Improving the processes in a warehouse : A case study

Title: Improving the Processes in a WarehouseBackground: For warehouses to perform as efficiently and effectively as possible, helping companies maintain a high service level and react to market changes, continuous improvement is necessary. This is achievable through amongst other methods, the analysis of operations to identify wasteful activities and eliminate them. Purpose: This paper, through a thorough description and understanding of the current outbound processes at Company N, seeks to identify any wasteful activity and what might be causing such wastes. Furthermore the paper shall seek to make recommendations for reducing or eliminating wastes identified. Research Questions: What wastes can be identified in Company N’s outbound processes and why do they occur? What recommendations should be made for reducing wastes at Company N? Method: This research is qualitative in nature carried out using a deductive approach. Primary data was gathered mainly through observation and semi-structured and unstructured interviews with the goal of gaining as deep an understanding of the processes as possible. Secondary data was also gotten from multiple sources within the company. Contemporary tools and techniques like Value Stream Mapping and Gemba (observation at the place of work) were useful in identifying wastes; meanwhile the 5 Why’s questioning technique was used for finding the causes of wastes identified. Benchmarking was also used as a means of sourcing ideas and proven standards of performance. Conclusion: The research identified five main wastes including waiting, travelling, unnecessary motion, defects and processing. The main causes of the wastes include the use of manual verification during processes, limited use of batch picking, the absence of lifting aid and dissatisfaction amongst workers. The report makes recommendations including change of handling equipment and operating procedures to accommodate automatic verification of locations and items, as well as better usage of batch picking. It is also recommended to swap the location of certain articles and introduce marketing analysis to reduce travelling. Finally, recommendations are made for counteracting worker dissatisfaction such as a proposed improvement report, an appraisal system, more cross training and internal personnel development