Warehouse Operations and Management

Advanced
By: Ashraf Abouhashish
Are you familiar with

Lean Manufacturing
5S
SMART objective
ISO 9000
OHSAS18001
OSHA standards
KPI
SOP
SKU
Lean manufacturing, An approach that aims to get rid of all wastes that
bring BURDEN to the system.
5S, Sort, Set in order, Shine, Standardize and Sustain
SMART, specific, measurable, attainable, relevant and time-bound.
The ISO 9000, family of standards is related to quality management systems
and designed to help organizations ensure that they meet the needs of
customers and other stakeholders while meeting statutory and regulatory
requirements related to the product.
OHSAS 18001 is a British Standard for occupational health and safety
management systems. It exists to help all kinds of organizations put in place
demonstrably sound occupational health and safety performance.
Occupational Safety and Health Administration (OSHA) is a federal
organization (part of the Department of Labor) that ensures safe and healthy
working conditions for Americans by enforcing standards and providing
workplace safety training.
key performance indicator (KPI)
SOP standard operating procedure
 Supply Chain

A supply chain is a global network used to deliver products

and services from raw materials to end customers through
an engineered flow of information, physical distribution, and
cash.
Basic SC is consist of three entities and four flows:

Information Flow

Supplier Producer Customer

Product flow

Cash flow

Reverse flow
 Logistics

All tasks necessary to get the right goods to the right place at the right time in
the right condition for the right price globally

Logistics Tasks:
Transportation
Warehousing
Materials handling
Packaging
Information processing
Finance

SC management is logistics taken to a higher level of

sophistication
Lets Warehouse

INTRODUCTION
WAREHOUSING MANAGEMENT
WAREHOUSE PROCESSES
WREHOUSE CAPAPILITIES
MATERIAL HANDLING EQUIPMENT
WAREHOUSE INFORMATION TECHNOLOGY
INVENTORY MANAGEMENT
LOGISTICS AND WAREHOUSES
SUPPLY CHAIN AND WAREHOUSES
WAREHOUSE LAYOUT
WAREHOUSE SAFETY
WAREHOUSE PRODUCTIVITY METRICS
CONTINOUS IMPROVEMENT
A very brief history of warehousing

Pre-World war ||

Materials handling and space efficiency ignored

Location and number of warehouses criteria: perhaps
one per territory
Little technology; heavy use of inexpensive labor
Presence: placing a warehouse near each market and
stocking it with sufficient inventory to ensure
uninterrupted order fulfillment
A very brief history of warehousing

Post-World war ||

Warehousing integrated with logistics strategy

Efficient use of space (better forecasting reduces need
for mass storage)
Attention to optimal number and locations of
warehouses
Increased activity aided by new equipment,
automation, and training
 Warehouse Management

In the past warehouse management was very paper-

intensive in its coordination of a multitude of activities. This
has changed with the introduction of warehouse management
system software.
Warehouse management systems (WMS) assist managers in
tracking products throughout the entire storage and distribution
process.
These systems span from simple computer automation
systems to high-end, feature-rich management programs that
improve order picking, facilitate better dock logistics, and
monitor inventory management.

9
 Is it only a Storage Facility?

A warehouse is typically viewed as a place to

store inventory.
However, in many logistical system designs,
the role of the warehouse is more properly
viewed as a switching facility as contrasted
to a storage facility.

10
The Warehouse Processes
Receiving
Put Away
Storage
Order Picking
Replenishment
Shipping
Returns
Receiving

Receiving includes all activities related to accepting

merchandise from a carrier or supplier, unloading the
truck, evaluating the condition of the freight, signing the
bill of lading (and thus taking responsibility for the
goods)
Adjusting the inventory records to make the new
product shippable.
This usually requires matching the physical count on
the inbound truck with the advance shipping notice
(ASN).
In receiving, the way the truck was loaded will either
limit or enhance the speed of the unloading
Putaway

This function includes all of the activities related to moving product

from the receiving area either to warehouse storage locations or to a
shipping dock for outbound loading.

Some of the tasks that are completed within the putaway function are:
Picking up pallets
Scanning the labels
Verifying the stacking limits
Checking the designated location
Verifying pallet label with location
Moving to storage or shipping locations
Confirming that the location is correct for the product being put there
Storage
Once the product has been accepted, the warehouse operator must
ensure the safekeeping of merchandise so it remains in acceptable
condition for delivery to customers.
The tasks involved in the storage function would include housekeeping
and cycle counting to determine current availability and comparing the
physical count to what is on the books.
Some warehouses provide temperature controlled storage, and close
monitoring of the environment is critical.
In addition, some merchandise is subject to odor contamination or
spoilage, so the operator must be sure that proper isolation and
inspection is provided.
Storage is the only warehouse function where the goods actually stop
on purpose.
All other functions theoretically should have constant movement.
Order Picking
The tasks required to select the items listed on an order and
gather them for shipment to the customer.

