A Supply Chain Logistics Program for Warehouse Management 15

461 Chapter 14 Project Management, Interface, and Integration in an Existing Operation or New Facility Introduction As.people.from.outside.the.company.join.the.design.team.(e.g.,.architect,.building.construction. company,.warehouse.equipment.vendor,.WMS.program.company.and.warehouse.integrator),.the. prior.team.members.ensure.that.the.new.team.members.have.a.comprehensive.understanding.of. both.the.existing.and.the.proposed.warehouse..After.the.design.team.has.a.clear.understanding.of. all.aspects.of.warehouse.business,.as.well.as.the.proposed.activities.for.the.new.warehouse,.project. design.events.are.scheduled.and.completed..These.project.events.are: . 1..Warehouse. and. WMS. program. integration. and. interface,. which. includes. hardware. and. software,.PCs,.printers,.server,.network.and.hierarchy.for.a.host.computer,.WMS.computer,. and.warehouse.computer . 2..Project.team.organization.and.responsibilities . 3..Master.project.schedule . 4..Building.design.parameters . 5..Warehouse.design.and.drawing.development . 6..Project.management.and.contract.administration . 7..Local.government.building.design.and.drawing.approval . 8..Project.brain-storming.sessions . 9..Project.conference.room.pilot.study . 10..WMS.business.narrative.that.is.based.on.a.warehouse.operation . 11..PCs,.printers,.bar.codes,.and.scanners/readers,.which.includes.wireless.and.wire.devices . 12..WMS.program.development AU0575.indb 461 4/28/08 9:00:00 AM © 2008 by Taylor & Francis Group, LLC 462  n  A Supply Chain Logistics Program for Warehouse Management . 13..Description.of.operations.and.employee.training.program . 14..WMS.program.supported.and.nonsupported.transaction.projections . 15..WMS.program.equipment.or.transaction.locations.on.warehouse.drawings . 16..Warehouse.equipment.specification.and.location.drawing . 17..WMS.program.business.narrative.and.equipment.changes . 18..WMS.program.equipment.bid.and.purchase . 19..Building.roof,.walls,.floor,.utilities,.and.warehouse,.and.WMS.program.start-up.and.test . 20..Testing.and.implement.of.a).the.building,.b).the.WMS.program,.c).the.warehouse,.and.d). WMS.program.integration . 21..With. vendor. delivered. SKUs. and. actual. customer. orders,. warehouse. operation. start-up,. acceptance.and.turn-over . 22..Review.and.audit As.the.project.progresses.from.the.initial.design.and.development.phase,.the.project.team.will. revise.the.project.event.schedule.or.activity.sequence.as.necesssary,.as.the.design.and.implementa- tion,.start-up,.or.scope.of.work.changes. Design Parameters and Operational Aspects A.key.step. in.the.project. is. to.develop.warehouse.operation.design.year.parameters.and.opera- tional.aspects.that.include.projected.warehouse.vendor.SKUs,.customer.order.SKUs,.lines,.vol- ume,.WMS-supported.and.nonsupported.transactions. The.key.components.of.a.WMS.program.are: Company.host.computer Warehouse.management.system Warehouse.computers Warehouse.activities.that.interact.and.interface.with.a.WMS.program.for.a.SKU.or.customer. order.are: Receiving Storage Replenishment Pick Pack Manifest.and.load.activity Customer-order.returns Inventory.adjustments Warehouse Control or Operation Design Design.year.parameters.are.developed.for.average.and.peak.volumes.(minimum.of.five-year.fore- cast).by.vendor.delivered.SKUs.and.customer-order.groups..Each.table.shows: n n n n n n n n n n n AU0575.indb 462 4/28/08 9:00:00 AM © 2008 by Taylor & Francis Group, LLC Project Management, Interface, and Integration  n  463 Vender.delivery.SKU.volumes,.including.a).purchase.order.numbers.and.lines,.b).ASN.num- bers.and.lines.by.delivery.method,.c).receiving.tally.sheet.number.and.lines,.d).WMS.identi- fication.label.number.and.lines,.and.e).company.SKU.identification.label.number.and.lines SKU.class.and.QA.rejected.volumes Customer-order.number,.pack.slip.number.and.lines,.label.number.and.lines,.pick.and.pack. SKUs.by.customer-order.type,.e.g.,.a).single.pieces,.b).single.SKU.multiple.pieces,.c).mul- tiple.SKUs.from.same.SKU.group,.d).multiple.pieces.from.different.SKU.groups,.and.d). customer-order.ship.carton.volumes Customer-order.shipping.cartons.