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Project Data
Client: Fortune 500 Global Corporation specializing in Robotics, Power, Electrical Equipment & Automation Technology
Location: Northern Mississippi, USA
Timeframe: Two Months
Key Project Factors: People, process and system challenges had developed throughout the facility due to lack of KPI and departmental expectations; impacting labor performance and utilization throughout the distribution operations. Without studying the activities at the elemental level, constructing multi-variable engineered standards and identifying continuous improvement opportunities, the client would have been unable to address the inefficient process and facility layout challenges negatively impacting their throughput and performance.
The Challenge
Client was struggling to store inbound product across multiple shifts due to inefficient process and layout constraints; driving increased processing time and hindering throughput in the pallet and case putaway process. This challenge was identified as a major bottleneck within the operation and ultimately impacted upstream and downstream operational productivity and performance.
The Approach
CONTINUUM redesigned the sorting processes in receiving to support same zone putaway travel for full pallet and case putaway. Systematic identifiers and zoning was created to increase capacity of putaway drivers and decrease travel time. A breakdown process for manual case receiving was put in place which consolidated like-zone SKUs to the same pallet and allowed the order picker operators to travel within one zone for each case putaway trip.
The Results
A productivity improvement of 62% was realized in the putaway operation after implementing engineered standards and alleviating the sorting and travel constraints through setting up and standardizing the work steps. Aligning put-away locations with zones reduced traffic congestion and travel time per trip by 30% through directing operators to a defined footprint rather than necessitating multi-zone travel across the entire storage area. Staffing was subsequently reduced by 44% as a result of the productivity increase as it was no longer necessary to dedicate the same number of resources to complete the existing inbound volume.