The four main types of order picking:

piece picking: the order picker(s) move(s) to collect the products
necessary for one order
zone picking: each order picker is assigned to one specific zone
and will only realize order picking within this zone
wave picking: the order picker(s) move(s) to collect the products
necessary for several orders
sorting systems: no movement of the order picker(s), the products
are brought to him by an automatic system (conveyor system,
automatic storage ...).
pick to box: no movement of the order picker(s), the picking area
is organized so that there are a number of picking stations
connected by a conveyor. The order picker fills the box with the
products from his station and the box moves to the other picking
stations until the customer order is complete.
 Replenishment

This is the series of tasks necessary to restock each of the picking

locations within a warehouse facility.
Different replenishment tactics are required for different picking types
such as:
Fast-moving case pick
This is the easiest type of pick to replenish because full pallets of product
can be put behind the pallet currently being picked from.

Slow-moving case pick

This is a slower replenishment process because each replacement case
has to be manually placed in the storage location on the existing
pallet.
Shipping
Shipping includes all of the tasks required to assemble an
order and get the order into a delivery vehicle on its way to
a customer.
At the touch point between picking and shipping is a
staging area where orders are married, so the customer
receives only one shipment (that may contain more than
one order).
Sometimes it might be necessary to divide an order into
two shipments if some items are not currently in stock.
Shipping might also include a final check for accuracy of
the shipped order by comparing it to the order placed by
the customer.
Then the order is staged on the loading dock, and loaded
on the vehicle.
Returns Management
Material Flows
Product returns
Repairs Payments
Remanufacture Credits
Recycling Cash refunds
Recovery Discounts
Disposal Service contract fees

The management of the return process may include:

RMA Stands for Return Merchandise Authorization

Warehousing & Distribution Center

Warehouse Distribution Center

store all products hold minimum inventories and
predominantly high-demand items.
handle most products in four cycles handle most products in two: receive
(receive, store, pick and ship) and ship.
collect data in batches collect data in real time
focus in minimizing the operating cost focus on maximizing the profit impact
to meet shipping requirements of meeting customer delivery
requirements.
Benefits of Warehousing : Consolidation

Consolidation occurs when a W/H receives materials from more than one
plant and combines them into shipments to a specific customer
Requires the W/H to add capabilities for assemble and training for people

Benefits:
Combining inbound or outbound shipments for economies of scale to reduce
logistics costs
Reduced congestion at receiving dock

Supplier

Supplier Warehouse

Supplier
Plant
20
Benefits of Warehousing : Break-Bulk

In a break-bulk facility, truckload of similar items are broken down into

smaller more appropriate quantities for reuse and possible reshipment

Benefits:
Combining inbound or outbound shipments for economies of scale to reduce
logistics costs
Reduced handling costs (no storage)

Plant A
Customer X

Break-bulk Customer Y
Warehouse
Customer Z

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Benefits of Warehousing : Cross-dock

Items are carried from the incoming vehicle docking point to the outgoing
vehicle docking point without being stored in inventory at the warehouse
Works with JIT

Benefits:
Combining inbound or outbound shipments for economies of scale to reduce
logistics costs
Reduced handling costs (no storage)

Plant A Customer X

Plant B Distribution Customer Y

Center
Plant C Customer Z

22
Benefits of Warehousing : Postponement

Goods enter a postponement center

fully or partially disassembled for later
Component
mass customization Supplier
Final configuration of the finished Component Component
Supplier Supplier
product is postponed until an order
comes in.
Postponement
Benefits: Center
More efficient storage
More accurate forecasting
Finished Goods
Less safety stock required
Mass customization
Customer A Customer C
Drawback: Customer B
Increased costs for hiring, training, and
possibly finishing
23
Benefits of Warehousing : Stockpiling

Seasonal inventory such as clothing Seasonal

or agricultural products arrives in large goods
Seasonal Supplier Seasonal
amounts at the W/H in anticipation of goods goods
the heavy demand to come supplier Supplier

Benefits: Distribution
Efficient use of production from Center
eliminating seasonal increase and
decrease in capacity Goods released
Reduced chance of seasonal stock in season
outs
Customer A Customer C
Drawback:
More warehouse capacity than Customer B
required for JIT delivery

24
Benefits of Warehousing : Mixing

The W/H receives full vehicles shipments of different products from manufacturers
in diverse locations, with each shipment receiving the full load discount.
At the W/H shipments are broken down and assembled into the product mix
desired by each customer or market.

