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Warehouse Operations: Minimum Acceptable Process Standards

What are the minimum acceptable process standards for a modern warehouse operation?

Here is a small selection of some minimum standards under the headings of Rules and Structures, Measurement and Performance Management, Continuous Improvement, and Facilities Maintenance. 

Rules and Structures

  • On receiving and despatch docks there should be a structured work plan with scheduled receipts and desptaches so that shifts can be planned to match resources with demand.
  • Zero tolerance of bottlenecks and interrupted processes in receipts and despatch areas with structured work plan and designated areas for specific activities.
  • Standard ways of working defined and implemented for major warehouse processes such as receipt and checking, put away, picking, replenishment, returns, cycle counting, and shipping.
  • Where different racking types and depths of storage are in use, clear definition and adherence to put away rules for supplier receipts and production receipts in order to maximize the utilization of the storage equipment.
  • No part pallet storage or picking in high density racking systems such as push-back racks and gravity flow racks.
  • Structured and selective cycle counting regime, preferably systems driven.
  • Take advantage of round-trip opportunities to complete tasks on the dead leg. For example, if dropping a pallet of packaging to a line side, take advantage of return to warehouse to take back a pallet of finished product. 

Measurement and Performance Management

  • Daily and weekly targets and goals for all operatives, supervisors and managers.
  • Vision boards for daily performance tracking of actual work versus planned work.
  • Definition and measurement of key productivity indicators such as dock-to-stock time, pallets put away, lines picked, pallets despatched, stock accuracy, space utilization and so on.

Continuous Improvement

  • Regular and scheduled offline supervisor time to focus on process improvement, training, certification and compliance.
  • Cross-training of personnel across the critical tasks and activities of the warehouse operation.
  • Structured and formalized mentoring program for new hires.
  • Regular offline workshops involving operatives, supervisors and management to improve standard ways of working, solve problems and create new ways of doing things.

Maintenance and Facilities

  • Scheduled time and clear responsibility for warehouse housekeeping activities both indoors and outdorrs.
  • Periodical warehouse storage equipment damage review and repair or replacement.
  • Regular and scheduled materials handling servicing, maintenance and repair.
  • Clear signage and floor markings for designated areas and activities.
  • Regular facilities servicing and maintenance including docks, doors, floors, yards, lighting, air conditioning, fences, gates and so on.



Comments

Subscribe to comment feed / 2 Comments

  1. Bill Xiang / November 23rd, 2010 / 1:55 pm

    Good benchmarking! That’s best practice actually, instead of minimum acceptable standard, right? ^-^

  2. Patrick Daly / November 23rd, 2010 / 2:10 pm

    Bill,

    Well maybe it used to be but it is much easier nowadays for operators to integrate benchmarking into their modus operandi from early on. There are some excellent publications available from the Warehousing Education and Research Council (WERC) to guide and support this no matter what level your operation is at.

    One is the Warehousing and Fulfillment Process Benchmark and Best Practices Guide and the other is the Warehouse Manager’s Guide for Benchmarking. These are excellent publications and should be in every warehouse manager’s reference library.

    They can be purchased at http://www.werc.org

    Patrick

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