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AKL Project

AKL Project. Productivity Improvement. Doug Binks 1/22/09. ISyE 6202, Warehouse & Distribution Science. The information, data, and images provided are sensitive. They are provided for use within the Project. Any other use requires specific permission from Georgia Tech / Walgreens.

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AKL Project

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  1. AKL Project Productivity Improvement Doug Binks 1/22/09 ISyE 6202, Warehouse & Distribution Science

  2. The information, data, and images provided are sensitive. They are provided for use within the Project. Any other use requires specific permission from Georgia Tech / Walgreens. ISyE 6202, Warehouse & Distribution Science

  3. Presentation Outline • Today’s Objective • Doug • Walgreens • Anderson DC • AKL • Data • Project Objective • Questions ISyE 6202, Warehouse & Distribution Science

  4. Presentation Rules Presentation Rules Ask Questions ! Ask Questions !! Ask Questions !!! ISyE 6202, Warehouse & Distribution Science

  5. Introduce the Company, Distribution Center, and Department that will be the focus of the Project. • Provide data about the Department • Answer questions Today’s Objective ISyE 6202, Warehouse & Distribution Science

  6. Douglas J. Binks, P.E. • Industrial Engineer, Walgreens Distribution Center, Anderson, SC • BSME, MBA. • Experienced in operating, designing, constructing, and starting up automated distribution centers totaling more than 8,000,000 sq. ft. and $800,000,000. • Six years with Walgreens. Started up Perrysburg, OH and Anderson Distribution Centers. • Primary contact between Walgreens and the project. Doug ISyE 6202, Warehouse & Distribution Science

  7. Aircraft manufacturer Doug ISyE 6202, Warehouse & Distribution Science

  8. SCUBA and underwater photography instructor Doug ISyE 6202, Warehouse & Distribution Science

  9. 1901 – first store opened • $59 Billion - 2008 sales • 240,000 employees • 7,131 operating locations in 49 states, the District of Columbia, Puerto Rico and Guam • 6,636 drugstores • 596 more than last year • Deerfield, IL - Headquarters Walgreens ISyE 6202, Warehouse & Distribution Science

  10. Why are we here? • Corporate wide productivity projects • Implementing Bucket Brigade in 86% of pick aisles • - most are long, high volume, stable, uniform pick distribution • - problems with short aisles • Anderson has short aisles, lower volume, need to move labor • a • Called to get advice • a • Perfect project for the class Walgreens ISyE 6202, Warehouse & Distribution Science

  11. Walgreens ISyE 6202, Warehouse & Distribution Science

  12. Seven Generation One Distribution Centers • Carton flow rack, manual restocking • Split Case pick into tote • Pick-to-light directed • Full Case pick-to-belt, manual restocking • Sortation – 200 cases per minute • Extensive conveyor systems • Up to 1 M square feet, 50 foot ceiling height Walgreens ISyE 6202, Warehouse & Distribution Science

  13. Four Generation Two Distribution Centers, added: • Full case pick-to-belt, AS/RS restocking • Split Case picking, AKL restocking • 700,000 square feet, 90 foot ceiling height • 21% increase in LPH Walgreens ISyE 6202, Warehouse & Distribution Science

  14. The third generation Distribution Center was designed to achieve three goals: • Increased Productivity (35%) • Increased Inventory Accuracy • Provide employment for people with disabilities (30%) Anderson DC ISyE 6202, Warehouse & Distribution Science

  15. Features: • Split Case pick, carousel, part-to-man • Tote induction, lid closing automated • Full Case pick-to-AGV • Cart delivery to store • 700,000 square feet, 100 foot ceiling height • Split Case pick, AKL restocking • 13 miles of conveyor Anderson DC ISyE 6202, Warehouse & Distribution Science

  16. automatisches Kleinteile- und Behälterlager A K L AKL Walgreens AKL is intended to pick product that has a velocity greater than three tubs per day. 42% of the Team Members have a disclosed disability ISyE 6202, Warehouse & Distribution Science

  17. Most of the 20,000 products that are sent to the store are sent as individual items – not a full case of the item. • Saves shelf space • Avoids product life issues • There is no “back room” AKL ISyE 6202, Warehouse & Distribution Science

  18. Products are removed from the manufacturer’s case and put into a tub for storage. There is one tub size. AKL See: Tub Dimensions.doc ISyE 6202, Warehouse & Distribution Science