(conveyable.and.nonconveyable) Inventory.volumes.and.SKU.storage/pick.position.numbers Customer.returns.cartons.and.SKUs.as.RTV,.RTS,.rework,.outlet.store,. jobber,.charity,. and.damaged In-house.vendor.SKU.rework SKU. and. customer-order. transport:. a). for. put-away. between. receiving. and. storage. area,. b).for.QA.department.inspection.between.receiving.and.QA.department,.c).for.put-away. between.a.QA.department.and.storage.area,.d).for.replenishment.or.pick.line.setup.between. storage.area.and.pick.area,.e).for.transport.between.pick.area.and.pack.area,.f).for.transport. between.pack.and.ship.areas,.g).between.customer.returns.unload.area.to.returns.process. area,.h).by.customer.returns.disposition,.i).by.SKU.customer.returns.from.returns.process. area.to.a.sort.station,.j).for.vendor.return.from.storage.area.to.a.ship.dock.area,.and.k).non- customer.order.and.non-WMS.program.supported.SKUs.and.carton.volumes To.have.effective.design.year.parameters,.each.warehouse.and.WMS.program.activity.is.tabu- lated.for.each.year’s.projected.growth.or.by.the.percentage.increase.from.a.base.year,.each.year. between.a.base.and.start-up.year,.and.each.year.between.start-up.and.operational.year..Design. year.operational.aspects.include.the.activity.list.for.each.warehouse.activity/area..These.include: . 1..Vendor.delivery.date.after.purchase.order.receipt . 2..Receiving.dock.appointment.scheduling.procedure.and.receiving.hours.per.day.and.days.per. week . 3..Allowable.vendor.delivery.vehicle.unloading.and.receiving.hours.and.palletizing.methods;. based.on.vendor.master-carton.data,.each.pallet.ti.and.hi.appears.on.a.receiving.tally.sheet . 4..QA.sample.size.and.procedure . 5..SKU.WMS.identification.print.method,.which.can.be.preprinted.or.print-on-demand . 6..SKU.WMS.identification.procedure . 7..SKU.put-away.strategy,.e.g.,.a). rejected.SKUs.held.on.dock.or.placed. into.a.position,.b). SKUs.placed.in.a.storage.position.as.QA.hold.and.“not.available.for.sale,”.c).select.a.QA. sample.size.with.a.WMS.identification.that.is.transfer.to.a.QA.position,.or.d).handle.SKUs. as.pallets,.master.cartons.and.single.items.in.totes . 8..Transport.concept.design.for.SKUs.per.hour.as.master.cartons,.totes,.and.pallets . 9..And.storage.concept.put-away.of.a.SKU.to.a.storage.position.for.a).forklift.truck.and.AS/RS. crane.transactions.as.pallets.or.cartons.per.hour.and.as.single.or.dual.commands.per.hour,. b).conveyor.or.cart.handling.speeds,.and.c).for.an.AS/RS.storage.concept.size,.weight,.and. scan/read.station.transactions.per.hour.as.pallets.or.cartons . 10..Host.computer.customer-order.entry,.processing,.and.release.time.to.the.WMS.program . 11..Warehouse.staff.time.for.customer-order.wave.creation.and.transfer.to.the.WMS.program. by.SKU.group n n n n n n n n AU0575.indb 463 4/28/08 9:00:00 AM © 2008 by Taylor & Francis Group, LLC 464  n  A Supply Chain Logistics Program for Warehouse Management . 12..Based.on.a.customer-order.wave,.WMS.program.WMS.identified.SKU.allocation.and.ware- house.WMS.identified.SKUs.move.transactions.sent.to.a.warehouse.for.WMS.identified. SKUs.withdraw,.setup,.and.replenish.SKUs.to.a.pick.position . 13..For.each.customer-order.wave,.warehouse.WMS.identified.SKU.transfer.to.a.pick.position. and.SKU.and.pick.position.WMS.identifications.and.SKU.quantity.communicated. to.a. WMS.program.computer . 14..WMS.program.customer-order.release.to.a.pick.area . 15..WMS.program.and.warehouse.customer-order.identification . 16..Pick.area.SKU.pick.activity . 17..Completed.customer-order.transport.from.a.pick.area,.to.another.pick.area.(manual,.mecha- nized,.or.automatic),. through.a.pick.check.area. to.a.pack.area,.or. through.a. sort.design. (manual.or.mechanized).to.a.pack.area . 