Continuous Improvement in Warehousing

Setting Continuous Improvement
Priorities in Warehouse Operations
M-16
TOMPKINS ASSOCIATES
Supply Chain Excellence
Worldwide Central Campus

8970 Southall Road
Raleigh, NC 27616
1-800-789-1257
(919) 876-3667
(919) 872-9666 FAX
www.tompkinsinc.com
U.S. Office Locations

California
Florida
Georgia
Illinois
North Carolina
Global Office Locations

Australia
Canada
Mexico
The Netherlands
United Kingdom
Tompkins Associates
Executive Summary
This monograph presents a method of setting continuous improvement priorities for warehouse operations. The Team-Based Continuous Improvement Diagnostic Survey allows a firm to
benchmark its current status on:
n
n
n
n
n
Level of warehouse excellence

Acceptance of continuous improvement
Cultural progressiveness or lack of cultural progressiveness
Acceptance of a shared direction for a company
Priorities for warehouse continuous improvement
Each of these topics is briefly discussed and the sources of additional information are given.
All firms are encouraged to use the diagnostic survey as a tool to guide their pursuit of warehouse
continuous improvement.
Setting Continuous Improvement Priorities in Warehouse Operations
Tompkins Associates
Table of Contents
EXECUTIVE SUMMARY ............................................................................................. i
1.0
Setting Continuous Improvement Priorities .................................................... 1
2.0
The Team-Based Continuous Improvement Diagnostic Survey for

Warehouse Operations .................................................................................... 3
3.0
Interpreting the Team-Based Continuous Improvement Diagnostic

Survey Results................................................................................................. 4
4.0
Warehouse Excellence .................................................................................... 4
5.0
Continuous Improvement ................................................................................ 8
6.0
Culture ............................................................................................................ 9
7.0
Model of Success .......................................................................................... 10
8.0
Prioritized Warehouse Requirements of Success .......................................... 11
9.0
Path Forward ................................................................................................. 12
APPENDIX A:
Team-Based Continuous Improvement Diagnostic Survey for

Warehouse Operations
APPENDIX B:
Team-Based Continuous Improvement Diagnostic Scoring Sheet
APPENDIX C:
Team-Based Continuous Improvement Diagnostic Survey

Interpretation Sheet
Tompkins Associates
1.0 Setting Continuous

Improvement Priorities
Successful Warehousing Operations
Must Be Based Upon A Long-Term
Commitment To A Broad-Based,
Common Sense, Structured Process Of
Continuous Improvement.
More Important Than Doing Things Right
Is Doing The Right Things.
Companies with world-class warehousing operations will adopt continuous improvement. The difference between WORLD-CLASS
WAREHOUSING OPERATIONS and WORLDCLASS WAREHOUSING OPERATIONS
and WORLD-CLASS WAREHOUSING
OPERATIONS is the approach they use to
set continuous improvement priorities.
There are four potential approaches to
setting continuous improvement priorities:
1. Bottom-Up
2. Top-Down
3. Top-Down Consensus
4. Broad-Based Consensus
The first two approaches are unstructured
and are heavily impacted by the perspective
of the persons setting the priorities. With the
bottom-up approach, priorities are established
by individuals with an in-depth understanding of a small portion of the firm. The priorities that typically result from the bottom-up
approach have very limited scope and can be
easily improved. The difficult, broader impact priorities are not addressed. Often, after
several of the easily addressed bottom-up priorities are handled, the organization runs out
of things to improve. Obviously, the company
has not reached utopia, it has simply resolved
the obvious issues and it lacks the perspective to identify the broader, more significant
opportunities.
The second approach to prioritization,
top-down, may or may not result in the identification of the greatest impact prioritie.
Never-theless, whether the priorities are right
or wrong is not the true issue. Priorities mandated in a top-down manner will not be widely
accepted as the persons involved with creating continuous improvement were not active
participants in establishing the priorities. For
this reason, participation lacks enthusiasm and
the process of continuous improvement is
stifled. Thus, even if the right priorities are
identified, the true potential of TEAMBASED CONTINUOUS IMPROVEMENT
will not be realized.
Understanding the problems with the first
two approaches, we suggested a broad-based
questionnaire to identify the priorities in
world-class warehousing operations. This
questionnaire is given in Table 1.1. The
thought behind the questionnaire was that by
asking a broad base of people for their
prioritization, several different perspectives
could be used to establish a consensus on the
true continuous improvement priorities for the
firm. Unfortunately, this approach did not
work. Instead of individuals sharing their true
perspectives, they completed the questionnaire
in accordance to how they believed upper management wanted them to complete it. Thus,
what was obtained was not the best priorities
Page 1
Tompkins Associates
1. Out of a total of 100 points, rate the importance of pursuing the following requirements of success (the higher the points assigned, the greater the importance).
Requirements of Success
Points
A. Professionalism
B. Customer Awareness
C. Measurement
D. Operations Planning
E. Centralization
F. Public Warehouses
G. Pace
H. Variety
I. Flexibility
J. Uncertainty
K. Integration
L. Inventory Accuracy
M.Space utilization
N. Housekeeping
O. Order Picking
P. Human Resources
Q. Team Players
R. Automation
S. Automatic Identification
T. Control Systems
Total
100
2. State the goal that you think should be established fot eh five highest priority
requirements of success.
Goal
1.
2.
3.
4.
5.
Table 1.1: Warehouse Management Priorities Questionaire
Page 2
Tompkins Associates
for continuous improvement, but opinions of

