Activity Profiling

8/4/2019 Activity Profiling

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What is Activity Profiling?

Warehouse Activity Profilingis the analysis of historical

sales transaction data for the

purposes of projecting

warehouse activity and

determining storage mode,

physical layout, work flow

processes, and labor andequipment requirements.


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2

Data

INV.

MASTER

Inventory SnapshotsAverage Inventory

Levels

ORDER

MASTER

Order HeaderOrder Detail

ITEM

MASTER

SKU NumberDescriptionItem CubePieces Per CaseCases Per PalletDivisionProduct Group

Item Weight

Item OrderedQtyUnit of Measure


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3

Developing Profiling Reports & Graphs

STEP #1:CONSOLIDATE

&

CALCULATE

Inventory

MasterData

ItemMasterData

OrderData

STEP #2:ANALYZE (Sort / Rank)&

PRESENT

Rank Item

Number

Of Order

Lines

Total

Quantity

Ordered

% Of

Total

Volume

Cumulativ

e Volume

# Pick

Days

Daily Pick

Frequency

1 355 1895 8971 0.5742% 0.574% 57 33.25

2 138SA 1820 7238 0.4633% 1.038% 57 31.93

3 353 1734 6630 0.4244% 1.462% 57 30.42

4 SW95A 1669 5266 0.3371% 1.799% 57 29.28


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How Do You Design aWarehouse?

Two Ways To Designa Warehouse Storage Driven Approach

via Cube Analysis

Picking Driven Approachvia Order Analysis

Storage

Driv

en

Picking

Dr

iven


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What is the Storage DrivenApproach to Design?

PART I:

PART II:

PART III:

Define Your Storage Zones

Design Your Forward

Pick Areas

Define How You Will Plan &

Pick Orders


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Designing a Warehouse

Part IDefine Your

Storage

Zones


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Categorize Items By Cubic Ft of Inventory

.125 1.5 40.0 320.0

Calculate the cubic feet of storage

that each item requires and thenassign it to an inventory

container of the appropriate size.

Cubic Feet of Storage Required For An Item

Multi-Pallet

Drive In

Rack

Pallet Rack

Bin Shelving

Drawers


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Develop an Inventory Container GraphInventory Container Graph

0

5000

10000

15000

20000

25000

0.125 1.5 8 40 320

Cubic Feet of Storage Needed

#o

fSKUs

Now you can begin to think about what storage modes might be

reasonable candidates for the merchandise you are storing

Drawers


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Develop a Pick Size Classification SchemeNext develop a classification scheme for picks based on the size of the pick.Usually designers will use pallet, case, and piece pick sizes

Piece Pick Case Pick Pallet Pick


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Assess the Activity In Each Inventory ContainerInventory Container Graph

0

5000

10000

15000

20000

25000

0.125 1.5 8 40 320Cubic Feet of Storage Needed

#ofSKUs

Assess the activity in the largercontainers to see if there is the possibility

that some of the items should be movedto a forward pick area. The decision willbe driven by the # of such picks in thecontainer and the overall size of thelarger container storage area.

Piece Picks Within the Pallet Inventory Area

0

200

400

600

800

1000

1200

5 15 25 35 45 55 65 75 85 95

Cummulative # of SKU's

#ofPicks

/Day

Piece Pick

ActivityCurve

Move these toCase Storage


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Part IIDefine Your

Forward Pick

Areas

Forward Pick Areas

Reserve Areas


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General Process for Forward Pick Design

Questions that Must Be AnsweredAbout the Forward Pick Area(s):

How many forward pick areas do youneed?

Determine how many SKUs should go onthe pick line

Removing unusual SKUs from the pick line

Sequence the SKUs on each pick line


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% Items

0%

10%20%

30%

40%

50%

60%

70%

80%

90%

100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

% Orders

Complete

Full Case Orders

Broken Case Orders

Overall

Order Completion Analysis By Size of Pick

% Items

0%

10%20%

30%

40%

50%

60%

70%

80%

90%

100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

% Orders

Complete

Full Case Orders

Broken Case Orders

Overall


0%

10%20%

30%

40%

50%

60%

70%

80%

90%

100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

% Orders

Complete

Full Case Orders

Broken Case Orders

Overall

Full Case Orders

Broken Case Orders

Overall


You will likely have multiple forward pick areasFor each Pick Size you need to decide if there are a lot of picksassociated with a relatively small subset of the items. If so, you will

likely want to set up a forward pick area for that Pick Size.

80% of Picks

from

20% of Items

These Items should go intoa forward pick area.


