Good planning and preparation result in warehouse improvements
September's featured Success Story demonstrates how one participant implemented warehouse improvements. Mike applied techniques from Mark Sanborn's session How to Increase Workplace Performance to improve productivity and efficiency within his organization - and to improve the project management used to achieve it.
Increased Warehouse Efficiency
Mike Daigle is Quality Assurance Team Lead at Hayes Bolt & Supply, a leading company in supply chain optimization solutions committed to HOT (Hardware On Time). Mike realised improvement in warehouse layout would lead to efficiencies in locating and handling product, thereby strengthening his company's ability to fulfil its mission.
Redesign project underway
Benefits from Redesign
- Eliminated floor storage footprint by 40 square feet, allowing more efficient product handling and faster order fulfillment.
- Reduced amount of time to locate product since all labels are visible (elimination of double rows where back row is hidden), again contributing to faster order fulfillment and increasing productivity of warehouse staff.
- Long term labor savings of approximately ½ hour a day, or 130 hours annually.
Improved Project Management
Mark Sanborn teaches that the first key to a remarkable workplace performance is Preparation. The best performance looks easy because it is the best prepared. Mike applied this concept to the Warehouse Redesign project.
Rather than launching straight into project execution, Mike prepared by documenting the design and creating a detailed bill of materials. This helped him to realize that he could outsource virtually all of the wood cutting.
Outsourcing the work
Benefits from Preparation Work
- Saved 8-10 labor hours
- Reduced risk of a work accident
- Eliminated risk of responsibility for cutting errors
- Greater accuracy of results through improved communication of requirements
- Estimated cost savings: $500 upwards (potentially much more by eliminating risk of workplace injury)
Other Cost Savings
- Eliminated the need to purchase commercial metal shelving racks, resulting in a saving of $4,000
- Eliminated contractor cost of $1,000