Benefits:
Serves customer by reducing their costs for handling storage, etc.
Increases efficient use of warehouse space

ABC Customer W
Plant A
ACD Customer X
Warehouse
Plant B
ABD
Product D
Customer Y
Plant C
ABCD
Customer Z

25
Selection of Material-Handling System

A material-handling system is one of the initial

considerations of warehouse planning.
Movement is the main function within a warehouse.
Consequently, the warehouse is viewed as a
structure designed to facilitate maximum product
flow.
It is important to stress that the material-handling
system should be selected early in the warehouse
design stage.

26
Equipment & Automation: Goals and Limitations

Goals Equipment Limitations

Add SC value Vehicles and May add cost
through effective conveyers without increasing
use of: Sorting and picking value
Space systems Must blend with
Labor Auto storage and space, labor skills,
Equipment retrieval systems layout, etc.
Technology Material handling May require expert
systems advice and software
to select
Depreciation and
early obsolescence
Equipment & Automation: Forklift trucks
Features and Uses
Vehicle of choice for loading and
unloading vehicles
Lifts pallets or slip sheets to tops of
high stacks and retrieves them
Available in numerous configuration
and automated
Tradeoffs
+ Flexible delivery in all directions
+ Can left and retrieve in high shelf
areas
+ Automation becoming available
-Expense to buy, maintain, and train.
- Inventory damage
- OSHA requirements
Equipment & Automation: Conveyers
Features and Uses
Store and retrieve goods
Load, unload some types of vehicles
Available in motorized and no
motorized configurations
Available with bar code scanners for
fast, accurate inventory
Tradeoffs
+ Inexpensive operations
+ reduced labor costs
+ Efficient use of space
-Move only in straight lines
- May block access to isles, shelves
 Equipment & Automation: Towlines

Features and Uses Tradeoffs

4-wheeled container + Efficient use of space
towed by dragline (floor + can improve inventory
or overhead mount) with scanners
Generally used in order
selection - Limited to straight line
Automated models can delivery
use different lines - Expensive to automate,
Scanners available for use in complex system
inventory and tracking - Rapid obsolescence
Equipment & Automation: Tow tractors with trailers
Features and Uses Tradeoffs
Like towlines, used mainly for order + More flexible than towlines
picking
Can tow multiple trailers - More expensive than towlines
No automation available (because of the driver required)
Driver required
Equipment & Automation: Bridge and wagon cranes

Features and Uses Tradeoffs

Chosen for heavy lifting + can lift heavier objects
Bridge cranes run than forklift or conveyer
overhead from movable + Efficient use of space
girder + automation, remote
Wagon/stacker cranes operation available
run on floor (like (bridge)
forklifts)
- Very expensive
Equipment & Automation: AGVS
Features and Uses
The Automated Guided Vehicle
System Move along floor on tape or
wire
Similar in use to forklift and tow
tractors
Riderless with programmed stops
Available with tines or platforms
Tradeoffs
+ Programmable for flexibility without
need for operator
+ Maximum use of space; fit in
narrow aisles, reach high shelves
- High acquisition cost
Equipment & Automation: pick-to-light systems
Features and Uses Benefits
Bring items to picker to save steps + Efficient use of floor space
Horizontal, circular, or vertical + Reduce human time and labor for
movement of bins available in some retrieval and storage
systems + Speeds inventory retrieval when
Various configurations available used with Carousels
Equipment & Automation: Automated sorting devices
Features and Uses Benefits
Usually used with conveyers + Reduced human time and labor for
Automate direction of items into retrieval and storage
shipments + Speeds up to one package per
Most devices programmable for second
different speeds to fit shipment
specifications
Equipment & Automation:
Automated storage and retrieval systems

