D Problem Statement M • It is taking longer and costing more to pick customer orders, it is happening in the APL picking area and impacts Wincanton, APL & Paragon, The APL pick rate is not being achieved while picking on days, nights and weekends we are using too many A hours to pick orders. the budgeted pick rate is 64 cases per hour and we are achieving 30. Monitored over the last six weeks. The reported KPI YTD is 99.75% for picking accuracy (Wk 19). Also the perception is that we are losing stock I internally.
• DEFINE PHASE D Desired Situation • We need to pick 64 cases per hour to break even it currently takes about twice as long as the required time, need remain 48 hours in front as required by the customer through the peak period in volume. Increase efficiency and accuracy of the physical picking process. Achieve and maintain the KPI's
• DEFINE PHASE D SIPOC
• DEFINE PHASE D Stakeholder Analysis Stakeholder Stakeholders Stakeholder Project level of Current Explanation of Score (H = 3, Impact On influence on Attitude Action Plan For Stakeholder current Stakeholder M = 2, L = 1, + Stakeholder Success of Toward Stakeholder. Attitude = 1, 0 = 2, - = (H, M, L) Project (H, M, Project (+, 0, 3) L ) - ) Review process H H + aware / critical 7 Warehouse Mgr implement changes accurate recording of information & H H + aware / critical 7 uniformed across all shifts. Implement Shift Mgr changes unaware, closer supervision, H H 0 consultation required 8 increase in work load APL Pick team / critical (perception) Parragon / APL L L 0 unaware non critical 4 None at present aware involved cost hours capture v H L + 5 Finance Team & hours capture costs GM / Ops Mgr H L + aware 5 Gate reviews Critical for successful Review pick H L + implementation of 5 sequence moving Systems Team Ldr any solution. sku's, unaware/ records and reports accuracy closer management / Gary Ball H H + KPI's and generates 7 education, investigations, internal & external
• DEFINE PHASE D In / Out Scope Analysis In Scope Out of Scope •APL Customer requirements •The operation is in control of picking operation •Scheduling / customer delivery times – 48 hrs •Training •Customer requirements (rework, pallet •Resource types SPP,ROD) •Equipment – Reach / SLOP •Warehouse layout – pick-desk, wrap machines etc… •Floor space/marshalling •Equipment available •Track movement •MCS breakdowns •Releasing loads (0600 & 18:00) •IT issues/development •When stock check / investigation completed •Picking walk sequence •Motivation around APL contract •Re-work •Internal movements – low bay
•Recording pick hours •Checking load
• DEFINE PHASE DDetailed Process Map
• DEFINE PHASE D Project Risk Safety Service Cost • Increase pick rate, but could decrease pick accuracy. • Shift managers could be inclined to hide hours. • Could generate more work with little or no benefit • Little or no financial benefit. • Pick rate increase & clear definition of R.O.D.’s & hours capture, Equipment could lead to an increase in APL costs. • Increase APL pick rate could decrease Purina pick rate current & any future pick operations planned. • Could impact pick rate for both customer leading to failed deliveries. • Accident / incident increase (P.V.I.) – increase activity in the picking area.
• DEFINE PHASE D Financial Benefit (Period 4) Period 4 Stats - Team Week No Pick Cases Pick Rate Hrs Act. Hrs Bug. 14 6016.00 25.96 231.70 85.94 15 4531.00 31.74 142.75 64.73 16 4106.00 19.64 209.00 58.66 17 5034.00 26.11 192.75 71.91 Total 19687.00
• DEFINE PHASE D Cost Analysis • Total Cases picked – 19,687 x 0.18 = £3,543.66 • Actual Cost – 776.2 hours x £8.85 = £6,869.37 • Difference = £3,325.71 • Actual cost per case = 0.34p • We need to reduce the cost per case by 0.17p to make money
• DEFINE PHASE D Hidden costs….. • Number of accidents from picking APL v Purina for the last 12 months with severity lost time etc • APL 2011 = 3. (1 NLT. 1 LT. 1 RIDDOR). All insignificant or minor FA • NPPE 2011 = 2. Both NLT. 1 insignificant. 1 minor FA. • APL 2012 = 1. NLT. Insignificant. • NPPE = None. Number of incidents with damaged racking / beams from using the slop trucks in the racking, there has been an increase in the need to replace uprights & beams • APL 2011 racking damage = 2 • NPPE = None • APL 2012 = 3 • NPPE = None • £600 per day for 3 uprights Plus £200 for scissor lift = £800 for 3 uprights
• DEFINE PHASE D Voice Of The Customer Replen process not being followed. Pallets often found in RP1, even though they have Been keyed off on WMS. APL pick desk has to go looking for the pallets. Manhattan is a long winded system and a lot of departments are involved, sometimes Just to do one job. Equipment – The forks on the V11 trucks are not long enough. 2 of the trucks don’t Go to D level, so you have to change trucks. Pick face layout is inefficient – Travel time, traffic, pallets blocking isle. Pick face - Heavy cases found in D level, while lighter cases found in B level Rework – Instructions are poor and not clearly defined. Pick face is often congested with both operations running. Toys R Us – Always have the same issues on order download (duplicate lines, incorrect Bundle quantity) Large amount of de-al ocate, then re-allocate pick faces
D M What Are We Measuring ? A • The APL pick rate. • The unit of measurement is cartons per hour. I • From pick ticket issue – to pick ticket return. • We are only looking at things that the “Picker” is in control C of.