what upper management was thought to desire. Even though this involved a broad base
of people, what really resulted was a top-down
consensus of what people thought were upper managements priorities.
What was needed was a survey that extracted from a broad base of people what they
believed, from their perspectives, were the true
priorities for continuous improvement. Such
a survey has now been developed and has been
successfully used to establish the true priorities for companies to pursue continuous improvement.
tance of each question, where the total weight

for each pair of questions is 5. For example,
consider the pair of questions below:
n I love hot dogs.
n I love pizza.
If I hated hot dogs and loved pizza I
would rate Question 1 0 and Question 2 5.
If I loved hot dogs and hated pizza I would
rate Question 1 5 and Question 2 0. If I
liked both hot dogs and pizza, but like pizza a
little better I would rate Question 1 2 and
Question 2 3.
The 98 questions consist of:
2.0 The Team-Based

Continuous Improvement
Diagnostic Survey for
Warehouse Operations
The Team-Based Continuous Improvement Diagnostic Survey For Warehouse Operations is a tool that may be used to define a
broad-based consensus of the continuous improvement priorities for a warehouse. The
survey is presented on pages 13 through 21 of
this monograph and the Team-Based Continuous Improvement Diagnostic Survey Scoring
Sheets are given on pages 23 and 24. The
Team-Based Continuous Improvement Diagnostic Survey Interpretation Sheet, found on
pages 25 and 26, allows each company to define its Team-Based Continuous Improvement
Acceptance as well as its Warehousing Priorities. The survey consists of 98 pairs of
questions in which each person responding to
the survey is asked to place a weight on each
question (0 - 5) to indicate the relative accep-
n Questions on an organizations acceptance of continuous improvement

n Questions on an organizations culture
n Questions on an organizations model
of success
n Four questions for each of the 20
Warehousing Excellence Requirements of Success
Once a survey is completed, the Scoring
Sheet and the Interpretation Sheet may be used
by individuals and companies to define their:
n Level of warehouse excellence

n Acceptance of continuous improvement
n Cultural progressiveness or lack of
cultural progressiveness
n Acceptance of a shared direction for
the company
n Priorities for warehouse continuous
improvement
Page 3
Tompkins Associates
3.0 Interpreting the TeamBased Continuous

Imrpovement Diagnostic
Survey Results
The five key outputs from the survey are:
n Warehouse excellence
n Continuous improvement
n Culture
n Model of success
n Prioritized warehouse requirements of
success
The following sub-sections present a

brief overview of these five topics. The best
source for additional information on continuous improvement is the book Winning Manufacturing. The best source for warehouse
requirements of success is the video Warehousing Strategies. The best source for additional information on culture and models of
success is the video tape Manufacturing:
Making A Difference.
4.0 Warehouse Excellence

Todays warehouses are marked by certain trends which must be understood prior to
implementing any new strategies on your journey to warehousing excellence. The first of
these trends is a reduction of all inventories.
Inventory is being recognized as an even more
important area of cost reduction than labor.
Along with inventory reduction comes some
form of Just-In-Time. Not only must there be

less inventory, the inventory must move from
supplier to user with as little interim storage
as possible. There is also an increased amount
of customization taking place. In order to satisfy the customers demands, companies are
increasing the product mix - more styles, colors, features, sizes - and they are also responding to the customers desire for faster delivery.
At the same time, many companies are finding that warehouse space is being taken over
by manufacturing. In order to improve flexibility and quality, companies are installing
manufacturing equipment in the space once
reserved for warehousing. Finally, the emphasis on improved quality has been extended
to the warehouse in the form of accurate, complete orders shipped promptly in image-enhanced packaging with accurate data tracking.
Without recognizing these trends, any
planning for todays warehouses will be based
upon an obsolete vision of the direction that
warehousing is headed. While strategic planning is one of the most important functions of
warehouse management, a prerequisite to strategic planning is the establishment of a clear,
long-term, consistent vision of successful
warehousing in the 1990s. Although the specific vision may vary somewhat from company to company, a number of fundamental
strategies must comprise the core of the vision. Here, then, are the twenty requirements
of warehouse excellence.
1. Professionalism: Warehousing must
be viewed as a critical step in the material flow
cycle and not as a necessary evil.
Page 4
Tompkins Associates
n Warehouse managers must be considered part of the management team and

not second-class citizens.
n Warehouse management and employees will be trained to handle their
tasks and not viewed as overhead.
n Management will understand the true
value of warehousing and the reality
that warehousing often is one of the
last frontiers for improvement.
of the information they receive about

warehouse performance.
n Warehouse measurements will be
used to plan future capacity.
4. Operations Planning: Systems and
procedures must be put into effect that will
allow the warehouse manager to proactively
plan the operations as opposed to reactively
responding to external circumstances.
2. Customer Awareness: Successful

warehouse operations must have a high regard
for the customer, must know the customers
requirements, and must consistently meet
these requirements.
n Warehouses must be measured by
how well they meet the customers expectations.
n Warehouses will function as a support
activity for customers and will be anxious to fulfill customer requirements.
n Warehouse and customer adversarial
relationships will be eliminated.
n Warehouse managers will truly manage their warehouse.

