Although this process for improving inventory accuracy is not very complicated, the implementation can prove to be demanding. Depending on the environment you are working in, it can sometimes seem to be an insurmountable task to change the attitudes of people towards inventory accuracy. It will require a high level of effort and diligence to ensure success.
Additional recommendations.
The following are some additional suggestions that may help in your quest for a more accurate inventory.
Dedicate positions for managing inventory. Make sure you have control of which employees are affecting your inventory. This is especially true in manufacturing operations where the priorities of machine operators and production supervisors are meeting the production schedule, keeping the machines running, and ensuring the quality of the product being produced. Inventory accuracy will never be a primary responsibility of these types of positions. Once you come to this realization, it is easy to see the benefits of putting your inventory and material handling responsibilities in the hands of people whose primary responsibility is inventory. Also, within your material handling/warehouse positions you should limit the people doing miscellaneous type inventory adjustments.
Control employee turnover. I know, easier said than done. You've invested the time into training them, now figure out what you need to do to keep them. Once you have your processes and procedures under control you will find that new employees will become your #1 source of errors. My experience shows a new employee generally makes 2 to 5 times as many mistakes as a one-year employee and 5 to 10 times as many mistakes as a five-year employee. These numbers are based on operations that track accuracy and promote continuous improvement. If you're not tracking accuracy, your five-year employees may be making as many mistakes as they did during their first year. Also high employee turnover results in operations that are frequently short staffed which will almost always lead to increased errors.
Be prepared to dismiss or reassign employees. May sound like a contradiction to the previous suggestion, however, if you have made every effort to assist an employee in improving their accuracy and insufficient progress is being made you will need to get them away from your inventory. Again, don't underestimate the damage that can result from just one employee's errors.
Don't be afraid to put Checks in place. Some people feel that checking or rechecking work is admitting failure or is a waste since it "should be done right the first time", so I'll say it once again, everyone makes mistakes, that means everyone. If you find there are certain areas that are highly prone to errors (such as random stocking areas) or critical parts of your operation where a mistake can have significant detrimental effect, consider putting checks in place. A check may be an employee checking their own work or a specific checking operation. Outbound shipments should always have some type of check in place, the specific type of check will vary from operation to operation. In a high-volume, low-value shipping operation a simple looking over the shipment may be all that's feasible, while in a lower-volume, high-value shipping operation I've had as many as three people performing redundant checks of each shipment prior to loading.
Storage Areas. How you store your product will also affect accuracy. Crowded unorganized areas become "black holes" for missing product. Crowded areas also cause increase damage to product that is often disposed of without inventory corrections being made. High-density storage makes it very difficult to accurately count the product. Maintaining proper lighting, shelf and product labeling, and organization makes it easier to stock, pick, and count product thus increasing levels of accuracy.
Know your inventory system. The more you know about how your specific inventory system works, the more successful you'll be in optimizing its features. Computer systems are regularly blamed for things that are usually turn out to be human error, however, occasionally your computer system can be the source of the problem. Bugs, glitches, hiccups or whatever you want to call them do occur and changes to system parameters to optimize functionality in one area can create havoc in a seemingly unrelated area. The only way to determine the source and correct these problems is to have a thorough understanding of how your system is set up and how the specific programs process the information. The bigger advantage to acquiring a high level of system knowledge lies in the amount of information you'll be able to extract from your system. Today's larger software systems maintain enormous amounts of data and contain far more functionality than most users realize. Managers need to be taking more active roles in system set up and implementations if they want to optimize the system to meet their business needs. The days of leaving it all up to the IS department are gone, the staffing levels of most IS departments are inadequate to deal with the complexity and the enormity of software packages today. IS personnel tend to spend the majority of their time making sure the system runs rather than optimizing its features.
The end result in accuracy improvement will be directly related to the effort put forth to achieve it. Building a sound consistent inventory accuracy plan will get people in the habit of being accurate, as the entire organization gets in the habit of being accurate you will find the accuracy plan starts to run itself. Until then, it will require a lot of work by those implementing it.
Source : Dave Piasecki, logistic management.
Order Picking: Methods and Equipment for Piece Pick, Case Pick, and Pallet Pick Operations.
Of all warehouse processes, order picking tends to get the most attention. It’s just the nature of distribution and fulfillment that you generally have more outbound transactions than inbound transactions, and the labor associated with the outbound transactions is likely a big piece of the total warehouse labor budget. Another reason for the high level of importance placed on order picking operations is its direct connection to customer satisfaction. The ability to quickly and accurately process customer orders has become an essential part of doing business.
The methods for order picking vary greatly and the level of difficulty in choosing the best method for your operation will depend on the type of operation you have. The characteristics of the product being handled, total number of transactions, total number of orders, picks per order, quantity per pick, picks per SKU, total number of SKUs, value-added processing such as private labeling, and whether you are handling piece pick, case pick, or full-pallet loads are all factors that will affect your decision on a method for order picking. Many times a combination of picking methods is needed to handle diverse product and order characteristics.
Key objectives in designing an order picking operation include increases in productivity, reduction of cycle time, and increases in accuracy. Often times these objectives may conflict with one another in that a method that focuses on productivity may not provide a short enough cycle time, or a method that focuses on accuracy may sacrifice productivity.
Productivity. Productivity in order picking is measured by the pick rate. Piece pick operations usually measure the pick rate in line items picked per hour while case pick operations may measure cases per hour and line items per hour. In pallet pick operations the best measure is actual pallets picked per hour. Since the actual amount of time it takes to physically remove the product from the location tends to be fixed regardless of the picking method used, productivity gains are usually in the form of reducing the travel time.
Cycle Time. Cycle time is the amount of time it takes to get an order from order entry to the shipping dock. In recent years, customer’s expectations of companies to provide same day shipment has put greater emphasis on reducing cycle times from days to hours or minutes. Immediate release of orders to the warehouse for picking and methods that provide concurrent picking of items within large orders are ways to reduce cycle times.
Accuracy. Regardless of the type of operation you are running, accuracy will be a key objective. Virtually every decision you make in setting up a warehouse will have some impact on accuracy, from the product numbering scheme, to the design of product labels, product packaging, the design of picking documents, location numbering scheme, storage equipment, lighting conditions, and picking method used. Technologies that aide in picking accuracy include pick-to-light systems, counting scales, and bar code scanners. Beyond the design aspects of an order picking operation, employee training, accuracy tracking, and accountability are essential to achieving high levels of accuracy.
Piece Picking
Piece-picking methods. Piece picking, also known as broken case picking or pick/pack operations, describes systems where individual items are picked. Piece pick operations usually have a large sku base in the thousands or tens of thousands of items, small quantities per pick, and short cycle times. Mail order catalog companies and repair parts distributors are good examples of piece pick operations.
Basic order picking. In the most basic order-picking method, product is stored in fixed locations on static shelving or pallet rack. An order picker picks one order at a time following a route up and down each aisle until the entire order is picked. The order picker will usually use some type of picking cart. The design of the picking flow should be such that the order picker ends up fairly close to the original starting point. The picking document should have the picks sorted in the same sequence as the picking flow. Fast moving product should be stored close to the main cross aisle and additional cross aisles put in to allow short cuts. Larger bulkier items would be stored towards the end of the pick flow. This basic order picking method can work well in operations with a small total number of orders and a high number of picks per order. Operations with low picks per order will find the travel time excessive in this type of picking and operations with large numbers of orders will find that the congestion from many pickers working in the same areas slows down the processing.
Batch picking / Multi-order picking In batch picking, multiple orders are grouped into small batches. An order picker will pick all orders within the batch in one pass using a consolidated pick list. Usually the picker will use a multi-tiered picking cart maintaining a separate tote or carton on the cart for each order. Batch sizes usually run from 4 to 12 orders per batch depending on the average picks per order in that specific operation. Batch picking systems may use extensive logic programmed to consolidate orders with the same items. In operations with low picks per order, batch picking can greatly reduce travel time by allowing the picker to make additional picks while in the same area. Since you are picking multiple orders at the same time, systems and procedures will be required to prevent mixing of orders. In very busy operations, batch picking is often used in conjunction with zone picking and automated material handling equipment. In order to get maximum productivity in batch pick operations, orders must be accumulated in the system until there are enough similar picks to create the batches. This delay in processing may not be acceptable in same day shipping operations.
Zone picking. Zone picking is the order picking version of the assembly line. In zone picking, the picking area is broken up into individual pick zones. Order pickers are assigned a specific zone, and only pick items within that zone. Orders are moved from one zone to the next as the picking from the previous zone is completed (also known as "pick-and-pass"). Usually, conveyor systems are used to move orders from zone to zone. In zone picking it’s important to balance the number of picks from zone to zone to maintain a consistent flow. Zones are usually sized to accommodate enough picks for one or two order pickers. Creating fast pick areas close to the conveyor is essential in achieving high productivity in zone picking. Zone picking is most effective in large operations with high total numbers of skus, high total numbers of orders, and low to moderate picks per order. Separate zones also provide for specialization of picking techniques such as having automated material handling systems in one zone and manual handling in the next.