18..Transfer.to.a.customer-order.pack.station;.pack.station.employee.completes.a.WMS.identi- fied.customer.order.or.zero.scans.a.warehouse.tote.identification.to.disconnect.a.customer. order.WMS.identification.to.a.warehouse.tote.identification.that.allows.a.warehouse.tote. used.for.another.WMS.identified.customer.order . 19..Pack.station.employee.transfers.completed.customer.orders.to.a.manifest/ship.area.or.trans- fers.problem.orders.to.a.problem.order.station.for.correction.and.pack-out.for.transport.to. manifest.station . 20..Manifest.station.that.has.a.customer-order.WMS.identification.sent.to.WMS.program.and. a. warehouse. transport/sort. conveyor. that. moves. a. manifested. WMS. identified. customer. order.to.a.ship.dock.and.onto.a.customer-order.delivery.truck..If.required.have.a.warehouse. employee.off-load.WMS.identified.customer.orders.and.transfer.each.WMS.identified.cus- tomer.order.to.a.WMS.identified.position.and.send.each.customer.order.and.position.WMS. identifications.to.a.WMS.computer.as.a.non-manifested.and.non-shipped.WMS.identified. customer.order . 21..Returns. transported. from. unload/open. station. a). to. a. process. station. for. host. computer. customer.credit,.b).WMS.SKU.disposition.and.WMS. label.print,.or. c).warehouse.SKU. transport.to.a.sort.station.for.sort.of.return-to-stock.SKU.to.a.WMS.identified.position.and. for.return-to-vendor.SKU.sort.to.WMS.identification.position . 22..Removing.return-to-vendor.SKUs.from.an.“available.for.sale”.storage.position.for.transport. to.a.pack.area.or.dock . 23..WMS.noncustomer.order.or.non-WMS.program.supported.SKUs.(shipping.supplies).and. warehouse.withdrawal.of.SKU.from.a.storage/pick.position.and.transport.to.a.special.pack. station A.table.is.created.for.each.SKU.quantity,.and.is.based.on.regular.and.overtime.work.hours.for. average.and.peak.volumes..Each.table.shows: . 1..Receiving.hours . 2..Number. of. delivery. trucks,. receiving. docks,. and. dock. unload. forklift/pallet. trucks. for. unloading.at.docks . 3..Forklift.trucks.and.conveyor.travel.speeds.on.in-house.transport.from.a.receiving.dock.to. the.next.station . 4..For.an.AS/RS.storage.concept.size,.weigh.and.bar.code.scanner/reader.station.number . 5..Number.of.conventional.pallets.that.determines.forklift.truck.number.needed.to.complete. SKU.put-away.transactions AU0575.indb 464 4/28/08 9:00:01 AM © 2008 by Taylor & Francis Group, LLC Project Management, Interface, and Integration  n  465 . 6..Number.of.AS/RS.cranes.needed.that.are.based.on.single.command.and.dual.command. transactions.per.hour . 7..Number.of.conventional.pallets.that.determines.forklift.truck.number.needed.to.complete. SKU.withdrawal.transactions . 8..Number.of.master. cartons.or. single. items. that.determines.number.of.HROS.vehicles.or. AS/RS.cranes.needed.to.complete.SKU.withdrawal.transactions . 9..Number.of.forklift.trucks.and.transport.vehicles.per.hour.(or.conveyor.travel.path.speed). necessary.to.setup/replenish.a.pick.line . 10..Number.of.pickers.and.pick.vehicles.needed.(depending.on.the.pick.design.chosen).to.trans- port.picked.customer.orders. from.a.main.pick.area. to.another.pick.area,.a.pack.area,.or. through.a.sort.design.to.a.pack.station . 11..Number.of.pack.stations . 12..Number.of.problem.customer-order.stations . 13..Number.of.manifest.stations . 14..Sort.conveyor.travel.speeds.and.number.of.sort.locations . 15..Number.of.shipping.dock.staging.areas.or.door.numbers . 16..Number.of.truck.unloading.doors.needed.for.returns . 17..Conveyor.speed.(or.number.of.vehicles).needed.for.returns . 18..Number.of.processing/disposition.stations.needed.for.customer-order.returns . 19..Projected.number.of.returned.SKUs,.sorted.by.RTV,.RTS,.charity,.jobber,.company.store,.or. rework . 20..Number.of.return-to-vendor.pack.stations . 