n Firefighting will be minimized.
n Warehouse plans will be established
that will result in the warehouse becoming a strategic weapon for customer service.
5. Centralization: The trend must be
toward larger, centralized warehouses instead
of smaller, decentralized warehouses.
n Continued improved transportation
responsiveness and reliability will
support the trend towards fewer warehouses.
3. Measurement: Warehouse standards

must be established; performance must be
measured against these standards and timely
actions must be taken to overcome any deviations.
n Warehouse management will produce
monthly reports on space utilization,
labor utilization, damage, inventory
accuracy and equipment utilization.
n Management will view warehousing
from a positive perspective because
n The logistics information and material movement systems will be more

integrated.
n Systems and procedures will be put
in place to achieve continuous flow
distribution.
6. Third Party: More intelligent use of
third party distribution organizations will be
the norm.
Page 5
Tompkins Associates
n As the true costs of warehousing are

understood, third party distribution
services will be seen as a viable alternative.
n Third party distribution services will
continue to improve, reduce costs, and
broaden the range of tasks performed.
n Third party distribution organizations
will be viewed more as partners than
service providers.
n Systems and procedures will be put

in place so that we can handle orders
the way the customer desires.
9. Flexibility: Due to the increase in
warehouse pace and variety, all warehouse
systems, equipment and people will be more
flexible.
n Warehouse organizations will be
structured so as to provide the maximum flexibility.
n Warehouse employees will be crosstrained to handle a wide variety of tasks.
n Warehouses will make better use of
part-time and temporary work forces.
7. Pace: The reduction of lead times,

shorter product lives, and increased inventory
turnover will result in an increase in the pace
of the warehouse.
n Warehouses will be required to be
more responsive and will accommodate this requirement by working
smarter, not harder.
n The pace of warehouse changes will
be greater than in the past and this
pace will be expected and accepted.
n Systems will be put into place to support continuous flow warehouse operations.
8. Variety: More different SKUs and
more special customer requirements will result in an increase in the variety of tasks performed in the warehouse.
n Warehouses will be responsive to special customer packaging, pricing and
labeling requirements.
n Warehouses will be required to do operations that were traditionally thought
to be manufacturing operations.
10. Uncertainty: All uncertainty will

be minimized; discipline will be increased.
n Warehouse employees will be held accountable for doing it right the first
time. Checkers will be eliminated.
n Dock operations will be planned and
will function according to the plan.
n Exceptions and deviations will occur
infrequently, and when they occur,
they will be rectified quickly.
11. Integration: Activities within the
warehouse (receive, store, pick and ship) will
be more integrated and the warehouse will be
more integrated within the overall logistics
system.
n Operational synergy will occur as a

result of warehouse employees working together as a team.
Page 6
Tompkins Associates
n The warehouse will no longer be an

organizational island, but will be integrated with manufacturing, marketing, transportation and the entire
organization.
14. Housekeeping: Quality housekeeping will be a priority and a source of employee

pride.
n The fact that there is efficiency in order will be widely understood.
n Warehouse facilities will promote a
high level of warehouse housekeeping.
n Housekeeping discipline will become
a portion of the warehouse culture.
n Communication networks will support the integration of the customer

to the warehouse and the entire organization.
12. Inventory Accuracy: Real-time

warehouse management systems will utilize
cycle counting to manage inventory accuracy,
and accuracy above 99% will be the norm.
15. Order Picking: The criticality of

order picking will be understood, and procedures and layouts will be designed to maximize picking efficiency and effectiveness.
n As management demands accurate inventory, annual physical inventories

will be eliminated.
n Orders will be pre-routed and preposted to result in increased efficiency.

n The issues of zone, batch and wave
picking will be understood and fully
evaluated in the design of the best
picking system.
n A wide variety of material handling
and storage equipment will be evaluated in the design of an order picking
system.
n The true purpose of cycle counting

will be understood as the proper management of inventory.
n Systems will be put in place to support ongoing cycle counting.
13. Space Utilization: Space will be

more efficiently and effectively utilized.
n Management will better understand
the cost of space and this will lead to
improved space utilization.
16. Team-Based Continuous Improvement: The power of the people will be unleashed via a methodical team-based process.
n Innovative material handling and storage equipment will be installed to

minimize aisles and maximize cube
utilization.
n Random storage will replace assigned
storage.
n Warehouses will be leadership driven

and self managed.
n Employees will be actively involved
with teams and the process of continuous improvement.
Page 7
Tompkins Associates
n Warehouse employee development,

alignment, and participation will be
an important priority.
n There will be a clear understanding

and awareness of the costs of logistics.
n Logistics will be viewed as an area
for considerable performance improvement.
17. Continuous Flow: There will be a

clear focus on pulling product through the logistics system and not building huge inventories.
n DRP and EDI will support continuous flow.
n Inventory turns will be a high priority
throughout the organization.
n Customized warehousing will allow
for a reduction in storage SKUs while
increasing the SKUs offered to our
customers.
n Logistics partnerships will support

both cost reduction and customer service improvements.
20. Leadership: There must be a balance between the control aspects of management and harnessing the energy of change to
create peak-to-peak performance of leadership.
n Leaders will understand their roles of
achieving peak-to-peak performance.
n Leaders will establish a culture that
is progressive, participative, vision
based, and encourages growth and
learning.
18. Warehouse Management Systems:

