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1. Stores & Warehouse Organisation

1.1 The Purposes and Functions of the Stores/Warehouse

1.2 Stores & Warehouse Construction

1.2.1 The Building

1.2.2 Large-Scale Equipment

1.2.3 Floors and Floor Flatness

1.2.4 The Loading Bay

1.2.5 Other Important Areas

Doors

Lighting

Picking Areas

Special Storage Areas

Ancilliary Service Areas

1.2.6 Gathering Data

Pallet space

Pick popularity

Volume movement

Pick density

1.2.7 Changes in Modern Stores Design

1.3 Storage Options

1.3.1 Shelves and Bins

1.3.2 Racking (Non-Pallet)

1.3.3 Pallet Racking (Various)

1.4 Allocating Storage to Stock

Characteristics and appropriateness of racking systems

1.5 Allocating Stock to Storage (Pick Density and 'The Golden Zone')

1.6 Material Flow Planning (Layout)

The Use of Simulation in Material Flow Planning

1.7 The Installation of Automation

1.8 Coding and the Stores 'Vocabulary'

1.9 Installing Technology

1.9.1 Batch v. On-Line

Batch

On-Line

1.9.2 Data Recording Equipment

1.9.3 Voice Directed Picking (but see 4.2.7 below)

1.9.4 Data Communications

1.9.5 Weighing and Measuring Devices

Weigh counting

1.9.6 Bar Coding & RFID Tags

Bar Coding

RFID Tags

1.10 Special Situations

1.10.1 Stockyards

Construction

Repairs and Maintenance

Layout and Organisation

1.10.2 Cold Stores

1.10.3 Tools Stores

2. Materials & Material Handling

2.1 Knowledge and Protection of Materials (including FIFO)

2.2 Pallets and Unit Loads

2.2.1 The Pallet

2.2.2 The Unit Load

2.2.3 Pallet Loss

2.2.4 Pallet Stacking

2.3 Packaging

2.3.1 The Package

2.3.2 Packaging Waste

PRN (package recovery note)

WEEE regulations

2.4 Materials Handling

2.4.1 Introduction

2.4.2 Equipment for Seizing and Lifting

2.4.3 Hand Operated Equipment

2.4.4 Power Driven Equipment

2.4.5 Cranes

2.4.6 Order Pickers

2.4.7 Powered Conveyors

(For carousels, see 4.2.6)

2.4.8 AGVs

2.4.9 Training and the 5 Rules

2.4.10 Avoidance of Double Handling

2.5 Transport and Despatch

2.5.1 Regulations and Safety

2.5.2 Road

2.5.3 Rail

2.5.4 Ship

2.5.5 Air

2.5.6 Arranging Transport - The Freight Forwarding Agent

2.5.7 Route Planning Software

3. Stores and Warehouse Operations

3.1 The Carriage of Goods (The INCOTERMS)

3.2 The Transfer of Goods and the Law

3.3 The Principal Steps and Official Notes in Ordering and Receipt

3.4 Quality and the Receipt of Goods

3.4.1 Introduction

3.4.2 The Main Decision on Incoming Quality (The Breakeven Point)

3.4.3 The Inspection of Incoming Parts by the Stores

3.4.4 The Sampling of Incoming Parts

Sampling plans explained

Single Sampling

Double Sampling

3.5 The Issue and Despatch of Material

3.5.1 Stores Issues within the Factory

Procedures for stores issues

3.5.2 Despatches outside the Factory

3.5.3 Load Assembly within the Factory

4. Special Topics

4.1 Variable (Random) v. Fixed Locations

The Magic Number Method

Requirements of a 'Putaway' Software system

4.2 Order Picking

4.2.1 Cost and Picking Performance

4.2.2 Reducing Travelling Time in Picking

4.2.3 One-Step Picking

Picking Multi-Line Orders

Zonal (or Sectional Picking)

Dynamic Zoning

4.2.4 Two-Step Order Picking

4.2.5 Technology I - Picker to Stock

4.2.6 Technology II - Stock to Picker

Horizontal and vertical carousels

4.2.7 Voice Directed Picking

4.3 The Maintenance of Stock Records

4.3.1 How the Stock Records System Works

4.3.2 What is meant by 'Records Accuracy'

4.3.3 Improving the System

Causes of Error in Stock Records Recording

4.3.4 Controlled Stores Accuracy

4.4 Cycle Counting (including off-site link to Stock Accuracy Course)

4.5 The Financial Control of Stock

4.5.1 The Custodianship of Assets

4.5.2 Financial Reporting

4.5.3 Managing Stock Losses

4.6 Transaction, or 'Audit' Trails

4.6.1 Defining a Transaction Trail

4.6.2 The Reconciliation of a Stock Count

5. Human Resources

5.1 Recruitment and Selection

5.1.1 Staff Recruitment

5.1.2 Staff Selection

5.1.3 The Job Offer

5.2 Industrial Relations in the Stores/Warehouse

5.2.1 Grievances

5.2.2 Breach of Contract

5.2.3 Discipline

5.3 Fire Precautions

5.4 Security

Internal Theft

5.5 Pests in Stores and Warehouses

5.6 Health and Safety in the Stores

5.6.1 Personal Responsibility

5.6.2 Criminal Liability

5.6.3 Civil Liability

5.7 Reviewing the Stores Performance

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1. Stores and Warehouse Organisation

1.1 The Purposes of the Stores / Warehouse

The stores is self-evidently a major company service department. Service is provided on behalf of the following functions:

Service to Purchasing & Quality:

The stores receives raw materials and bought-out parts on behalf of Purchasing. The receipts must therefore be counted accurately and the material checked or sampled as to quality. Information about receipts must be promptly notified to the central database.

Service to Production:

The stores must marshal and issue all works orders on behalf of production, and perhaps any tools and fittings needed. The stores also accepts material from production, whether completed work or scrap. The nature of production is such that emergency issues of material are always likely to be required. It would follow from this for a factory stores that the facility should provide a service during all times that production takes place ... including second and third shifts.

Service to Production Planning:

The planning of production and the correct maintenance of stocks are essential services as the company progresses manufacture, but these tasks simply cannot sensibly proceed unless the stores/warehouse correctly maintain stock records at a very high level of accuracy.

Service to Distribution (Logistics):

The stores or warehouse must prepare goods for despatch to external customers within a turnaround time that has been agreed between its manager, the distribution manager and transport supervision. The function of despatch includes packaging and, perhaps, making ready all documentation.

Service to Field Service or Engineering:

There may be a requirement to hold and dispense spares for machines both within the factory or installed at customers' premises on a 24-hour basis. The stores' role in providing this service entails call-outs ... not merely leaving a key with security.

Service to Finance (and Senior Management):

Stock is regarded for financial purposes as a current asset of the company - ie an asset of the same nature as cash and debtors - so that consequently Stores' maintenance of accurate records is a vital contribution to company management. The accuracy of the records is not merely an issue at year end when the balance sheet is being struck. On going accuracy is needed continually for integrated financial accounting purposes.

