1. Wegmans Freezer Inventory Control MSD #12714 Ben Whipple Emily Burns Tim Hogan Ben Jilson

2. Today’s Agenda Current state  Customer needs  Spec list  Scope Proposed Solutions  Selection matrix  Proposed solution sets Risk Assessment Next Steps

3. Current state

5. Customer needs list Customer Need # Importance (1 high - 3 low)Description CN11 Non-held finished goods should make their way to FF2 in an efficient manner, minimizing the time spent waiting in the freezer. CN22Reduce dripping incidents in the freezer. CN31Reduce impact of dripping in the freezer. CN42Way to ensure finished goods leaving the warehouse have been recorded. CN52Way to record product has entered the finished goods warehouse CN62 Simple way to differentiate between cases that hold varying types of product when coming down spiral 1 and spiral 2. CN71Increase usable space in freezer CN81Decrease need for space CN92Freezer organization that takes into account day to day variations. CN101Ability to quickly locate skid within the freezer. CN112Ability to quickly locate WIP rack within the freezer CN123Take into account changes being made for RSC3. CN132Organized storage location for quality samples while they are in the freezer. CN142Allow quality holds to be easily accessed. CN152Defined owner to provide raw materials to production CN162Defined owner to receive raw materials CN172Ensure QA holds and limited production runs are removed in a timely manner. CN183Defined owner for storage and handling of WIP

6. Spec list Customer NeedSpecNumerical Goal CN1Number of finished goods pallets not on hold<5 at any time CN2Reduction in # of dripping incidents>50% CN3Reduction in Goods damaged by dripping>50% CN4# of pallets not recorded< 5 a week CN5# pallets not recorded< 5 a week CN6# of cases palletized incorrectly<2 a week (How to measure?) CN7# of accessible pallet position10% increase at high volume levels CN8Average number of pallets in freezer (weekly running average)40% reduction CN9System takes into account all possible levels of demandYes CN10Time to find specific skid<30 seconds CN11Time to find specific WIP rack<30 seconds CN12Take into account changes being made concerning RSC3Yes CN13Organized storage location for QA SamplesYes CN14# QA hold pallets not accessible0 CN15Defined Ownership of Raw Material removalYes CN16Defined Owner for Receiving raw materialsYes CN17Defined owner for the storage and handling of WIPYes CN18Defined Owner for Holds (QA and limited production)Yes

7. Proposed Scope This project is to analyze the current operating state of the Wegman's Bakery Freezer, identify process shortfalls that are contributing to the "out of control" state identified by the customer, develop and apply solutions to those shortfalls deemed to be within the control of the client, implement these solutions in a timely and cost effective manner, and develop a plan for sustaining these solutions in a way that results in an "in control" process for the foreseeable future

10. Proposed Solutions

12. Raw Materials

13. Proposed solution set: Raw materials Recommendations  Designated transfer spots  Optimize number of racks  Optimize use of racking  Standard put away rules  Central information board with raw material locations  White boards Considerations  Color coding scheme  Colored paths  More frequent orders  Pallet stacking  Dedicated aisles  Signage  Magnet boards

14. WIP

15. Proposed solution set: WIP Recommendations  Prioritize locations  White boards  Standard put away/pick process Considerations  Color coding scheme  Colored paths  Dedicated aisles  Magnet boards

16. Finished Goods

17. Proposed solution set: Finished Goods Recommendations  Show obvious signal when a QA hold can be removed  Central information board  Designated transfer spots  Optimize number of racks  Optimize use of racking  Remove café support  Standard put away rules  White boards  Magnet boards Considerations  Signage  Color coding scheme  Colored paths  Remove commercial support  Dedicated aisles  Pallet stacking  Analyze effects of reefer availability Case differentiation methods  Different colored tape (group’s choice)  Marker  Stickers  Different colored boxes  Worker training  Better labels

18. Proposed solution set: QA Samples Considerations  Specialized racks  New containers  Signage  Moving storage to QA area Recommendations  Put QA samples in space pallets cannot fit  Standardize put away rules

19. Risk Assessment

20. Next Steps Detailed Design PhaseWeek 6Week 7Week 8Week 9Week 10Week 11 Develop pallet position layout plan Develop put away process Analyze use of flow racks, number and process Create Detailed Plan for implementing Case Marking Evaluate RM order policies, determine impact, suggest optimal order frequency Design White Board/Magnet Board use policy Evaluate Feasibility of customer container/racking for QA samples Define and Document processes and declare owners Create signage and marking conventions for the freezer Develop freezer organization changeover plan Develop retraining plan Evaluate effect of reefer delays of varying amounts, quantify impact Develop Evaluation Plan, data gathering and metrics generation Create and Deliver Detailed Design Review