Ceramics Warehouse Optimization January2012 (Update 06/03/2012)

1. CeramicsWarehouseOptimizationJanuary2012(Update 06/03/2012)

2. Optimization directions • Ceramicswarehouseoptimization: • Directions: • Improveorganization(JP Cabrera+Max Dos Santos) • Orderpreparation flow : define efficient process + standardize • Outbounds Dock usage : 8 docks for a betteractivity concentration • Replenishment : alongeachaisleinstead of a central area • Improvestorage(JP Cabrera+Dominique Collot) • Define all external areas close to the building for storage • Move far externalstorage areas close to the warehouse: • Leroy Merlin in the externalstorage areas • The restinside the building, function of ABC classification • Full palletproductsmovings close to the docks • The rest in the racks, function of ABC classification

3. Pickingarea (done in Aug.) C class B class A class New Produc t s After sales Area

4. Reserve area (Stacks) A class (20% items) Overflow Area

5. Reserve area (Racks) C class(45% items) Obs + SAV Area 5% items B class (30% items)

6. Reserve area (All) A class (20% items) C class(45% items) Obs + SAV Area 5% items B class (30% items)

7. Reserve strategies (simplified) INR INS INT RIR INB EXB

8. North Park Reserve area (Target) North Park = All items for Leroy Merlin excluding carton packagedmaterial Verylowmovingmaterial in the PND area

9. Preparation of the internalstoragespace • Directions: • I propose thatwe manage the dismantling by ourselves: • We have the knowledge, and wealreadydidcartridge racks dismantling • Weneed 2 temporary people, 4 weeks • Method: • Wewillstart by the racks on the top left corner (area IPIL3) to create free space • thenwe continue with the racks on the top right (the rest of IPIL3) • and then, the racks on area IPIL1 in the drawing : • At the end becausethere are manyproducts to move to free spaces • Wewill not change the set-up in SAP during the dismantlingperiod: • Wewill block the cells to avoid entry • Wewillremove the productsthat are stored in the cartridge racks • Place them in a « virtual » stacksidentifiedliketoday: • Example: parts thatstored in RAC1-01 todaywillbephysicallytransfered to an area on the floor, named and identified RAC1-01 • As soon as a rack isdismounted, itbecomes a virtual area available for the products of the next rack to bedismounted • Weloop on thispreviousactivities till the end of the dismantling

10. New testingenvironment • Directions: • The testing in the « Quality » environmentiskey to be sure thatwedefineperfectly the set-up to bemigrated to the « Production » SAP system • Method: • Phil, George: set-up the new strategyenvironment in the Quality system • JP and Dominique : define the list of articles in the test-playing • JP and Dominique: testingswith the help of George • Inboundsinto blocks, into racks, into the North Park • Pickingreplenishment • Outboundsfrom blocks, racks, North Park: • Full pallets • Mixed pallets • Returns

11. SAP layout migration Current strategies: Projected strategies: Ideal scheme Currentstorage ABC classification Bins Reference data table Strategies data table To bebuiltwith help of WM expert

12. ABC reserve Project team • Steering comitee: • Laurent Daraignez, projectsupervisor • Udo Wessels, consultant • Jean-Pierre Cabrera, project manager • Phil Timmis, part time consultant, WM expert • Sylvie Leobardy, part time consultant, WM expert • Project members: • Jean-Pierre Cabrera, project manager • Dominique Collot, WM supervisor • Nelly Vezin, WM local team • IM : • WłodekHałas • Garry Powers

13. Pictures 22/02/2012 Dismantling Before Before 07/03/2012 07/03/2012 IPIL5 ready Dismantling Painting IPIL3 and 4 Painting IPIL3 ready (INT) Painting IPIL3 ready (INT)