Current System Analysis

Problem Identification

Warehouseinefficiency

Method

To follow strictlyFEFO is timeconsuming.

No exactlocation isrecorded.

Materials

Material storageis disorganized.

Environment

Inoptimalwarehouselayout.

Manpower

Over-utilization ofa single worker

Unequalallocation of work

Hand carry ofminor bags

Machine

Bar code size istoo small to see.

Process Mapping

Inbound

Storage

Retrieval

Checking

StartUnloading  all  pallets  from  trucks  to  black  area Labelling Preparation

Transfer to warehouseand storage racks

Update informationin systemEnd

Order  received  &  search  for  the  pallet

StartProductionor  checking

Transfer toproductionstaging area

Transfer toQA samplingroom

Prepare forproduction

Checking

End

Current After % change

Search_bulky 3442 2790 19%↓Search_packaging 5780 4068 30%↓Transfer_QA 2509 1970 21%↓Search_minor 15710 12154 23%↓

Ergonomic aspect improvement

Handling tips for minor material preparation• Place materials at waist height to reduce

bending• Maintain enough free space around pallets (to

avoid awkward posture)• Grip materials firmly and bring it close to body• Use legs to push up the materials, not upper

body or back• Avoid repetitive motions and frequent

handling • Wear gloves or other hand and forearm

protection for objects with sharp edges or splintered surfaces.

• Introduce material handling equipment: suchas hand trucks, dollies and pallet jacks

Record down the exact location of the pallet

Label at each position: rack X layer Y depth ZKnowing the exact location would reduce unnecessary movement and thus save searching time.

Increase label and barcode sizeOur interview result with workers shows that, 1. Barcode scanning process is not user-friendly.2. During the retrieval process, it is difficult to see clearly the label, and thus making it troublesome to recognize the correct pallets.

Thus increase label and barcode size would help to speed up their working process.

When searching time is reduced 40%, there is significant decrease in average waiting time for major tasks.

Impacts on average waiting time with 40% reduction in searching time (s)

Machine & Method

Grid network of aisles

Environment

Material re-allocation

QA sample + rework

packaging

Minor

Bulky

Bulky

• After material re-allocation, warehouse is divided into 5 major areas, with each area storing only 1 type of material.

• Same type of material is stored in the same rack or adjacent racks. This would facilitate the workers during searching and retrieval process.

Material Currently, some of the different types of materials are stored in the same rack. Especially for minor materials, they are spread over 5 racks.

Utilization of both worker B and C drop, and utilizationof worker C is now in the safety range.Worker utilization is more evenly distributated now.

Flexible manpower allocationTo allocate some of the tasks from worker B and Cto worker E, so as to achieve a more equitableworker utilization. This could prevent worker B andC from becoming the bottleneck when workloadincreases in the future.

Manpower

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9worker utilization before and after work re-allocation

Recommendation

Add cross aisles to main aisles.Easier access to main aisles, faster and more efficient movement.Drive-through racks vs Selective racks

Drive-through Selective

Rack depth High Low

Storage density High Low

Product variety Low High

Flexibility in retrieval FILO FIFO / FEFO

Accessibility Low High

Project Description

Problem StatementAMS is a large production plant for nutritional products (mainly milk powders). AMS is doubling production in the next two years. The warehouse efficiency has to be improved to hold extra production capacity.

Project ObjectiveThe management wants to evaluate current warehouse operations and improve warehouse efficiencies to cope with future expansion.- Use IE tools to track bottlenecks in the warehouse - Perform scenarios analysis under varying demands- Propose recommendations to improve warehouse efficiency

Methodology

DefineProject objectivesProject scope

MeasurePerformance metricData collectionData processing

AnalyzeProcess mappingProblem identificationSimulation modellingResult analysis

ImprovePropose solutionsEvaluation

• With increase in goods inflow rate,there is significant increase in theaverage waiting time for major tasks.

0100000200000300000400000500000600000700000

Current Add 30% Input Add 50% Input Add 100% Input

Average waiting time at different goods inflow rate

Q_search_minor

Q_search_packaging

Q_Store

Q_search_bulky

Q_Transfer_QA

• When goods inflow rate doubles, theaverage waiting time increases morethan 30 times. Some tasks evenincrease more than 50 times.

Scenario Analysis

• Currently, there is uneven distributionof workload.

• With increase in goods inflow rate,there is significant increase in theworker utilization rate.

• The utilization of both worker B and Creaches 1 when increase in goodsinflow rate reaches 50%.

00.10.20.30.40.50.60.70.80.91

AWorker at

packaging station

BWorker at bulky

station

CWorker at minor

station

DContractor at low

care zone

EContractor at

medium care zon

worker utilization at different goods inflow rates

Current

+30%

+50%

+100%

Simulation modellingA simulation model was constructed to evaluate the performance of current warehouse operations, and also examine the impacts of potential changes in the future.

modelInput variables

• Number of resource• Working hour• Process time• Inflow volume• Outflow volume

Output KPIs

• Worker utilization rate• Waiting time to complete a

process• Total time to complete all

processes.

AMS Warehouse Efficiency ImprovementsDepartment of Industrial and Systems Engineering | IE3100R System Design ProjectTeam Members: Ding Sen, Meng Yue, Zhang Xiaoxing, Zhang XinbeiNUS Supervisors: A/Prof. Poh Kim LengAMS Supervisors: Ms Amelia Tan, Mr Bert Beek

AMS