Lean Warehousing
Lean Warehousing
Lean Warehousing
WareHOUSING
INDEX
Page 30 : Standardization
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Introduction
The Essence
The Purpose
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Eliminating Waste:
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• Defects
• Overproduction
• Waiting
• Non-Utilized Talent
• Transportation
• Inventory
• Motion
• Extra Processing
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Defects
As emphasized by Lean philosophy, are prioritized for elimination
through the use of "Andons" for visual warnings and "poka yoke" for
mistake-proofing. The objective is to minimize the need for extensive
quality checks and identify and eliminate non-value-added activities in
warehouse operations.
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Overproduction
In some organizations, the practice of overproduction presents a
prevailing issue that significantly hampers operational efficiency. This
flawed approach involves continuing production without considering
the actual demand or readiness of the recipients, leading to
substantial tied-up working capital, especially in manufacturing or
workplaces with bottlenecks.
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Waiting
Waiting refers to any idle time or delay in the production process where
work isn't actively being done. This waste occurs when waiting for the
previous step in a process to finish, like a bottleneck, particularly in
manufacturing.
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Waiting occurs when work has to stop due to factors like the next
person in line being overwhelmed, equipment breakdowns, waiting for
approval or materials, or running out of supplies. Other causes include
unbalanced workloads, unplanned downtime, long setup times,
producing based on forecasts, insufficient staffing, work absences,
poor process quality, and poor communication. Regardless of the
cause, some workers have to wait for bottlenecks to be cleared.
Non-utilized talent
Insufficient use of employees' skills, creativity, or potential
contributions within an organization is known as non-utilized talent
waste. This waste occurs when employees are not effectively engaged
or when their talents are not utilized to add value to the production
process. In a Lean environment, it is crucial to recognize and tap into
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Transportation
Transportation refers to the unnecessary movement of materials,
items, or information within the production process. This waste can
have negative impacts on efficiency, costs, and product quality.
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Inventory excess
Inventory excess occurs when there is an excessive supply of materials,
products, information, or work-in-progress beyond the immediate
needs or customer demand. This waste is often caused by various
factors:
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that are not currently needed creates additional costs and takes up
space.
Reducing inventory levels not only frees up capital but also contributes
to continuous improvement efforts. It helps identify and address other
inefficiencies in the production process, such as transportation waste
and overproduction.
Motion
Motion waste refers to the unnecessary movement of employees or
machines that does not add value to the product, service, or process. It
is caused by various factors, including poor process design and controls,
poor workstation or shop layout, shared tools and machines,
workstation congestion, isolated and siloed operations, and lack of
standards.
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Excess processing
Excess processing, also known as overprocessing, often occurs due to
multiple versions of the same task, processing more than necessary, or
long-winded poorly designed processes. Examples of this waste
include:
Excessive reports
Multiple signatures
Reentering data and duplicated data
Lack of standards
Poor communication
Overdesigned equipment
Misunderstanding of the customer's needs
Human error
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2. Unevenness or Mura
Unevenness, or Mura, disrupts workflow and causes inefficiencies.
There are three key techniques to address it: Takt time, Just-in-Time
(JIT), and Pull flow.
For example, if the card assembly line operates for 10 hours per day
(equivalent to 600 minutes) and the customer demand is 150 cards per
day, the Takt time would be calculated as follows:
This means that the production rate should be one card every four
minutes to meet customer demand without overproduction or
underproduction.
By aligning the production rate with the Takt time, we can achieve a
smooth flow of work and avoid imbalances in the production process.
This approach helps us optimize resources and ensure efficient meeting
of customer needs.
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Just-in-Time (JIT),
Heijunka, or leveling
Pull flow
Just-in-Time (JIT)
Just-in-Time (JIT) techniques reduce unevenness by maintaining a
smooth flow and eliminating excess capacity.
The key principle of JIT is to receive items from suppliers only when
they are needed, aiming to minimize inventory holding costs and
maximize inventory turnover.
Heijunka, or leveling
Heijunka levels production/workload across different periods to
reduce unevenness. Heijunka, or leveling, is a technique used to
eliminate unevenness in production or demand. By applying leveling
techniques to the picking and packing processes in the warehouse, we
can achieve a more balanced and predictable production schedule.
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Pull flow
Pull flow ensures production aligns with the needs of the next step in
the process. Implementing a Kanban system creates a pull flow and
synchronizes workflow. The Kanban system uses a three-bin setup: Bin
1 and 2 in the packing area, and Bin 3 in the picking area. The initial
empty state of Bin 3 signals pickers to replenish it with the required
pallets, while Bin 1 signals pickers to start picking more pallets. Bin 2
acts as a buffer to keep the workflow moving smoothly. The continuous
movement of bins and the use of buffer bins ensure a steady flow of
work.
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3. Overburden "Muri"
Overburden, known as "Muri" in Lean philosophy, is a significant waste
that can hinder productivity, reduce morale, and increase stress among
workers. Overburden occurs when workers feel overwhelmed by their
workload, perceiving that regardless of their efforts, they will never be
able to accomplish everything. This overwhelming feeling can lead to
reduced morale, increased stress levels, and decreased productivity.
Visibility
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Continuous Improvement
Key Points:
The PDCA cycle consists of four steps: Plan, Do, Check, and Act.It
provides a systematic approach to implementing improvements and
driving ongoing progress.
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Standardization
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4. When and How Long: Establish the timing and duration for each
activity, specifying when it should be performed and how much time it
should take.
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Segment 1
Segment 2
Segment 3
Order Fulfillment:
Segment 4
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example, for items from 'A' suppliers known for good quality, the
receiving and staging steps (3 and 4) can be skipped. Similarly, for fast-
moving items like meat from 'A' suppliers, improving inbound-
outbound coordination can reduce supply time to just one day. This
eliminates the need for storage, placement, and picking steps by
allowing the meat to be taken directly from unloading to the shipping
area.
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To mitigate the issue, the team had to use an alternative scale located
in a different area of the warehouse for a period of two months. This
workaround allowed them to continue with the process, but it deviated
from the original plan of having the scale next to the stretch wrapping
machine.
During the period when the alternative scale was used, some associates
who were not familiar with the new process reverted to the old process
out of habit. Additionally, a few associates who had initially learned
the new process forgot the specific steps over time. As a result, there
was a regression to the previous state of affairs before the process
improvement.
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