Wave picking. A variation on zone picking and batch picking where rather than orders moving from one zone to the next for picking, all zones are picked at the same time and the items are later sorted and consolidated into individual orders/shipments. Wave picking is the quickest method (shortest cycle time) for picking multi item orders however the sorting and consolidation process can be tricky. Operations with high total number of SKUs and moderate to high picks per order may benefit from wave picking. Wave picking may be used to isolate orders by specific carriers, routes, or zones.
Piece-picking equipment: As with the picking methods, the picking equipment used will also depend on a variety of factors.
Static shelving. The most common equipment for storage in piece pick operations, static shelving is designed with depths from 12” to 24”. Product is either placed directly on the shelving or in corrugated, plastic, or steel parts bins. Static shelving is economical and is the best method where there are few picks per SKU or where parts are very small.
Carton flow rack. Carton flow rack is similar to static shelving with the exception that rather than shelves, there are small sections of gravity conveyor mounted at a slight angle. Product is stocked from the rear of the flow rack and picking is done from the face. Product can be stocked in cartons or small totes or bins. As a carton or tote is emptied, it is removed from the rack and another one will roll into place. Carton flow rack is most useful where there is a very high number of picks per SKU.
Carousels. Horizontal carousels are a version of the same equipment used by dry cleaners to store and retrieve clothing. They have racks hanging from them that can be configured to accommodate various size storage bins. Generally an operator will run 2 to 4 carousels at a time avoiding the need for the operator to wait while one unit is turning. Picking is usually performed in batches with orders downloaded from the host system to the carousel software. Horizontal carousels are most common in picking operations with very high number of orders, low to moderate picks per order, and low to moderate picks per sku. Horizontal carousels provide very high pick rates as well as high storage density. Pick-to-light systems are often integrated into carousels. Vertical Carousels are frequently used in laboratories and specialty manufacturing operations and are rarely used in regular order picking operations.
Automatic storage and retrieval systems (ASRS). An ASRS is a system of rows of rack, each row having a dedicated retrieval unit that moves vertically and horizontally along the rack, picking and putting away loads. ASRS systems are available in mini-load types that store and transfer product on some type of tray or in bins, and unit-load types that transfer and store pallet loads or other large unitized loads. In addition to the automation features, ASRS units can provide extremely high storage density with capabilities to work in racking up to 100 feet high. Unfortunately the high costs of ASRS equipment and the length of the retrieval times make it difficult to incorporate into a piece picking operation.
Automatic picking machines. Fully automated picking machines (such as A-frames) are still pretty rare and are used only where very high volumes of similar products are picked such as music CDs, or, where high volume in combination with high accuracy requirements exist such as pharmaceutical fulfillment.
Pick-to-light. Pick-to light systems consist of lights and LED displays for each pick location. The system uses software to light the next pick and display the quantity to pick. Pick-to-light systems have the advantage of not only increasing accuracy, but also increasing productivity. Since hardware is required for each pick location, pick-to-light systems are easier to cost justify where very high picks per SKU occur. Carton flow rack and horizontal carousels are good applications for pick to light. In batch picking, put-to-light is also incorporated into the cart or rack that holds the cartons or totes that you are picking in to. The light will designate which order you should be placing the picked items in.
Bar-code scanners. Though very useful in increasing accuracy levels, bar-code scanners in a fast-paced piece-pick operation tend to become cumbersome and can significantly reduce your pick rates. With proper training, tracking, and accountability, you can get very high accuracy rates in order picking without scanners. I find they are better suited to case pick, pallet load, putaway, and order checking operations.
Voice-directed picking. Voice technology has come of age in recent years and is now a very viable solution for piece pick, case pick, or pallet pick operations.
Automated conveyor and sortation Systems. Automated conveyor systems and sortation systems will be integral to any large-scale piece pick operation. The variety of equipment and system designs is enormous.
Case Picking
Case-picking methods. Case picking operations tend to have less diversity in product characteristics than piece picking operations, with fewer SKUs and higher picks per SKU.
Basic case-picking method. This is the most common method for case-picking operations. Rather than product stored on static shelving, case-pick operations will have the product stored in pallet rack or in bulk in floor locations. The simplest picking method is to use a hand pallet jack (or motorized pallet truck) and pick cases out of bulk floor locations however many operations will find that going to very narrow aisle (VNA) pallet racking and using man-up order selectors or turret trucks will provide high storage density and high pick rates.
Batch picking. Batch picking is rarely used in case pick operations primarily because of the physical size of the picks. You are unlikely to have enough room on a pallet to pick multiple orders.
Zone picking. Zone picking can be used in case-picking operations, however, like batch picking, the size of the picks and the size of the orders in most case-pick operations do not lend themselves well to zone picking. If you do have a case pick operation where you have a large number of SKUs, and orders with small quantities per SKU, or where you have enough cases per order per zone to fill a pallet, you may find zone picking applicable.
Wave picking. Wave picking can be applied to case picking operations where you have very large orders with many picks per order and are looking for ways to reduce cycle time.
Case-picking equipment.
Pallet rack. Pallet rack is the most common storage system for case pick operations.
Flow rack. Although carton flow rack rarely applies to case pick operations, pallet flow rack or push back rack can be useful.
Carousels. Although you can incorporate unit-load carousels into a case pick operation, it tends to be an unlikely match-up. If doing batch picking where you have many picks per SKU and few pieces per pick you can pick from an ASRS unit onto a unit-load carousel.
Automated storage and retrieval systems (ASRS). Unit-load ASRS systems can be useful in case-pick operations, especially if you can provide storage heights of 40 to 100 feet.
Pick-to-light. Pick-to-light can be used in case-pick operations, however, its application is significantly less than in piece pick operations.
Bar-code scanners. Bar-code scanners are frequently used in case-pick operations. Since the time to physically pick the product is higher in case-pick operations, the time spent scanning tends to have little impact on productivity and therefore the accuracy benefits will usually outweigh any reduction in productivity.
Voice-directed picking. Voice technology has come of age in recent years and is now a very viable solution for piece pick, case pick, or pallet pick operations.
Automated conveyor and sortation systems. If using zone or wave picking, automated conveyor and sortation systems will likely be a part of your system. In case picking, you may use standard conveyors to transport individual cases or unit-load conveyors to transport pallets.
Lift trucks. As previously mentioned, motorized pallet trucks, man-up order selectors, and man-up turret trucks are the vehicles of choice for case-pick operations.
Pallet Picking
Full-pallet-picking methods. Full-pallet picking is also known as unit-load picking. The systematic methods for full-pallet picking are much simpler that either piece pick or case pick, however, the choices in storage equipment, storage configurations, and types of lift trucks used are many.
Basic pallet picking. This is the most common method for full-pallet picking. Orders are picked one at a time. The order picker will use some type of lift truck, retrieve the pallet load and stage it in a shipping area in a staging lane designated for that order, or just pick and load directly into an outbound trailer or container..
Batch picking. Since the nature of pallet picking is a single pick per trip, batch picking has no application in pallet-picking operations.
Zone and wave picking. Although the normal definition of zone picking where an order is moved from zone to zone as picks are accumulated doesn’t apply to pallet picking, pick zones are used in wave picking in pallet-picking operations. The storage area is broken into zones to eliminate multiple lift-truck operators from picking in the same aisle. The lift truck operator may pick the pallet and deliver it directly to the designated staging lane or place it on a unit-load conveyor that will deliver it to the sorting/staging area.
Task interleaving. Task interleaving is a method of combining picking and putaway. Warehouse Management Systems (WMS) use logic to direct a lift truck operator to put away a pallet en route to the next pick.
Pallet-picking equipment.
Pallet rack. There are numerous pallet rack configurations used in full pallet operations, from standard back-to-back single pallet depth configurations to double-deep rack, push-back rack, drive-in/drive-thru rack, and flow rack. The best racking configuration for your operation will be based on the total number of pallets per sku, pallets per pick, and the length of time the product is in the rack prior to shipment. There are a lot of tradeoffs in choosing a racking configuration including storage density, picking productivity, equipment costs, and the ability to maintain first-in first-out.
ASRS. Unit-load ASRS units when combined with unit-load conveyors and sortation systems can provide fully automatic pallet picking operations. And again, the ability to store product in racking up to 100 feet high gives excellent storage density.
Automated conveyor and sortation systems. Automated conveyor and sortation systems can be combined with ASRS units or used in conjunction with manual picking with lift trucks in zone/wave picking systems. Either the ASRS or the lift truck operator delivers the pallet load to the conveyor. The conveyor system then delivers the pallet to the shipping area where it is either manually sorted by lift trucks into the designated staging lane, or a sortation system automatically sorts into a staging lane. Staging lanes can be equipped with automated or gravity fed unit-load conveyor.
Bar-code scanners. Bar-code scanners are very commonly used in pallet-pick operations.
Voice-directed picking. Voice technology has come of age in recent years and is now a very viable solution for piece pick, case pick, or pallet pick operations.