Other important functions of the stores relate simply to the internal good management of the facility. Obvious examples are the safe and economical handling of material; and security from fire and theft. As well, there is a requirement to maintain stock in good condition. (It is rarely accepted, however, that the stores or warehouse is responsible for the ordering, forecasting or replenishment of stock itself, except perhaps inexpensive consumable items or fuel in the course of operating a simple "2-bin replenishment" system . We must return to the question of purpose and function in the final Section of this on-line course, when the matter is discussed as to how well the stores has performed and the need for its continuous improvement.

Also visit the website of The UK Warehousing Association.

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1.2 Stores & Warehouse Construction

1.2.1 The Building

A single storey building is almost always to be preferred - it is cheaper to construct and it is cheaper to fit out with ancillary services. Above all, a single storey is more suitable for fork lift trucks which, in a multi-level facility, would otherwise need sometimes to go from level to level via lifts. Although single storey buildings are nowadays the norm, there are two ways in which some of the advantages of a two storey building can be obtained. The first is by the construction within the warehouse of a mezzanine floor for offices and limited specialised sub-stores. The second is to have multi-tiered binning. This consists of stacking one run of shelving, say 3m high, on another that is also 3m high. A floor is then provided for storesmen at the higher 3m level. It should be noted, however, that a disadvantage with both mezzanines and multi-tiering is the exclusion of natural light at the lower levels. This forces up operating costs due to the need for artificial lighting, and may lead to accidents. (Inadequate lighting is a major cause of accidents generally.) Of course, if the new stores needs to be in the centre of a major city, land prices may force the company to develop a multi-storey facility.

Multi-storey warehouses can be successful if care is taken to 'zone' the stored material carefully. Typical zoning schemes are: (i) high and low pick densities (see later); and (ii) bulk stock / back-up stock / picking stock. A financial reason for single-storey is given in the relationship between the cost of the construction, worked out in £ per cubic metre of space obtained, and the (single storey) height to the eaves. This can be illustrated by a graph showing how the relative cost per cubic metre of space created falls exponentially as the overall height of a building rises. As a rough estimate, a 12 metre high building would cost only 15% more than a 6 metre building. However, a 12 metre (tall) warehouse would show major cost savings over a 6 metre (more extensive) warehouse of the same racking capacity, with savings in land costs, rates, heating etc.. Perhaps as important as this is the resale value of the warehouse, as more and more companies are looking for new premises and focus on buildings well over 6 m high.

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1.2.2 Large Scale Equipment

A two-stage approach can be used to work out the best system of materials handling. First, the best or most likely range of units loads of incoming materials is determined: size, weight, frequency etc.. This will enable the equipment to be decided that is necessary to handle them, and the design of the receiving docks. Secondly, the unit loads required by the company's own customers are considered, so that the equipment needed at this end of the materials handling system can be determined. (For example, consider the requirements to fit out a supermarket ... receiving docks and fork lift trucks are necessary to deal with incoming cartons brought in from the retailer's depot, and wire trolleys and trolley parks are needed to deal with the carrying away of customers' weekly groceries to their cars.)

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1.2.3 Flooring and Floor Flatness

Floors are always of concrete, sometimes treated with compounds to reduce slippage and to minimise dust and grit. Specialist contractors must be employed to lay them, capable of constructing them to the required high standards of flatness and delivering the required degree of durability.

Flatness is especially important: if a floor is not flat, fork lift trucks will slow down and may collide with racking. But what is flat? To answer, consider an elevation difference of 10mm across a 1500mm aisle. Put a narrow aisle truck on the floor at this level and raise its cab 15m. Now the 10mm difference has become a 100mm static lean. At speed, that 100mm lean becomes a lean of 300mm. Floor flatness is specified by BS8204 (Part 2). Floors should have an elevation difference of less than 3mm. Flatness is measured by a prophilograph machine, which traces the floor contours electronically. An uneven floor can be flattened by a laser-guided grinding machine, or, alternatively, a new floor can be laid as an apron on the old one.

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1.2.4 The Loading Bay

Loading bays are positioned so that vehicles can have direct, unhindered access to them without the need for complicated manoeuvring. Among other things, easy access will speed the loading and unloading processes and may even reduce the need for extra bays. A key decision is whether to allow for side loading or end loading of vehicles. End loading offers many advantages. Although it restricts access to only one part of the load, the narrower width is such that than one can get two bays in a space, compared to one with side loading. End loading also provides better temperature control and greater safety. (Loading bays are a particularly critical area for safety ... 25% of all industrial accidents occur in this area). Note incidentally, that clockwise circulation of traffic up to the loading bays is required to provide better driver control of the reversing turn into the bay. The construction of the loading bay must clearly allow for modern materials handling equipment and practices. Doors should be 9 ft, or a little more for higher trailers. The height of the loading bay platform must accommodate any number of vehicle types and make allowance for the fact that vehicle heights rise and fall during the loading and unloading processes. The usual (very cost effective) solution nowadays is to build permanent docks levellers. As for location, two common practices are diametrically opposed to each other. One is to locate both the receiving and despatch bays next to each other. The other is to put them as far apart as possible! However, with modern communications and materials handling, it may be more effective to place bays at several points around the building to allow direct pick-up and easy despatch by factory departments. If this is done, of course, all such bays must be centrally controlled and berth activity supervised. The question of how many loading/unloading bays should be provided in the construction of the stores or warehouse can be decided best through the use of a simulation model as described below.

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1.2.5 Other Important Areas

Further vital topics which must be dealt with include those in the list below. Perhaps the most important point, however, is that the stores should be designed, at least in rough, by stores staff themselves - it will be realised that an inadequately planned facility can have massive, permanent on-going effects on operational costs. For example, failure to obtain the know-how and inside knowledge of staff may result later in queues; excessive waiting times for drivers or shop floor operators; double handling; and delays in clearing materials for use.

(a) Doors

For the sakes of security and to minimise heating costs, instal only those doors which are essential. Aspects of doors to consider are from (1) to (5) as follows - or perhaps a combinations of them is required ... (1) their speed (speed is clearly important for doors to cold areas); (2) whether automatic control is desirable; (3) security; (4) thermal efficiency: (5) whether specialist factors apply, such as use as fire shutters, extra high security or heavy duty. How much traffic will use the door and what types of traffic will it be? Alternative door types are (i) sectional insulated overhead doors ('up and over' doors, or Thermadoors), which may be standard, or normal, lift, high lift or low lift, (ii) Rapid Roll doors. An essential accompaniment to internal doors is either a traffic light or one-way system. (Warning klaxons are an additional safeguard.) Door control activators should also be given attention - it is grossly inefficient if drivers of FLTs need to dismount to open/close the door. The necessity for high speed, insulated doors is dealt with under Cold Stores.