Features and Uses Tradeoffs

Automate both storage + Maximum storage
and retrieval allowed per square foot
Give access to very of floor
high storage racks + high storage and
Machine moves both retrieval speed with few
horizontal and vertical errors
Pick up and drop-off + Reduced labor cost
programmed at end-of- and human errors
aisle station
- High cost
Racking Systems
Rack System Link
Selective http://www.youtube.com/watch?v=cSWP7Yb2Qu8
Drive In http://www.youtube.com/watch?v=QT4hMX-evYY
Flow Racks http://www.youtube.com/watch?v=QVmJOVIOrSg
Radio Shuttle http://www.youtube.com/watch?v=8uc6_0ptpA4
Push Back http://www.youtube.com/watch?v=pNzSzO8tc24
Push Back http://www.youtube.com/watch?v=8U7irNbNTpM
MHE
Rack System Link
Forklift Attachment http://www.youtube.com/watch?v=RdcFbN3lcNM
http://www.youtube.com/watch?v=nNJIBG5K3OM
http://www.youtube.com/watch?v=huKqzdSKCu8
http://www.youtube.com/watch?v=5XR4S7JTbiU

Reach Truck http://www.youtube.com/watch?v=eHD0pfO4cEE

VNA http://www.youtube.com/watch?v=dPUvTKDKlIg
Automated W/H http://www.youtube.com/watch?v=EyvcrWG0wfM
http://www.youtube.com/watch?v=TYM0yRYYIVI
Movable Racks http://www.youtube.com/watch?v=WxSpAyBonRA
Other Videos
http://www.youtube.com/watch?v=Mc-lC1yclgU
http://www.youtube.com/watch?v=fpNbuDXzMx4
http://www.youtube.com/watch?v=aMjSFgmdTTI&list=PL5AC65E7F33BAB1DF
http://www.youtube.com/results?
search_query=funny+warehouse+accidents&oq=funny+warehouse+acc&gs
_l=youtube.3.0.0.19962.20894.0.23087.4.4.0.0.0.0.551.810.2-1j5-
1.2.0...0.0...1ac.1.11.youtube.j6pRLATuPBo

http://www.youtube.com/watch?v=GUcwtmC0Ask
 Information Technology

Technology Function
Electronic data interchange Directs information electronically around
(EDI) entire SC to compatible computers
Bar coding Production ID information coded in bars and
spaces on package; scanner reads directly into
database
Radio frequency Implanted chip with product information; can
identification (RFID) track single item anywhere, sending
information through internet to SC partners
Auto ID Advanced read-write incarnations of RFID;
includes RFID plus voice transmitter for hands-
free operation on warehouse floor
Information Technology: Potential benefits of Auto ID

Ability of SC partners to verify shipments without

opening packages
Continuous, current, automated tracking of individual
inventory items
Elimination of theft through tracking inappropriate
movement of items
Reduced counterfeiting with unique product item ID
Enhanced customer service and reduced liability
through tracking inappropriate product uses
Inventory Management: The KPIs

Reduce
inventory Increase
costs customer
Holding satisfaction
Ordering targets
Transporting Availability
On-time delivery
Quality
Inventory Management: Why Have Inventory?

The Five good reasons for holding inventory

1. To meet future demand
2. To cover fluctuations in supply or demand
3. To fill the pipeline (while other goods are in transport)
4. To hedge against price fluctuations
5. For economies of scale (ex. full container load)
Inventory Management: Four types of inventory

Raw materials WIP Finished goods MRO

Held to Work-in- Items held in Maintenance,
decouple, get process readiness for repair, and
good price, Held during purchase by operations
ensure supply idle time at end customer inventory here
plant (slow items held as
cycle times) needed to
maintain,
repair, operate
equipment
 Inventory Management: ABC inventory analysis

A B C
80% of revenue 15% of revenue 5% of revenue
comes from 20% of comes from 30% of comes from 50% of
inventory items inventory items inventory items

Inventory Items
N.B. Sometimes called 80%
20%
the 80/20 rule or
Pareto Level 2 Level 2
Level
Level 3 3
Revenue
Inventory Management: Inventory Cost

Carrying Cost Ordering Cost Other Costs

= Holding cost Incurred when Stockout or
= Housing the ordering more backorders, lost
inventory inventory: materials sales, lost
Rent, depreciation, and labor in customers, etc.
operating cost, processing forms;
taxes, insurance, also setup costs
handling, leases, related to preparing
labor, scrap, for production, such
investment costs, as cleaning,
pilferage, etc. adjusting, modifying
machines, etc.
 Inventory Management:
How much stock should you keep?

