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Chapter 2
Activity Profiling: Mining For Gold
WHEN PROBLEMS OCCUR IN WAREHOUSE OPERATIONS:
REENGINEERING
IS OFTEN DONE
LAYOUT PROJECTS ARE COMMENCED
WITH NO IDEA OF THE ROOT CAUSE OF THE PROBLEMS
DUE TO:
LACK
OF KNOWLEDGE
LACK OF TOOLS
LACK OF TIME
Systematic analysis of
item activity &
order activity
Profiling is designed to readily identify root causes
Of material flow problems
Of information flow problems
Pinpoint opportunities for process improvement
Provide an objective basis for decision making
Advantages of Profiling
CAUTION
Slotting
Zone Definition
Storage Mode Selection & Sizing
Pick Face Sizing
Location Assignments
System Selection
System Size
Warehouse Sizing
Space Requirements
Level of Automation
Staffing Requirements
Capital-Labor Substitution
Level of Mechanization
25%
15%
5%
5%
5%
10%
A Only
B Only
C Only
A&B
A&C
B&C
A, B & C
35
25
15
10
5
50
30
20
55
25
20
% of lines
75
10
15
60
30
10
Loose
carton
Full pallet
Mixed
Broken
Case
Full Case
Mixed
profiling
Supports the same batching and processing
Popularity
Cube Movement/Volume
Popularity-Volume
Order Completion
Demand Correlation
Demand Variability
Dollars of Sales
Volume
# of Requests
% of Items
For example; 10% of the items may fill 50% of the orders. (next
slide is an example)
Item Number
Item Number
Pair Frequency
189-2-4
189-2-1
58
493-2-1
493-2-8
45
007-3-3
007-3-2
36
119-2-1
119-2-7
30
999-1-8
999-1-6
22
207-4-2
207-4-4
15
662-1-9
662-1-1
12
339-7-4
879-2-8
112-3-8
112-3-4