tihi optimization presentation

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DC 6084Kendall Szilasi

Texhoma NorthDivisional MeetingSanger, TXJuly 22-23, 2015

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DMAIC Process

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Understanding TIHI Optimization

• Increase CPP

•Maximize slot utilization

•Maximize capacity

•Create straight-pull

•Reduce breakdown

•Reduce pallet allocation

•Perfect profiling

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Ultimate Outcomes

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Performance in the Current State

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Core Findings

225: Straight-Pull with GLS update

150: Straight-Pull with rack changes

550: Remeasured because GLS says they’re coming in larger than slot height

100: Potential rack changes (strong movers) because GLS says they’re coming in larger than slot height

300: Layer increases under current slot height

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Categorical Breakdown

1. Systematic Updates

•225 potential straight-pulls•Eliminating ~4600 pallets/month

2. Rack Changes (1 Layer)

• 150 potential straight-pulls• Eliminating ~1000 pallets/month

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Categorical Breakdown

3. Layer Increases

• Does not enable straight-pulls, but allows slot utilization to be maximized• Eliminates ~750 pallets a month

4. Rack Changes (Layer Increases)

• Does not enable straight-pulls, but allows slot utilization to be maximized• Reserved for fastest moving items • Most temporary, could be reserved for seasonal influx• Eliminates ~600 pallets a month

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Categorical Breakdown

5. Incorrect in System

• Items appear systematically to be coming in larger than slot height• Must audit and remeasure

• (+): Increase rack-heights to accommodate for excess height• (-): Decrease HI to fit in current height (slow items)

• Roller Prime

100: Increase rack height

350: Reduce HIs

100: Roller Prime

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Quantifying Findings

Category Pallet Reductions

Systematic Updates ~4600

Rack Change (1 Layer)

~1000

Increases ~750

Rack Change (Strong)

~600

Incorrectly Slotted ~250

Total Reduction/Month

~7,200

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Quantifying Findings Pallet Reduction by Area (Month) Total Total With Total Without

Dry

Dry Grocery With Slot Changes 4459

Without Slot Changes 4310

4,459 4,310 Perishable

Freezer With Slot Changes 317

Without Slot Changes 103

Ice Cream With Slot Changes 23

Without Slot Changes 3

Dairy/Deli With Slot Changes 479

Without Slot Changes 258

Meat With Slot Changes 910Without Slot Changes 268

Wet Produce With Slot Changes 611Without Slot Changes 352

Cold Produce With Slot Changes 74

Without Slot Changes 73

Dry Produce With Slot Changes 320

Without Slot Changes 157

2,733 1,214

Warehouse Total Pallet Reduction 7,192 5,524

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Quantifying Findings JOB FUNCTION: MEAT/PRODUCE

NET REDUCTION (WITHOUT CHANGES) 212.63

NET REDUCTION (CHANGES) 478.51

Wage (Avg.) $ 19.73

Without Changes With Changes

TPR unit/hr TPR Reduction/wk TPR Reduction/Wk

1014001 Unloading/Processing 751.66 0.28 0.641014003 Slotting 63.15 3.37 7.581014005 Haulting 44.51 4.78 10.75

4014009 Replenishment 18.72 11.36 25.564014008 Putaway 65.77 3.23 7.28

Hours/Wk Savings 23.02 51.80

Avg. Weekly Impact $ 454.03 $ 1,021.74

Avg. Monthly Impact $ 1,816.12 $ 4,086.97

Avg. Quarterly Impact $ 7,264.48 $ 16,347.87

Avg. Yearly Impact $ 23,609.55 $ 53,130.59

Total Yearly Impact $ 51,251.80 $ 115,336.32

Week Total With Total Without

DRY

1,115 1,078 FDD 199 90M/P 479 213

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Quantifying Findings

Pallet Reduction/Month

Before After Savings %

DRY 63,833.00 59,374.00 4,459.00 7%

FDD 44,838.00 44,018.93 819.07 2%

M/P 39,846.00 37,931.98 1,914.02 5%

148,517 141,325 7,192 14%

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Obstacles to Consistency

1. Data Inaccuracies:

• Vendor/Warehouse TiHis• Individual Case Measurements• Neglecting Anomalies

2. Associate Push-Back:

• Reluctant to Change• Requesting TIHIs Reversed• Ignoring TIHI Specifications• Changing GLS

3. Departmental Disconnect:

• Each area affected differently

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Affected DepartmentsStart

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Implementing Change

Meat/Produce Goals, Average Cases per Month

Cases/Month Total Pallets/Month Cases/Pallet Total Hours CPH Before Est. Pallets Saved Cases Saved Proposed Increase

1,288,349.00

39,846.00

32.33

594.36

758.11

1,914.02 61,886.48

2,271.75

104.12

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Implementing Change

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Proposed Action Plan

Contracted Re-Racking crew for $13,000 for 177 bay changes.

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Maintaining Improvements