  19. Products are picked into a tote for shipment to a store. There is one tote size. AKL See: Tote Dimensions.doc ISyE 6202, Warehouse & Distribution Science

  20. The tote is collapsed for the return trip from a store. AKL See: Tote Dimensions.doc ISyE 6202, Warehouse & Distribution Science

  21. The AKL stores tubs and moves them into pick locations, when needed. The pick positions are three tubs deep. AKL See: AKL Pick Location dimensions.doc ISyE 6202, Warehouse & Distribution Science

  22. AKL ISyE 6202, Warehouse & Distribution Science

  23. The Pick-to-Light system (PTL) displays the item to be picked, quantity, and the tote to pick to. AKL ISyE 6202, Warehouse & Distribution Science

  24. The pick can be from either side of the aisle. AKL ISyE 6202, Warehouse & Distribution Science

  25. Pick location numbering scheme: Tote Induct Point Conveyor and number flow AKL See: AKL Pick Locations.xls ISyE 6202, Warehouse & Distribution Science

  26. Looking down aisle, there are two conveyors and five pick positions. The one under the conveyor is always tier “A”. The one above “B”. The three behind are “C”, “D”, and “E”, bottom to top. AKL Totes being picked into are on this non-powered conveyor. Totes and tubs are circulated on this powered conveyor. There is room for three tubs in each pick location. See: AKL CrossSection Pick Levels.doc ISyE 6202, Warehouse & Distribution Science

  27. Pick flow drawing AKL The theoretical loop capacity is 1,543 cases / totes per hour See: FlowDrawingAkl.pdf ISyE 6202, Warehouse & Distribution Science

  28. AKL Show: AKLmachine.wmv ISyE 6202, Warehouse & Distribution Science

  29. AKL Show: TubReplen.wmv ISyE 6202, Warehouse & Distribution Science

  30. AKL Show: ToteInduct.wmv ISyE 6202, Warehouse & Distribution Science

  31. AKL Show: Picking.wmv ISyE 6202, Warehouse & Distribution Science

  32. The Distribution Center was designed to serve 800 stores. From 1/12 – 1/16, it was serving 405. We are adding 124 stores between 1/19 and 2/13. Data ISyE 6202, Warehouse & Distribution Science

  33. Data has been CAREFULLY gathered for the project. It may, or may not, be sufficient. It may, or may not, be correct. Data ISyE 6202, Warehouse & Distribution Science

  34. Already discussed: To be discussed: Tub Dimensions.doc qryAklSubset3_1090113.txt Tote Dimensions.doc qryAklSubset3_1090114.txt AKL Pick Location dimensions.doc qryAklSubset3_1090115.txt AKL Pick Locations.xls qryAklSubset3_1090116.txt AKL CrossSection Pick Levels.doc qryItemMaster_1090113.txt FlowDrawingAkl.pdf qryItemMaster_1090115.txt AKLmachine.wmv qryItemMaster_1090116.txt TubReplen.wmv qryOutputPick_1090112.txt ToteInduct.wmv qryOutputPick_1090113.txt Picking.wmv qryOutputPick_1090114.txt qryOutputPick_1090115.txt qryOutputPick_1090116.txt tblProdActionCodes.txt tblSlots4Day1090113.txt tblSlots4Day1090115.txt tblSlots4Day1090116.txt Data ISyE 6202, Warehouse & Distribution Science

  35. Mon. Tue. Wed. Thur. Fri. 1/12 1/13 1/14 1/15 1/16 Lines 48,944 50,657 52,644 50,039 48,099 Hours 268 286 261 236 246 Data ISyE 6202, Warehouse & Distribution Science

  36. There are four inventory snapshot files. WIC = Item number CountOfQty = number of tubs in AKL AvgOfQty = average quantity per tub 50 tubs in “home” aisle Data qryAklSubset3_109011x.txt ISyE 6202, Warehouse & Distribution Science

  37. 1 There are three item master files. There is very little change from day to day (except new items). A family consists of one or more “OpStdy” groups. Data qryItemMaster_109011x.txt Our preference is that a tote contains only one family group. However, you’ll see that we are currently mixing these groups: Group 1 – 1, 2, 3, 4, 6, 7, 8, 9, 10, 11, 12, 13, and 17 Group 2 – 5, 18, 19, and 20 ISyE 6202, Warehouse & Distribution Science