Lift trucks. The lift trucks used for pallet picking will depend upon the storage configuration. Standard lift trucks are used in bulk floor storage and wide-aisle pallet rack storage in singe-depth, push-back, drive-in/drive-thru, and flow rack. Reach trucks are used in narrow-aisle storage in single-depth, double-deep, push-back, drive-in/drive-thru, and flow rack. Swing mast and turret trucks are used in very narrow aisle storage in single depth pallet rack.
General Information
Regardless of the product handled, or the picking method and equipment used, locating product by the frequency of picks should be incorporated into the system design. The fastest moving product should be stocked as close to the pick point as possible and at the levels that are easiest to pick from. Even if you are using an ASRS unit, the retrieval time will be less the closer the location is to the pick point, and in a horizontal carousel, the picking time will be less if the order picker does not need to bend down or reach up to pick.
In fixed location picking, you designate a specific picking location for each SKU. Fixed picking locations are most commonly used in piece-pick operations, however, they may also be used in case picking and pallet picking where flow rack is incorporated. Slotting in fixed picking locations needs to be reviewed on a regular bases to ensure high levels of productivity. The frequency of review will depend upon product life cycles and seasonality. In random storage operations, a WMS system can direct fast movers to the closest open location to the pick point.
Operations using fixed picking locations will generally also have a reserve or overflow storage area. The overflow storage area will usually use a system of random storage. A replenishment system will need to be put in place to move product to the fixed picking locations as inventory levels drop to predetermined levels.
Outbound shipments should always have some type of a check in place. The type of check will vary from operation to operation. In a high-volume low-value shipping operation, a simple "looking over" the shipment may be all that's feasible, while in a lower-volume high-value shipping operation, I've had as many as three people performing redundant checks of each shipment prior to loading.
Extensive data analysis is necessary in determining the best methods for order picking. Historical data on picks per SKU, quantity per pick, picks per order, total picks, total orders, orders received by time of day, etc. will be important in not only the initial plan, but also in the ongoing operation of the system.
It will also be very important to project growth, especially in automated systems. While you can throw more people into a manual system when transactions increase, automated systems such as carousels and ASRS units will have capacity limits.
Order-picking systems can be very simple systems in small operations or become very complex systems using a little bit of everything. In a large operation you may have totes start as batch pick in a carousel picking area for your medium moving piece-pick items, and then move individually to a manual picking area for slow moving small-parts piece picking out of static shelving (possibly in a mezzanine). Then move to a carton-flow rack area for your fastest moving items, and finally to a shipping staging/consolidation area where it is matched up with cases and bulkier items from a case-pick ASRS unit and full pallets from a racked warehouse.
Source : Dave Piasecki, Logistic Management.
The methods for order picking vary greatly and the level of difficulty in choosing the best method for your operation will depend on the type of operation you have. The characteristics of the product being handled, total number of transactions, total number of orders, picks per order, quantity per pick, picks per SKU, total number of SKUs, value-added processing such as private labeling, and whether you are handling piece pick, case pick, or full-pallet loads are all factors that will affect your decision on a method for order picking. Many times a combination of picking methods is needed to handle diverse product and order characteristics.
Key objectives in designing an order picking operation include increases in productivity, reduction of cycle time, and increases in accuracy. Often times these objectives may conflict with one another in that a method that focuses on productivity may not provide a short enough cycle time, or a method that focuses on accuracy may sacrifice productivity.
Productivity. Productivity in order picking is measured by the pick rate. Piece pick operations usually measure the pick rate in line items picked per hour while case pick operations may measure cases per hour and line items per hour. In pallet pick operations the best measure is actual pallets picked per hour. Since the actual amount of time it takes to physically remove the product from the location tends to be fixed regardless of the picking method used, productivity gains are usually in the form of reducing the travel time.
Cycle Time. Cycle time is the amount of time it takes to get an order from order entry to the shipping dock. In recent years, customer’s expectations of companies to provide same day shipment has put greater emphasis on reducing cycle times from days to hours or minutes. Immediate release of orders to the warehouse for picking and methods that provide concurrent picking of items within large orders are ways to reduce cycle times.
Accuracy. Regardless of the type of operation you are running, accuracy will be a key objective. Virtually every decision you make in setting up a warehouse will have some impact on accuracy, from the product numbering scheme, to the design of product labels, product packaging, the design of picking documents, location numbering scheme, storage equipment, lighting conditions, and picking method used. Technologies that aide in picking accuracy include pick-to-light systems, counting scales, and bar code scanners. Beyond the design aspects of an order picking operation, employee training, accuracy tracking, and accountability are essential to achieving high levels of accuracy.
Piece Picking
Piece-picking methods. Piece picking, also known as broken case picking or pick/pack operations, describes systems where individual items are picked. Piece pick operations usually have a large sku base in the thousands or tens of thousands of items, small quantities per pick, and short cycle times. Mail order catalog companies and repair parts distributors are good examples of piece pick operations.
Basic order picking. In the most basic order-picking method, product is stored in fixed locations on static shelving or pallet rack. An order picker picks one order at a time following a route up and down each aisle until the entire order is picked. The order picker will usually use some type of picking cart. The design of the picking flow should be such that the order picker ends up fairly close to the original starting point. The picking document should have the picks sorted in the same sequence as the picking flow. Fast moving product should be stored close to the main cross aisle and additional cross aisles put in to allow short cuts. Larger bulkier items would be stored towards the end of the pick flow. This basic order picking method can work well in operations with a small total number of orders and a high number of picks per order. Operations with low picks per order will find the travel time excessive in this type of picking and operations with large numbers of orders will find that the congestion from many pickers working in the same areas slows down the processing.
Batch picking / Multi-order picking In batch picking, multiple orders are grouped into small batches. An order picker will pick all orders within the batch in one pass using a consolidated pick list. Usually the picker will use a multi-tiered picking cart maintaining a separate tote or carton on the cart for each order. Batch sizes usually run from 4 to 12 orders per batch depending on the average picks per order in that specific operation. Batch picking systems may use extensive logic programmed to consolidate orders with the same items. In operations with low picks per order, batch picking can greatly reduce travel time by allowing the picker to make additional picks while in the same area. Since you are picking multiple orders at the same time, systems and procedures will be required to prevent mixing of orders. In very busy operations, batch picking is often used in conjunction with zone picking and automated material handling equipment. In order to get maximum productivity in batch pick operations, orders must be accumulated in the system until there are enough similar picks to create the batches. This delay in processing may not be acceptable in same day shipping operations.
Zone picking. Zone picking is the order picking version of the assembly line. In zone picking, the picking area is broken up into individual pick zones. Order pickers are assigned a specific zone, and only pick items within that zone. Orders are moved from one zone to the next as the picking from the previous zone is completed (also known as "pick-and-pass"). Usually, conveyor systems are used to move orders from zone to zone. In zone picking it’s important to balance the number of picks from zone to zone to maintain a consistent flow. Zones are usually sized to accommodate enough picks for one or two order pickers. Creating fast pick areas close to the conveyor is essential in achieving high productivity in zone picking. Zone picking is most effective in large operations with high total numbers of skus, high total numbers of orders, and low to moderate picks per order. Separate zones also provide for specialization of picking techniques such as having automated material handling systems in one zone and manual handling in the next.
Wave picking. A variation on zone picking and batch picking where rather than orders moving from one zone to the next for picking, all zones are picked at the same time and the items are later sorted and consolidated into individual orders/shipments. Wave picking is the quickest method (shortest cycle time) for picking multi item orders however the sorting and consolidation process can be tricky. Operations with high total number of SKUs and moderate to high picks per order may benefit from wave picking. Wave picking may be used to isolate orders by specific carriers, routes, or zones.
Piece-picking equipment: As with the picking methods, the picking equipment used will also depend on a variety of factors.
Static shelving. The most common equipment for storage in piece pick operations, static shelving is designed with depths from 12” to 24”. Product is either placed directly on the shelving or in corrugated, plastic, or steel parts bins. Static shelving is economical and is the best method where there are few picks per SKU or where parts are very small.
Carton flow rack. Carton flow rack is similar to static shelving with the exception that rather than shelves, there are small sections of gravity conveyor mounted at a slight angle. Product is stocked from the rear of the flow rack and picking is done from the face. Product can be stocked in cartons or small totes or bins. As a carton or tote is emptied, it is removed from the rack and another one will roll into place. Carton flow rack is most useful where there is a very high number of picks per SKU.
Carousels. Horizontal carousels are a version of the same equipment used by dry cleaners to store and retrieve clothing. They have racks hanging from them that can be configured to accommodate various size storage bins. Generally an operator will run 2 to 4 carousels at a time avoiding the need for the operator to wait while one unit is turning. Picking is usually performed in batches with orders downloaded from the host system to the carousel software. Horizontal carousels are most common in picking operations with very high number of orders, low to moderate picks per order, and low to moderate picks per sku. Horizontal carousels provide very high pick rates as well as high storage density. Pick-to-light systems are often integrated into carousels. Vertical Carousels are frequently used in laboratories and specialty manufacturing operations and are rarely used in regular order picking operations.
