What it means to streamline operations.
We had 1 warehouse person able to ship 3000 skus to 100 customers and do all receiving from 2000+ suppliers. How?
Streamlining involves:
1 internal/external task moves
2 Batching/Consolidating
3 Abstraction
4 Systems
5 Empower
6 Automate
We had 1 warehouse person able to ship 3000 skus to 100 customers and do all receiving from 2000+ suppliers. How?
Streamlining involves:
1 internal/external task moves
2 Batching/Consolidating
3 Abstraction
4 Systems
5 Empower
6 Automate
1. Internal vs External Tasks
When looking at a procedure, there are tasks that must be done at that moment, and ones that can or are done at the moment.
By removing all "external" tasks and delegating or move to when there is available time, you create a more steady work flow
When looking at a procedure, there are tasks that must be done at that moment, and ones that can or are done at the moment.
By removing all "external" tasks and delegating or move to when there is available time, you create a more steady work flow
2 Ex. Shipping a SKU
When shipping a SKU we need to enter the customer we are shipping to. We can't do this earlier because we just found out where to ship it (a customer order).
These are internal tasks.
When shipping a SKU we need to enter the customer we are shipping to. We can't do this earlier because we just found out where to ship it (a customer order).
These are internal tasks.
3. For a SKU to ship, it also must be
- boxed,
- bagged,
- labeled,
- inspected.
These need to be done no matter where its shipping.
They can be done at a different time
These are external tasks
- boxed,
- bagged,
- labeled,
- inspected.
These need to be done no matter where its shipping.
They can be done at a different time
These are external tasks
4. Streamline operations involves breaking each procedure into atomic tasks and
- move the externals to a different role, person, or time where there is available capacity
- make the internals easier to do.
- move the externals to a different role, person, or time where there is available capacity
- make the internals easier to do.
5. We made sure everything was prepped for shipment as part of receiving.
Our policy, nothing went on a shelf that wasn't ready to ship.
- prevented mis shipments by fill-ins or temp work
- reduced error in busy shipping periods
- moved work to an area where we had more time
Our policy, nothing went on a shelf that wasn't ready to ship.
- prevented mis shipments by fill-ins or temp work
- reduced error in busy shipping periods
- moved work to an area where we had more time
6. Batching / Consolidating
Identify areas where the amount of work is the same for 1 or 100.
Consolidate here.
Whether we were shipping 1 SKU to a customer, or 100's, we needed to do things like
- print an order
- setup a UPS pickup (or trucking)
- prep a BOL
- close order
Identify areas where the amount of work is the same for 1 or 100.
Consolidate here.
Whether we were shipping 1 SKU to a customer, or 100's, we needed to do things like
- print an order
- setup a UPS pickup (or trucking)
- prep a BOL
- close order
7. By batching SKUs into less shipments, we were able to "house" more revenue and activity in less "fixed time" tasks.
We worked out with customers their usage and their needs and developed a plan to ship less often.
We worked out with customers their usage and their needs and developed a plan to ship less often.
8. Side Note
Customers don't want inventory early.
When you dig into it (as you should do when working with customers).
What they really don't want, is it on their books.
So how can we ship product without it being on their books?
- extend payment terms or
- consignment
Customers don't want inventory early.
When you dig into it (as you should do when working with customers).
What they really don't want, is it on their books.
So how can we ship product without it being on their books?
- extend payment terms or
- consignment
9. Implementing Consolidation
Find as many tasks as you can with "fixed-time" characteristics.
Batch as much volume or activity in these fixed-time tasks.
Find as many tasks as you can with "fixed-time" characteristics.
Batch as much volume or activity in these fixed-time tasks.
10. Create fixed time tasks
You can even create fixed time tasks.
Creating a packing slip / invoice grows with the number of SKUs you add to it.
We created a simple script that added parts from the customer order.
We turned SO creation into a fixed time task
You can even create fixed time tasks.
Creating a packing slip / invoice grows with the number of SKUs you add to it.
We created a simple script that added parts from the customer order.