Real-time, bar code based, Rf communication
Warehouse Management Systems (WMS) will
be required to meet todays requirements.
n WMS will be real-time, bar code
based, RF driven systems that maximize warehouse performance.
n WMS will be planned, justified, and
implemented by professionals who
truly understand warehousing.
n All warehouse employees will receive
the appropriate level of competencybased development for their tasks.
19. Total Costs of Logistics: The goal
will be to minimize the total life cycle costs
of logistics, from order submission to product delivery, while providing excellence in
customer service.
n Leaders will actively communicate direction and performance and work to

achieve organizational alignment.
5.0 Continuous
Improvement
Continuous improvement is the foundation for successful companies and warehousing excellence. The difference between
continuous change and continuous improvement is that continuous improvement is based
upon a consistent direction of where the firm
is headed. Continuous improvement is the
never-ending process of improving today,
improving tomorrow, improving the next day
Page 8
Tompkins Associates
and so on. Continuous improvement firms do

not believe in implementing programs nor in
optimization. Continuous improvement firms
understand that programs tend to come and
go but the process of continuous improvement
is permanent and never-ending. Continuous
improvement firms understand that todays
optimal solution is next months acceptable
solution, next quarters marginal solution and
next years obsolete solution. Continuous
improvement warehouses realize that
everyones job is to improve the firms performance and that leadership must understand
that its greatest asset is the power of the
people. Harnessing the power of the people
and empowering teams to continuously improve the firm is a prerequisite of warehousing excellence. Every sucessful firm will
adopt the process of continuous improvement.
6.0 Culture
Every person has a personality and every firm has a culture. In fact, a good definition of culture is that culture is the personality
of a firm. Your firm has a culture. This culture has evolved and now must be understood
and often changed. The culture of a firm may
be categorized as:
Type I:
Static Consistency
Type II:
Dynamic Inconsistency
Type III:
Dynamic Consistency
Type I firms resist change. They pride

themselves on maintaining the status quo and
seldom realize there is an opportunity to improve. Type I managers believe:
1. We have optimized our operations;

there is no room for improvement,
and/or
2. We have always been profitable; why
should we change anything?, and/or
3. If it aint busted, dont fix it.
Type I organizations will not only not
win, they will not even survive.
Type II organizations have a culture of
dynamic inconsistency. They realize they are
not successful and are actively installing new
programs. They are busy organizations. Everyone is on a task force or two, but no one
has a chance to work as the entire day is spent
in meetings. There is no shared direction of
where they are headed. Dynamic Inconsistent firms are pursuing Management By Fad
(MBF).
Table 6.1 presents some of the programs
that have been and continue to be pursued in
Type II firms.
Each person within a Type II firm has
his or her own direction. Although there are
pockets of brilliance, the whole of the firm is
not improving. Managers within Type II organizations are frustrated; the harder they
work, the more they seem to lose. A Type II
culture is dangerous and will result in a
companys demise if not replaced with a Type
III culture.
Type III organizations truly understand
the meaning of dynamic consistency. Dynamic
indicates continuous improvement, and consistency indicates a shared understanding of
direction. Firms with a Type III culture are
driven by an improve, improve, improve
mentality based upon a consistent direction
Page 9
Tompkins Associates
1. Vision: A description of where you

are headed.
2. Mission: How to accomplish the vision.
3. Requirements of Success: The beliefs that will guide us to accomplish
our mission.
4. Guiding Principles: The values we
practice as we pursue our visions.
5. Evidence of Success: A series of past
tense, single focus statements that describe measurable results characterizing the organization when the vision
is being achieved.
Activity-Based Accounting
Computer-Aided Order Picking
Computer-Based Information System
Computer Integrated Distribution
Crossdocking
Decision Support System
Direct Store Drops
Distribution Requirement Planning
Efficient Consumer Response
Fluid Logistics
Integrated Logistics
Just-In-Time
Paperless Picking
Paperless Warehouse
Participatory Management
Quick Response
Quality Function Deployment
Reverse Order Picking
Supply Chain Management
Third Party Distribution
Total Quality Management
Table 6.1: Our Pursuit of Fads
from leadership. Firms with successful warehouse operations will have a culture of dynamic consistency.
7.0 Model of Success

Successful firms will be characterized by
a dynamic consistent culture. The shared consistent direction of the firm can best be expressed by a Model of Success. The five
elements of a Model of Success are:
The first four elements can be graphically

presented, as shown in Figure 7.1. This bulls
eye approach can serve as the target of a company where the Evidence of Success is used
as a yardstick against which progress is measured.
Figure 7.2 illustrates the process of visionary pursuit. The prioritized Requirements
of Success are the focus of the continuous improvement process, using the Guiding Principles and the Mission to advance an
organization towards its Vision. Team-based
continuous improvement can only occur
within the context of a Model of Success.
Firms with successful warehousing operations will have implemented the visionary
pursuit as presented in Figure 7.2. The continuous improvement process that should be
pursued is as shown in Figure 7.3. The key to
the continuous improvement process in Figure 7.3 is the fact that it is never-ending. The
application of the Figure 7.3 Continuous Im-
Page 10
Tompkins Associates
provement Process within the context of the

Figure 7.2 Visionary Pursuit results in teambased continuous improvement.
8.0 Prioritized Warehouse

Figure 7.1: Model of Success
As was stated in the last section, Requirements of Success are basic beliefs that will
guide a firm to its Mission. We believe the
requirements of success form the science of
warehousing and are the same for all warehousing organizations.
Figure 7.2: Visionary Pursuit
Figure 7.3: Continuous Improvement Process