Automatic storage and retrieval systems (ASRS). An ASRS is a system of rows of rack, each row having a dedicated retrieval unit that moves vertically and horizontally along the rack, picking and putting away loads. ASRS systems are available in mini-load types that store and transfer product on some type of tray or in bins, and unit-load types that transfer and store pallet loads or other large unitized loads. In addition to the automation features, ASRS units can provide extremely high storage density with capabilities to work in racking up to 100 feet high. Unfortunately the high costs of ASRS equipment and the length of the retrieval times make it difficult to incorporate into a piece picking operation.
Automatic picking machines. Fully automated picking machines (such as A-frames) are still pretty rare and are used only where very high volumes of similar products are picked such as music CDs, or, where high volume in combination with high accuracy requirements exist such as pharmaceutical fulfillment.
Pick-to-light. Pick-to light systems consist of lights and LED displays for each pick location. The system uses software to light the next pick and display the quantity to pick. Pick-to-light systems have the advantage of not only increasing accuracy, but also increasing productivity. Since hardware is required for each pick location, pick-to-light systems are easier to cost justify where very high picks per SKU occur. Carton flow rack and horizontal carousels are good applications for pick to light. In batch picking, put-to-light is also incorporated into the cart or rack that holds the cartons or totes that you are picking in to. The light will designate which order you should be placing the picked items in.
Bar-code scanners. Though very useful in increasing accuracy levels, bar-code scanners in a fast-paced piece-pick operation tend to become cumbersome and can significantly reduce your pick rates. With proper training, tracking, and accountability, you can get very high accuracy rates in order picking without scanners. I find they are better suited to case pick, pallet load, putaway, and order checking operations.
Voice-directed picking. Voice technology has come of age in recent years and is now a very viable solution for piece pick, case pick, or pallet pick operations.
Automated conveyor and sortation Systems. Automated conveyor systems and sortation systems will be integral to any large-scale piece pick operation. The variety of equipment and system designs is enormous.
Case Picking
Case-picking methods. Case picking operations tend to have less diversity in product characteristics than piece picking operations, with fewer SKUs and higher picks per SKU.
Basic case-picking method. This is the most common method for case-picking operations. Rather than product stored on static shelving, case-pick operations will have the product stored in pallet rack or in bulk in floor locations. The simplest picking method is to use a hand pallet jack (or motorized pallet truck) and pick cases out of bulk floor locations however many operations will find that going to very narrow aisle (VNA) pallet racking and using man-up order selectors or turret trucks will provide high storage density and high pick rates.
Batch picking. Batch picking is rarely used in case pick operations primarily because of the physical size of the picks. You are unlikely to have enough room on a pallet to pick multiple orders.
Zone picking. Zone picking can be used in case-picking operations, however, like batch picking, the size of the picks and the size of the orders in most case-pick operations do not lend themselves well to zone picking. If you do have a case pick operation where you have a large number of SKUs, and orders with small quantities per SKU, or where you have enough cases per order per zone to fill a pallet, you may find zone picking applicable.
Wave picking. Wave picking can be applied to case picking operations where you have very large orders with many picks per order and are looking for ways to reduce cycle time.
Case-picking equipment.
Pallet rack. Pallet rack is the most common storage system for case pick operations.
Flow rack. Although carton flow rack rarely applies to case pick operations, pallet flow rack or push back rack can be useful.
Carousels. Although you can incorporate unit-load carousels into a case pick operation, it tends to be an unlikely match-up. If doing batch picking where you have many picks per SKU and few pieces per pick you can pick from an ASRS unit onto a unit-load carousel.
Automated storage and retrieval systems (ASRS). Unit-load ASRS systems can be useful in case-pick operations, especially if you can provide storage heights of 40 to 100 feet.
Pick-to-light. Pick-to-light can be used in case-pick operations, however, its application is significantly less than in piece pick operations.
Bar-code scanners. Bar-code scanners are frequently used in case-pick operations. Since the time to physically pick the product is higher in case-pick operations, the time spent scanning tends to have little impact on productivity and therefore the accuracy benefits will usually outweigh any reduction in productivity.
Voice-directed picking. Voice technology has come of age in recent years and is now a very viable solution for piece pick, case pick, or pallet pick operations.
Automated conveyor and sortation systems. If using zone or wave picking, automated conveyor and sortation systems will likely be a part of your system. In case picking, you may use standard conveyors to transport individual cases or unit-load conveyors to transport pallets.
Lift trucks. As previously mentioned, motorized pallet trucks, man-up order selectors, and man-up turret trucks are the vehicles of choice for case-pick operations.
Pallet Picking
Full-pallet-picking methods. Full-pallet picking is also known as unit-load picking. The systematic methods for full-pallet picking are much simpler that either piece pick or case pick, however, the choices in storage equipment, storage configurations, and types of lift trucks used are many.
Basic pallet picking. This is the most common method for full-pallet picking. Orders are picked one at a time. The order picker will use some type of lift truck, retrieve the pallet load and stage it in a shipping area in a staging lane designated for that order, or just pick and load directly into an outbound trailer or container..
Batch picking. Since the nature of pallet picking is a single pick per trip, batch picking has no application in pallet-picking operations.
Zone and wave picking. Although the normal definition of zone picking where an order is moved from zone to zone as picks are accumulated doesn’t apply to pallet picking, pick zones are used in wave picking in pallet-picking operations. The storage area is broken into zones to eliminate multiple lift-truck operators from picking in the same aisle. The lift truck operator may pick the pallet and deliver it directly to the designated staging lane or place it on a unit-load conveyor that will deliver it to the sorting/staging area.
Task interleaving. Task interleaving is a method of combining picking and putaway. Warehouse Management Systems (WMS) use logic to direct a lift truck operator to put away a pallet en route to the next pick.
Pallet-picking equipment.
Pallet rack. There are numerous pallet rack configurations used in full pallet operations, from standard back-to-back single pallet depth configurations to double-deep rack, push-back rack, drive-in/drive-thru rack, and flow rack. The best racking configuration for your operation will be based on the total number of pallets per sku, pallets per pick, and the length of time the product is in the rack prior to shipment. There are a lot of tradeoffs in choosing a racking configuration including storage density, picking productivity, equipment costs, and the ability to maintain first-in first-out.
ASRS. Unit-load ASRS units when combined with unit-load conveyors and sortation systems can provide fully automatic pallet picking operations. And again, the ability to store product in racking up to 100 feet high gives excellent storage density.
Automated conveyor and sortation systems. Automated conveyor and sortation systems can be combined with ASRS units or used in conjunction with manual picking with lift trucks in zone/wave picking systems. Either the ASRS or the lift truck operator delivers the pallet load to the conveyor. The conveyor system then delivers the pallet to the shipping area where it is either manually sorted by lift trucks into the designated staging lane, or a sortation system automatically sorts into a staging lane. Staging lanes can be equipped with automated or gravity fed unit-load conveyor.
Bar-code scanners. Bar-code scanners are very commonly used in pallet-pick operations.
Voice-directed picking. Voice technology has come of age in recent years and is now a very viable solution for piece pick, case pick, or pallet pick operations.
Lift trucks. The lift trucks used for pallet picking will depend upon the storage configuration. Standard lift trucks are used in bulk floor storage and wide-aisle pallet rack storage in singe-depth, push-back, drive-in/drive-thru, and flow rack. Reach trucks are used in narrow-aisle storage in single-depth, double-deep, push-back, drive-in/drive-thru, and flow rack. Swing mast and turret trucks are used in very narrow aisle storage in single depth pallet rack.
General Information
Regardless of the product handled, or the picking method and equipment used, locating product by the frequency of picks should be incorporated into the system design. The fastest moving product should be stocked as close to the pick point as possible and at the levels that are easiest to pick from. Even if you are using an ASRS unit, the retrieval time will be less the closer the location is to the pick point, and in a horizontal carousel, the picking time will be less if the order picker does not need to bend down or reach up to pick.
In fixed location picking, you designate a specific picking location for each SKU. Fixed picking locations are most commonly used in piece-pick operations, however, they may also be used in case picking and pallet picking where flow rack is incorporated. Slotting in fixed picking locations needs to be reviewed on a regular bases to ensure high levels of productivity. The frequency of review will depend upon product life cycles and seasonality. In random storage operations, a WMS system can direct fast movers to the closest open location to the pick point.
Operations using fixed picking locations will generally also have a reserve or overflow storage area. The overflow storage area will usually use a system of random storage. A replenishment system will need to be put in place to move product to the fixed picking locations as inventory levels drop to predetermined levels.
Outbound shipments should always have some type of a check in place. The type of check will vary from operation to operation. In a high-volume low-value shipping operation, a simple "looking over" the shipment may be all that's feasible, while in a lower-volume high-value shipping operation, I've had as many as three people performing redundant checks of each shipment prior to loading.
