Synopsis - Warehouse/Stockroom Process Mapping

Warehouse/Stockroom Process Mapping, Documentation and Process Reengineering.

Contents:
	Executive Summary
	Project Objectives
	Project Design
	Examples of Metric Analysis
	Examples of Reengineered Processes
	Summary of Project

Executive Summary

Senior management within a large company who performs contract manufacturing of cable harnesses and electromechanical assemblies faced significant challenges in meeting customer delivery requirements.

Poor performance of the warehouse and stockroom areas resulted in an excessive backlog of work orders and materials within the company's Cut Center. This function is located within the Stockroom and is tasked with supplying cut wire and cables to the manufacturing floor.

Customer dissatisfaction with slipping delivery dates and inventory accuracy issues prompted management to examine daily operations within the Warehouse and Stockroom areas. It became apparent to management that Warehouse and Stockroom employees were taking direction and tasking from multiple sources. This situation often produced conflicting priorities that delayed operations.

Project Objectives
There were four main objectives of the project.
1.	Review and document existing warehouse operations and processes. Create "higher level" documentation of the workflow affecting materials as it progresses through receiving to delivery to the manufacturing floor.
2.	Review and document warehouse operations as they pertain to individual areas of responsibilities. Create "very detailed" procedures and/or work instructions as required. Detailed documentation will be generated for each area of responsibility reflected in the "higher level" documentation to include: receiving protocols, handling of consigned materials, computer display screens, computer input procedures, required key strokes, paperwork routing, material staging, material movement, etc.
3.	Gather and analyze data regarding work performance and volume within the Warehouse and Stockroom areas.
4.	Establish internal customer service goals and reengineer the processes as required in order to meet these goals. These efforts will be based on information gathered while attaining objectives 1 through 3.

Project Design
The first two objectives were met by undertaking the following activities:
A.	Conduct a thorough mapping of existing processes using flowcharting techniques.
B.	Gather and review all existing documentation (forms used, old procedures, instructions, etc) from the Warehouse and Stockroom area. Determine the relevancy of these documents.
C.	Interview material handlers, supervisors, stockroom and receiving personnel as required.
D.	Determine who are the recipients (customers) of the services rendered by the Warehouse and Stockroom function.
The third objective of data gathering and analysis was met by:
A.	Identify key process attributes and characteristics.
B.	Deploy metrics throughout the area to measure work volume and output rates (performance).
C.	Analyze and graph results. Disseminated information out to Warehouse and Stockroom personnel, as well as senior management.
The fourth objective of process reengineering was accomplished by:
A.	Establish internal customer service goals.
B.	Examine each step in the existing processes to validate whether or not that each step is a value-added activity.
C.	Eliminate redundant activities.
D.	Develop alternative processes or procedures using flowcharting techniques.
E.	Choose the best option to meet established customer service goals.

Examples of Metric Analysis

Examples of Reengineered Processes

The following flow charts where produced as E-size drawings:

Summary of Project
The most significant outcome of this project was the establishment of formal customer service goals. Work orders that normally required 7 to 10 days to turnaround are now being processed in 1 to 2 days. This dramatic reduction was brought about by the following gains:
A.	Elimination of redundant or non-value added steps in the existing processes.
B.	Clarification of lines of authority, responsibilities and communication.
C.	Improved staffing allocation.
D.	Dramatically reduced backlog of work waiting for material.
E.	Provide personnel with sense of process ownership through the development of current procedures.
F.	Improved inventory accuracy and uncovered other areas where significant monetary losses are occurring.

P.O. Box 374 Littleton, Colorado 80160-0374
303.798.6092 sdtaylor@taylorqualitygroup.com