Richards 4.pptx - PICKING ACTIVITIES Richards Chapter 4...

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PICKING ACTIVITIES Richards Chapter 4
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Pick Preparation Picking is the most costly activity in the warehouse due to labour intensity, difficulty to automate and prone to error. There is a trade of between speed, cost and accuracy. Table 4.1 Best in class: picking (WERC) Best in class Median Laggards Percentage of orders picked accurately ≥ 99.9% 99.5% ≤ 98.0% Percentage of orders shipped on time and complete to customer request; or on time, in full (OTIF) ≥ 99.05% 95.0% ≤ 84.1%
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How to achieve best in class? Figure 4.1 Picking interrelationships
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Profiling Prior to layout, decisions regarding materials handling, and picking, profiling should be conducted. Profiling involves the systematic analysis of item and order activity. Serves as the basis for decision making, areas for improvements/reengineering, opportunities for planning/design, justifications for investments/funds allocation There are several profiles
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Preparation Less than 15% of SKUs are assigned to best location in warehouse There are several methods that can be adopted to assist in improving the picking efficiency 1. Item sales frequency 1. Item sales frequency 2. Item sales and pick frequency 2. Item sales and pick frequency 3. Same product frequency 3. Same product frequency 4.Item and order frequency 4.Item and order frequency 5. Other factors 5. Other factors 6. Lines per order 6. Lines per order 7. Cube per order 7. Cube per order 8. Demand variation distribution 8. Demand variation distribution
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1. Item Sales Frequency Analysing and understanding the sales frequency of items should assist in the location of products ABC analysis - ‘A’ is the most important, with 20 per cent of products producing 80 per cent of sales, ‘B’ is of medium importance with say 35 per cent of items producing 15 per cent of sales, and the remaining 45 per cent being ‘C’ items producing only 5 per cent of sales. ‘A’ items should be placed close to packing/despatch, ‘C’ items may be relocated/disposed 1. Item sales frequency
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2. Item Sales and Pick Frequency Frequency of pick - 80 per cent of picks came from 15 per cent of the product lines. Figure 4.4 ABC analysis: quantity and frequency of sales (courtesy of ABC Softwork) 2. Item sales and pick frequency The more you visit the pick face the more costly it is
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2. Item Sales and Pick Frequency Figure 4.5 ABC analysis: product value and frequency of sales Minimize ordering costs Have a good relationship with your supplier Minimize product cost price Increased sale price
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