Page 11
Tompkins Associates
We believe all organizations must embrace the 20 Requirements of Success as stated

in section 4.0 in this monograph.
9.0 Path Forward

The next step is for you to compile the
results of the Team-Based Continuous Improvement Diagnostic Survey For Warehouse
Operations. The results of the survey will
define your path forward. Respond to the
identified path forward and then, in four
months, use the survey again. Your progress
will be noticeable and you will be on your
way to winning the war. You will have a culture of continuous improvement and you will
be pursuing the highest priority opportunities.
Page 12
Tompkins Associates
Appendix A: Team-Based Continuous Improvement

Diagnostic Surveyfor Warehouse Operations
Each person has a different perspective on the present status of the warehouse and the priorities which must be pursued to bring about improvement. This survey, when combined with the
surveys of others in your company, will allow us to develop a consensus view of your status and
your priorities. The following items are arranged in pairs (a and b) and each member of the pair
represents a possible description of your present operation. Rate the descriptions by how true they
are for your operation by giving them a score of 0 to 5 (0 meaning absolutely not true and 5 meaning absolutely true). The scores for a and b of each pair must add up to 5 (i.e., 0 and 5, 1 and 4
or 2 and 3). Do not use fractions such as 2 1/2.
Score Question
1a ______ Receiving, storing, picking and shipping are each performed as separate functions.
1b ______ Receiving, storing, picking, and shipping work as a team.
2a ______ We frequently introduce new programs to improve our competitiveness.
2b ______ We are methodically pursuing the process of continuous improvement.
3a ______ Warehouse employees are cross-trained to handle a wide variety of tasks.
3b ______ Warehouse employees typically handle one function.
4a ______ We use assigned storage locations.
4b ______ We use random storage locations.
5a ______ Management understands the cost of space.
5b ______ Management does not factor in the cost of space in planning.
6a ______ We have a standard auto identification system between our vendors, manufacturers,
and users.
6b ______ We do not have ability to automatically transfer data with other organizations.
7a ______ Housekeeping is not promoted by management.
7b ______ The fact that there is efficiency in order is widely understood.
8a ______ Excessive analysis of alternatives exists within our company.
8b ______ There is a good balance between analysis and visioning pursuit within our company.
Page 13
Tompkins Associates

Diagnostic Surveyfor Warehouse Operations (continued)
9a ______ Our warehouse is measured by how well we meet customer expectations.
9b ______ We do not measure customer satisfaction in the warehouse.
10a _____ Warehouse operations are structured to provide the maximum flexibility.
10b _____ Our systems, equipment, and people are not able to meet todays requirements.
11a _____ Orders are pre-routed and pre-posted.
11b _____ Orders are not efficiently routed.
12a _____ We have not evaluated new picking methods for our orderpicking system.
12b _____ We evaluated and use either zone, batch or wave picking.
13a _____ Material handling and storage equipment minimize aisles and maximize cube utilization.
13b _____ Our material handling and storage equipment do not support maximum space utilization.
14a _____ Public warehouses are evaluated as viable alternatives.
14b _____ Management does not understand public warehousing values.
15a _____ We do not have real-time information in the warehouse.
15b _____ Automatic identification is our foundation for real-time warehouse control.
16a _____ We have small, decentralized warehouses.
16b _____ We have large, centralized warehouses.
17a _____ Warehousing is considered a necessary evil.
17b _____ Warehousing is viewed as a critical step in material flow.
18a _____ Employees receive training on the job.
18b _____ A formal training program exists that addresses general as well as technical needs.
19a _____ My company has always been profitable; there is no need to change.
19b _____ My company is profitable and is always changing.
20a _____ Our warehouse does not have many formal standards.
20b _____ Warehouse management measures space utilization, damage, and inventory accuracy.
Page 14
Tompkins Associates

21a _____ We have optimized transportation responsiveness.
21b _____ We are continually improving transportation responsiveness and reliability.
22a _____ We are always busy, but we dont seem to be improving.
22b _____ We are continually improving.
23a
23b
24a
24b
_____
_____
_____
_____
We are not a support activity for our customers.

We fulfill all our customer requirements.
We are unsure how to react to business and the economy.
We know what it will take to be successful in our business.
28b _____ No clear performance standards exist.

29a _____ Inventory accuracy is below 95%.
29b _____ Inventory accuracy is above 95%.
30a _____ We are changing in several directions at once unsuccessfully.
30b _____ We have a clear organizational plan for improvement.
31a _____ We have an established vision and mission.
31b _____ Due to business unpredictability, we have no formal mission.
32a _____ We use cycle counting to manage inventory accuracy.
32b _____ We use annual physical inventories to manage inventory accuracy.
33a _____ Management has a strong desire to control warehousing.
33b _____ Management is less concerned about control, but more concerned with continuous
improvement.
34a _____ Management views warehousing positively because of warehouse performance
reporting.
34b _____ Management is unclear about level of efficiency of warehouse.
35a _____ Management doesnt see need to utilize automatic identification.
Page 15
Tompkins Associates