(b) Lighting

Ensure that the fullest possible advantage is taken of natural light, especially in gangways and passages, so make sure shelves and racks when they are installed will not obscure windows. (Windows of continuous glazing with wired glass.) Inadequate lighting can make it difficult to read documents, labels and screens. Anto-glare filters should also be considered. (On the matter of clarity of documents, ensure that bold, clear fonts are used and that the pitch of letters and numbers is sufficiently large.)

(c) Picking Areas

Dealt with below.

(d) Special Storage Areas.

Heavy goods, bins, safes and others may be zoned into special stores areas to be laid out in conjunction with the main pallet racking.

(e) Ancillary Services Areas.

These are: the boiler house; electricity sub-station; garage; fuel pumps; canteens; toilets; car parks; first aid stations, etc..

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1.2.6 Gathering Data

(A) Calculating Pallet Space

The following simple six step procedure can be used to find the average palletised area that will be occupied by a case or package.

i. If the cases are to be stacked on a pallet, find the number of cases per tier on each pallet and the number of tiers per pallet. For example, 5 cases per tier and 4 tiers per pallet = 20 cases per pallet.

ii. Decide the maximum number of pallets per stack. For example, with 3 pallets per stack, the number of cases is 20 × 3 = 60.

iii. Each stack occupies the area of one pallet, plus, say, 1.5 cms overhang on each side. The area is thus 1030 mm × 1230 mm, = 103 cm × 123 cm = 12,670 sq cm, or 1.267 sq metres per stack.

iv. The gross area in iii. is reduced to 60% net after allowing for aisles, staging areas and offices. Thus net area is 1.267 / .6 = 2.11 sq metres per stack.

v. We must now allow 20% wasted space for honeycombing, so that the actual space per stack is 2.11 / .8 = 2.64 square metres.

vi. The area per case for planning purposes is therefore 2.64 / 60 square metres per case, = 0.044 square metres per case. (For example, if stacking 2,000 cases, allow 2000 × 0.044 square metres = 88 square metres.)

(B) Calculating Pick Popularity (P)

Analyse existing data such as the stock records transaction trail and record the total number of picks plus putaways per item per month. If the file holding this data is sorted into descending order of the number of picks + putaways, it will be found that the top 20% of the items account for 80% of the total number of picks + putaways ... the familiar ABC effect.

(C) Calculating Volume Movement (V).

From the data in (B), apply the volume of each item V. This is defined as V = T × C, where T = the average total number of units of the item put away and withdrawn per month and C = physical volume of each unit - ie the space occupied by one item, measured in cubic centimetres (or cubic feet). That is, volume movement is the volume of each item stored and picked per month. Analysis of items in descending order of volume movement will show typically that 15% of items account for some 80% of the total volume movement. Of equal interest to the stores planner is the fact that 50% of the items account for less than 0.5% of the total volume movement.

(D) Calculating Pick Density (D)

If P = the average number of putaways and withdrawals per month for an item, and V is its volume movement, then each item's pick density D = P / V. Pick density is needed in determining storage location, as explained further below. Hint: In order to find the volume of a small item, institute a "measuring cup" of fixed volume ( say 100 cc) and determine how many units will fit in a cup. For large items, imagine them being in a box, and apply a tape measure to the imaginary box.

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1.2.7 Changes in Modern Stores Design

The stores designer today must be very conscious of the rapidity of change taking place in the tempo of modern manufacturing. With Just-in-Time supplier receipts, kanban and JIT deliveries, the quantities of stock ordered from suppliers, manufacturing lot sizes and the delivery quantities demanded by customers are becoming progressively smaller and their frequency of movement correspondingly greater. So while in the past the emphasis in design was on economy of storage density, todays emphasis is on speed and flexibility. Issues today are traffic jams and the quick attention to incoming goods and shop floor receipts.

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1.3 Storage Options

Storage options here means the stores or warehouse 'furniture' - the physical containers, shelving and the rest used to contain the items being stored. Note that the term stores furniture seems to imply that the fixtures and fittings are static and the goods within them are at rest. It is possible, however to install what is termed 'live' storage facilities. With live storage, either the goods themselves move, or the equipment moves, or both. An example of live storage where the goods alone move is a chute.

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1.3.1 Shelves and Bins

Open shelving is suitable for items within strong packages, such as small boxes of components. A working ledge at the front is typically provided for counting out items being picked. Closed shelving usually means closed at the back and is more common. It is suitable for non-packaged goods and can be fitted with shelf trays. Lockable fronts may be provided. A shelving bay means a single multi-shelf construction ... ie one unit of shelving from the equipment supplier. By bolting several bays together side-by-side, we form a 'run'. A very strong, stable structure is formed when two runs are bolted together back to back, and, as indicated above, runs can also be stacked in tiers. Guidelines on shelving are contained in BS826, specifying preferred dimensions.

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1.3.2 Racking (Non-Pallet)

The term "racking" is applied to any storage fixture that is not shelving or binning. Racking is used for the storage of an enormous variety of goods - pallets themselves, tyres, cables, bars, tubes, drums ... The layout of racking must be given the greatest attention at the design stage, since the decisions made will have a considerable effect on the utilisation of floor space (and volume) and on the speed and efficiency of storing and picking.

A common requirement in industrial stores is for racking for bars and tubes. The basic options are to hold the stock either horizontally or vertically. The preference is usually for horizontal racking. This may be either pigeon hole or antler ('horn'). Pigeon hole racking consists of angle irons in which the bars are stored together. A disadvantage of it is that mechanical handling is difficult. With the antler method, the racking consists of a framework of angle irons, so that each bar is stored in an individual slot like bottles in a wine rack, making mechanical handling easy. Horizontal racking clearly demands corresponding horizontal working space, and if this is limited compared to height, vertical racking may be preferred. Two problems with this are (1) that the bar or tubing may become distorted due to the pressure of its own weight; and (2) the greater safety hazard it presents.

Note that warehouse racking is regulated under the Construction (Design and Management) Regulations ('CDM'), part of the Health & Safety at Work Act. The CDM regulations were amended and re-issued in April 2007. Although racking in a warehouse may seem a long way from a building site, the Health & Safety Executive classifies the installation of racking as a construction project. To comply with the CDM regulations, companies must ensure that a health and safety plan has been developed before any construction work begins. A health and safety file that is available for inspection at any given time must also be produced. The preparation of the plan is the responsibility of the warehouse manager. It will usually begin with a description of the 'project' and a general statement of health and safety principles and objectives of the work. It will include arrangements for managing and organising the project, and include the identity of those responsible for the actual erection.

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1.3.3 Pallet Racking

There are a great many standard storage arrangements for pallet racking. The Stores planner can decide on the configuration suitable for a specific need simply by contemplating a standard layout, the type of material to be stored and the picking/putting away rates to be achieved. Seven standard arrangements are given below, with very brief comments on each. Their pro's and con's are summarised below.