Deciding how much stock to keep

depends on the size and nature of your
business, and the type of stock involved. If
you are short of space you may be able to
buy stock in bulk and then pay a fee to
your supplier to store it, calling it off as
and when needed.
 Inventory Management:
How much stock should you keep?
Keeping little or no stock and negotiating with suppliers to deliver stock as
you need it

Advantages
Efficient and flexible - you only have
what you need, when you need it
Lower storage costs
Disadvantages
Meeting stock needs can become
complicated and expensive
You might run out of stock if there's
a hitch in the system

You can keep up to date and develop You are dependent on the efficiency
new products without wasting stock of your suppliers

This might suit your business if it's in a fast-moving environment where

products develop rapidly, the stock is expensive to buy and store, the
items are perishable or replenishing stock is quick and easy.
 Inventory Management:
How much stock should you keep?
Keeping lots of stock

Advantages Disadvantages
Easy to manage Higher storage and insurance costs

Low management costs Certain goods might perish

You never run out Stock may become obsolete before it
is used

Buying in bulk may be cheaper Your capital is tied up

This might suit your business if sales are difficult to predict (and it is hard to
pin down how much stock you need and when), you can store plenty of
stock cheaply, the components or materials you buy are unlikely to go
through rapid developments or they take a long time to re-order.
 Inventory Management:
Stock control methods

There are several methods for controlling stock, all designed to provide an
efficient system for deciding what, when and how much to order.
You may go for one method or a mixture of two or more if you have various
types of stock.

Minimum stock level

You identify a minimum stock level, and re-order when stock reaches that level.
This is known as the Re-order Level.

Stock review
You have regular reviews of stock. At every review you place an order to return
stocks to a predetermined level.
Inventory Management:
Stock control methods
Just In Time (JIT)
This aims to reduce costs by cutting stock to a minimum.
Items are delivered when they are needed and used immediately.
There is a risk of running out of stock, so you need to be confident that your
suppliers can deliver on demand.

These methods can be used alongside other processes to refine the stock
control system.
For example:
Re-order lead time
Allows for the time between placing an order and receiving it.

Economic Order Quantity (EOQ)

A standard formula used to arrive at a balance between holding too much or
too little stock. It's quite a complex calculation, so you may find it easier to
use stock control software.
Inventory Management:
Stock control methods

Batch control
Managing the production of goods in batches.
You need to make sure that you have the right number of components to
cover your needs until the next batch.
If your needs are predictable, you may order a fixed quantity of stock
every time you place an order, or order at a fixed interval - say every
week or month.
In effect, you're placing a standing order, so you need to keep the
quantities and prices under review.

First in, first out

A system to ensure that perishable stock is used efficiently so that it
doesn't deteriorate. Stock is identified by date received and moves on
through each stage of production in strict order.
Inventory Management:
How you Count?

Cycle Count:
Count some items each day
Count all items a set number of times annually
Count A items more often than B or C items
Timely correction of errors, no store shutdown

Periodic Count:
Traditional method, requires store shutdown
Annual count of all items
Often done by temps
Disruptive, expensive, error-prone
Necessary for some activities e.g., retail
Warehouse Contribution in Logistics Goals

Logistics Goal Warehouse Contribution

Rapid Strategic placement, optimal numbers facilitate response to markets
response and order changes
Minimum Technology and automation aid efficient handling to promote
variances predictable services
Minimum Determine minimum number of warehouses to reduce inventory
inventory prevent stockouts
Consolidation Warehouse placement, interface with transportation,
of movement Efficient materials handling all required for effective consolidation of
shipments

High quality Subject all aspects of warehousing to continuous improvement

Life cycle Place warehouses for returns, repairs, etc., as well as to support
support product movement during growth, development, and maturity
Warehouse effect in supply chain goals

There are three basic decisions about

warehousing that taken together, can
increase the overall value of the SC:

1. Number of warehouses
2. Specific warehouse location
3. Whether or not to own the warehouse
 The effect of adding warehouses

Pro:
Customer service improves
Total Total cost
Transportation costs decline with Cost
shorter distances to travel Inventory cost
Rapid delivery may improve
competitive position Warehousing cost
Decentralized system allows better Transportation cost
service to small customers
Cost of lost sales

Con:
Inventory costs rise with redundant Number of Warehouses
functions, safety stock
Setup and overhead costs go up
Where should warehouse be located?

Element Description
Neighborhood Consider available space, soil support,
nearness to market; not districted to
warehouse district
Services Available of services is most important factor
Costs Services, location (urban cost more), taxes,
insurance, transportation
Community Tax incentives, infrastructure support, trained
inducements and available workforce
Regulations Environmental impact statements can slow
constructions, inflate costs
 Who should own the warehouses?

