Why are you in this class? - PowerPoint PPT Presentation

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  1. Why are you in this class? DID YOU KNOW? http://www.youtube.com/watch?v=jpEnFwiqdx8&feature=related

  2. Why are you in this class?

  3. You can’t manage what you can’t measure Measuring & Benchmarking Chapter 3

  4. Benchmarking

  5. Total Quality Management • TQM requires a new process thinking mindset. We must realize that everything we do is part of a process. Our focus shifts from managing outcomes to managing and improving processes; from what to do to how to do the processes better. Quality performance expands to include how well each part of the process works and the relationship of each part to the process. Also, process improvement focuses on continuously achieving the greatest potential benefit for our customers.

  6. International Benchmarking Clearinghouse • http://www.quality.org/html/benchm.html http://images.google.com/imgres?imgurl=http://www.apqc.org/images/bookstore/Pure_Simple.jpg&imgrefurl=http://www.apqc.org/portal/apqc/ksn%3Fpaf_gear_id%3Dcontentgearhome%26paf_dm%3Dfull%26pageselect%3Ddetail%26docid%3D109913&h=180&w=120&sz=19&hl=en&start=1&um=1&tbnid=DM7QTNrwqW-sHM:&tbnh=101&tbnw=67&prev=/images%3Fq%3Dinternational%252Bbenchmarking%252Bclearinghouse%26svnum%3D10%26um%3D1%26hl%3Den%26sa%3DN

  7. Benchmarking Warehouse Operations • 3 Perspectives: • Internal • External • Competitive

  8. Benchmarking

  9. Benchmarking Warehouse Operations Efficient consumer response Quick response Just in Time Continuous Flow Response

  10. Traditional Benchmarks

  11. Warehouse Productivity The ratio of the output of a resource to the inputs required to achieve that output Most popular and traditional warehouse performance measure = Productivity

  12. Space Productivity The ratio of the amount of inventory storage capacity to the square footage in the warehouse

  13. Warehousing Unit Costs • Goal: • Consumption of warehouse resources to meet the mission of the warehouse: • Shipping perfect orders and storing product efficiently.

  14. Warehousing Performance Measures • Businesses compete on the same basis of financial, productivity, quality, and cycle time performance

  15. Warehouse Activity Based Costing

  16. Warehouse Productivity Performance • Labor Productivity: • Ratio of shipped product to hours • Storage Density • Amount of inventory storage capacity to the square footage in the warehouse. • Location utilization

  17. Warehouse Quality Performance • Put-away Accuracy • Inventory Accuracy • Picking Accuracy • Shipping Accuracy

  18. Warehouse Cycle Time Performance • Dock-to-stock Time (DTS) • Warehouse Order Cycle Time (WOCT)

  19. Warehouse Key Performance Indicators (KPI’s)

  20. Warehouse Performance Index • Combines: • Mission outputs (orders shipped, material stored, processed) • Resource consumptions(labor hours, sq footage, systems)

  21. Workforce Demographics and Warehouse Performance • High performance = “systematically measure the flow”

  22. Work / Time Standards

  23. Warehouse Size & Performance • Little support in the economies of scale in large warehouses • Penalties for improper slotting, order batching, or task sequencing are far greater • Size increases the span of control (greater need for skilled management

  24. Do’s and Don’ts for Automation

  25. World-class Warehousing Practices