(i) Block Stacking

Unit loads are stacked on top of each other, and stored on the floor in storage lanes ("blocks"), two to ten deep. Block stacking is suitable only for a very limited number of different items, where product quantities are large and/or where products themselves are bulky and turnover is high. Very high storage density is achieved though ease of access is not good. Also note that block stacking is strictly LIFO (see below), so that if FIFO is necessary, block stacking is not a feasible option.

(ii) Single and Double Deep Pallet Racking

Single deep racking is a simple system that is associated with pallet racking for picking faces (see Two-Step Picking later). It allows immediate access to every load stored. A major disadvantage, however, is the loss of some 60% of floor space to aisles. Double deep pallet racking is merely an extension of single with less loss of space to aisles (but with more honeycombing).

(iii) Drive In and Drive Thru Racking

The racking consists of upright columns with horizontal rails to support pallets. Storage lanes of the chosen depth reduce space lost to aisles even more. High density, but suitable only for low/ medium thruput items. LIFO only. Drive thru merely means access from two sides.

(iv) Pallet Flow Racking

This superior though expensive system is similar to Drive In Racking, except that loads are moved on skate wheel conveyors. As a load is removed from the front of the storage lane, the next lane advances to the picking face. Pallet flow racking gives high throughput and good space utilisation, and permits FIFO. It is used for high density, high thruput storage, but costs some £200 per storage position.

(v) Push-Back Racks

As a load is placed in storage, its weight and the force of the FLT (fork lift truck) pushes back the other loads in the lane. As a load is removed, the rear loads push forward. Expensive and LIFO.

(vi) Mobile Pallet Racks

Whole rows of rack are moved forward together, eliminating aisles.

Safety is a most important concern with all racking. Training must be given by the equipment manufacturer and the greatest care exercised to ensure loads are evenly distributed and that they never exceed the manufacturer's limits. Operating conditions must also be satisfactory, such as lighting and working space, and the racking installation must be rigorously inspected on a regular basis, not simply when someone 'notices something is wrong'... For Racking Safety Trainining, visit SESS.

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1.4 Allocating Storage to Stock

The first task is to obtain and analyse the volume movement of all items so that the correct storage capacity can duly be assigned to the items to be stored. The four principles which the planner will typically follow are:

1. Low volume movement; high popularity:

These items should be assigned to very productive, low volume storage media - for example, carousels (see below).

2. Low volume movement; low popularity:

Expensive storage media cannot be justified for these items. The media selected for them will be storage drawers and bin shelving.

3. High volume movement; high popularity:

These items must be stored in pallet racking systems that lend themselves to frequent picking and restocking, such as flow racks and single deep racking.

4. High volume movement; low popularity:

Other, less expensive styles of racking will typically be chosen.

Consideration should be given to the relative merits of the seven types of pallet racking described in the previous sub-session. The characteristics and appropriateness of the seven systems are summarised in the following table.

Characteristics and Appropriateness of Racking Systems

....................................Cost .Storage Density .Load Access .Thruput Capacity .FIFO? Variabl Load Sizes?

Block Storage ........................n/a..............v.good............................poor ............................average...................y.............................good

Stacking Frames....................low..............good...............................poor.................................poor.....................n.............................poor

Sing/Dou Deep ......................low..............good..........................good/OK.........................good/OK................poor......................average

Drive In/Thru ........................ low...............good.............................good...............................average..............difficult......................poor

Flow Racks..............................high..............good............................good.................................v.good..................yes............................poor

Push Bk...................................high...............good.............................v.good...........................average..............difficult...................average

Mobile.......................................high..............v.good............................poor................................v.poor...................no.........................average

As we see from the table, both relative volume movement and relative picking popularity are taken into account in working out required storage volume and determining the specific storage media to be installed. Relative volume movement and relative popularity are consequently taken into account in determining where "regions" of stock and storage media are to be located. In short, where both volume movement and popularity are high, flow racking might be best. Where volume movement is low, then we might turn to (1) storage draws (low popularity); (2) bins and shelves (medium popularity); and (3) carousels (high popularity).

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1.5 Allocating Stock to Storage (Pick Density and 'Golden Zone')

For a very small number of special items, the decision as to which locations they are to be assigned for storage will be made on an individual basis. For example, precious metals will be located in safes and material likely to give off fumes will be located in well ventilated areas. The decisions for the great majority of items within a general storage region, however, will be made after first considering how easy (quick) it is to put away into, or pick from, those locations. In stores jargon, the locations where these activities may most easily be accomplished are referred to as "the golden zone" - locations which are between waist and shoulder high, and are close to a central point in the stores. Next come locations in the "the silver zone". Finally, the slowest and most distant locations make up "the bronze zone". Nominating locations and zones is the first task in deciding what to put where.

At first thought, it seems intuitive that the criterion for deciding which items are to be assigned to the golden zone should be on the basis of their popularity. However, popularity alone ignores the fact that the stores planner is trying to optimise the use of the golden zone, and that consequently he should also take into account how much space is taken up by items. What he wishes to do is to maximise the degree of picking that takes place there. Consequently, the notion of pick density, previously defined, must be examined further.

As previously stated, if P = the average number of putaways and withdrawals per month for an item (ie popularity) , and V is its volume movement, then each item's pick density D = P / V.

The planner must calculate the pick density of each item within a stores region and allocate the group of items with the highest pick densities to the golden zone, the group with next highest pick densities to the silver zone and those with the lowest densities to the bronze zone.

To illustrate the optimisation of golden zone space, consider a simple example of a golden zone of just 10 cubic meters of space. Now consider three items A, B and C, with the attributes shown in the table below.

...............................Item ....................Popularity P ................Volume-Movement V (T × C) ..........Pick Density D (P / V)

................................A .....................200 per month ......................10 m3 per month .................................20 requests/m3

................................B .....................150 per month .......................6 m3 per month ..................................25 request/m3

................................C ......................120 per month .......................4 m3 per month .................................30 requests/m3

Suppose now that we decide to store one months supply of material in the golden zone. If we were to allocate Item A to the zone on the basis of highest popularity, this will exhaust the capacity of the zone and the number of visits we will get to it will be 200. If , however, we use the basis of pick density, the items assigned to the golden zone will be C and then B. Together, these will exhaust the zone's capacity of 10 m3 (ie 6 + 4 = 10) and the number of visits we will get will be 270 (150 + 120). The use of pick density instead of popularity in allocating items will make a significant difference to the stores' utilisation of prime space.

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1.6 Material Flow Planning (Layout)

The dominant scheme for the layout of the facility is as a U-shaped flow. The advantages of a U-flow are as follows:

* There is very good utilisation of dock resources (doors, dock levellers, space, goods in/out staff), since receiving and despatch operations can share docks;

* U-flow makes cross docking easier, and also facilitates the immediate onward movement of incoming Just-in-Time supplies to the factory floor;

* U-flow gives excellent FLT utilisation, since putaway and picking trips can be combined;

* There is good security;

* U-flow design is inherently more flexible - it is easier to expand the various facility areas as operations change.