• MEASURE PHASE M People Productivity • We are measuring the ratio between cartons picked and employee hours required to pick them. • Total cases / Total hours (including desk) to pick & prepare for customer delivery = Cases per hour for shift & Team overal . • The higher the value the better.
• MEASURE PHASE M Current State.
• MEASURE PHASE M Potential Causes. • Ineffective communication. • Time & resource management. • Priorities. • Change management. • Training / Understanding (Empathy) • Equipment. • Pick face layout. • Ergonomics. • Toys R Us – impact. • Both customer volumes.
• MEASURE PHASE M Data Col ection Plan. Name Operational Unit of Frequency Who Method Data Source How will data Status definition Measurement collects be used Shift Cases v hours Each SM / TL’s Team Work out Ongoing Managers Shift Leaders cases per hours. Detail short fal s Pete Location v Once Systems System Hotspot Planned start Yates visits identify driven ?? pick date 2nd July. idle locations / picking Travel time locations Joe Hours v cost By shift Cooper Rachel Cost per case Weekly Ops Team Weekly Invoicing Ongoing Kent Prod. Measure Planner Cost per case.
• MEASURE PHASE M Output Measures • Measurement – cases per hour. • Target 64 cases per hour. • Measure by shift (12 hours) SM’s per hour. • Total Cases Picked by Hours used Picking & Pick Desk.
• Robust, accurate, detailed measurement of cases per hour.
• MEASURE PHASE M Financial Justification sign- off • Project start date Cost Per case is 34p • Pick Rate at project start date is 30 cases per hour
• ANALYSE PHASE A CAUSE AND EFFECT ANALYSIS LAYOUT PROCESS SYSTEM Pick rate Paper not Picking PF achieved Allocation Manual Poor Putaway PFM communication WMS/MCS /MH Travel Congested pick reconciliati distance face on Replens not confirmed Rework SKU’s Overhang Resource on wrap Non- movers Targets Stock found in Nestle PF’s Training Attitude Understanding
• ANALYSE PHASE A Pick Face Data • Number of cases picked since 2011 = 91,271 • Average No. of picks per location = 44 • Highest amount picked from location = 1,050 • Lowest amount picked from location = 1 • Number of inefficient locations removed = 265 • Number of pick locations available = 1,931 • Number of non/slow movers identified = 360 • Number of empty locations = 105 • Potential number of empty locations = 465
Replens for low bay • ANALYSE PHASE Pick Destinations For Wilkinson’s A E156 RP1 E E002 E048 E106 D144 D048 D100 D D002 C144 C048 C100 C C002 B154 B110 B052 B B006 A RP2 A034 Pick Desk Ful pal et pul s APL MM APL Pick Desk
Replens for low bay • ANALYSE PHASE Pick Destinations For Asda A RP1 RP2 Pick Desk Ful pal et pul s APL MM APL Pick Desk
Replens for low bay • ANALYSE PHASE Pick Destinations For Rework A RP1 RP2 Pick Desk Ful pal et pul s APL MM APL Pick Desk
Replens for low bay • ANALYSE PHASE Pick Destinations For Toys R Us A RP1 RP2 Pick Desk Ful pal et pul s APL MM APL Pick Desk
• ANALYSE PHASE A APL Replenishment Data
• ANALYSE PHASE A APL Pick Release Units (Day Shift)
• ANALYSE PHASE A APL Pick Release Units (Night Shift)
• ANALYSE PHASE A Available FLT Equipment Still Truck can reach level Lansing Truck can only reach A, B, C, D level A, B, C
• ANALYSE PHASE A Pick Face Weight Categories Reserve Reserve Reserve E and F level pallets are wrapped 21 SKU’s exceeding 15kg 4 SKU’s between 10kg & 15kg Pick Case weight definitions 10 SKU’s exceeding 15kg Pick 4 SKU’s between 10kg & 15kg 21 SKU’s under 5kg Pick Toys R Us (Fast Movers & ‘Special’ orders) Pic k
• ANALYSE PHASE A Period 6 Pick Stats Period 6 Stats - Team Week No Pick Cases Pick Rate Hrs Act. Hrs Bug. 22 8232 37.02 222.36 128.62 23 3433 39.23 87.50 53.64 24 6753 46.54 145.10 105.51 25 14594 48.33 322.65 228.03 26 7163 55.52 129.00 102.32 Average 8035.00 45.33 181.32 123.62 Total 40175.00
• ANALYSE PHASE A Pick P 4 v P 6 •P4 19,687 cartons picked. •P6 40,175 cartons picked •776.2 hours used •906.6 hours used •25.36 cases per hour •44.31 cases per hour •0.34p per case •0.19.9p per case • Wk 25 picked 14,594 with 322.65hrs – 45.23 cases per hour. •0.195p per case.
