Challenge: Review storage and work practices to improve capacity, efficiency and operational costs for a major sanitaryware manufacturer.
Approach: Existing capacity of the building was poorly utilised resulting in a high degree of external yard storage, producing fragmented product location and uneconomic use of equipment and time. Detailed stock analysis by pallet height was undertaken together with ABC analysis of demand. Facility volume flow analysis was complicated by numerous outsourced production locations and added value operations in the warehouse. Seasonal variations reflected realistic fluctuations in demand for equipment and human resources. Suggested enhancements of the WMS enabled improved layout and methods, thus new productivity rates were derived for all activities to enable the accurate calculation of expected resources on a daily basis throughout the year. Staffing regimes were determined that acknowledged peak and trough activities and reflected a core staffing requirement with accurate forecasts of additional labour and equipment throughout the year.
Conclusion: Internal storage capacity was improved by nearly 40%. Reduced external storage and reassignment of slow moving lines improved stock management and handling costs. Improved layout and systems enhancements enabled methods reviews that reduced staffing levels and costs by over 15%.