Extensive data analysis is necessary in determining the best methods for order picking. Historical data on picks per SKU, quantity per pick, picks per order, total picks, total orders, orders received by time of day, etc. will be important in not only the initial plan, but also in the ongoing operation of the system.
It will also be very important to project growth, especially in automated systems. While you can throw more people into a manual system when transactions increase, automated systems such as carousels and ASRS units will have capacity limits.
Order-picking systems can be very simple systems in small operations or become very complex systems using a little bit of everything. In a large operation you may have totes start as batch pick in a carousel picking area for your medium moving piece-pick items, and then move individually to a manual picking area for slow moving small-parts piece picking out of static shelving (possibly in a mezzanine). Then move to a carton-flow rack area for your fastest moving items, and finally to a shipping staging/consolidation area where it is matched up with cases and bulkier items from a case-pick ASRS unit and full pallets from a racked warehouse.
Source : Dave Piasecki, Logistic Management.
Warehouse Management Systems (WMS).
The evolution of warehouse management systems (WMS) is very similar to that of many other software solutions. Initially a system to control movement and storage of materials within a warehouse, the role of WMS is expanding to including light manufacturing, transportation management, order management, and complete accounting systems. To use the grandfather of operations-related software, MRP, as a comparison, material requirements planning (MRP) started as a system for planning raw material requirements in a manufacturing environment. Soon MRP evolved into manufacturing resource planning (MRPII), which took the basic MRP system and added scheduling and capacity planning logic. Eventually MRPII evolved into enterprise resource planning (ERP), incorporating all the MRPII functionality with full financials and customer and vendor management functionality. Now, whether WMS evolving into a warehouse-focused ERP system is a good thing or not is up to debate. What is clear is that the expansion of the overlap in functionality between Warehouse Management Systems, Enterprise Resource Planning, Distribution Requirements Planning, Transportation Management Systems, Supply Chain Planning, Advanced Planning and Scheduling, and Manufacturing Execution Systems will only increase the level of confusion among companies looking for software solutions for their operations.
Even though WMS continues to gain added functionality, the initial core functionality of a WMS has not really changed. The primary purpose of a WMS is to control the movement and storage of materials within an operation and process the associated transactions. Directed picking, directed replenishment, and directed putaway are the key to WMS. The detailed setup and processing within a WMS can vary significantly from one software vendor to another, however the basic logic will use a combination of item, location, quantity, unit of measure, and order information to determine where to stock, where to pick, and in what sequence to perform these operations.
Do You Really Need WMS?
Not every warehouse needs a WMS. Certainly any warehouse could benefit from some of the functionality but is the benefit great enough to justify the initial and ongoing costs associated with WMS? Warehouse Management Systems are big, complex, data intensive, applications. They tend to require a lot of initial setup, a lot of system resources to run, and a lot of ongoing data management to continue to run. That’s right, you need to "manage" your warehouse "management" system. Often times, large operations will end up creating a new IS department with the sole responsibility of managing the WMS.
The Claims:
WMS will reduce inventory!
WMS will reduce labor costs!
WMS will increase storage capacity!
WMS will increase customer service!
WMS will increase inventory accuracy!
The Reality:
The implementation of a WMS along with automated data collection will likely give you increases in accuracy, reduction in labor costs (provided the labor required to maintain the system is less than the labor saved on the warehouse floor), and a greater ability to service the customer by reducing cycle times. Expectations of inventory reduction and increased storage capacity are less likely. While increased accuracy and efficiencies in the receiving process may reduce the level of safety stock required, the impact of this reduction will likely be negligible in comparison to overall inventory levels. The predominant factors that control inventory levels are lot sizing, lead times, and demand variability. It is unlikely that a WMS will have a significant impact on any of these factors. And while a WMS certainly provides the tools for more organized storage which may result in increased storage capacity, this improvement will be relative to just how sloppy your pre-WMS processes were.
Beyond labor efficiencies, the determining factors in deciding to implement a WMS tend to be more often associated with the need to do something to service your customers that your current system does not support (or does not support well) such as first-in-first-out, cross-docking, automated pick replenishment, wave picking, lot tracking, yard management, automated data collection, automated material handling equipment, etc.
Setup
The setup requirements of WMS can be extensive. The characteristics of each item and location must be maintained either at the detail level or by grouping similar items and locations into categories. An example of item characteristics at the detail level would include exact dimensions and weight of each item in each unit of measure the item is stocked (eaches, cases, pallets, etc) as well as information such as whether it can be mixed with other items in a location, whether it is rackable, max stack height, max quantity per location, hazard classifications, finished goods or raw material, fast versus slow mover, etc. Although some operations will need to set up each item this way, most operations will benefit by creating groups of similar products. For example, if you are a distributor of music CDs you would create groups for single CDs, and double CDs, maintaining the detailed dimension and weight information at the group level and only needing to attach the group code to each item. You would likely need to maintain detailed information on special items such as boxed sets or CDs in special packaging. You would also create groups for the different types of locations within your warehouse. An example would be to create three different groups (P1, P2, P3) for the three different sized forward picking locations you use for your CD picking. You then set up the quantity of single CDs that will fit in a P1, P2, and P3 location, quantity of double CDs that fit in a P1, P2, P3 location etc. You would likely also be setting up case quantities, and pallet quantities of each CD group and quantities of cases and pallets per each reserve storage location group.
If this sounds simple, it is…well… sort of. In reality most operations have a much more diverse product mix and will require much more system setup. And setting up the physical characteristics of the product and locations is only part of the picture. You have set up enough so that the system knows where a product can fit and how many will fit in that location. You now need to set up the information needed to let the system decide exactly which location to pick from, replenish from/to, and putaway to, and in what sequence these events should occur (remember WMS is all about “directed” movement). You do this by assigning specific logic to the various combinations of item/order/quantity/location information that will occur.
Below I have listed some of the logic used in determining actual locations and sequences.
Location Sequence. This is the simplest logic; you simply define a flow through your warehouse and assign a sequence number to each location. In order picking this is used to sequence your picks to flow through the warehouse, in putaway the logic would look for the first location in the sequence in which the product would fit.
Zone Logic. By breaking down your storage locations into zones you can direct picking, putaway, or replenishment to or from specific areas of your warehouse. Since zone logic only designates an area, you will need to combine this with some other type of logic to determine exact location within the zone.
Fixed Location. Logic uses predetermined fixed locations per item in picking, putaway, and replenishment. Fixed locations are most often used as the primary picking location in piece pick and case-pick operations, however, they can also be used for secondary storage.
Random Location. Since computers cannot be truly random (nor would you want them to be) the term random location is a little misleading. Random locations generally refer to areas where products are not stored in designated fixed locations. Like zone logic, you will need some additional logic to determine exact locations.
First-in-first-out (FIFO). Directs picking from the oldest inventory first.
Last-in-first-out (LIFO). Opposite of FIFO. I didn't think there were any real applications for this logic until a visitor to my site sent an email describing their operation that distributes perishable goods domestically and overseas. They use LIFO for their overseas customers (because of longer in-transit times) and FIFO for their domestic customers.
Quantity or Unit-of-measure. Allows you to direct picking from different locations of the same item based upon the quantity or unit-of-measured ordered. For example, pick quantities less than 25 units would pick directly from the primary picking location while quantities greater than 25 would pick from reserve storage locations.
Fewest Locations. This logic is used primarily for productivity. Pick-from-fewest logic will use quantity information to determine least number of locations needed to pick the entire pick quantity. Put-to-fewest logic will attempt to direct putaway to the fewest number of locations needed to stock the entire quantity. While this logic sounds great from a productivity standpoint, it generally results in very poor space utilization. The pick-from-fewest logic will leave small quantities of an item scattered all over your warehouse, and the put-to-fewest logic will ignore small and partially used locations.
Pick-to-clear. Logic directs picking to the locations with the smallest quantities on hand. This logic is great for space utilization.
Reserved Locations. This is used when you want to predetermine specific locations to putaway to or pick from. An application for reserved locations would be cross-docking, where you may specify certain quantities of an inbound shipment be moved to specific outbound staging locations or directly to an awaiting outbound trailer.
Nearest Location. Also called proximity picking/putaway, this logic looks to the closest available location to that of the previous putaway or pick. You need to look at the setup and test this type of logic to verify that it is picking the shortest route and not the actual nearest location. Since the shortest distance between two points is a straight line, this logic may pick a location 30 feet away (thinking it’s closest) that requires the worker to travel 200 feet up and down aisles to get to it while there was another available location 50 feet away in the same aisle (50 is longer than 30).
Maximize Cube. Cube logic is found in most WMS systems however it is seldom used. Cube logic basically uses unit dimensions to calculate cube (cubic inches per unit) and then compares this to the cube capacity of the location to determine how much will fit. Now if the units are capable of being stacked into the location in a manner that fills every cubic inch of space in the location, cube logic will work. Since this rarely happens in the real world, cube logic tends to be impractical.
Consolidate. Looks to see if there is already a location with the same product stored in it with available capacity. May also create additional moves to consolidate like product stored in multiple locations.