21..Number.noncustomer-order.pack.stations The.design.team.completes.design.year.tables.for.warehouse-.and.WMS-program-supported. and.non-WMS.supported.transactions.for.each.warehouse.activity.and.each.WMS.scan.activity. per.hour..For.the.average,.frequent,.and.peak.SKU.and.customer-order.volumes. WMS Program SKU Storage and Pick Positions A.WMS.identification.is.used.for.and.on.each.WMS.SKU.storage,.pick,.customer.returns.sort,. QA.sample.and.problem.customer-order.position,.or.every.physical.SKU.location.within.a.facility.. To.complete.a.SKU.physical.and.WMS.program.put-away,.pick-line.set,.replenishment,.or.move. transaction,.an.employee.or.warehouse.computer.directs.a.SKU.to.a.position..After.the.employee. completes.all.scan.transactions.or.the.warehouse.(AS/RS.crane).communicates.the.SKU.transac- tion.completion.and.SKU.quantity.to.the.WMS.program.computer,.the.WMS.computer.updates. the.SKU.inventory.and.position.status.in.its.files. WMS Program SKU Pick Position Projection To. implement. a.WMS.program. in. a. storage/pick.operation,. a.warehouse. team.must.make. an. accurate. projection. of. all. storage,. pick,. customer-order. returns. sort,. QA. sample,. and. problem. customer-order.positions..To.project.a.design.year.SKU.pick.positions,.the.options.are.a).apply.a. historical.annual.SKU.growth.rate.to.a.base.year.SKU.number.or.b).using.a.base.year.SKU.num- ber,.have.the.merchandise.department.estimate.a.new.SKU.growth..A.WMS.SKU.pick.position. projection.determines: AU0575.indb 465 4/28/08 9:00:01 AM © 2008 by Taylor & Francis Group, LLC 466  n  A Supply Chain Logistics Program for Warehouse Management Pick.design,.which.can.be.manual,.mechanized,.or.automated Pick.area.size Type.of.pick,.sort,.pack,.and.in-house.transport.design Cost Location.in.a.facility.and.number.of.floors.in.a.facility WMS.program.design.considerations In.a.warehouse.design,.each.warehouse.pick.position.faces.a.pick.aisle: In.a.single-item.operation,.a.tote,.box/carton.in.a.shelf,.hand.stack.or.pallet.rack,.flow.rack,. carousel,.S.I..Cartrac,.or.AS/RS.mini-load.identified.pick.position.faces.a.pick.aisle. In.a.master-carton.operation,.a.floor.stack,.shelf,.hand.stack.or.pallet.rack,.flow.rack,.carou- sel,.S.I..Cartrac,.or.AS/RS.mini-load.pick.position.faces.a.pick.aisle. In.a.pallet.operation,.a.floor.stack,.pallet.rack,.flow.rack,.S..I..Cartrac.or.AS/RS.pick.position. faces.a.pick.aisle. WMS Program Identified SKU Storage Position Projection To.project.the.warehouse.SKU.inventory.volume.and.associated.storage.position.number.that.is. housed.in.a.facility,.projection.methods.are.similar.for.small.items,.master.cartons,.or.pallets..In. each.storage/pick.operation.type,.the.storage.position.number.is.based.on: SKU.inventory.volume SKU.storage.position.physical.characteristics,.which.can.be.a).tall.or.short.pallet.positions,. b).special.conditions.(e.g.,.low.temperature.controlled.storage.area,.hazardous.SKU,.human. consumable,.toxic,.temperature.sensitive,.or.high.value) Storage.position.utilization.factor Storage.utilization.factors.are.a).dense.storage.designs.that.are.floor.stack,.drive-in.or.drive. through.rack.(66%),.b).single.deep.standard,.flow.rack,.or.AS/RS.rack.(85%),.and.c).two-deep. racks.have.an.interior.utilization.of.85%.and.an.exterior.utilization.of.66%. The.options.for.a.SKU.inventory.volume.projection.are.a).for.a.complete.year.to.develop.an. average.volume.or.b).develop.a.moving.average.inventory.volume.projections.for.a.predetermined. month. period. (such. as. 3. month. moving. average. inventory. volume).. For. storage. area. size,. a. 3. month.moving.average.with.the.highest.inventory.volume.is.preferred..In.most.operations,.the. highest.predetermined.period.is.the.last.three.months.of.the.fiscal.year..After.a.projection.method. is.selected,.the.base.year.data.is.multiplied.by.the.company’s.growth.factor.to.obtain.the.design. inventory.volume. After.the.inventory.volume.is.projected.for.the.design.year,.the.inventory.volume.is.divided.by. the.number.of.SKUs.in.each.storage.device.with.a.WMS.identification..In.a.single-item.operation,. that.would.be.the.number.of.SKUs.per.tote,.box/carton.with.one.tote,.box/carton.on.a.shelf,.rack. carousel.basket,.or.AS/RS.tray/device..In.a.master-carton.operation,.it.is.the.number.of.SKUs.per. master.carton.with.one.master.carton.per.shelf,.hand.stack.or.pallet.rack,.carousel.basket,.AS/RS. tray.or.device,.or.pallet.in.a.rack.position..In.a.pallet.operation,.it.is.number.of.SKUs.per.master. carton.and.the.number.of.master.cartons.per.pallet,.slip.sheet,.or.container.in.a.floor.stack,.pallet. rack,.or.AS/RS.pallet.position. n