35b _____ Management understands that automatic identification is pre-requisite to modern
warehousing.
36a _____ Warehouse is responsive to special customer packaging, pricing, and label requirements.
36b _____ Warehouse can handle only so many specials.
37a _____ People at the lowest levels understand the corporate vision.
37b _____ The corporate vision is only understood at the highest levels.
38a _____ Warehouse can not handle any more new assignments.
38b _____ Warehouse can handle operations that were once thought manufacturing responsibility.
39a _____ Management has established clear corporate goals, but they are not well understood
or communicated through organization.
39b _____ Management goals are clear and well understood throughout organization and we are
following managements plan for success.
40a _____ The decision process in our company moves at the proper pace.
40b _____ Decision making at our company is too slow.
41a _____ Warehouse staff feels like we are separate from rest of company.
41b _____ Warehouse staff functions as a team with manufacturing, marketing, transportation,
and rest of company.
42a _____ We have created a layout to best support orderpicking operations.
42b _____ Our layout is a liability in orderpicking.
43a _____ Housekeeping is a portion of our culture.
43b _____ Housekeeping is rarely brought up to employees.
44a _____ Warehouse automation is historically justified based on labor savings.
44b _____ The primary justification for warehouse automation is improved control.
45a _____ We do not have a warehouse control system.
45b _____ We have a warehouse control system.
Page 16
Tompkins Associates

46a _____ Inventories are evil.
46b _____ Inventories are the result of how we run our business.
47a _____ Advanced technologies in warehousing are more easily embraced today.
47b _____ We cant economically justify warehouse automation.
48a _____ We have multiple sources for the majority of vendor-supplied materials.
48b _____ We have reduced the number of vendors.
49a _____ We dont have reliable information to plan future capacity.
49b _____ Warehouse measurements are used to plan future capacity.
50a _____ We are continually cramped for space.
50b _____ We have continuously improved our space utilization.
51a _____ Communications within our company are very good.
51b _____ Communications in the company are not good.
52a _____ We are looking for ways to work smarter, not harder.
52b _____ The reduction of lead times has created turmoil in the flow of material.
53a _____ We dont know what our business will be like a year from now.
53b _____ We have a strategic business plan in place.
54a _____ Warehouse personnel have no pride over work area.
54b _____ Quality housekeeping is a source of pride for warehouse personnel.
55a _____ Firefighting happens on a daily basis.
55b _____ Firefighting is an exception, not the norm.
56a _____ Our systems and procedures cause frustration in handling customer desires.
56b _____ Our systems and procedures are designed to accommodate customer requests.
57a _____ Our employees are happy.
57b _____ The relationship between management and workers is stormy.
Page 17
Tompkins Associates

58a _____ Warehouse changes are slow and not easily accepted.
58b _____ The pace of warehouse changes is expected and accepted.
59a _____ We have too many SKUs.
59b _____ We can handle the proliferation of SKUs now and in the future.
60a _____ We have a general understanding of where we want to go but not measurable goals.
60b _____ We have clearly defined, measurable goals.
61a _____ We are attempting to plan our warehouse control system without much analysis.
61b _____ We are seeking the best qualified resources to plan our system.
62a _____ The level of trust in the company is high.
62b _____ The level of trust in the company is low.
63a _____ We have a totally manual warehouse control system.
63b _____ Our warehouse control system is real-time and paperless.
64a _____ We have checkers to assure quality and accuracy.
64b _____ Checkers have been eliminated in our operations.
65a _____ Nothing ever changes and there is no plan to do so.
65b _____ Change is a part of our culture and is continuous.
66a _____ We believe that if it aint broke, dont fix it.
66b _____ We believe there is always a better way.
67a _____ Warehouse managers fight fires.
67b _____ Warehouse managers really manage their warehouse.
68a _____ Warehouse management and employees are well-trained.
68b _____ Warehouse personnel are viewed as overhead.
69a _____ We make the best use of part-time and temporary work forces.
69b _____ We are not sure how to utilize part-time or temporary employees.
Page 18
Tompkins Associates

70a _____ Absenteeism and turn-over are problems.
70b _____ Absenteeism and turn-over are not problems.
71a _____ We have a warehouse strategic master plan.
71b _____ We do not have a warehouse strategic master plan.
72a _____ Our systems support continuous flow warehouse operations.
72b _____ We are unable to make continuous flow warehousing a reality.
73a _____ Warerhouse has an adversarial relationship with customers.
73b _____ Warehouse and customer adversarial relationships have been eliminated.
74a _____ Our vision/mission statement is documented.
74b _____ There is no vision/mission document but everyone knows what our objectives are.
75a _____ We have poor communication channels with our customers.
75b _____ Communication networks support the integration of the customers to the warehouse.
76a _____ Automatic identification is used in data acquisition and transfer.
76b _____ Manual systems are in place for retrieving and transferring data.
77a _____ Shorter product lives have meant more product obsolescence.
77b _____ Shorter product lives have increased the pace and productivity requirements in the
warehouse.
78a _____ A key component of our companys culture is the learning and development of staff.
78b _____ A key component of our companys culture is adhering to policies and procedures.
79a _____ Exceptions and deviations occur frequently.
79b _____ Exceptions and deviations occur infrequently and are rectified quickly.
80a _____ We are attempting to implement work teams in our organization.
80b _____ Our company is very political.
Page 19
Tompkins Associates

81a _____ We do not know who our customers are.
81b _____ We know our customers and encourage partnerships.
82a _____ The team concept is well accepted and successful in our company.
82b _____ The team concept does not work well within our company.
83a _____ We have many warehouse locations in our company.
83b _____ We have only a few warehouses.
84a _____ The warehouse is integrated into the whole material flow cycle.
84b _____ The warehouse is where material flow stops.
85a _____ We constantly renegotiate contracts with vendors to drive prices down.
85b _____ We treat our vendors like a member of our team; they are friends.
86a _____ Automation is difficult to justify.
86b _____ Excelling at other requirements of success has made automation easier to justify.
87a _____ Warehouse control system is interactive.
87b _____ Warehouse control system is canned and difficult to use.
88a _____ We do not understand our options in warehouse automation.
88b _____ We understand our options in warehouse automation.
89a _____ Timely actions are taken to overcome any deviations from plan.
89b _____ It is hard to determine in a timely fashion any deviations from plan.
90a _____ Systems support ongoing cycle counting.
90b _____ Systems still support physical inventories.
91a _____ We have recently reviewed our distribution network.
91b _____ Our distribution network has evolved over time.
92a _____ Our facility layout can easily allow expansion.
92b _____ Our facility layout is not easily expanded.
Page 20
Tompkins Associates

