Company: Instarmac
Sector: Warehouse and distribution
Key Tools or Services; Lean Thinking / VSM, Stock Reduction, Warehouse Improvements, error Proofing and Visual Management.
Results:
- Errors reduced by 90%
- Picked order check removed
- Faster Order Picking
Project Overview
The Introduction of own brand tile products has brought with it a change in the type of orders received. The new range requires the building up of a pallet from a wide range of SKU’s, compared to full pallets for existing products. This manual process had many opportunities for error and required 100% checking of picked pallets. Data showed that there were errors on 2.5% of all pallets and there were still customer complaints for incorrect deliveries.
The cross-functional team mapped the picking process and identified possible sources of error. These included:
- The pick list order did not match the physical layout of the items in the warehouse.
- Item layout did not match the order that a pallet was assembled
- Products have similar packaging making identification difficult
- Pallets were left part picked resulting in duplication and missing items
The steps taken to improve the process were:
- Items were stored in the order that a pallet is assembled.
- The picking note was modified to match the warehouse layout
- Orders are picked in full so that there are no errors due to part picked pallets
- A hand pallet truck is used to minimise the room needed for storage.
- Visual Management was used to clearly identify the locations of different SKUs.
- Changes to product packaging have been made to make product identification easier.
100% inspection of pallets for 3 months showed a 0.25% error rate (90% reduction). Further improvements have removed the need for any checking of pallets after 6 months.