Lot Sequence. Used for picking or replenishment, this will use the lot number or lot date to determine locations to pick from or replenish from.
It’s very common to combine multiple logic methods to determine the best location. For example you may chose to use pick-to-clear logic within first-in-first-out logic when there are multiple locations with the same receipt date. You also may change the logic based upon current workload. During busy periods you may chose logic that optimizes productivity while during slower periods you switch to logic that optimizes space utilization.
Other Functionality/Considerations
Wave Picking/Batch Picking/Zone Picking. Support for various picking methods varies from one system to another. In high-volume fulfillment operations, picking logic can be a critical factor in WMS selection.
Task Interleaving. Task interleaving describes functionality that mixes dissimilar tasks such as picking and putaway to obtain maximum productivity. Used primarily in full-pallet-load operations, task interleaving will direct a lift truck operator to put away a pallet on his/her way to the next pick. In large warehouses this can greatly reduce travel time, not only increasing productivity, but also reducing wear on the lift trucks and saving on energy costs by reducing lift truck fuel consumption. Task interleaving is also used with cycle counting programs to coordinate a cycle count with a picking or putaway task.
Automated Data Collection (ADC). It is generally assumed when you implement WMS that you will also be implementing automatic data collection, usually in the form of radio-frequency (RF) portable terminals with bar code scanners. I recommend incorporating your ADC hardware selection and your software selection into a single process. This is especially true if you are planning on incorporating alternate technologies such as voice systems, RFID, or light-directed systems. You may find that a higher priced WMS package will actually be less expensive in the end since it has a greater level of support for the types of ADC hardware you will be using. In researching WMS packages you may see references like “supports”, “easily integrates with”, “works with”, “seamlessly interfaces with” in describing the software’s functionality related to ADC. Since these statements can mean just about anything, you’ll find it important to ask specific questions related to exactly how the WMS system has been programmed to accommodate ADC equipment. Some WMS products have created specific versions of programs designed to interface with specific ADC devices from specific manufacturers. If this WMS/ADC device combination works for your operation you can save yourself some programming/setup time. If the WMS system does not have this specific functionality, it does not mean that you should not buy the system, it just means that you will have to do some programming either on the WMS system or on the ADC devices. Since programming costs can easily put you over budget you’ll want to have an estimate of these costs up front. As long as you are working closely with the WMS vendor and the ADC hardware supplier at an early stage in the process you should be able to avoid any major surprises here.
Integration with Automated Material Handling Equipment. If you are planning on using automated material handling equipment such as carousels, ASRS units, AGVs, pick-to-light systems, or sortation systems, you’ll want to consider this during the software selection process. Since these types of automation are very expensive and are usually a core component of your warehouse, you may find that the equipment will drive the selection of the WMS. As with automated data collection, you should be working closely with the equipment manufacturers during the software selection process.
Advanced Shipment Notifications (ASN). If your vendors are capable of sending advanced shipment notifications (preferably electronically) and attaching compliance labels to the shipments you will want to make sure that the WMS can use this to automate your receiving process. In addition, if you have requirements to provide ASNs for customers, you will also want to verify this functionality.
Cycle Counting. Most WMS will have some cycle counting functionality. Modifications to cycle counting systems are common to meet specific operational needs.
Cross Docking. In its purest form cross-docking is the action of unloading materials from an incoming trailer or rail car and immediately loading these materials in outbound trailers or rail cars thus eliminating the need for warehousing (storage). In reality pure cross-docking is less common; most "cross-docking" operations require large staging areas where inbound materials are sorted, consolidated, and stored until the outbound shipment is complete and ready to ship. If cross docking is part of your operation you will need to verify the logic the WMS uses to facilitate this.
Pick-to-Carton. For parcel shippers pick-to-carton logic uses item dimensions/weights to select the shipping carton prior to the order picking process. Items are then picked directly into the shipping carton. When picking is complete, dunnage is added and the carton sealed eliminating a formal packing operation. This logic works best when picking/packing products with similar size/weight characteristics. In operations with a very diverse product mix it's much more difficult to get this type of logic to work effectively.
Slotting. Slotting describes the activities associated with optimizing product placement in pick locations in a warehouse. There are software packages designed just for slotting, and many WMS packages will also have slotting functionality. Slotting software will generally use item velocity (times picked), cube usage, and minimum pick face dimensions to determine best location.
Yard Management. Yard management describes the function of managing the contents (inventory) of trailers parked outside the warehouse, or the empty trailers themselves. Yard management is generally associated with cross docking operations and may include the management of both inbound and outbound trailers.
Labor Tracking/Capacity Planning. Some WMS systems provide functionality related to labor reporting and capacity planning. Anyone that has worked in manufacturing should be familiar with this type of logic. Basically, you set up standard labor hours and machine (usually lift trucks) hours per task and set the available labor and machine hours per shift. The WMS system will use this info to determine capacity and load. Manufacturing has been using capacity planning for decades with mixed results. The need to factor in efficiency and utilization to determine rated capacity is an example of the shortcomings of this process. Not that I’m necessarily against capacity planning in warehousing, I just think most operations don’t really need it and can avoid the disappointment of trying to make it work. I am, however, a big advocate of labor tracking for individual productivity measurement. Most WMS maintain enough data to create productivity reporting. Since productivity is measured differently from one operation to another you can assume you will have to do some minor modifications here .
Activity-based costing/billing. This functionality is primarily designed for third-party logistics operators. Activity-based billing allows them to calculate billable fees based upon specific activities. For example, a 3PL can assign transaction fees for each receipt, and shipment transaction, as well as fees for storage and other value-added activities.
Integration with existing accounting/ERP systems. Unless the WMS vendor has already created a specific interface with your accounting/ERP system (such as those provided by an approved business partner) you can expect to spend some significant programming dollars here. While we are all hoping that integration issues will be magically resolved someday by a standardized interface, we ain’t there yet. Ideally you’ll want an integrator that has already integrated the WMS you chose with the business software you are using. Since this is not always possible you at least want an integrator that is very familiar with one of the systems.
WMS + everything else = ? As I mentioned at the beginning of this article, a lot of other modules are being added to WMS packages. These would include full financials, light manufacturing, transportation management, purchasing, and sales order management. I don’t see this as a unilateral move of WMS from an add-on module to a core system, but rather an optional approach that has applications in specific industries such as 3PLs. Using ERP systems as a point of reference, it is unlikely that this add-on functionality will match the functionality of best-of-breed applications available separately. If warehousing/distribution is your core business function and you don’t want to have to deal with the integration issues of incorporating separate financials, order processing, etc. you may find these WMS based business systems are a good fit.
Source : Dave Piasecki, Logistic Management.
Even though WMS continues to gain added functionality, the initial core functionality of a WMS has not really changed. The primary purpose of a WMS is to control the movement and storage of materials within an operation and process the associated transactions. Directed picking, directed replenishment, and directed putaway are the key to WMS. The detailed setup and processing within a WMS can vary significantly from one software vendor to another, however the basic logic will use a combination of item, location, quantity, unit of measure, and order information to determine where to stock, where to pick, and in what sequence to perform these operations.
Do You Really Need WMS?
Not every warehouse needs a WMS. Certainly any warehouse could benefit from some of the functionality but is the benefit great enough to justify the initial and ongoing costs associated with WMS? Warehouse Management Systems are big, complex, data intensive, applications. They tend to require a lot of initial setup, a lot of system resources to run, and a lot of ongoing data management to continue to run. That’s right, you need to "manage" your warehouse "management" system. Often times, large operations will end up creating a new IS department with the sole responsibility of managing the WMS.
The Claims:
WMS will reduce inventory!
WMS will reduce labor costs!
WMS will increase storage capacity!
WMS will increase customer service!
WMS will increase inventory accuracy!
The Reality:
The implementation of a WMS along with automated data collection will likely give you increases in accuracy, reduction in labor costs (provided the labor required to maintain the system is less than the labor saved on the warehouse floor), and a greater ability to service the customer by reducing cycle times. Expectations of inventory reduction and increased storage capacity are less likely. While increased accuracy and efficiencies in the receiving process may reduce the level of safety stock required, the impact of this reduction will likely be negligible in comparison to overall inventory levels. The predominant factors that control inventory levels are lot sizing, lead times, and demand variability. It is unlikely that a WMS will have a significant impact on any of these factors. And while a WMS certainly provides the tools for more organized storage which may result in increased storage capacity, this improvement will be relative to just how sloppy your pre-WMS processes were.
Beyond labor efficiencies, the determining factors in deciding to implement a WMS tend to be more often associated with the need to do something to service your customers that your current system does not support (or does not support well) such as first-in-first-out, cross-docking, automated pick replenishment, wave picking, lot tracking, yard management, automated data collection, automated material handling equipment, etc.