Other layout schemes are "Straight Through" (for distribution depots) and "Modular Spine".

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THE USE OF SIMULATION IN MATERIALS FLOW PLANNING

Simulation is an immensely powerful tool in warehouse design and warehouse development for providing answers to such questions as "how many FLTs should be deployed?", "How many cranes?", "What would be the effect of a conveyor system covering these locations?" Simulation is particularly useful in warehousing since it incorporates the mathematics of queuing theory in order to test the effect of likely activity. For example, "How long will vehicles wait to unload by mid-morning, and how many extra docks should be provided to reduce these queuing times by 75% ?" Virtually every company planning and building a new warehouse will have used simulation in order to do so. Recent past users of simulation have included Boots, in building a complete distribution/logistics system, and Littlewoods Home Shopping, for a £40m distribution centre eventually incorporating 18 cranes and 350, 000 locations. The main benefits reported were:

The ability to test and compare the performance of alternative scenarios put forward at the 'ideas stage' of the projects;

An ability to monitor/assess the effects of changing requirements by What-If?;

Accurate comparison of alternatives, with all supporting data ;

Problem solving through the ability to test alternative solutions.

The use of simulation requires the building of a computer model of the proposed facility or proposed change - vehicles, traffic, routes, times, loads etc.. Nowadays, easy-to-use systems which incorporate interactive animation can easily to built by anyone. The completed models incorporate animation and realism, with the advantages that people at all levels are quickly able to grasp what is being proposed, and (through interaction) are able to input their own ideas or get detailed information about what is being shown on the VDU. For example, by clicking on a fork lift truck in the picture, statistics can be obtained about its percentage use, distance travelled etc, in operating the warehouse over, say, a specified hour. The training needed to use an animated simulation package sufficiently well to obtain good results is just a few days. In reality, users must spend most of the time fact finding, discussing alternatives with colleagues and deciding objectives. (As a hint, if the student of this course engages the service of a simulation consultancy, perhaps paying fees in accordance with the time spent, it is essential to find out beforehand precisely what data needs to be provided, and to have such data readily to hand.) The foremost interactive animated simulation package in the UK principally aimed at warehousing is Automod, and its sister module Autostat, from Brooks Software, Reading. Visit http://www.automod.com or phone 0118-921-5600.

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1.7 The Installation of Automation

Automation is costly and the more flexible and extensive in design it needs to be, the more costly it gets. Consequently, there are four important requirements to consider before embarking on it, as follows. There must be .....

1. sustained, high levels of steady production throughput;

2. a low, stable product range;

3. a high labour content;

4. large individual customer offtake quantities.

Automated equipment consists of electromechanical devices, communication systems and computers. Electromechanical devices and communications systems include powered rollers, vehicles guided by wire contacts along floor mounted tracks, automated stacker cranes and other apparatus with feedback and sensing devices. For example, a common scheme is to install vertical pallet racks of conventional design, but with a power / computer operated fork lift truck on a track in the gangways, the truck capable of reaching all pallet heights. The automation then consists of the truck moving along the tracks and moving the forks up and down, in and out, under the control of a computer program. Many early attempts to automate, however, were failures. There were three reasons:

A. Technical Overambition.

It was not unknown for the design of early systems to take two or three years to complete. The designers of the automated system moreover then required that every movement should be as perfectly meshed in the real world as on paper. Mechanical devices, however, break down. The scale of early warehouse projects was greater than experience showed to be practical.

B. Logical Overambition.

In order to automate the warehouse fully, it is necessary for software designers and programmers to understand and describe its operations fully. Computer programs must be written and database data properly set up. But many of the activities in the manual warehouse are simply too involved to describe, and must of necessity rely on human knowhow and intuition, which cannot be programmed.

C. Commitment and Discipline.

Early automation attempts were looked on as technical and engineering projects. Success however requires full, multi disciplined team commitment and massive advance training and publicity. These requirements were not recognised.

To achieve success and avoid the mistakes of the past, five guidelines are put forward.

1. Islands of Automation.

The monolithic automated warehouse is a myth. Instead, automation must be seen as a set of projects physically isolated from each other. Each project can be put in alone and should generally be capable of justification in its own right. Examples of islands of automation are the automatic storage and retrieval of full pallets; and the installation of automated guided vehicles using wire-to-the-floor, as described above.

2. Flexible Operational Interfaces.

It must be possible for the storeman or warehouseman to take control of operations at suitable interfaces. For example, if there is a breakdown or incident in the marshalling of (automated) retrieved pallets, it must either be possible to divert the retievals to a temporary, manually controlled area or to take over the system.

3. Supplier / Customer Liaison.

The obligations of the automated equipment supplier are not confined merely to the customer's experience with the technology. He must liaise closely with the customer as part of a team in setting up training schemes and seeing to other matters (eg in developing manuals). By the same token, the customer must realise that he also has an obligation to cooperate fully with the supplier.

4. Dedication and Organisation.

The heart of success in automation is not technology. It is the dedication of the company and its managers to achieving success, including taking into account the fears and aspirations of all personnel. Success comes from organisation, competence and hard work. (These lessons have long been known in the field of big project development).

5. Partial Automation.

The stores or warehouse supervisor should contemplate partial automation only ... the installation, say, of AGVs, carousels, automatic weighing machines, labelling etc, each installed only as and when its use seems to be individually justified on a strictly local basis.

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1.8 Coding and the Stores' 'Vocabulary'

For identification, classification and computer purposes, each unique item in the stores must be assigned a unique code. Together, the codes and each code's associated information, such as the item's name and other major features, are known as the stores' vocabulary. One obvious property of a coding system is that the codes generated through it should be consistent. In fact, codes are often made up using a "hierarchical approach", based on the particular types of goods in store. An example is the assignment of a 6 figure numeric code (ie NNNNNN), where the 1st digit is the type of material (ie raw material, component, piece part ...), the 2nd is 'metal' or 'non-metal', the 3rd is type of metal, the 4th the form ('rod', 'tube', 'ingot' ...), the 5th the shape and the 6th the size. (A well-established methodology is the Brisch system, which is a means by which a company can put together a coding set itself, geared to its own use.)

For the stores, there are two vital coding issues: memorability and meaning.

Memorability means that the code can be copied down or transcribed onto transactions easily and with consistent correctness. (Incorrect recording is a major cause of error in stock records.) It has been shown that to achieve memorability the maximum length of a code should be 7 digits (and 6 would be better - but very definitely not 8 or longer, unless a barcode or RFID reading system is in place).