  38. 2 Data qryItemMaster_109011x.txt ISyE 6202, Warehouse & Distribution Science

  39. 1 Data qryOutputPick_109011x.txt There are five pick files. They give details for all picking activity for the day. PCD = Process Cycle Date Orders are received late in the afternoon. The computer process to plan all of the activities takes 4-5 hours. Order picking for tomorrow’s PCD starts tonight, after order processing is complete. ISyE 6202, Warehouse & Distribution Science

  40. 2 Data qryOutputPick_109011x.txt Tote = the “license” plate number on the tote Each line in the file is one “pick” into that tote. Often the pick is more than one each. We track and calculate productivity in lines per hour per person. The second line in the spreadsheet picks a quantity of three into tote 101015836310. Picker TM-9 receives credit for picking one line. ISyE 6202, Warehouse & Distribution Science

  41. 3 Data qryOutputPick_109011x.txt Aisle, Section, Tier, Position The line was picked from location TK 03 B 25. ISyE 6202, Warehouse & Distribution Science

  42. 4 Data qryOutputPick_109011x.txt Store, Item, Action, Time The pick was three of item 571895, completed at 11:29:40. Time is the time they completed picking all orders in the section. It is going to store 1015. At the completion of the pick, the tote was “passed” to another pick. See tblProdActionCodes.txt for an explanation of the actions. ISyE 6202, Warehouse & Distribution Science

  43. 1 The Item is picked from the dedicated Aisle, Section, Tier, and Position that is given. Changes in dedicated positions are not easy to make, and therefore are not done often. Limitations of the pick-to-light system also make it very difficult to have more than one dedicated pick position. Data tblSlots4Day_109011x.txt ISyE 6202, Warehouse & Distribution Science

  44. 2 Products from the same family are dedicated to adjacent positions, forcing products from the same family group into the same tote. This is done to facilitate put-away at the store. We are currently dedicating all of the pick locations associated with an induction point to one family. Data tblSlots4Day_109011x.txt ISyE 6202, Warehouse & Distribution Science

  45. To improve order-picking in the AKL Module Balance work flow: 1. Some aisles have much more work than others. This is because skus are stored by product family so that skus from the same product family will likely be picked into the same tote, thereby saving time in putaway in the retail store. This imbalance requires that workers be moved frequently from one aisle to another. Project Objective ISyE 6202, Warehouse & Distribution Science

  46. To improve order-picking in the piece-pick area Balance work flow: 2. Work is not balanced within the aisle. This results from a confluence of several factors. First, no sku may be stored in more than a single location in the flow rack, because the pick-to-light software does not support multiple pick locations for a sku. The skus in each side of flow rack are restocked by two AS/RS cranes (to increase throughput and to provide redundancy). The most popular skus in each aisle are stored in the center of the aisle so that, if one crane is out of service, then the other one may be able to continue to restock skus. (If the popular skus were at one end of the aisle, then if the crane on that side went down, those skus would be unavailable to the stores for a week.) Project Objective ISyE 6202, Warehouse & Distribution Science

  47. To improve order-picking in the piece-pick area Balance work flow: 3. Work is dynamically unbalanced. There are three induction points along each aisle, but each can be blocked by 4-5 totes. This means that a worker must keep an eye on the induction point and sometimes come back to free it. (If a tote is blocked, it waits for a few minutes before circulating and returning later.) But when circulating, there is a chance that it is blocked by other totes trying to enter other induction points and so recirculation can take varying amounts of time, which can delay the progress of the aisle. Average delay is 3–5 minutes. Project Objective ISyE 6202, Warehouse & Distribution Science

  48. Ideas for project -- Explore how bucket brigades can be adapted to work under existing conditions. The goal is two-fold: Improve flow of product within each aisle; and improve coordination amongst the aisles. -- Evaluate assignment of product families to aisles. Can this be improved to reduce bottlenecks and make bucket brigades work better? -- Evaluate the benefits of storing SKUs in multiple locations. -- Loop capacity Project Objective ISyE 6202, Warehouse & Distribution Science

  49. How do you get additional data? • How do you schedule a visit? • How do you ask questions? Questions ISyE 6202, Warehouse & Distribution Science

  50. Thank You ISyE 6202, Warehouse & Distribution Science

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