We turned SO creation into a fixed time task
11. Abstraction:
Out of our 100+ customers, there were some common needs that took time.
What size box to ship in?
We grabbed data for each SKU and made a "part plan" which included size, weight, most ordered qty, etc.
Out of our 100+ customers, there were some common needs that took time.
What size box to ship in?
We grabbed data for each SKU and made a "part plan" which included size, weight, most ordered qty, etc.
12. Using Data
Using the data we grabbed we were able to create a small piece of software that not only managed our "part plan" for all SKUs but allowed us to have people
- make those decisions
- from anywhere in the world
- push them as available upon receiving.
Using the data we grabbed we were able to create a small piece of software that not only managed our "part plan" for all SKUs but allowed us to have people
- make those decisions
- from anywhere in the world
- push them as available upon receiving.
11. Abstraction Take Away
Take tasks that need to be done, but don't need human judgment and create tools to make those decisions.
You'd be shocked how much time can be saved from reducing the decisions made by each person by just 20/day.
This also allows you to move the task
Take tasks that need to be done, but don't need human judgment and create tools to make those decisions.
You'd be shocked how much time can be saved from reducing the decisions made by each person by just 20/day.
This also allows you to move the task
12. Push Tasks Upstream
Another part of shipping is bagging the parts.
This is time-consuming.
We worked with suppliers to send the parts already bagged.
We worked with customers to accept preset bag qtys
This turned an internal task into an external, which we then delegated
Another part of shipping is bagging the parts.
This is time-consuming.
We worked with suppliers to send the parts already bagged.
We worked with customers to accept preset bag qtys
This turned an internal task into an external, which we then delegated
13. Automate
Once you have data ("part plan")
And you have your fixed-time tasks done (order creation)
We could automate.
We could auto create Box / Pallet labels, BOL submissions and pickup requests.
We knew where it was going, how heavy it was (using piece data), etc.
Once you have data ("part plan")
And you have your fixed-time tasks done (order creation)
We could automate.
We could auto create Box / Pallet labels, BOL submissions and pickup requests.
We knew where it was going, how heavy it was (using piece data), etc.
14. Systematize
It was a theme in all of the above, but systematize your operations.
Same thing, same way, every time.
Same bag qtys, every time.
Same label creation for all customers.
etc.
It was a theme in all of the above, but systematize your operations.
Same thing, same way, every time.
Same bag qtys, every time.
Same label creation for all customers.
etc.
15. Level Procedures
We often leveled-up to make the process easier for the warehouse guy.
if 30% of our customers needed an extra step, rather than have them try to remember for certain customers, we did it for all customers.
We often leveled-up to make the process easier for the warehouse guy.
if 30% of our customers needed an extra step, rather than have them try to remember for certain customers, we did it for all customers.
16. By leveling up
We
- raised our service level
- wow'd non-requesting customers
- standardized our approach
and, once standardized, could build tools to help us do it faster.
We
- raised our service level
- wow'd non-requesting customers
- standardized our approach
and, once standardized, could build tools to help us do it faster.
17. Misc
On top of all this the usual culprits were there to help:
- checklists
- forms
- communication
- incentive/empowerment
On top of all this the usual culprits were there to help:
- checklists
- forms
- communication
- incentive/empowerment
19. In a nutshell, you can streamline any procedure by
1. identifying current internal and external tasks, and moving externals to different companies, people, or time slots with availability
2. Converting internal tasks to external tasks, and then repeating.
1. identifying current internal and external tasks, and moving externals to different companies, people, or time slots with availability
2. Converting internal tasks to external tasks, and then repeating.
19. In a nutshell cont.
3. Consolidating work and activity under fixed-time tasks where ever possible.
4. Creating tools to reduce decisions made at time of activity
5. Systematizing to reduce variation at time of activity
6. Using automation to create more fixed-time tasks
3. Consolidating work and activity under fixed-time tasks where ever possible.
4. Creating tools to reduce decisions made at time of activity
5. Systematizing to reduce variation at time of activity
6. Using automation to create more fixed-time tasks
• • •
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