Private Public Contract

Structure Firm itself owns Independent ownership Independent ownership
warehouses Firm pays fee for Longer term
services relationship
Benefits Control Flexibility Tailored services
No markup no Economies of scale Lower costs
fees Lower labor costs Flexibility
Stronger market Access to more markets
presence Stable relationship

Drawbacks Inflexible budget Loss of control Loss of control

Depreciation Market presence Market presence
Illiquidity of asset markups markups
 Warehouse Layout
Setting the right warehouse layout is one of the most important enablers to achieve high
labor and material handling equipments productivity and efficiency.
Principles for an Efficient Warehouse Layout:
Safety should be consider in the warehouse layout design

Storage plan should be based on ABC curve. High turnover

Items should be located near the loading area. Slow movers
items should be stored vertically high and fast movers low

Items often received, ordered or manufactured together should

be located near each other

Adequate storage height to maximize capacity and in

compliance with local regulations.

Respect stacking height of each package. Floor stacking is

recommended for high turn products and case flow rack for C
items in the picking area

Adequate aisle spacing (9 FT for pallet jacks, replenishment

aisles 12.5 for single and 15 for double) and should be visually
identified in the floor to minimize congestion

Compact picking area to minimize distances traveled by picking

personnel. Pick aisles should be perpendicular to the loading
area
Warehouse Layout

Layout of a warehouse depends on the proposed material

handling system and requires development of a floor plan
to facilitate product flow.
It is difficult to generalize about warehouse layouts since
they must be refined to fit specific needs.
If pallets are to be utilized, the first step is to determine the
pallet size.
A pallet of nonstandard size may be desirable for
specialized products, but whenever possible, standardized
pallets should be used because of their lower cost.

59
Warehouse Layout

The most common sizes are 40 by 48 inches and 32 by

40 inches.
In general, the larger the pallet load, the lower the cost of
movement per package over a given distance.
The packages to be placed on the pallet and the related
patterns will determine, to a certain extent, the size of
pallet best suited to the operation.
Regardless of the size finally selected, management
should adopt one size for the total operation.

60
Warehouse Layout

The second step in planning a layout involves the

pallet positioning.
The basic method of positioning pallets in a
mechanized warehouse is a ninety-degree, or
square, placement.
Square placement means that the pallet is positioned
perpendicular to the aisle.
The square method is widely used because of layout
ease.

61
Warehouse Layout
 Safety: Potential hazards for workers in warehousing

Unsafe use of forklifts;

Improper stacking of products;
Failure to use proper personal protective equipment;
Failure to follow proper lockout/tag out procedures;
Inadequate fire safety provisions; or repetitive motion
injuries.
Safety: OSHA standards

For warehousing establishments, the 10 OSHA standards most

frequently included in the agencys citations were:

1.Forklifts
2.Hazard communication
3.Electrical, wiring methods
4.Electrical, system design
5.Guarding floor & wall openings and holes
6.Exits
7.Mechanical power transmission
8.Respiratory protection
9.Lockout/tag out
10.Portable fire extinguishers
Safety: Hazards & Solutions (Docks)

Hazard:
Injuries happen here when forklifts run off the dock, products fall on
employees or equipment strikes a person.

Solutions:
Drive forklifts slowly on docks and dock plates;
Secure dock plates and checks to see if the plate can safely support the
load;
Keep clear of dock edges and never back up forklifts to the docks edge;
Provide visual warnings near dock edges;
Prohibit dock jumping by employees;
Make sure that dock ladders and stairs meet OSHA specifications.
 Safety: Hazards & Solutions (Forklifts)

Hazard:
About 100 employees are killed and 95,000 injured every year while
operating forklifts in all industries. Forklift turnovers account for a
significant percentage of these fatalities.
Solutions:
Train, evaluate and certify all operators to ensure that they can operate
forklifts safely;
Do not allow anyone under 18 years old to operate a forklift;
Properly maintain haulage equipment, including tires;
Before using a forklift, examine it for hazardous conditions which would
make it unsafe to operate;
Follow safe procedures for picking up, putting down and stacking loads;
Drive safely, never exceeding 5 mph and slow down in congested areas
or those with slippery surfaces;
Safety: Hazards & Solutions (Forklifts)

Ensure that the operator wears a seatbelt installed by the manufacturer;

Never drive up to a person standing in front of a fixed object such as a wall or
stacked materials;
Prohibit stunt driving and horseplay;
Do not handle loads that are heavier than the weight capacity of the forklift;
Remove unsafe or defective trucks from service until the defect is properly
repaired;
Maintain sufficiently safe clearances for aisles and at loading docks or passages
where forklifts are used;
Ensure adequate ventilation either by opened doors/windows or using a
ventilation system to provide enough fresh air to keep concentrations of noxious
gases from engine exhaust below acceptable limits;
Provide covers and/or guardrails to protect workers from the hazards of open pits,
tanks, vats and ditches;
Train employees on the hazards associated with the combustion byproducts of
forklift operation, such as carbon monoxide.
Safety: Hazards & Solutions (Conveyors)

Hazard:
Workers can be injured when they are caught in pinch points or in the in-
going nip points, are hit by falling products or develop musculoskeletal
disorders associated with awkward postures or repetitive motions.

