Brian Dreckshage, CFPIMSenior Managing ConsultantBKD, LLP

AgendaIntroduction

Important Points

Lean Overview

Foundation – Storage Techniques

Applying Lean Tools to the Warehouse

Summary

IntroductionAbout me

What we are not going to discuss

• Inventory

What we are going to discuss:

• Application of lean tools

Important PointsTime constraints allow us to focus solely on some lean tools

Lean is a people and culture driven process…what we discuss will not make your warehouse lean

During this time, think about how you can involve your warehouse people in applying these tools

Before we start, what question do we need to ask and answer?

Why lean the warehouse?

70%1%1%28%0% 1. Everyone else is doing lean

2. We want to lower our costs in the warehouse3. I’m being pressured to do something 4. I want to change how we work so everyone does

things my way.5. We want to service our customers better

Lean Overview – the constant and relentlesspursuit of waste reductionSeven Wastes:

OverproductionInventoryRepair/rejectsMotionProcessingWaitingTransport

Foundation –Storage Techniques

Typical Warehouse Waste

Group similar items together

Use separate locations for each SKU

Clearly mark locations – aisles, racks,shelves and bins

Good and Bad Setup

Store by Velocity

Store items Vertically

Location sizes based on max inventory levels

Vertical

Not Vertical

Vertical Storage

Store items within easy reach of pickers

Store heavy items down low

How well do your storage techniques work? How long does it take you to train a new picker?

17%19%31%28%5% 1. We don’t train new pickers

2. 1-2 days3. 3-5 days4. Two weeks5. More than two weeks

Applying lean tools to the warehouse

Lean Tools- 5S

- Process Mapping

- Standard Work

- Slotting

- Cross Slotting

- Workload Leveling

5SIn a nutshell, the purpose of 5S is to clean and organize the warehouse – facility, inventory and equipment, standardize this into everyone’s daily routine, including a mechanism to sustain this as a way of life

Part of this as it applies to the warehouse is in keeping “Unnecessary” people out of the warehouse

5S?

Process Mapping

Standard WorkIn the warehouse, standard work refers to a standard operations routine

Establish the “best way” to perform various warehouse operations

Setting cycle times, etc. (if applicable) is done in workload planning

Slotting

How many of your warehouses use slotting?

23%17%13%8%40% 1. We do not use slotting

2. We have slotted once3. We perform slotting yearly4. We perform slotting monthly5. Before today, I did not know about slotting

X Slotting

Workload Leveling

Visual Control

SummaryLean tools can be applied to a warehouse

If you choose to do lean, what is the expected outcome?

Carefully choose the tools that you use, there is no definitive lean model

Lean is a people and culture driven process

Questions?Please feel free to contact me:

bdreckshage@bkd.com

dreck@yahoo.com