The concept of Lean has roots in mass production, originally in the automotive industry, and most famously, at Toyota. But changes in manufacturing & service industry, along with globalization are creating new challenges for warehouse management. Allowing stock to sit on shelves or store and waiting for an order is no longer a standard procedure.
Many world class organizations have started applying Lean thinking in the warehouse.
Always..
- Observe “Reality at Gemba” & evaluation against Five S & Lean Warehouse.
- To understand the material flow in warehouse (Inbound & Outbound)
Part 1: Warehouse Observations
Typical Warehouse Information
Organization:
- xx Site Manager
- xx Operations Manager
- xx Supervisors
- xx Team Leaders & Workmen
Warehouse Area:
- x sqft Closed space
- x sqft Open space
Average Daily Load:
- x inbound trucks, containers
- x outbound trucks
Material Handling:
- x Hand pallet trucks
- x Fork lift
- Material pallets
- Conventional racks
- x loading/unloading docks
Strengths at Warehouse
Weaknesses – Possibility of Damages
Weaknesses – Material kept on Floor
Weaknesses – Material in Gangway
Weaknesses – Unsafe practices
Weaknesses – Workplaces/ Worktables not organized
Part 2: Lean Warehouse - 10 Golden Rules of Storage
Opportunities for Improvement
5 Freedom
a.Search free
b. Count Free
c. Air Free
d. Climb Free
e. Kneel Free
2 Hygiene Factors
Well Lighted
Well Ventilated
3 Good Practices
First In- First Out
Point of Use Storage
Heavy items at bottom of shelves
Autonomous Maintenance to reduce life cycle cost of equipment
Part 3: Lean Warehouse
Opportunities for Improvement in Layout
- Dedicated value stream flow for better customer service & faster response
- Separate inbound & outbound flows for better productivity & reduced accidents
- Material storage by turnover & type for optimized space & material handling
- Reduction in waste movement & transportation of material to facilitate flow & not to increase inventory
Opportunities for Improvement in Processes
** - to prevent over-ordering & stock-out situations, if within scope of this engagement
Part 4: Supply Chain Improvement
Focus ONLY on Warehouse Improvement
Warehouse is part of Supply chain
If we improve warehouse stand alone
1. We will get substantial, but sub-optimal, benefits
2. Sustainability will be tough
Improvement in Total Supply Chain
Lean Supply Chain Focus
A Lean warehouse will allow organizations to serve customers faster, with less space, less inventory and with more accuracy.
Lean engages everyone, from the bottom to top, in a continuous improvement process. This can be challenging and involve major culture change for management and supervision who are used to solving all problems, and then ‘telling’ staff what to do.