REDESIGN OF THE DISTRIBUTION OF A

WAREHOUSE IN A PLASTIC PRODUCTS

FACTORY
The plastic products manufacturing company
Plasinca S.A. purchased a new warehouse to store a
largest volume of product, increasing the overtime
Julio Miguel Ricardo Fabrizzio of warehouse staff, therefore, the need arises to
Naranjo Fiallos Luna Armijos redesign the warehouse and define its process using
julminar@espol.edu rfluna@espol.edu an ABC analysis and different tools to reduce waste
.ec .ec time.

1. Define 2. Measure
Problem Statement Current Layout Cycle time for each process
OVERTIME (hr) IN WAREHOUSE 00 Capacity: PROCESS ASSOCIATED WITH
120 113,59
80 326pallets WAREHOUSE00
75 75 100
72

Minutes
70 70 69
65 63 TRANSFER 80
65 64,59
Hours

63 62 60 DISPATCH TRANSFER FG
60 61 RM
55 56
59 59 58 PROCESS PROCESS 60
52 54 PROCESS 7,57 30
50 50 48 40 19,54
45 106,02
40 20 34,59 7,5
0 12,04
DISPATCH TRANSFER RM TRANSFER FG
Months PROCESS PROCESS PROCESS
AVERAGE Overtime hr/month - 2016 Picking Shipment Shipment (forklift truck)
Overtime hr/month - 2017 OBJECTIVE Standar Time Waste Time Real Time
General
The overtime of Warehouse staff Decrease the overtime of Warehouse
Shipment Unload Unload
This graphic represent the actual standard
increased in 2017 with the acquisition of 00 staff by improving transfer and time plus waste time in each one of
the new Warehouse00, in the first four dispatch process activities doing a processes involucrate into de warehouse.
months of 2017 increased 23.46% redesign of the warehouse to decrease Since load the first pallet in warehouse 00 to
compared to the same months of 2016. the financial burden. the last unloading pallet in plant.

3. Analyze
Waste time, Why do they occur? Root Cause Analysis - 5 why?
CAUSE Root cause
The Warehouse Auxiliaries don’t know
how to use tools: Barcode Generator
The Auxiliaries of warehouse 00 haven’t been trained.
and “Guía de Remisión” of
“OPTIMUS” software
There are much quantities of Finished The products don’t have a place defined.
Good in the floor that hinder the step
in the warehouse. They do not have well defined procedures.
They have to go at W03 for load the The customer order came out of production the
rest of customer order. previous night.
They don’t find the Finished Good in
They don’t have a map to localize the products in
the warehouse00 that will be dispatch
W00.
at customer.
Waste time by wait the availability of
forklift truck to move the weighty The forklift truck is been used in other process.
products in the transfer process.
The forklift is in bad condition. They haven’t been in their basic conditions.

Quantity of ABC Sheath of all

criteria
Evidence about the causes of 800 Classification ABC of raw material
the problems in the warehouse 600 and Finished goods for three
Units

259 184 142 criteria analysis

400 98
202
ABC analysis 200 226 356
111 210
ABC CODE Description 0
Number of pallets Frequence Kg Max Stock
1st letter
dispatched/transferred of pallets dispatched Quantity of ABC Raw Material of
2nd letter Kg dispatched/transferred C B A all criteria
6
3rd letter Max Stock in Warehouse
5
Number Average of the three criteria Quantity of ABC Roll of all criteria
4
Units

350 3 3 3
3
300 38 38 2
250 30 30 114 1 1 1
1
Basic conditions
Units

200 1 1 1
43 0
150
100
239 239 Frequence of Kg transfered Max Stock
50
150 pallets
0 C B A
Frequence per Kg transfered Max Stock
pallet
BEFORE AFTER C B A

4. Improve
New Layout of warehouse00 and Section One Point Lesson
Root Cause Solutions according to ABC Define the process and training
The products don’t • Develop a whiteboard that shows the design of Warehouse 00 with the warehouse staff
have a place defined allocation of the SKUs. Three level racks - Capacity: 356 pallets for
Finished products and 170 between raw
LUP - Descarga de producto terminado(uso de montacarga)
• Implement paint strategy for the allocation of equipment, pallets and truck Elaborado por: Julio Miguel Naranjo Fiallos FRECUENCIA:

during truck loading.

material and supplies
Símbolos
EPP: Casco de seguridad.

Redesign the warehouse distribution in function ABC analysis.

Paso No. Actividad: Ilustración Puntos Clave: Utensilios:
• 1 Descarga
del primer 1.a.
1.a. Chofer abre las puertas del camion.

pallet

The warehouse • Design a board in the racks to know the products storage
auxiliaries don´t have a • Design a pre-shipment zone where the products will be placed to be 1.a.
1.b. Introducir las orquillas en el pallet.

map to localize the dispatched.

products in W00 • Redistribution of SKUs according to their frequency and sales volume 1.c. Levantar el pallet y retirarlo.

• Remove all the obsolete materials from warehouse. 1.b.

• Design a template to identify products in racks. 1.d. Dirigirse a la zona a la bodega de

The rest of customer Define the procedures of the processes of transfers and dispatch.
almacenamiento temporal B03.

• 1.c.

order left production • Elaborate OPL of each procedures 1.d.

tonight • Train the personal of warehouse 00 with the OPL CCA-CCC 2 Descarga
del segundo 2.a.
2.a. Auxiliar o chofer coloca bandas de
pallet BANDA DE

They leave the products Define the procedures of the processes of transfers and dispatch.
arrastre alrededor del pallet ubicado en el

•
2.b. ARRASTRE
fondo del camion.

in the floor while they • Implement paint strategy for the allocation of equipment, pallets and truck 2.b. Sujeta cada extremo de la soga a las

do others activities during truck loading 2.c.

orquillas del montacarga.

• Design a template to identify products in racks. 2.c. Montacarguista debe dar marcha atrás
para jalar los dos pallets dentro del camion
ABC

They haven’t been • Train the Warehouses Auxiliaries in the generation of the “Guía de Remisión” BAA-BBB hasta que esten al filo de las puertas del
camion.

trained in the use of in the “OPTIMUS” software and in the barcode generation by order dispatch. BB-CC 2.d. Retirar la banda de las orquillas del
camion

“OPTIMUS” software
2.d.

The forklift truck is • In the HPDD sheets consider the use of forklift truck.
AAA-AAB Nota: repetir desde 1.b. hastas 1.d

3 Decarga del

been used in other AA-AB tercer pallet

Nota: repetir desde 2.a. hastas 2.d

Nota: repetir desde 1.b. hastas 1.d

operation Aprobado por:

AAA Aprobado por:

Aprobado por:

The processes were simulation in Promodel 7.5 and used

starter-fits by study the data collecting, to generate different
Cycle time
distribution. Investment
Current vs. Proposed
150 134,8 Racks $ 7.001,00
115,6
Pintura $ 10,00
Minutes

100
Pizarra $ 120,00
50 28,6 23,5 23,4 17,5 Total $ 7.131,00
0
Dispatch
Transfer FG
Reduce
Process
Process Raw material Finished Dispatch 24,76%
goods
Proposed
Current Proposed Curret Flow
Flow
Overtime
For the dispatch process we reduce 78,41 $12.758 $3.160
$/year
minutes per day , the transfer of finished goods VPN $146.020,20 $118.165,42
Processes simulation
reduce we 18,45 minutes per day and Raw The enterprise has a saving in present
Transfer

value in five year of $ 27.855,78.

RM PRocess
material transfer reduce 16,88 minutes by the
total we reduce 1,89 hours per day.

INGENIERIA INDUSTRIAL