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IENG 471 - Lecture 16. Warehouse Operations – Facility. Warehousing Terms. SKU – Stock Keeping Unit Product in (packaged) form for warehouse operations Value-Added A modification to the product to obtain business
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IENG 471 - Lecture 16 Warehouse Operations – Facility IENG 471 Facilities Planning
Warehousing Terms • SKU – Stock Keeping Unit • Product in (packaged) form for warehouse operations • Value-Added • A modification to the product to obtain business (a product enhancementfrom the customer’s perspective or an enhancement to the customer’s experience in getting the item) • Cross-Docking • Transforming incoming product to outgoing product without moving the product to production or storage • Spotting • Locating and positioning a carrier vehicle within the loading / unloading areas of the facility • ASN – Advance Shipping Notice • Information about a shipment sent from the shipping firm to the receiving firm, directly through EDI (electronic data interchange) IENG 471 Facilities Planning
Warehousing Metrics • Order-picking Improvement • Productivity Improvement • Space Utilization Improvement • Value-Added Improvement • Safety Improvement • Personnel & Equipment • Cargo • Most plants do not make their money in the warehouse… • For some, the warehouse IS the plant! • Distribution centers (Target, x-Mart; grocers; airports; …) • Shipping businesses (Fed Ex, UPS; shipping ports; movers; …) IENG 471 Facilities Planning
Warehousing Functions • Receiving • Quality Inspection • Repackaging • Put-away • Storage • Order-picking (postponement) • Sortation & Accumulation • Packaging & Shipping • Cross-Docking • Replenishment IENG 471 Facilities Planning
Receiving Operations • All or a subset of the following sequence: • Inbound delivery scheduling and information exchange • ASN verification and confirmation • Delivery arrival and spotting • Vehicle secured at the receiving dock • Seal inspection / breaking • Initial delivery inspection – accepted / refused • Merchandise unloaded (unitized or loose) • Unloaded material is staged for final inspection • Determination & disposition of carrier damage • Load storage & over-pack disposal activities IENG 471 Facilities Planning
Shipping Operations • All or a subset of the following sequence: • Order accumulation & packing • Order staging for loading / labeling & out-going inspection / counting • Customer order & shipping release reconciliation • Spotting carrier to a dock • Securing carrier vehicle at dock • Loading vehicle • Dispatching the vehicle IENG 471 Facilities Planning
Facility Accommodations for S & R • Carrier spotting areas • Staging & inspection areas • Dock levelers & locking devices • Loading / unloading areas • Palletizing / repackaging space • Information system access for ASN / EDI • Carrier personnel space IENG 471 Facilities Planning
Shipping & Receiving Analysis • Analysis of requirements for: • What is to be received and shipped • Peak product volumes • Timing of peaks, and growth • How many docks to be planned • Carrier vehicle quantities • Timing of arrivals & departures • What kinds of dock equipment to be used • Carrier vehicle types and variants • Environmental conditions for loading / unloading • How much space is required for shipping and receiving activities • SKU container volumes • Shipping debris volumes • Material handling equipment space • Carrier vehicle dock access and spotting space • Carrier personnel space IENG 471 Facilities Planning
SKU Analysis IENG 471 Facilities Planning
Truck Access • Service roads should be at least 24 ft wide if two-directional, and at least 12 ft wide if the road is one-directional • Add at least 4 ft to the road width if gate openings are needed • Provide a 4 ft wide walk, physically removed from the road, if pedestrian traffic is required along service roads • Increase gate openings by 6 ft if pedestrians will pass through • Right angle intersections should have at least a 50 ft radius • Prefer counterclockwise traffic circulation because left turns are safer than right turns**(UPS study suggests right turns!) • Truck waiting areas should be designed to hold the maximum expected number of trucks, and should be located adjacent to the dock apron IENG 471 Facilities Planning
90o Apron Space • Aprons are space allotted for spotting a vehicle – maneuvering room to align with the dock IENG 471 Facilities Planning
Angled Apron Space (Finger Docks) • Angled Aprons allow for access to tighter spaces IENG 471 Facilities Planning
Material Handling Equipment Space • MHE Space Is in addition to staging, storage, dock, and personnel space; and allows for maneuvering the MHE vehicle … IENG 471 Facilities Planning
Storage Space Analysis IENG 471 Facilities Planning
Design of Warehousing Space • Similar to design of the rest of the facility: • Efficiency of space utilization should not detract from the function of the facility • Storage space may be allocated similar to production space • Pareto principal (80/20 Rule) • Group Technology applies • Information Systems improve picking operations IENG 471 Facilities Planning
Questions & Issues IENG 471 Facilities Planning