The question of incorporating meaning into the code is more difficult. First, it should be said that there is very obvious merit in keeping to the same coding as used by production and purchasing. However, the general company scheme may not be best for the stores since it is desirable in this environment for the storeman to be able to tell from the code that the material he is about to pick or place has certain properties. For example, suppose that a material which was subject to special quality procedures (QP) had to be handled within the stores in a certain way. The fact that the material is a "QP" can be stored on the database so that special instructions are displayed as necessary by the computer system. But to be safe, it may be desirable to include this on the code itself, so that storemen can recognise it on occasions not involving the computer. A second example relates to packaging. It may be logically correct to designate the 50kg Box Packet as 01, the 50kg Soft Packet as 02, the 100kg Box Packet as 03 and 100kg Soft as 04. But it may be safer to code them B50, S50, B100 and S100 to prevent errors during the physical act of picking. All the attributes of a material qualified by its package can be maintained on the database internally, available to the storesmen through computer programs. But it may be necessary to incorporate a number of these classifications in the visible code itself to help staff in the operational side of their jobs. If so, the risk then arises, of course, of making the code more unwieldy from the viewpoint of memorability!

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1.9 Installing Technology

1.9.1 Batch v. On-Line

Batch.

'Batch' processing means that data events are progressively recorded through some medium (whether paper forms or an electronic recording collector) and the records then input to the computer all together. That is, the original data are deliberately held back from being input to the computer until a reasonable quantity of information has been collected, so that input, although efficient, is made usually several hours after the events being recorded. If a transaction is found to be in error when finally submitted to the computer, there can be a delay of many days before its investigation and final correction.

On-line.

In on-line processing, data relating to an event is notified to the computer on an individual basis as soon after the event as possible. (There is usually nevertheless a brief time delay between the event and the transmission of the record. The delay may be minutes or, in a slacker environment, one or two hours.) There are two advantages to on-line processing. First, the central computer database is brought up to date far sooner, and usually accurately reflects the current situation. Secondly, there is immediate feedback after submitting the transaction and, if it is in error, the opportunity exists for immediate error correction by the person responsible for completing it in the first place.

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1.9.2 Data Recording Equipment

Data recorders:

These are hand-held machines similar to electronic personal organisers. When its capacity has been reached, or after an appropriate period of time, the device is taken to a terminal and the data that has been captured is transmitted, or 'down loaded', to the computer.

Radio data terminals (RDTs):

These are hand-held devices which incorporate a small VDU screen, plus a tiny keyboard (say, 3"). More importantly, they are able to communicate directly, on-line, with the computer via a radio signal - ie a cable is not required. Data recorders and RDTs can optionally have bar code scanners attached and some models are suitable for rugged or hostile environments.

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1.9.3 Voice Directed Picking

Voice directed picking is a highly effective and increasingly popular technology that has many advantages in both stores and warehouse operations. With 'voice', workers wear a headset, earphones and a belt-attached portable computer which enable them to hear instructions from the computer and to speak words of confirmation as to action taken - below under Order Picking.

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1.9.4 Communications

Electronic Data Interchange (EDI): This medium is perhaps being eclipsed by the Internet. The term EDI refers simply to the creation of data by one computer, in computer readable form, and its acceptance directly by a second computer. Usually, the transfer of data is through a data network known as a Value Added Network (VAN). The sending company transmits the data with the code of the intended recipient company. The data is stored on the VAN operator's computer at the nearest position to the receiver. The receiving company scans the VAN computer at times convenient to itself for any messages addressed to it. Local networks mean in-house networks communicating via coaxial cable laid in the premises. Wideband networks are inter-site, and are capable of carrying vastly greater volumes of data traffic. They are typically provided by BT between specified major towns and cities. The Internet is a communication medium based simply on ordinary, existing telephone cabling, and has the consequent virtue of being cheap. Direct access between a distribution depot and a central warehouse is via a local telephone call using simple software. Both text and graphics can transmitted and received.

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1.9.5 Weighing and Measuring Devices

Computerised weighing machines. A sample scale can be used to find the 'mean', or average, unit weight of a product, and the average then stored on a computer. Large electronic scales are subsequently employed to weigh the main stock entering the stores or warehouse, with direct links to the computer database holding the unit weight. Care must be taken to account correctly for the container weight, referred to as the "tare", and to ensure the items' weight is not distorted by oil, wetness etc. Other devices of value are simple weighbridges, non-computer weighing scales, calipers and micrometers. In the process industries, bulk liquids are measured by flowmeters or even simple dip tapes and dip sticks. Many methods used for measuring liquids are acknowledged as being problematical, with comparatively wide tolerances arising inherent in the techniques themselves. Problems may be compounded by the need to take the temperature of the liquid, and the further need to assume the temperature is uniform throughout the material's bulk.

Weigh Counting. This method of counting items which are dispensed from a stores or warehouse is used when items are small or light. It is normally done on purpose-made weigh counting scales. (The first thing to note is that a scale should be selected that has a sensitivity appropriate to the weight of the items being counted - ie if the items are light, the scale should be more sensitive). The procedure follows three steps: (1) First, the "tare", or base weight, of the container in which the parts are held should be determined most carefully by separate weighing - say, weight T, which is entered into the memory of the weighing scale; (2) Next, a sample of the items to be counted should be taken and counted out most carefully, and the total weight, including the container, determined. Say there were 12 items in the sample, and the total weight was was W. This data is again entered into the memory of the scale, which is then able to calculate the unit weight of one item. In our example, this is (W - T)/12, or X. Finally, (3) we weigh all the items which are to be counted. Say, the weight is B, including the container. The number counted is given directly by the counting scale, and here is (B - T)/X. Note that ideally in order to be sure of the accuracy of the unit weight, 4 or 5 weighings should be taken and averaged. This is because the differences in weight between the units being weighed is random and the statistical distribution of these differences is Normal. The most important factor is to obtain an accurate reading of the tare weight of the container. Substantial errors can arise if the same unit weight X is applied in weighings involving apparently identical, but different, containers, each container therefore having a different tare weight. Note that a variation of this method of weigh counting is reverse sampling.

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1.9.6 Bar Coding and RFID Tags

Bar Codes

The familiar bar code is the representation of a numeric, alphabetic or alphanumeric code by a pattern of dark and light stripes, with 'start' and 'stop' characters at either end, and which can be interpreted, or read, by a light scanning device called a bar code reader. Bar code readers are either contact or non-contact. Contact readers such as those used in retail shops are also called fixed beam readers, since the device needs to be very close to the bar code. They are comparatively inexpensive (£100 +). Non-contact scanners, or line scan readers, work by repeatedly reading the code with a laser beam fired by a gun, perhaps mounted on a truck, until the reading is error free. They cost about £1000. There are a dozen or so different bar coding systems for assigning a code to a material. One used extensively in the warehousing of consumer goods, including the outside carton packaging of groceries, is termed Interleaved 2 of 5. It is numeric only, and requires the code to comprise an even number of digits. With Interleaved 2 of 5, even numbers are represented by the white stripes and odd numbers by the dark bars. Its advantage is its physical density. In industry generally, however, there is a preference for the Code 39 system. This is capable of encoding numbers and letters. Each character is represented by a group of 5 bars and 4 spaces, and has an in-built check to eliminate mistakes in the physical reading and interpretation of the code by the bar code reader. Other bar code systems are EAN (European Numbering System) and UPC (Universal Product System). UPC was devised by IBM in 1973 and is the one used in groceries in supermarkets. Its advantage is that the code does not need to be on a flat surface to be read by the reader.