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Determining How Many Items in Forward Pick

Number of

SKUs

% Case

PicksFilled

% Days

Picked

20 33 99

30 46 9740 52 9550 67 9360 73 92

70 79 9080 81 83

90 84 79100 88 68110 92 63

120 92 52130 95 44140 98 33

150 98 25

160 100 22

Number of SKUs

Trade Off:

Space Utilization and Efficiency

0

20

40

60

80

100%

20

40

60

80

100

120

140

160

0

20

40

60

80

100%

% Case Picks Filled% Days Picked

Generally to determine how many items you are going to put in theforward pick area you look at the tradeoff between adding an item into

the forward pick area and the % of additional orders you are then ableto complete in that area.


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Determining How Many Items in Forward Pick

Rank Item DaysShipped

% Of

Frequency(By Day)

CasePicks

% Of Total

Case Picks(541,786)

CummulativeCase Picks

(Out of 104)

1 S118R 104 100.0% 20045 3.6998% 3.6998%

2 S12DC 104 100.0% 10757 1.9855% 5.6853%

3 S23DC 104 100.0% 4732 0.8734% 6.5587%

4 522X 104 100.0% 3212 0.5929% 7.1515%

5 SP2I 104 100.0% 507 0.0936% 7.2451%

6 2091I 104 100.0% 14350 2.6486% 9.8938%

7 3232W 103 99.0% 16270 3.0030% 12.8968%

8 3232I 103 99.0% 16173 2.9851% 15.8819%

9 SPT8W 103 99.0% 8208 1.5150% 17.3969%

10 SP8I 103 99.0% 5385 0.9939% 18.3908%

11 SP8W 103 99.0% 5082 0.9380% 19.3288%

12 P8I 103 99.0% 3345 0.6174% 19.9463%

90

D i i W h


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Part IIIDefine How

To Plan &

Pick Orders


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Wave Planning & Picking ApproachesDaily Order Pool

Orders of this type get released to the floor

and picked in the following manner every Xhours

While designers make assumptions at the start of a design about how thebulk of the orders will be released and picked, the details behind theirthinking are not usually flushed out until the end of the project. They oftenalso wait until the end to define the planning and picking approaches for the

exceptional orders.

Orders of this type get released to the floorand picked in the following manner every Yhours


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Ways in which you can process orders differently

Order Selection Criteria & Groups Rush vs Regular Orders

Geography (West Coast vs East Coast)

Orders Requiring PersonalizedMerchandise

Single vs Multi-Line Orders

Types of Picks Needed to CompleteOrder

Order Cube (Sm Pkg vs LTL vs TL)

Forced UponYou By

TheBusiness

EfficiencyOpportunity


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Assess the Significance of Single Unit OrdersUnits/Order as a Percentage of Total Orders

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0 2 4 6 8 10 12 14 16 18 20

Units Per Order

Cumulative%o

fO

rders

.

One of the greatest opportunities to improve warehouse efficiency is choosinga different mechanism for picking single unit orders from multi-unit orders.

45% of all Orders are single unit orders.


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Deciding on a Picking Approach

Single Order Picking Multi-Order Picking Batch Picking

After the different groups of orders have been identified, the designer has tomake a decision about how each group of orders will be picked.

Order #1Order #2

Sorting Picks at End of Tour


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How Will Orders in Forward Pick Be Picked?

75%

10%5% 5% 3%

1%0%

10%

20%

30%

40%

50%

60%

70%

80%

%o

fTotalO

rders

0.5 1 2 8 32 64

Order Cube (Cu Ft)

Multi Line Order Cube

Good candidates for

Multi Order Picking

Multi-Order Picking Cart

Order #2Order #3

Order #1


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Deciding on a Picking Medium

Radio Frequency (RF)Barcode Picking

Voice Picking

Label Picking

Pick To Light

For each picking approachyou need to decide on amechanism for how picks willbe communicated to pickers.


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How Do You Plan & Pick Different Orders

Small CubeMulti-Line Orders

Order Group Pick Method Pick Medium

Single Line Orders

Multi-Order Picking

Batch Picking

RF Terminals

Labels


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Summary of Warehouse Design Process

PART I:

PART II:

PART III:

Define Your Storage Zones

Design Your Forward

Pick Areas

Define How You Will Plan &Pick Orders


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Observations

Every descriptive tool or technique seems to bebased on a specific need

Profiling/design is less about describing an as

is warehouse, than about saying how it shouldhave been

Its hard to integrate the different descriptivetools and techniques

Can we build a comprehensive, computationaldescription from which all the different needscan be met?


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Model

Schema

Process


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AMPL, AIMS, GAMS, and othermodeling languages incorporate

a reference modelfor the domainof optimization models, and areused to create instancesof

optimization models.


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Can reference models be

developed for the domain ofdiscrete event logistics systems,

or for subsets of the domain, e.g.,warehouses, factories, and

supply chains?

Activity Profiling

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