Solutions:
Inspect conveyors regularly;
Ensure that pinch points are adequately guarded;
Develop ways of locking out conveyors and train employees in these
procedures;
Provide proper lighting and working surfaces in the area surrounding the
conveyor.
Safety: Hazards & Solutions (Materials Storage)

Hazard:
Improperly stored materials may fall and injure workers.

Solutions:
Stack loads evenly and straight;
Place heavier loads on lower or middle shelves;
Remove one object at a time from shelves;
Keep aisles and passageways clear and in good repair.
Safety: Hazards & Solutions (Manual Lifting/Handling)

Hazard:
Back injuries may occur from improper lifting or overexertion.

Solutions:
Provide general ergonomics training and task-specific training;
Minimize the need for lifting by using good design and
engineering techniques;
Lift properly and get a coworker to help if a product is too
heavy.
Safety: Hazards & Solutions (Hazard Communication)

Hazard:
Chemical burns are possible if spills of hazardous materials occur.

Solutions:
Maintain a Material Safety Data Sheet (MSDS) for each chemical to which
workers are exposed in the facility;
Follow instructions on the MSDS for handling chemical products;
Train employees on the risks of each chemical being stored;
Provide spill cleanup kits in any area where chemicals are stored;
Have a written spill control plan;
Train employees to clean up spills, protect themselves and properly
dispose of used materials;
Provide proper personal protective equipment and enforce its use;
Store all chemicals safely and securely;
Store chemicals away from forklift traffic areas.
 Safety: Hazards & Solutions (Charging Stations)
Hazard:
Fires and explosion risks are possible unless proper guidelines are
followed.

Solutions:
Prohibit smoking and open flames in and around charging stations;
Provide adequate ventilation to disperse fumes from gassing batteries;
Ensure that fire extinguishers are available and fully charged;
Provide proper personal protective equipment such as rubber gloves and
eye and face protection;
Properly position forklifts and applies brakes before attempting to change
or charge batteries; follow required procedures when refueling gas or
propane fueled forklifts;
Provide conveyors, overhead hoists or equivalent materials handling
equipment for servicing batteries;
Provide an eye washing and safety shower facility for employees exposed
to battery acids.
 Safety: Hazards & Solutions (Poor Ergonomics)
Hazard:
Improper lifting, repetitive motion or poor design of operations can lead to
musculoskeletal disorders in workers.

Solutions:
If possible, use powered equipment instead of requiring a manual lift for heavy
materials;
Reduce lifts from shoulder height and from floor height by repositioning the shelf or
bin;
Ensure overhead lighting is adequate for the task at hand;
Provide employees with task-oriented ergonomic training;
Use your legs and keep your back in a natural position while lifting;
Test the load to be lifted to estimate its weight, size and bulk, and to determine the
proper lifting method;
Get help if the load exceeds the maximum weight a person can lift safely without
assistance;
Dont twist while carrying a load, but shift your feet and take small steps in the
direction you want to turn;
Keep floors clean and free of slip and trip hazards.
 Safety: Hazards & Solutions (Other Hazards)

Inadequate fire safety provisions, improper use of lockout procedures and failure to
wear personal protective equipment also create hazards in the warehouse workplace.
Employers should have an emergency plan that describes what is expected of
employees in the event of an emergency, including:
1. Provisions for emergency exit locations and evacuation procedures;
2. Procedures for accounting for all employees and visitors;
3. Location and use of fire extinguishers and other emergency equipment.
Warehouse operations need a lockout/tag out program to prevent equipment from
being accidentally energized and injuring employees.
Employees required to perform these operations should be trained and all employees
should have a working knowledge of the program.
Finally, management at warehouse operations needs to conduct a site hazard
assessment to determine what personal protective equipment (PPE) must be worn
based on the hazards present and train warehouse employees on proper PPE
selection, use and maintenance.
Warehouse Safety: Vedio