Bar coding in the stores or warehouse is not always successful even when those attempting its implementation have carefully assessed that it will be. There are three issues.

First, there is the matter of ergonomics. Ergonomics is the science of man-machine interaction, and here means how codes are to be assigned, how (literally) they are to be attached to the objects and locations in question, how the codes are to be read, and what equipment is to be used. It also encompasses the nature of the computer system that will read the codes and how associated data, such as quantities, are to be recorded.

The second issue relates to the physical nature of the items actually to be bar coded and seems to be the most critical of the three. If there is a wide variety of shapes and sizes, and many items are irregular or have a unsuitable surfaces, it will be difficult to devise satisfactory, consistent ergonomically sound procedures.

Thirdly, if it is intended that incoming raw materials are to be bar coded by suppliers, their competence and willingness to do so must be considered (or, at least, their willingness to apply bar code labels and documents supplied by the company).

If bar coding works well and easily, without a continual struggle to keep it going, there are two advantages to its use. First, self-evidently, material and location codes are read correctly and more easily. Secondly, the reading process ensures that each transaction relating to an activity is indeed raised, and is not forgotten, and that it is then input to the computer system in a timely manner. (Missing transactions are a major source of error in attempting to achieve high stock records accuracy.)

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RFID Tags (Radio Frequency Identification Tags)

By 'identification' is meant the attachment of a small "tag" bearing the code and much other data of what is to be identified, and the subsequent reading of the tag code and data at some later stage by a tag reader. The physical tag attached to the object may commonly be a label, in a flat, thin, flexible ticket or may take other forms depending on the application to hand. Important attributes of tags are that they are robust and capable of functioning in extremely harsh environments and that they are reusable and can last for many years. The code and other data associated with the tag is read by a special tag interrogator, a primary function of the interrogator, or reader, being to excite a component within the tag termed its antenna. Although the technology associated with RFID tags and interrogators is changing rapidly, as at the date of this on-line course (2006), the microchip incorporated in the tag 'structure' is likely to be a silicon microprocessor and the antenna formed from conductive carbon ink. The silicon chip will be attached to carbon - ink electrodes at the back of the paper label. (Labels are referred to as smart labels.) Note particularly in RFID tags that a battery may be incorporated into the tag - that is, a tag may have a small lithium battery to boost power. Tags with batteries are referred to as active tags and without as passive tags. Power is transmitted to the tag in the first place from an electric field created by the tag interrogator. Data is transferred from the tag to the interrogator through the modulation by the tag of the interrogator signal. With their extra power, active tags are able to communicate with an interrogator over considerably greater distances than passive tags (many thousands of feet rather than only tens of feet). Active tags are also capable of carrying and conveying greater amounts of data (thousands of bits rather than tens). Not surprisingly, however, active tags are more expensive. Cost is currently a major issue in RFID technology, especially as it concerns its widespread adoption in retail.

A critical milestone in the practicality and acceptability of RFID technology has been the adoption in late 2005 of the GEN2 data technology standard and the ALE standard. GEN2 governs the basic tag reading technology essential to the production of tags themselves and tag readers. ALE deals with the collection, management and routing of data; it addresses the problem of huge amounts of raw data generated by RFID readers - readers can make multiple readings of the same tag in a fraction of second, so that this "dirty data" must be filtered. In summary the key benefits of GEN2 and ALE are the ability to read RFID tags quickly and simultaneously.

Finally, and most importantly, we see from the technical nature of the interaction between the RFID interrogator and the RFID tag, that two major advantages lie with the technology and distinguish it from bar coding.

First, that in order to read a tag, it is unnecessary to have a direct view of it. Communication is by electrical waves and antennas, and line of sight is no more required than it is required of a radio in order to broadcast to it a programme from a transmitter.

Secondly, it is possible easily to read tags which have been attached to a succession of irregularly shaped items which would be unsuitable to bar code reading. Examples in everyday life typical of the application of RFID tags are: car tagging for toll booths; hospital patients; criminals on licence; airline luggage; library books; the tagging of wild and domestic animals; and marathon runners.

For the stores or warehouse, however, one critical application of tags is in making use of the ability to read simultaneously the identities of all the tagged components of an incoming* or outgoing load merely by scanning it from a distance with the tag interrogator . * Provided the supplier has tagged all materials, of course.

A second is the ability quickly and easily to verify and count stored stock, as in cycle counting or in the conduct of an annual stock take.

Yet a third example, recently announced by Intermec and Cascade Products, is to mount RFID readers in the tines of fork lift trucks and verify the correctness of warehouse floor picks via a computer display in the truck cab.

As well, RFID tags have been attached to stillages to help track and control the (remarkable!) losses of these devices. A final example of use relates to a national company distributing wines and spirits, which wished to double check assembled loads for correctness on its vehicles before despatching them to customers, and to a major retailer receiving loads of garments hanging on rails at its major stores from its distribution warehouse. Besides these, there are an ever increasing number of other applications involving the simultaneous, mass reading of palletised loads at the point of despatch and the verification of loads at their destinations.

In order to commence a move to RFID, the stores supervisor might first attend a one-day course on the subject held at the DTI's RFID Research Centre in Bracknell, Berks.. Further details are obtainable at the Research Centre's website at http://www.rfidc.com. In addition, it is possible to see RFID in action at an RFID demonstration site run by Unipart Logistics and others at Oxford. Two consultancies expert in RFID are Manhattan Associates and Davies & Robson.

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1.10 Special Situations

1.10.1 Stockyards

Construction

The stockyard must be sited with immediate access to adequate roads capable of taking heavy lorries. If it is to be accessed by rail, railway lines should be sunk to ground level. And if so, if possible, a single line to a deadend in the yard should be avoided because of subsequent queuing problems. Beyond this, stockyards are cheap to construct, amounting merely to expenditure on barbed wire or other fencing, plus the required surfacing. Surfacing will depend on the loads to be stored. In order of rising cost, they are: Gravel or Ashes - this will not support heavy loads and heavy traffic in bad weather; Tarmac - popular, though liable to damage and 3 times more expensive than gravel; and Concrete - 5 times more expensive than gravel, but suitable for all loads in all weathers. The most important additional feature is adequate drainage to disperse rain water - even long life building materials are damaged by constant contact with standing water.

