Friday, April 15, 2011

Applying Lean Concepts in a Warehouse Operation

Frank C. Garcia, P.E.
Director, Business Solutions & Engineering Services
Advent Design Corporation
Bristol, PA, USA

1. Introduction
This presentation shows how a warehouse operation can be improved using lean concepts and techniques.
Warehouse improvement requires optimizing material flow, order picking, replenishment, and dock operations. Although many traditional lean techniques maybe difficult to apply, the concepts of improving material flow and eliminating waste can be used to make significant improvement in warehouse lead time.
Many lean practitioners consider the term warehouse and lean to be mutually exclusive. However, regardless of how fast inventory is turned, warehouses will always exist to allow a company to deal with variations in customer demand. The key is to reduce the non-value added steps in the warehouse as much as possible and to improve velocity and flow. Implementing a lean warehouse starts with value stream mapping. After the current state value stream map is created, improvements can be easily developed to eliminate extra material handling, excessive travel time, and time spent looking for products. Various lean improvement techniques such as material flow analysis, quality improvement, and application of the 5Ss can be used. A warehouse improvement example is presented to show how warehouse lead time, order picking time, and material handling can be reduced by 50% using lean concepts.

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