Setup
The setup requirements of WMS can be extensive. The characteristics of each item and location must be maintained either at the detail level or by grouping similar items and locations into categories. An example of item characteristics at the detail level would include exact dimensions and weight of each item in each unit of measure the item is stocked (eaches, cases, pallets, etc) as well as information such as whether it can be mixed with other items in a location, whether it is rackable, max stack height, max quantity per location, hazard classifications, finished goods or raw material, fast versus slow mover, etc. Although some operations will need to set up each item this way, most operations will benefit by creating groups of similar products. For example, if you are a distributor of music CDs you would create groups for single CDs, and double CDs, maintaining the detailed dimension and weight information at the group level and only needing to attach the group code to each item. You would likely need to maintain detailed information on special items such as boxed sets or CDs in special packaging. You would also create groups for the different types of locations within your warehouse. An example would be to create three different groups (P1, P2, P3) for the three different sized forward picking locations you use for your CD picking. You then set up the quantity of single CDs that will fit in a P1, P2, and P3 location, quantity of double CDs that fit in a P1, P2, P3 location etc. You would likely also be setting up case quantities, and pallet quantities of each CD group and quantities of cases and pallets per each reserve storage location group.
If this sounds simple, it is…well… sort of. In reality most operations have a much more diverse product mix and will require much more system setup. And setting up the physical characteristics of the product and locations is only part of the picture. You have set up enough so that the system knows where a product can fit and how many will fit in that location. You now need to set up the information needed to let the system decide exactly which location to pick from, replenish from/to, and putaway to, and in what sequence these events should occur (remember WMS is all about “directed” movement). You do this by assigning specific logic to the various combinations of item/order/quantity/location information that will occur.
Below I have listed some of the logic used in determining actual locations and sequences.
Location Sequence. This is the simplest logic; you simply define a flow through your warehouse and assign a sequence number to each location. In order picking this is used to sequence your picks to flow through the warehouse, in putaway the logic would look for the first location in the sequence in which the product would fit.
Zone Logic. By breaking down your storage locations into zones you can direct picking, putaway, or replenishment to or from specific areas of your warehouse. Since zone logic only designates an area, you will need to combine this with some other type of logic to determine exact location within the zone.
Fixed Location. Logic uses predetermined fixed locations per item in picking, putaway, and replenishment. Fixed locations are most often used as the primary picking location in piece pick and case-pick operations, however, they can also be used for secondary storage.
Random Location. Since computers cannot be truly random (nor would you want them to be) the term random location is a little misleading. Random locations generally refer to areas where products are not stored in designated fixed locations. Like zone logic, you will need some additional logic to determine exact locations.
First-in-first-out (FIFO). Directs picking from the oldest inventory first.
Last-in-first-out (LIFO). Opposite of FIFO. I didn't think there were any real applications for this logic until a visitor to my site sent an email describing their operation that distributes perishable goods domestically and overseas. They use LIFO for their overseas customers (because of longer in-transit times) and FIFO for their domestic customers.
Quantity or Unit-of-measure. Allows you to direct picking from different locations of the same item based upon the quantity or unit-of-measured ordered. For example, pick quantities less than 25 units would pick directly from the primary picking location while quantities greater than 25 would pick from reserve storage locations.
Fewest Locations. This logic is used primarily for productivity. Pick-from-fewest logic will use quantity information to determine least number of locations needed to pick the entire pick quantity. Put-to-fewest logic will attempt to direct putaway to the fewest number of locations needed to stock the entire quantity. While this logic sounds great from a productivity standpoint, it generally results in very poor space utilization. The pick-from-fewest logic will leave small quantities of an item scattered all over your warehouse, and the put-to-fewest logic will ignore small and partially used locations.
Pick-to-clear. Logic directs picking to the locations with the smallest quantities on hand. This logic is great for space utilization.
Reserved Locations. This is used when you want to predetermine specific locations to putaway to or pick from. An application for reserved locations would be cross-docking, where you may specify certain quantities of an inbound shipment be moved to specific outbound staging locations or directly to an awaiting outbound trailer.
Nearest Location. Also called proximity picking/putaway, this logic looks to the closest available location to that of the previous putaway or pick. You need to look at the setup and test this type of logic to verify that it is picking the shortest route and not the actual nearest location. Since the shortest distance between two points is a straight line, this logic may pick a location 30 feet away (thinking it’s closest) that requires the worker to travel 200 feet up and down aisles to get to it while there was another available location 50 feet away in the same aisle (50 is longer than 30).
Maximize Cube. Cube logic is found in most WMS systems however it is seldom used. Cube logic basically uses unit dimensions to calculate cube (cubic inches per unit) and then compares this to the cube capacity of the location to determine how much will fit. Now if the units are capable of being stacked into the location in a manner that fills every cubic inch of space in the location, cube logic will work. Since this rarely happens in the real world, cube logic tends to be impractical.
Consolidate. Looks to see if there is already a location with the same product stored in it with available capacity. May also create additional moves to consolidate like product stored in multiple locations.
Lot Sequence. Used for picking or replenishment, this will use the lot number or lot date to determine locations to pick from or replenish from.
It’s very common to combine multiple logic methods to determine the best location. For example you may chose to use pick-to-clear logic within first-in-first-out logic when there are multiple locations with the same receipt date. You also may change the logic based upon current workload. During busy periods you may chose logic that optimizes productivity while during slower periods you switch to logic that optimizes space utilization.
Other Functionality/Considerations
Wave Picking/Batch Picking/Zone Picking. Support for various picking methods varies from one system to another. In high-volume fulfillment operations, picking logic can be a critical factor in WMS selection.
Task Interleaving. Task interleaving describes functionality that mixes dissimilar tasks such as picking and putaway to obtain maximum productivity. Used primarily in full-pallet-load operations, task interleaving will direct a lift truck operator to put away a pallet on his/her way to the next pick. In large warehouses this can greatly reduce travel time, not only increasing productivity, but also reducing wear on the lift trucks and saving on energy costs by reducing lift truck fuel consumption. Task interleaving is also used with cycle counting programs to coordinate a cycle count with a picking or putaway task.
Automated Data Collection (ADC). It is generally assumed when you implement WMS that you will also be implementing automatic data collection, usually in the form of radio-frequency (RF) portable terminals with bar code scanners. I recommend incorporating your ADC hardware selection and your software selection into a single process. This is especially true if you are planning on incorporating alternate technologies such as voice systems, RFID, or light-directed systems. You may find that a higher priced WMS package will actually be less expensive in the end since it has a greater level of support for the types of ADC hardware you will be using. In researching WMS packages you may see references like “supports”, “easily integrates with”, “works with”, “seamlessly interfaces with” in describing the software’s functionality related to ADC. Since these statements can mean just about anything, you’ll find it important to ask specific questions related to exactly how the WMS system has been programmed to accommodate ADC equipment. Some WMS products have created specific versions of programs designed to interface with specific ADC devices from specific manufacturers. If this WMS/ADC device combination works for your operation you can save yourself some programming/setup time. If the WMS system does not have this specific functionality, it does not mean that you should not buy the system, it just means that you will have to do some programming either on the WMS system or on the ADC devices. Since programming costs can easily put you over budget you’ll want to have an estimate of these costs up front. As long as you are working closely with the WMS vendor and the ADC hardware supplier at an early stage in the process you should be able to avoid any major surprises here.
Integration with Automated Material Handling Equipment. If you are planning on using automated material handling equipment such as carousels, ASRS units, AGVs, pick-to-light systems, or sortation systems, you’ll want to consider this during the software selection process. Since these types of automation are very expensive and are usually a core component of your warehouse, you may find that the equipment will drive the selection of the WMS. As with automated data collection, you should be working closely with the equipment manufacturers during the software selection process.
Advanced Shipment Notifications (ASN). If your vendors are capable of sending advanced shipment notifications (preferably electronically) and attaching compliance labels to the shipments you will want to make sure that the WMS can use this to automate your receiving process. In addition, if you have requirements to provide ASNs for customers, you will also want to verify this functionality.
Cycle Counting. Most WMS will have some cycle counting functionality. Modifications to cycle counting systems are common to meet specific operational needs.
Cross Docking. In its purest form cross-docking is the action of unloading materials from an incoming trailer or rail car and immediately loading these materials in outbound trailers or rail cars thus eliminating the need for warehousing (storage). In reality pure cross-docking is less common; most "cross-docking" operations require large staging areas where inbound materials are sorted, consolidated, and stored until the outbound shipment is complete and ready to ship. If cross docking is part of your operation you will need to verify the logic the WMS uses to facilitate this.
Pick-to-Carton. For parcel shippers pick-to-carton logic uses item dimensions/weights to select the shipping carton prior to the order picking process. Items are then picked directly into the shipping carton. When picking is complete, dunnage is added and the carton sealed eliminating a formal packing operation. This logic works best when picking/packing products with similar size/weight characteristics. In operations with a very diverse product mix it's much more difficult to get this type of logic to work effectively.
Slotting. Slotting describes the activities associated with optimizing product placement in pick locations in a warehouse. There are software packages designed just for slotting, and many WMS packages will also have slotting functionality. Slotting software will generally use item velocity (times picked), cube usage, and minimum pick face dimensions to determine best location.