93a _____ Spills are often found on floor.
93b _____ Floor is typically free from spills or trash.
94a _____ Unsatisfactory employees are usually sent to warehousing.
94b _____ Management understands the importance of warehousing to the company.
95a _____ We have standard warehouse training.
95b _____ We use competency based testing in the warehouse.
96a _____ We perceive public warehouses poorly.
96b _____ We believe public warehousing is increasing in sophistication and professionalism.
97a _____ Warehouse is not a team with any other function in the company.
97b _____ Warehouse has developed a team with public warehouse.
98a _____ We do not believe our inventory records are true.
98b _____ We are confident in our inventory records.
Page 21
Tompkins Associates
Appendix B: Team-Based Continuous Improvement

Diagnostic Scoring Sheet
Instructions: Transfer your responses from the survey to the blank spaces below. Be sure to
record a and b responses for each pair in the right space. Then add scores for each categroy.
Category
A. Dynamic
Consistency
TOTAL A
B. Culture
TOTAL B
C. Organizational
Model
World-Class Traditional
Warehousing Warehousing
Score
Score
2b___
19b___
22b___
30b___
39b___
65b___
66b___
8b___
33b___
40a___
78a___
82a___
24b___
31a___
37a___
53b___
60b___
74a___
TOTAL C
D. Professionalism 17b___
68a___
94b___
95b___
TOTAL D
E. Customer
9a___
Awareness
23b___
73b___
81b___
TOTAL E
2a___
19a___
22a___
30a___
39a___
65a___
66a___
8a___
33a___
40b___
78b___
82b___
24a___
31b___
37b___
53a___
60a___
74b___
17a___
68b___
94a___
95a___
9b___
23a___
73a___
81a___
Category
F. Measurement
TOTAL F
G. Operations
Planning
TOTAL G
H. Centralization
TOTAL H
I. Public
Warehouses
TOTAL I
J. Pace
Score
Score
20b___
34a___
49b___
89a___
20a___
34b___
49a___
89b___
25b___
55b___
67b___
71a___
25a___
55a___
67a___
71b___
16b___
21b___
83b___
91a___
16a___
21a___
83a___
91b___
14a___
26a___
96b___
97b___
14b___
26b___
96a___
97a___
52a___
58b___
72a___
77b___
52b___
58a___
72b___
77a___
TOTAL J
Page 22
Tompkins Associates
Category
K. Variety
TOTAL K
L. Flexibility
TOTAL L
M. Uncertainty
TOTAL M
N. Integration
TOTAL N
O. Inventory
Accuracy
TOTAL O
P. Space
TOTAL P
Q. Housekeeping
Score
Score
36a___
38b___
56b___
59b___
3a___
10a___
69a___
92a___
28a___
46b___
64b___
79b___
1b___
41b___
75b___
84a___
29b___
32a___
90a___
98b___
4b___
5a___
13a___
50b___
36b___
38a___
56a___
59a___
3b___
10b___
69b___
92b___
28b___
46a___
64a___
79a___
1a___
41a___
75a___
84b___
29a___
32b___
90b___
98a___
4a___
5b___
13b___
50a___
Category
R. Order Picking
TOTAL R
S. Human
Resources
TOTAL S
T. Team
Players
TOTAL T
U. Automation
TOTAL U
V. Automatic
Identification
TOTAL V
W. Control
Systems
Score
Score
11a___
12b___
27a___
42a___
11b__
12a___
27b___
42b___
18b___
57a___
62a___
70b___
18a___
57b___
62b___
70a___
48b___
51a___
80a___
85b___
48a___
51b___
80b___
85a___
44b___
47a___
86b___
88b___
44a___
47b___
86a___
88a___
6a___
15b___
35b___
76a___
6b___
15a___
35a___
76b___
45b___
61b___
63b___
87a___
45a___
61a___
63a___
87b___
TOTAL W
7b___
43a___
54b___
93b___
7a___
43b___
54a___
93a___
TOTAL Q
Page 23
Tompkins Associates
Appendix C: Team-Based Continuous Improvement