• ANALYSE PHASE A Pick rate ops.
• ANALYSE PHASE A By team & period
D M A I C
• IMPROVE PHASE I Improvement Plan Tree Diagram Department awareness Improve Communication Phone cal backup for Pick desk requests Systems Support Improve Support Improve Inventory Support Pick Rate Improve Review Processes Process Review Training Pick Face Management Improve Layout Case Weight Control
• IMPROVE PHASE I Improve Communication • APL Pick Desk make back up phone to Systems when sending replen requests • Rework Co-ordinator informs Systems when Rework SKU’s are required (Date) • Rework Co-ordinator specifies Customer name on Rework SKU’s which helps with Pick Face Management • Systems track replenishments and inform Operations if replens have not been keyed off on RDT or physically put in pick face. • Collaboration between Inventory and Systems to ensure a ‘rolling’ pick face, so that there are always available pick locations. • Any issues discussed in morning meeting and noted on the board. The issue(s) are not removed from the board until resolved. • Issues with Toys R Us (duplicate lines, incorrect Bundle quantity) have been reduced to almost zero. Communication with APL and Parragon
• IMPROVE PHASE I Improve Process Team leaders now ensure that all Pick Sheets allocated to pickers are signed with date and time details. It is now easier to identify pickers during any picking investigations and can match names to login id’s on the MH system
Pick Destinations For Toys R Us (OLD) TOYS R US E Isle A LEVEL RP1 TOYS R US B Isle B LEVEL • IMPROVE I TOYS R US A Isle A LEVEL RP2 PHASE Pick Desk Ful pal et pul s APL MM
Replens for low bay Pick Destinations For Toys R Us (NEW) TOYS R US E Isle C LEVEL TOYS R US D Isle C LEVEL • IMPROVE I RP2 PHASE Pick Desk Ful pal et pul s APL MM
Replens for low bay Pick Destinations For Rework (OLD) RP1 Rework Order Rework Order Rework Order Rework Order • IMPROVE I RP2 PHASE Pick Desk Ful pal et pul s APL MM APL Pick Desk
Replens for low bay Pick Destinations For Rework (NEW) RP1 Rework Order • IMPROVE I RP2 PHASE Pick Desk Ful pal et pul s APL MM APL Pick Desk
D M A I C
• CONTROL PHASE I Pick Face Management Pick face tool available to run housekeeping reports to help manage pick faces • Pick faces no longer required • Locations set up incorrectly • Available locations • Identify pallets to be consolidated • Identity Pick Face moves • Set up Low to High Bay moves • Identify damaged locations • Weight Control
• CONTROL PHASE I Pick Face Management Weight Control The Weight Control option is used allocate pick locations based on case weight: i.e. Light cases are allocated to D level, Whilst the heaviest cases are al ocated in B level
• CONTROL PHASE I This PFM report identifies Pick Ticket, Customer and Weight Category
• CONTROL PHASE I Implementation Of Control • Ownership of pick face layout. • Any issues are recorded on the APL DOR. • Pick rates are reviewed weekly by warehouse manager • Also, each shift by the shift manager. • Cost per case reviewed annual y to account for increase in charge costs.
• CONTROL PHASE I Operations Team Pick Rate 48 www.wincanton.co.uk
• CONTROL PHASE I Cost per picked case 49 www.wincanton.co.uk