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Supermarket Design

Principles of Supermarket

Marek Piatkowski – May 2012

Marek.Piatkowski@rogers.com
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Introduction - Marek Piatkowski
 Professional Background
 Toyota Motor Manufacturing Canada (TMMC) - Cambridge, Ontario
from 1987-1994
 TPS/Lean Transformation Consulting - since 1994

 Professional Affiliations
 TWI Network – John Shook, Founder
 Lean Enterprise Institute (LEI) – Jim Womack
 Lean Enterprise Academy (LEA) – Daniel Jones
 LEI Poland – Tomasz Koch, President

 Lean Transformation Solutions, Toronto, Canada


www.TWI-Network.com

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Supermarkets – Future State Objectives
 One Purchased Parts Supermarket near Receiving
 Small WIP Mini-Markets at Point of Use
 One Finished Goods Supermarket near Shipping
 WIP Mini-Markets located along main delivery aisles to allow timely
delivery of parts
 Visual management in place – address locations, min/max levels
identified, parts shortage indicators, inventory controlled by Kanban
cards
 All ergonomic and safety rules followed

Marek.Piatkowski@rogers.com
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Who designs Supermarkets?
Materials
Management

Design Team

Industrial
Engineering Manufacturing

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Design Considerations
There are several basic activities that need to be understood in order
to develop a material movement/supermarket plan

Concepts Enablers
 Layout  Materials Organization
 Categorization  Location / Layout
 Storage / Racking  PFEP – Plan-for-Every-Part
 Addressing  Standard Work
 Stock Rotation  WPO – Work Place Organization
 Couple/De-couple Tugging  Receiving Window Compliance
 Rightsizing / Repacking  Escalation Plans
 Information Flow System
 Visual Controls

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Supermarket Design Principle # 1
Design
Principle All parts, materials and components must be delivered to and stored in
#1 single centralized warehouse locations – called Supermarkets

Current Storage
State Storage

Storage
Storage

Insert picture of plant here.


Storage
Storage
Storage
Storage
Storage

Storage

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Supermarket Current State Layout Legend

Design
Principle IM-11 IM-9 IM-7 IM-5 IM-3 IM-1
Receiving
IM
Assembly Cell
Injection Molding
#1 IM-12 IM-10 IM-8 IM-6 IM-4 IM-2 Dock DC
Die Cast
MC
Machining Center
PB
Paint Booth
Value Stream Market Inventory Location
DC-1 MC-1
Molded Molded
Value stream inventory
Parts
Value stream area
DC-2 MC-2
Painted Purchase
Parts Parts

Open Space
Cell #3 Cell #2 Cell #1 Open Space
Paint
Booth

Cell #6 Cell #5 Cell #4


Open Space

Shipping
Dock
Finished Goods
Storage

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Supermarket Future State Layout
Design Legend

Principle
Raw Material
IM-11 IM-9 IM-7 IM-5 IM-3 IM-1 Receiving WIP - Die Cast

#1
Resin store WIP - Molded
for molding Dock WIP - Paint
IM-12 IM-10 IM-8 IM-6 IM-4 IM-2
Purchase Parts
Finished Goods
Assembly Cell
Die cast / IM
Injection Molding
DC-1 MC-1 machined parts
Purchased Painted DC
Die Casting
WA parts store product store
DC-2 MC-2 Molded Parts MC
Machining
(non painted)
WA
Washer
Aisle Way
Raw ingot
area for die
cast area Cell #4 Cell #3 Cell #2 Cell #1
Open

Overflow
area Paint

Cell #6 Cell #5 Booth


Reserved Reserved
Open
Open

Shipping
Finished Goods Storage Area Dock

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Supermarket Supermarket Design at Donnelly
Design
Principle
#1

Start: 9:50
Stop: 21:00

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Supermarket Supermarket Layout
Design
Principle  Supermarket layout must optimize Man/Machine/Material flow
#1  Material - overflow, safety stock, normal, stock rotation, parts
utilization, cardboard, empty containers
 Man /Machine - minimize walk patterns (shopping), minimize mixing
of Tugger (Milk Run) and forklift traffic, create “one-way streets”,
information flow management
Stocking Aisle

1 2 3 4 5 6 7 8 9 Traffic Flow
Picking Aisle

2 3 4 5 6 7 8 9
1 Stocking Aisle

1 2 3 4 5 6 7 8 9
Traffic Flow
Picking Aisle

1 2 3 4 5 6 7 8 9

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Supermarket Design Principle # 2
Design
Principle All parts, materials and components must be grouped into some sort of
#2 logical fashion:
 Either by family type, frequency of use, destination or suppliers

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Supermarket Design Principle # 3
Design
Principle Each part (container) must have a unique, designated, well identified
#3 storage location and address
Good Bad

Duplicate Storage Address


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Supermarket Supermarket Addressing System
Design
Principle A1

#3 N4 1 1311333332 25 29 33

N3 2 6 14 22 26 30 34

N2 3 7 11 154 198 27

N1 4 8 12 16 20 24 28 32 36

1 2 3 4 5 6 7 8 9

This part number’s


address is C5

This part 1 2 3 4 5 6 7 8 9 10 11
1 2 3 4 5 6 7 8 9 10 11 number’s
D D
address is D10 C
C
B B
A A

This part number’s This part number’s


address i B2 address is C3

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Supermarket Storage Address System
Design
Principle
#3

Location Indicator

Level Indicator

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Supermarket Storage Address Labels
Design
Principle
#3

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Supermarket Rack Labeling System
Design
Principle
#3

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Supermarket Design Principle # 4
Design
Principle  All boxes and containers stored in the Supermarket must be “Line or
#4 Customer Ready”:
 meaning right size and weight
 100% Quality acceptable
 any re-packing, to make boxes Customer Ready must be done in a centralized
location outside the Supermarket.

