Assessment Cover Sheet

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Assessment Title Assignment 1

BILM
Programme Title:
TLB5001
Course No.:

Course Title:
Freight and Warehouse Operations

Zainab Abbas
Student Name:

201400141
Student ID:

Leon Clark
Tutor:

3rdof November 2015 3rd of November 2015

Due Date: Date submitted:

By submitting this assessment for marking, either electronically or as hard copy, I confirm the
following:
 This assignment is my own work
 Any information used has been properly referenced.
 I understand that a copy of my work may be used for moderation.
 I have kept a copy of this assignment

Do not write below this line. For Polytechnic use only.

Assessor: Leon Clark Date of Marking: 10 November 2015

Grade/Mark: 18 + 23 + 23 + 19 + 9 = 92%

Comments:
1
Good role and functions of a warehouse given, specific to the case study, though could have
mentioned trans-shipment. Very nice warehouse design plan and explained very well. Generally very
good explanation of daily operations, related well to the case study, though quite ambition to have
that level of automation. Good points made in improving warehouse and employee performance, and
very good information for eliminating and minimizing risks given. Excellent evidence of wider research
and report well laid out with good use of English.

Contents

........................................................................................ 1
Introduction: ................................................................................................................................................................... 3
Role and functions of the warehouse: ........................................................................................................................ 3
Warehouse design: ......................................................................................................................................................... 4
Flow and Accessibility: ................................................................................................................................................ 5
Space: .......................................................................................................................................................................... 6
Throughput: ................................................................................................................................................................ 6
Daily operations: ............................................................................................................................................................. 7
Receiving: .................................................................................................................................................................... 7
Sorting: ........................................................................................................................................................................ 7
Consolidating: ............................................................................................................................................................. 8
Storing: ........................................................................................................................................................................ 8
Dispatching: ................................................................................................................................................................ 9
Measuring the warehouse performance: ..................................................................................................................... 10
Warehouse objectives: ............................................................................................................................................. 10
KPIs and SLAs: ........................................................................................................................................................... 10
Quality assurnce: ...................................................................................................................................................... 11
MHE and Pallet storage: ........................................................................................................................................... 11
Safety in the warehouse: .............................................................................................................................................. 12
Hit-not software:....................................................................................................................................................... 12
Personal protective equipments:.............................................................................................................................. 12
Further rules and regulations: .................................................................................................................................. 13
Increase the use of signs: .......................................................................................................................................... 13
References .................................................................................................................................................................... 15
Table of figures ............................................................................................................................................................. 15
Introduction:

This report is targeting to demonstrate the functions and principles of a warehouse located in Hidd. The report

will include the warehouse design, daily operations of receiving, consolidating, storing and dispatching, smart

goals to measure the warehouse performance to ensure excellent flow of operations as well as effective

procedures to minimize risks within the warehouse.

Role and functions of the warehouse:

In refrence to your article library website, the gab betweenmanufacturing a product and consuming it is the

problem that stops us from the best utlization of time and here comes the role of warehouses for the reason

that storage creats efficient time utility. As 20,000 different items will be stored to provision big

supermarkets, the role of this warehouse is to receive, distribure, store and send goods as efficient as possible

in consideration to market demands. The warehouse will also handle returns, replenishment and loss

prevention. The functions of the warehouse can be summarized in 4 words, which are, storage, as it is the

main function and it aims to supply products when its needed, prices stablization, which means a good control

in terms of prices fall and rise, risk bearing, as storing goods in good condition will minimize deterioration,

grading and packing, which seeks to pack goods in specific quantity and condition to meet the supplier orders

(Chand, n.d.).
Warehouse design:

To design a warehouse it is important to analyze the type, nature and quantity of the products stored to

determine the certain condition that products should be kept upon. It is also vital to be aware of the duration

of storage, needed Mechanical Handling Equipments, space available and amount of labour (Cluster, 2013).