n n n n n n n n n n n AU0575.indb 466 4/28/08 9:00:01 AM © 2008 by Taylor & Francis Group, LLC Project Management, Interface, and Integration  n  467 An.important.storage.position.projection.is.of.non-WMS.program.(non-SKU).supported.stor- age.positions..A.nonWMS.program.SKU.requires.labor.or.a.forklift.truck/AS/RS.crane.to.com- plete.a.non-WMS.supported.storage.transaction..An.example.of.a.non-WMS.program.SKU.is. a.shipping.supply.item..A.warehouse.operation.staff.estimates.the.SKUs.inventory.quantities.in. the.area,.based.on.the.design’s.peak.quantity.requirement.(which.includes.vendor.lead.time.and. safety.stock)..A.ship.supply.pallet.with.overhang.or.convex.bowed.top.restricts.its.allocation.to.a. pallet.storage.rack.storage.but.is.placed.into.a.floor.stack.design.that.is.two.or.three.high.with.a. pyramid.floor.stack..For.minimum.shipping.supply.inventory,.the.vendor.supply.is.on.a.“just-in- time”.basis. A.warehouse.SKU.storage.position.projection.determines.storage/pick.operations: Storage.design,.which.can.be.wide.aisle.(WA),.narrow.aisle.(NA),.very.narrow.aisle.(VNA). fork.lift.truck,.or.automatic.storage.and.retrieval.system.(AS/RS).crane Storage.area.size Storage.design,.which.can.be.floor.stack,.stacking.frame,.conventional.racks,.or.dense.stor- age.racks,.AS/RS.or.rack.supported.building Location.in.a.facility WMS.program.design.considerations Predetermined Monthly Average Warehouse and SKU Inventory To. project. a. storage. operation. design. monthly. average. unit. inventory. with. a. WMS. program,. design.parameters.are: Additional.new.SKU.number SKUs. that. require. regular. storage. conditions,. special. storage. conditions,. or. FIFO. SKU. rotation Storage.inventory.number.of.units.such.as.pallets,.master.cartons,.or.single.pieces The.following.is.an.example.of.a.predetermined.monthly.average.storage.operation.with.a. WMS.program.inventory:.annual.SKU.inventory. is.15,000.and.to.have.three.months.as. an.average.inventory.in.an.operation..The.annual.SKU.inventory.is.divided.by.12.months,. which.is.a.monthly.inventory.of.1,250.SKUs..A.three-month.SKU.inventory.is.1,250.SKU. multiplied.by.3,.which.equals.3,750.SKUs:.the.operation.design.year.inventory.SKU.volume.. With.a.standard.rack.85%.utilization.factor,.the.design.year.storage.positions.are.4,411. Three-Month Moving Average SKU Inventory To.project.the.three-month.moving.average.inventory,.the.design.parameters.are: For.the.design.year,.determine.the.highest.three.month.number.of.units.in.inventory.such. as.pallets,.master.cartons,.or.single.pieces For.each.SKU.number.that.requires.normal.storage.conditions,.special.storage.conditions,. or.FIFO.SKU.rotation Storage.inventory.number.of.months n n n n n n n n n n n n AU0575.indb 467 4/28/08 9:00:01 AM © 2008 by Taylor & Francis Group, LLC 468  n  A Supply Chain Logistics Program for Warehouse Management An.example.of.a.three-month.moving.average.SKU.inventory.follows..The.total.annual.inven- tory.is.15,700.SKUs..The.monthly.SKU.inventory.is: January.=.1,000 February.=.1,000 March.=.1,000 April.=.1,100 May.=.900 June.=.1,100 July.=.1,400 August.=.1,400 September.=.1,400 October.=.1,700 November.=.1,700 December.=.2,000 A.three-month.moving.average.SKU.inventory.projection.design.has.the.following.groupings: January,.February,.and.March.=.3,000 February,.March,.and.May.=.3,100 March,.May,.and.April.=.3,000 May,.April,.and.June.=.3,100 April,.June,.and.July.=.3,400 June,.July,.and.August.=.3,900