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FAALC Distribution System Operational Improvements

FAALC Distribution System Operational Improvements. FAA Logistics Center Joe McClure, Darryl Thompson University of Oklahoma Principal Investigators: Tom Landers Shivakumar Raman Research Assistants: Stephanie Cox Aylin Civan, Kelli Robinson

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FAALC Distribution System Operational Improvements

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  1. FAALC Distribution SystemOperational Improvements • FAA Logistics Center Joe McClure, Darryl Thompson • University of Oklahoma Principal Investigators: Tom Landers Shivakumar Raman Research Assistants: Stephanie Cox Aylin Civan, Kelli Robinson • Global Concepts Randy Kirk

  2. FAALC Distribution Center forField Service Parts Profile: • National Distribution Center supporting field locations and local circuit card repair shops • High mix of low volume service parts • Extremely high field system up-time requirements

  3. Reasons for Improvement • Roof Refurbishment & Stock Room Moves An opportunity to review the layout Make improvements where needed • Mini-Load ASRS Hard to Support Parts hard/impossible to find More frequent hardware failures Extremely costly to operate

  4. Analysis and Design • High Level Material Flow Planning • Performance Assessment of the Mini-Load ASRS • Review data and profile activity(inbound, stocking, outbound) • Detailed Design of Stocking and Layout

  5. Previous LSF Layout A & B MINI-load AS/RS Bulk Storage Secure Storage & Other Storage Serviceable Items Repairable Items Bulk & Over-sized Storage Packing Packing Packing Packing Shipping Repack & Crating Receiving Inspection C D E F G

  6. Mini-Load ASRS Assessment • Utilization: 75% • Up-time: 75% • Storage/retrieval cycle time: 1-2 min • Space Utilization: 30% of 12” bins empty < 50% of 24” bin cubic space empty • Costs: Pending Upgrade:$1M O&M:$500K/year

  7. Mini-Load ASRS Assessment • Low Rise System – poor floor-space utilization • Reliability Problems • Outdated Technology • Lots of Unused Bin Space • Costly De-commission the MINI!!!

  8. Overall Material Flow Assessment • 10% of stock(4,100 items) cause 90% of activity • 19,000 items have not moved in 2 years • Travel distances long • Large conveyor little used, blocking flow Need Streamlined Flow!!! Popularity-Based Buffering!!!

  9. Operational Improvements • Considering “80-20 rule”, best practices, & growth: • Centralize operations in south end of LSF (Area G): • Shipping/Receiving docks, Crating, Inspection, & Repack • Centralize Packing in Area G, also • Remove the MINI & the conveyor system • Put high activity items closest to Area G (Area F); put slowmovers further back (Areas E - C)

  10. Additional Improvements • In key areas use carton-flow rack & static shelving to store more in less space • Use wheeled lift-truck or cart traffic in place of conveyor system (more flexible) • Continue with study of Warehouse Management System (WMS) software

  11. Planned Straight-line Flow 90% of Activity A & B TSF Crate Very Low Activity Items Low Activity Items High Activity Items Pack Receive & Ship Growth Secure Storage Inspect & Repack C D E F G

  12. Impact of Improvements • Investment -- $1M • Savings • One Time -- $2M(cost avoidance) • Mini Upgrade:$1M • Roof Refurbishment in D:$1M • Annual -- $500K Fast Payback!!

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