Repairs and Maintenance

The need for a proper programme of repair and maintenance of a stockyard is a matter of greater concern than points about the original construction. Stockyard maintenance, especially in Winter, is a constant activity. Areas to watch out for include: fencing (to ensure that it is fully maintained); waterlogging (drains must be cleared so that standing water is dispersed ... and Autumn leaves cleared up!); surface holes (holes must be repaired); and lighting (ensuring floodlighting is periodically checked).

Layout and Organisation

The gatehouse is the nerve centre for all documentation including the overall company stock records system. A very minimum requirement is connection to the central office by phone and fax. Better, even for small stockyards, is a proper telecommunication link, perhaps involving RDTs. Points to watch in respect of organisation are:

(a) the establishment of a proper location system, with ground areas coded by alley ways and local areas, perhaps being marked out by posts;

(b) If dangerous or flammable material is stored, the provision of emergency equipment and the establishment of full procedures;

(c) measures to prevent trespassers, especially children, from entering the area - the company is liable if children manage to gain access and subsequently come to harm;

(d) stockyards are very frequently seen as a nuisance to residential neighbours - traffic, noise, lighting etc, so that if possible they should be sited well away from houses or land where house planning permission may be granted;

(e) setting up an efficient one-way system for traffic, with good signposting;

(f) ensuring that there is supervision during all opening hours, including meal breaks;

(g) neatness and tidyness must prevail to minimise the risk of accidents;

(h) the stock must be cycle counted on a regular basis. Note that it is not unknown in poorly managed stockyards for corners of stock to become isolated and forgotten.

(i) Remember the effect of weather on signs and, especially, labels. Even plastic labels can become unreadable after a time, and routine label replacement may be necessary.

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1.10.2 Cold Stores

The cost of building a cold stores is about 3 times that of an ambient store. A second considerable cost is the cost of running the store (and the colder, the more costly): this must be balanced by the cost that would otherwise be suffered from the deterioration of the product. As well, temperature controlled vehicles are expensive. The temperatures needed for the degree of cold clearly depends on what is to be stored. Thus:

......Frozen Stores ................-30C to - 10C .............................meat, fish

......Chilled Stores ................- 5 C to 0C ..................................fresh meat, fish, poultry

......Cool Stores ................... -1C to + 5C ..................................dairy produce

......Cold Stores ................... +5 C to +15C below ambient .... citrus produce

The critical factor in the operation of a cold store is the activity taking place at the door. If warm air is allowed to enter the building, ice will form and will be costly to remove. Solutions to the problem are the installation of a conveyor tunnels; air locks; and fast acting insulated doors. (A well-known vendor of high speed, insulated doors is Hormann, in Leicester; Hormann have developed the DOBO docking system, whereby docking takes place before opening.) A related problem in cold stores is condensation. Excessive condensation can form on the product and damage it. To avoid this, loads are best removed in small quantities, with immediate protection using moisture-proof covers. Note that it is common practice that storemen in cold stores take a 15 minute break per hour. The most careful watch must be kept on racking, fixtures and fork lift trucks continually exposed to the cold. Steel can become brittle and dangerous. (FLTs bought new and destined to work in cold stores are in fact modified by manufacturers). Repairs to racking are also a problem - oxyacetylene welding is not undertaken, since welds become eutectic and break. Instead, bolted racking is used. Repairs to a floor also present difficulties, since there is usually a need to raise its temperature to effect them. Care must also be taken in product stacking - it is essential that air should be allowed to circulate the product stored.

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1.10.3 Tools Stores

In general, tool control is best accomplished in conjunction with the planning of materials and jobs, in the normal management of the shop floor. The ability to associate particular tools with particular jobs by augmenting the database with the relevant data is not especially difficult. What makes tools different, however, is (1) that tools are reusable, and (2) that tools have a limited working life, after which they must be replaced or repaired.

Storage and Retrieval

Although many factories maintain separate tool stores, there are considerable advantages in incorporating actual physical tool storage within the standard materials store. The chief of these is that the strict procedures which govern the stores itself are then applied also to the management of tools. That is, (a) access is restricted to storemen only; (b) there is meticulous booking in & out of material; (c) there is, or should be, availability of service at all times that production takes place.

The Issue of Tools

The requirement for tools to be issued to the shop floor can be coordinated from the job release planning data. From this, tool picking data is prepared each evening and the tools distributed to the work centres each morning. There will also be direct requests of more or less urgency from shopfloor personnel each day. And finally, there may also be 'reverse issues' - system-generated tool recalls based on tool life calculations on the database.

Planning Requirements for Tools

(a). Consumable Tools: These tools are generally worn away over a matter of a few hours in operation, and are then discarded and replaced by new ones. They include (say) small grinding wheels, drills etc.. Assuming the annual usage of them is sufficiently high, a satisfactory method of planning their stock and replenishment is to employ the conventional 2-bin system; (b). Medium Life Tools: Many tools such as milling cutters can be used a number of times - say, for so-many dozen hours - after which time and after due inspection they must be discarded or repaired. A consequence of this in planning future replenishment schedules is the difficulty of accounting for the stock of tools on hand; (c) Long Life Tools: Tools with a comparatively long life such as milling fixtures and drilling or assembly jigs are often associated with a specific component. If so, the requirement for the tool can be monitored by associating it with that component's bill of materials. Three well-spoken of software packages in this area are Tyco, Autotask (from Sandvik) and Super Capes.

Tool History Database

Where tools are individually specified, with a tool-type id and an individual serial number, a tool history should be maintained by recording from other shop floor support systems the actual hours each tool is in use, along with basic backup data such as expected life, acquisition leadtime, operations / components used with etc... Software packages in this area include the three packages above (ie Tyco, Autotask and Super Capes).

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2. Materials & Materials Handling

2.1 Knowledge and Protection of Materials (including FIFO)

Having a knowledge of the materials that are handled and stored are core requirements of the storeman or warehouseman. "Knowledge" means knowledge of the materials' sources and suppliers; any special circumstances in their manufacture; their technical characteristics; methods of measurement; how their quality is assessed; and the uses to which the materials are put.

The simplest and most reliable scheme that the stores supervisor can adopt for protecting the material in the store's care is surely adoption of a policy of FIFO (First in - First out). FIFO ensures that the oldest stock is used first so that it has less chance of deterioration due to the passage of time. Identification of the oldest material, however, may not always be easy when the storeman comes to make a withdrawal, especially in a fixed location store. Three methods for doing so are:

(a) Since the stock recording system tracks the dates stock was put away, picking instructions might be issued taking account of the age of stock to be removed;

(b) When stock is originally stored, its putaway date or batch sequence number should be clearly marked;

(c) If material is particularly sensitive to deterioration due to time, the medium chosen for its storage should be geared to enable FIFO to be accomplished readily. For example, stored objects may be placed at one end of a long bin, and removed by access to the far end of the bin, the material in the bin being pulled along on rollers (ie live storage). For any storage medium, staff must be trained to put material away supermarket style - ie the newest to the back.

For legal, tra