Diagnostic Survey Interpretation Sheet
I. Team-Based Continuous Improvement Acceptance: Record Total Scores for
A, B and C from scoring sheet and total these
scores.
n A World-Class Warehousing Score of
90 would indicate a company which
had totally adopted a culture of continuous improvement.
n A Traditional Warehousing Score of
90 would indicate a company which
had totally rejected a culture of continuous improvement.
n A World-Class Warehousing Score
above 70 indicates a progressive culture.
WORLD-CLASS
WAREHOUSING
SCORE

between 50 and 70 indicates a culture
with some good tendencies but in
need of work.
between 30 and 50 indicates a nonprogressive culture having a tremendous
opportunity for improvement.
below 30 indicates a traditional warehousing company in significant
trouble. Immediate change is necessary.
TRADITIONAL
WAREHOUSING
SCORE
TOTAL - A
TOTAL - B
TOTAL - C
Team-Based
Continuous
Improvement
Acceptance
Score
Page 24
Tompkins Associates
II. Warehousing Priorities: For Totals D through W, list each category where the
World-Class Warehousing Total Score is less
than 10 points.
n The three categories in the above table
having the lowest total World-Class
Warehousing Scores should be the
focus of your first three improvement
teams.
n If you have more than three categories in the above table tied for the lowest total World-Class Warehousing
Score, list the three categories you feel
should be the focus of your first three
improvement teams.
CATEGORY
WORLD-CLASS WAREHOUSING
TOTAL SCORE
(Less than 10)
Page 25
APPENDIX
Background Information
TOMPKINS ASSOCIATES: Supply Chain Excellence

Tompkins Associates is the global leader in Total Supply Chain Solutions for operations consulting, technology implementation, and integration. For nearly three
decades, Tompkins has provided expertise in warehousing, logistics, procurement,
inventory, manufacturing, organizational excellence, quality, and maintenance.
Tompkins Associates is headquartered in Raleigh, N.C., and has offices throughout
the United States and in the UK, continental Europe, Mexico, and Australia.
Worldwide, Tompkins helps clients succeed through a combination of focused knowledge of best practices and tailored solutions. Tompkins prepares businesses to harness
the energy of continuous change to achieve Supply Chain Excellence.
Tompkins Associates understands your unique needs. Tompkins supply chain expertise helps clients work seamlessly with their supply chain partners to provide the service
they need to satisfy their customers. No other firm has the capability to melt the links in
your supply chain-taking you from business as usual to collaboration to velocity.
Tompkins provides solutions that are faster than fast.
Our publishing arm, Tompkins Press, delivers the knowledge todays business leaders need. Tompkins consultants have written more than 500 industry articles and given
more than 3,000 presentations worldwide. As a result, Tompkins Press has the inside
track on the supply chain issues facing businesses today as well as the issues theyll
deal with tomorrow. We're an aggressive publisher of leading edge, pro-technical, userfriendly books and audio products.
Tompkins focuses on delivering resultsintegration of your supply chain, a more
profitable costs-to-revenue ratio, enhanced customer satisfaction, greater operations
reliability, and the release of trapped capital. Our results speak for themselves, with
over 70 percent of our business coming from past clients.
Begin your journey to Supply Chain Excellence. Tompkins Associates will make it
all happen.
www.tompkinsinc.com

Continuous Improvement in Warehousing

Enviado por

Dados do documento

Descrição original:

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

Continuous Improvement in Warehousing

Enviado por

Direitos autorais:

Formatos disponíveis

Setting Continuous Improvement

Priorities in Warehouse Operations

Worldwide Central Campus

U.S. Office Locations

Global Office Locations

Level of warehouse excellence

Setting Continuous Improvement Priorities in Warehouse Operations

Setting Continuous Improvement Priorities .................................................... 1

The Team-Based Continuous Improvement Diagnostic Survey for

Interpreting the Team-Based Continuous Improvement Diagnostic

Warehouse Excellence .................................................................................... 4

Continuous Improvement ................................................................................ 8

Model of Success .......................................................................................... 10

Prioritized Warehouse Requirements of Success .......................................... 11

Path Forward ................................................................................................. 12

Team-Based Continuous Improvement Diagnostic Survey for

Team-Based Continuous Improvement Diagnostic Scoring Sheet

Team-Based Continuous Improvement Diagnostic Survey

Setting Continuous Improvement Priorities in Warehouse Operations

1.0 Setting Continuous

Setting Continuous Improvement Priorities in Warehouse Operations

for continuous improvement, but opinions of

tance of each question, where the total weight

2.0 The Team-Based

n Questions on an organizations acceptance of continuous improvement

Setting Continuous Improvement Priorities in Warehouse Operations

n Level of warehouse excellence

3.0 Interpreting the TeamBased Continuous

The following sub-sections present a

4.0 Warehouse Excellence

form of Just-In-Time. Not only must there be

Setting Continuous Improvement Priorities in Warehouse Operations

n Warehouse managers must be considered part of the management team and

of the information they receive about

2. Customer Awareness: Successful

n Warehouse managers will truly manage their warehouse.

3. Measurement: Warehouse standards

n The logistics information and material movement systems will be more

Setting Continuous Improvement Priorities in Warehouse Operations

n As the true costs of warehousing are

n Systems and procedures will be put

7. Pace: The reduction of lead times,

10. Uncertainty: All uncertainty will

Setting Continuous Improvement Priorities in Warehouse Operations

n Operational synergy will occur as a

n The warehouse will no longer be an

14. Housekeeping: Quality housekeeping will be a priority and a source of employee

n Communication networks will support the integration of the customer

12. Inventory Accuracy: Real-time

15. Order Picking: The criticality of

n As management demands accurate inventory, annual physical inventories

n Orders will be pre-routed and preposted to result in increased efficiency.

n The true purpose of cycle counting

13. Space Utilization: Space will be

n Innovative material handling and storage equipment will be installed to

n Warehouses will be leadership driven

n Warehouse employee development,

n There will be a clear understanding

17. Continuous Flow: There will be a

n Logistics partnerships will support

18. Warehouse Management Systems:

n Leaders will actively communicate direction and performance and work to

Setting Continuous Improvement Priorities in Warehouse Operations