Good Bad

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Supermarket Repacking
Design
Principle
#4

Repacking - Not acceptable

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Supermarket Repacking
Design
Principle
#4

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Supermarket Single Box Flow Rack
Design - Racks
 Advantages:
 Maximum utilization of storage
space Full skids stored
on upper levels Full
Skid
Full
Skid

 Disadvantages: Rollers
Individual Boxes -
 Double handling of boxes Hand loaded

 Safety / Ergonomics
 Best application:
 Low volume consumption Fork Truck

 Small / light boxes

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Supermarket Single Box Flow Rack
Design - Racks

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Supermarket Single Box Flow Rack
Design - Racks

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Supermarket Bulk Flow Racks
Design - Racks
 Advantages:
 Elimination of unnecessary double Full Full
Skid Skid

handling of boxes (loading and


unloading the rack) Full skids stored
on upper levels Full
Skid
Full
Skid

 Disadvantages: Rollers
Open skids stored
on a floor level

 Not the best utilization of floor


space Full
Skid

 Best application:
Fork Truck

 High volume demand

Marek.Piatkowski@rogers.com
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Supermarket Bulk Flow Racks
Design - Racks

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Supermarket Bulk Flow Racks
Design - Racks

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Supermarket Bulk Shelf Storage
Design - Racks
 Advantages:
 Elimination of double handling of
boxes
Full skids stored
on upper levels

 Disadvantages:
Material Handler (Tugger) and
Full Full
Full


Skid Skid
Skid

Forklift working in the same aisle Full Full Full


Open skids stored
on a floor level
Skid Skid Skid

 Best application:
 Low volume consumption (ex.
Service Parts)
 Heavy boxes

Marek.Piatkowski@rogers.com
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Supermarket Bulk Shelf Storage
Design - Racks

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Supermarket Bulk Shelf Storage
Design - Racks

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TPS - 5S Process
• Well organized material storage
• Timely material deliveries
5. SHITSUKE
• Reduced inventory levels
• Zero down time due to parts shortage DISCIPLINE
4. SEIKETSU Disciplined
application of the
STANDARDIZE previous steps to
maintain a well
Standardize work organized
3. SEISO procedures in order to Supermarket
assure correct material
CLEAN deliveries and
withdrawals (pulls).
2. SEITON Clean thoroughly
Define inventory levels
the relevant work
ORGANIZE – Min/Max
items and the
Organize each item surrounding
1. SEIRI in its optimal environment
position in the
SEPARATE storage area and
Separate the label it.
necessary items
from the
unnecessary

Marek.Piatkowski@rogers.com
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Supermarket - Design Principles
 All materials must be delivered to and stored in centralized
warehouse locations – called Supermarkets.
 All parts must be stored in a unique (designated) storage locations.
 All boxes and containers stored in the Supermarket must be
“Customer Ready” - meaning right size and weight and 100% Quality
acceptable
 Any re-packing, to make boxes Customer Ready must be done in a centralized
location outside the Supermarket.

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Supermarket - Design Principles
 Once parts are produced and identified with a Master Label
(Pallet/Skid Label) they are immediately moved to the Supermarket
 The system must be designed so the oldest parts are moved first –
FIFO.
 A very strong effort should be made to eliminate any unnecessary
pedestrian traffic in the Supermarket.

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Master Shipping Label

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Master Shipping Label –
Production Week Number

Storage Rack Label

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Supermarket Purpose of a Supermarket
Design -
Conclusion  The purpose of a Supermarket is to create a Buffer of inventory
(Purchased Parts, WIP or Finished Goods) in order to safeguard
against process or delivery variations
 Process variation can be caused by:
 Batch (large lot) production process
 Variation in working hours
 Equipment breakdown or problems
 Etc …
 Delivery variation can be caused by:
 Large lot and non-frequent deliveries
 Transportation costs and distance
 Delivery schedule changes
 Weather
 Etc …
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Supermarket Supermarket and Lean Transformation
Design -
Conclusion  Supermarket is NOT a final stage of Lean Transformation
 Supermarkets are constructed at the beginning of Lean
Transformation in order to:
 Stabilize the operation by eliminating parts shortages
 “Protect the Customer” – short Lead Time and 100% on time Customer
deliveries
 Gain control of inventory problems – not enough of what we need and too
much of what we do not need
 Ideal State is - No Supermarket !!!
 Supply chain able to move at pace of manufacturing in component model,
sequence, and mix.
 Therefore, the little inventory that exists would be a ‘rolling inventory”
delivered frequently to point of use in the manufacturing facility

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Lean Transformation Solutions
This presentation is an intellectual property of F.S.P. Consulting Inc.
No parts of this presentation can be copied or reproduced
without a written permission from:

Marek Piatkowski
F.S.P. Consulting Inc.

iPhone: 416-235-2631
Cell: 248-207-0416
Marek.Piatkowski@rogers.com
www.TWI-Network.com

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