1. 8/15/2015 IENG 471 Facilities Planning 1 IENG 471 - Lecture 16 Warehouse Operations – Facility

2. 8/15/2015IENG 471 Facilities Planning 2 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 enhancement from 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)

3. 8/15/2015IENG 471 Facilities Planning 3 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; …)

4. 8/15/2015IENG 471 Facilities Planning 4 Warehousing Functions Receiving Quality Inspection Repackaging Put-away Storage Order-picking (postponement) Sortation & Accumulation Packaging & Shipping Cross-Docking Replenishment

5. 8/15/2015IENG 471 Facilities Planning 5 Receiving Operations All or a subset of the following sequence: 1. Inbound delivery scheduling and information exchange 2. ASN verification and confirmation 3. Delivery arrival and spotting 4. Vehicle secured at the receiving dock 5. Seal inspection / breaking 6. Initial delivery inspection – accepted / refused 7. Merchandise unloaded (unitized or loose) 8. Unloaded material is staged for final inspection 9. Determination & disposition of carrier damage 10. Load storage & over-pack disposal activities

6. 8/15/2015IENG 471 Facilities Planning 6 Shipping Operations All or a subset of the following sequence: 1. Order accumulation & packing 2. Order staging for loading / labeling & out-going inspection / counting 3. Customer order & shipping release reconciliation 4. Spotting carrier to a dock 5. Securing carrier vehicle at dock 6. Loading vehicle 7. Dispatching the vehicle

7. 8/15/2015IENG 471 Facilities Planning 7 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

8. 8/15/2015IENG 471 Facilities Planning 8 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

9. 8/15/2015IENG 471 Facilities Planning 9 SKU Analysis

10. 8/15/2015IENG 471 Facilities Planning 10 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

11. 8/15/2015IENG 471 Facilities Planning 11 90 o Apron Space Aprons are space allotted for spotting a vehicle – maneuvering room to align with the dock

12. 8/15/2015IENG 471 Facilities Planning 12 Angled Apron Space (Finger Docks) Angled Aprons allow for access to tighter spaces

13. 8/15/2015IENG 471 Facilities Planning 13 Material Handling Equipment Space MHE Space Is in addition to staging, storage, dock, and personnel space; and allows for maneuvering the MHE vehicle …

14. 8/15/2015IENG 471 Facilities Planning 14 Storage Space Analysis

15. 8/15/2015IENG 471 Facilities Planning 15 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

16. 8/15/2015IENG 471 Facilities Planning 16 Questions & Issues