As the warehouse is storing supermarket products it will be divided into three areas,which are chilled area,

Frozen area and Ambient area. The warehouse will include a quality assurance section, MHE storage section,

pallet storage room, Marshalling area, area for returned goods, offices and a lounge.

Figure 1: warehouse design

According to Colin Airdrie an expert in logistics and supply chain management, there are 4 factors that needs

to be considered when designing a warehouse. The factors can be remembered

simply using the word FAST, which stands for Flow, Accessibility, Space and

Throughput (Obyrne, 2009).

Figure 2: Mr Airdrie

Flow and Accessibility:

It is important to manage the flow of goods within the warehouse to assure a logical sequence of operations.

Activities in the warehose from receiving goods to sending them out should be managed one after another in

less time and less movement. However, it it also vital to consider the right level of pack and access.To

implement this theory in the warehouse the inbound docks for the three areas will be close to the storing area

and to the outbound docks to make sure that operations are handled one after another in less movements. To

assure good time utilization, the receiving and dispatching docks will be seperated for each area for the reason

that each area has a dissimilar atmosphere that needs to be dealt with differently to put it more simply, if a

truck comes to unload frozen goods it will not have to wait because there are another truck unloading dry

food. There going to be a conveyor in the ambient area to make it easier to manage the flow of goods from

one operation to another. To minimize traffic in the warehouse there will be a specific time for each operation

beside regulations that prevent employees from walking around.Using FIFO method is a great deal when it

comes to food storage for the reason that food have a shelf life and can become obsolete or expired (Eribo,

2014) in other words, using this method will help in terms of inventory management and thus flow of

goods.Using RFID system is important as it guarantees no inconsistencies and no errors by assuring that goods

are obtainable in the right place, which aids in accessing goods (Arena, 2013)
Space:

According to Mohammed Aqeel a logistics fleet management supervisor, maximizing ffective use of space will

be achieved by good dividing of the areas in the warehouse and minimizing distances that employees should

travel when picking and storing goods (Aqeel, 2014). The

bigger space in the warehouse will be for storing goods and

thus for the ambient area as the highset number of goods

needs dry storage.The minimum space in the warehouse will

be for employees offices, a lounge with a kitchen and rest

rooms. Good storing methods likemobile racking systemwill

maximizestorage capacity and create effective utliziation of space and height available. However, choosing the

most appropriate storage design has a lot to do with efficient use of space for example, goods will be stored

in boxeson top of each other and pallets will be used.

Throughput:

In refrence to Colin Airdrie, considering the nature of products is substantial when it comes to determine the

proper ways of moving and storing the products and as far as collecting information is concerned, less errors

will happen. In this case, security will be considered as High value goods will be stored in the warehouse. On

the other hand, frozen goods will be handled in a good way to protect its nature as it will be handled using

OPM picking system. For fast moving goods like perishable goods it will be stored next to the receiving and

dispatching docks to assure it arrives and leaves in less time possible.

Daily operations:

s:

Receiving:

When receiving goods the employees should be aware of that to start the needed preperations and get the

required number of workers or MHEs. Thefirst procedure of the receiving activitiesisCheckingthe truck by the

security staff to notice if this truck is expected to come. After checking it by the security the truck will head to

the receiving docks area based on the goods it has whether it is dry goods or frozen goods as each area has

seperated docks. Before unloading goods, employees will make sure that these are the rightproducts inthe

right quantity, right quality, right condition, right standard and coming on time by comparing it with

information they already have and with the delivery note coming with the goods. After checking, workers start

to unload goods to a near area for further inspection using two methods automated unloading and manual

unloading as this will be determined based on the products weight and nature. Entering the products on the

receipt register using RFID is the next step to update the available stock(Management, n.d.). When high value

goods are received further considerations and procedures will be taken to assure the safety of products as a

good number of security will attend.