Yard Management. Yard management describes the function of managing the contents (inventory) of trailers parked outside the warehouse, or the empty trailers themselves. Yard management is generally associated with cross docking operations and may include the management of both inbound and outbound trailers.
Labor Tracking/Capacity Planning. Some WMS systems provide functionality related to labor reporting and capacity planning. Anyone that has worked in manufacturing should be familiar with this type of logic. Basically, you set up standard labor hours and machine (usually lift trucks) hours per task and set the available labor and machine hours per shift. The WMS system will use this info to determine capacity and load. Manufacturing has been using capacity planning for decades with mixed results. The need to factor in efficiency and utilization to determine rated capacity is an example of the shortcomings of this process. Not that I’m necessarily against capacity planning in warehousing, I just think most operations don’t really need it and can avoid the disappointment of trying to make it work. I am, however, a big advocate of labor tracking for individual productivity measurement. Most WMS maintain enough data to create productivity reporting. Since productivity is measured differently from one operation to another you can assume you will have to do some minor modifications here .
Activity-based costing/billing. This functionality is primarily designed for third-party logistics operators. Activity-based billing allows them to calculate billable fees based upon specific activities. For example, a 3PL can assign transaction fees for each receipt, and shipment transaction, as well as fees for storage and other value-added activities.
Integration with existing accounting/ERP systems. Unless the WMS vendor has already created a specific interface with your accounting/ERP system (such as those provided by an approved business partner) you can expect to spend some significant programming dollars here. While we are all hoping that integration issues will be magically resolved someday by a standardized interface, we ain’t there yet. Ideally you’ll want an integrator that has already integrated the WMS you chose with the business software you are using. Since this is not always possible you at least want an integrator that is very familiar with one of the systems.
WMS + everything else = ? As I mentioned at the beginning of this article, a lot of other modules are being added to WMS packages. These would include full financials, light manufacturing, transportation management, purchasing, and sales order management. I don’t see this as a unilateral move of WMS from an add-on module to a core system, but rather an optional approach that has applications in specific industries such as 3PLs. Using ERP systems as a point of reference, it is unlikely that this add-on functionality will match the functionality of best-of-breed applications available separately. If warehousing/distribution is your core business function and you don’t want to have to deal with the integration issues of incorporating separate financials, order processing, etc. you may find these WMS based business systems are a good fit.
Source : Dave Piasecki, Logistic Management.
Cost Effective Warehouse Management System
Along similar lines is the wireless IQ Warehouse Management System (WMS)
module that supports hand-held scanners, personal digital assistants (PDA),
and radio frequency (RF) technology. Consequently it improves plant floor
communications and lowers the cost of inventory data collection. This is
done in conjunction with aiming for on-line updates in almost real-time
(although this kind of functionality tends to be provided by many peer
products, such as Made2Manage). The module handles a raft of inventory
transactions such as receiving, manual adjustments, physical inventory,
production entry or materials backflush, pick tickets, packing slips, etc.
It also provides access to the information from IQ RealTime Production
Monitoring like setup jobs, entered scrap, reported production, printed
labels, or reported downtime codes. For automotive suppliers, another
industry of interest for IQMS, the solution features a serialized inventory
labeling system that is also Automotive Industry Action Group (AIAG) compliant.
Although these optional modules require additional shop floor user licensing
and additional hardware, they are often a cost-effective production
monitoring solution, allowing production information to be accessible from
virtually anywhere. Accordingly, machine interface units (MIU) are mounted
directly onto each machine control panel to capture and transfer machine
cycle information to the machine monitoring unit (MMU). The data from each
machine is collected through the RealTime Box and sent back to the Oracle
database via an IQ RealTime workstation (a dedicated Microsoft Windows
server). The capacity for each MMU is sixty-four machines.
For plastic shops requiring even more complex monitoring for molding,
stamping, forming, extrusion, and assembly, there is the IQ Gate application
programming interface (API). It is a gateway to Mattec Corporation'
equivalent solution, one of the leading process monitoring products in the
industry. Information transferred to Mattec includes production schedules or
work order information, item data, and BOM data. EnterpriseIQ, however,
captures production data from Mattec, such as cycle information, downtime
intervals, and scrap information. The API thereby cross-references or maps
scrap and downtime codes between EnterpriseIQ and Mattec. Data is
automatically transferred via the IQ Alert notification system and at
user-defined intervals for data exchange.
The role this API plays gives us a flavor for what is required to interface
just two disparate systems and getting them to "talk to one another". This
tedious job often falls into the IT department's lap, perhaps with help from
vendors. Interfaces typically resemble a batch file upload process, with
data mapped between two different systems so each can understand the other.
Data mapping almost always requires custom work and an unnecessary
"reinvention of the wheel", since the structure of the data is more or less
always unique between the vendors' products. The interface, once written and
tested, is valid until a vendor changes something in the software as part of
a product update. With new versioning, the immense customization effort and
annoyance starts all over again.
While some larger complex enterprises may need a best-of-breed solution to
flexibly extend their activities into e-collaboration, managing this large
application portfolio-much of which involves partnering or extensive
integration and customization-is cumbersome to say the least. While the
best-of-breed approach can have its merits, (see Best of Breed Versus Fully
Integrated Software: The Pros and Cons, Single Source or Best of Breed- The
Debate Continues, and Pure-Play CRM Vendors: Choose an Integrated or Best of
Breed Solution?), we believe it consistently leads to additional integration
costs and complicates service and support arrangements. Interfaces between
components like ERP, CRM, WMS, MES, or e-business usually require
significant tailoring. This can be a barrier to future changes as modified
code needs to be further revised which is notoriously time consuming,
costly, and risky. Moreover, these concoctions can also have a different
"look--and-feel" across the range. For a more detailed discussion see
Integrated Solutions: Look before You Leap.
Source : IPOMS.
module that supports hand-held scanners, personal digital assistants (PDA),
and radio frequency (RF) technology. Consequently it improves plant floor
communications and lowers the cost of inventory data collection. This is
done in conjunction with aiming for on-line updates in almost real-time
(although this kind of functionality tends to be provided by many peer
products, such as Made2Manage). The module handles a raft of inventory
transactions such as receiving, manual adjustments, physical inventory,
production entry or materials backflush, pick tickets, packing slips, etc.
It also provides access to the information from IQ RealTime Production
Monitoring like setup jobs, entered scrap, reported production, printed
labels, or reported downtime codes. For automotive suppliers, another
industry of interest for IQMS, the solution features a serialized inventory
labeling system that is also Automotive Industry Action Group (AIAG) compliant.
Although these optional modules require additional shop floor user licensing
and additional hardware, they are often a cost-effective production
monitoring solution, allowing production information to be accessible from
virtually anywhere. Accordingly, machine interface units (MIU) are mounted
directly onto each machine control panel to capture and transfer machine
cycle information to the machine monitoring unit (MMU). The data from each
machine is collected through the RealTime Box and sent back to the Oracle
database via an IQ RealTime workstation (a dedicated Microsoft Windows
server). The capacity for each MMU is sixty-four machines.
For plastic shops requiring even more complex monitoring for molding,
stamping, forming, extrusion, and assembly, there is the IQ Gate application
programming interface (API). It is a gateway to Mattec Corporation'
equivalent solution, one of the leading process monitoring products in the
industry. Information transferred to Mattec includes production schedules or
work order information, item data, and BOM data. EnterpriseIQ, however,
captures production data from Mattec, such as cycle information, downtime
intervals, and scrap information. The API thereby cross-references or maps
scrap and downtime codes between EnterpriseIQ and Mattec. Data is
automatically transferred via the IQ Alert notification system and at
user-defined intervals for data exchange.
The role this API plays gives us a flavor for what is required to interface
just two disparate systems and getting them to "talk to one another". This
tedious job often falls into the IT department's lap, perhaps with help from
vendors. Interfaces typically resemble a batch file upload process, with
data mapped between two different systems so each can understand the other.
Data mapping almost always requires custom work and an unnecessary
"reinvention of the wheel", since the structure of the data is more or less
always unique between the vendors' products. The interface, once written and
tested, is valid until a vendor changes something in the software as part of
a product update. With new versioning, the immense customization effort and
annoyance starts all over again.
While some larger complex enterprises may need a best-of-breed solution to
flexibly extend their activities into e-collaboration, managing this large
application portfolio-much of which involves partnering or extensive
integration and customization-is cumbersome to say the least. While the
best-of-breed approach can have its merits, (see Best of Breed Versus Fully
Integrated Software: The Pros and Cons, Single Source or Best of Breed- The
Debate Continues, and Pure-Play CRM Vendors: Choose an Integrated or Best of
Breed Solution?), we believe it consistently leads to additional integration
costs and complicates service and support arrangements. Interfaces between
components like ERP, CRM, WMS, MES, or e-business usually require
significant tailoring. This can be a barrier to future changes as modified
code needs to be further revised which is notoriously time consuming,
costly, and risky. Moreover, these concoctions can also have a different
"look--and-feel" across the range. For a more detailed discussion see
Integrated Solutions: Look before You Leap.
Source : IPOMS.
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