Warehouse Safety:
http://www.youtube.com/watch?v=KTnGZ37sZqM
http://www.youtube.com/watch?v=HSZEQdQKOp8
http://www.youtube.com/watch?v=yj537e91r3U
http://www.youtube.com/watch?v=2tma-zFkDEY

Forklift Safety:
Carhttp://www.youtube.com/watch?v=zIbttYevARE
Forkliftshttp://www.youtube.com/watch?v=0iTtIk9jioY
3D http://www.youtube.com/watch?v=IJvHzFnSBDw
 Warehouse Metrics:
Is the Measure Relevant?
The measures we use must have the following attributes:
Validity
If the measure does not fit the particular warehousing environment, it lacks
credibility and is quickly discarded.
For example, a distribution center storing tires should not be measuring
warehouse temperature.

Coverage
The measure must be broad enough to have meaning, but specific enough to
identify specific areas of improvement.
For example, in a bulk warehousing environment, a tons per work-hour
measurement provides good coverage.

Comparability
Can the measure be used across multiple warehouse locations and have the
same applicability?
Warehouse Metrics:
Is the Measure Relevant?

Completeness
Does the measure cover the task or function adequately enough to have
meaning?
For example, in a bulk warehousing environment, tons per work-hour is a
complete measure for a operation.

Cost-Effectiveness
Is the measure worth calculating? Is the money spent to calculate it less
than the possible savings from improving the performance?
For example, it might not be worthwhile to calculate cost per unit in a bulk
warehouse because cost per ton is adequate and much less costly to
measure.

Based on this assessment, not all types of measures are worth doing for
all functions within a warehouse.
 Warehouse Metrics:
Measures of the Overall Facility

The following chart illustrates some common warehouse measures for the
overall facility:
Warehouse Metrics: Receiving

The key measures in receiving are:

Warehouse Metrics: Putaway

The key measures in put-away are:

Warehouse Metrics: Storage

The key measures in storage are:

 Warehouse Metrics: Picking

The key measures in picking are:

 Warehouse Metrics: Replenishment

The key measures in replenishment are:

 Warehouse Metrics: Shipping

The key measures in shipping are:

 Warehouse Metrics: Returns

The key measures in returns are:

Continous Improvement

Process Oriented

Top-down
Direction

Never
Ending
Total Quality
Bottom-up
Management
Implementation

Small
Steps
Root
Causes
Continous Improvement methods

Just-in-Time (JIT) Six Sigma Lean

Have inventory only No more than 3.4 JIT production
when necessary defects per million Quality designed
Reduced setups, lot opportunities into product /
sizes, lead times, Customer definition process
waste, etc. of (defect) Empowered teams
Move from work Process variability No inventory, no
order to continuous within (six sigmas) of waste
flow target Safe, orderly
Scheduling, Training at all levels workplace
maintenance TQM Goal: perfection
Thank You

Questions???
 Abbreviation Description
FCL Full container load
LCL Less container load
ASN Advanced shipping notice is a notification of pending deliveries, similar to
a packing list. It is usually sent in an electronic format and is a common
EDI document.

SC Supply Chain
3PL Third party logistics ex. Agility
SRM Supplier Relationship Management
CRM Customer Relationship Management
SOP Standard Operating Procedures
KPI Key performance indicator
VMI Vendor managed inventory
SSDR Supplier service defect rate
SDR Service defect rate
 Abbreviation Description
JIT Just in time
Pull System A pull system is where processes are based on customer demand.
Push System A push system is where processes are based on projected production plan

MTO Make to order works with pull sys.

MTS Make to stock works with push system
FEFO First expired first out
FIFO First in first out
LIFO Last in first out
SKU Stock keeping unit stock items
5Ss + 1 Sort - Distinguish between what is needed and not needed and to remove
the latter.
Set in place - Enforce a place for everything and everything in its place.
Shine - Clean up the workplace and look for ways to keep it clean.
Standardize - Maintain and monitor adherence to the first three Ss.
Sustain - Follow the rules to keep the workplace 6S-right"maintain the
gain.".
Safety - Eliminate hazards.
Abbreviation Description
SMART A simple acronym used to set objectives is called SMART objectives.
SMART stands for:
1. Specific Objectives should specify what they want to achieve.
2. Measurable You should be able to measure whether you are meeting
the objectives or not.
3. Achievable - Are the objectives you set, achievable and attainable?
4. Realistic Can you realistically achieve the objectives with the
resources you have?
5. Time When do you want to achieve the set objectives?
Thank you