Sorting:

After goods have been received and checked it will be sorted according to the storing properties needed.

goods will be sorted using Egminautomated sorting system and

software, which assure sending all goods to the right destinations. fast

Figure 3: Egmin Automated sorting

system
moving goods, which are received to be dispatched immediately will be sent to the marshalling area other fast

moving goods, which needs to be stored for a minimum period will be stored next to the receiving and

dispatching docks to ensure moving itin less time.

Consolidating:

Consolidating in the warehouse will be through gathering small orders, which should be shipped to the same

geographical area to make it larger and put it into one full truck load. For example, if 3 supermarkets order 40

frozen chicken it will be more cost effective to deliver to all these supermarkets using one truck rather than

using three as the empty space in a truck costs money (Blacker, 2005).

Storing:

The next procedure after sorting goods is storing them in the right place according to the information given.

The storing of goods will be based on the products nature as the

heaviest goods will be in the lowest location in conversely to the

light goods, which will be stored in upper areas. There will be a

number of staff to deal with storing high valuegoodsas they only

have access to that under guard area. Goods will be stacked Figure 4: mobile racking system

according to FIFO method in a neat, even and safe way to ensure good recycling plus making sure that the

identity sticker and the expiry date is visible. Storing in the ambient area will be using mobile racking system.

This system was chosen for giving up to 90% saving on racking aisles, best consumption of space besides,

connecting between warehouse management system and data radio transmission. This advanced racking

works on mobile stands and gives order so that the required racking aisle opens. There is no need to work with

papers as the storing system has a software that keeps all the records (Jungheinrich, n.d.). For the frozen area

the storing will be using OPMsystem, which is fully automated picking system for food retail. Using this system

means that the whole operations of storing and picking will be automatic as less employees will be needed

and this will contribute to the warehouse efficiency (Witron, n.d.). The selection of storing will rely on fixed
location as it is easier when we are dealing with fully automatic storage.When it comes to store goods it is

important to pay attention to the temprature as a successful managing in a warehouse can be achieved by

maintaining the right temperature and the right throughput (Rogers, 2012). The tempreature for Dry storage

will be 55 to 70F, for the chilled area it will be 34 to 38F but for the frozen area it will be 0 to -22F.

Dispatching:

To assure effective utilization of time pick-n-go forklifts will be used in the warehouse. The forklifts works as

the warehouse management system sends order to the picker and to the forklift, when the picker arrives he

will find the forklift beside the right aisle.After the picking is finished the forklift takes the picker to another

operation automatically. By using this system we can guarantee more efficient operations and less picking

errors.

When goods are picked it will be sent to the marshalling area to be double checked before sending them out

to be delivered. Employees will get the right information to be prepared for the operation and get the

required MHEs like the Hand pallet truck and forklifts. Next step will be updating the goods record to be

aware of the available stock and assure good inventory managing.

Measuring the warehouse performance:

Warehouse objectives:

There should be a base that allows us to best measure the performance and set improvements through.

Therefore, placing objectives is the first step to start with. The warehouse objectives can be summarized in

making the best use of space by considering mobile racking system, which optimize a good consumption of

space. Maximizing the picking accuracy by using Pick-n-go forklifts along with providing the right accessibility

by using RFID, as it helps in getting the right products. Protect goods and assets by distributing security all over

the warehouse. On the other hand,

minimizing operating costs by delivering

right orders from the first time and

minimizing risks as the frozen area will be

handled automatically, which means

employees will not have to stay there for a long time as well as using hitnot system, which will reduce costs of

compensations, insurances and maintenance (Bertorello, 2009).

KPIs and SLAs:

Setting smart goals and monitor achieving it will help when it comes to measuring the warehouse

performance. For example, each 6 months 5 employees will be sent to a robust training program to help them

gain more experience and so increase the chances of getting the work done effectively in less time.

Furthermore, as conveying information is a key for effective warehousing operations, writing and speaking

courses will be provided for employees each year. Moreover, to extend the equipment’s expected lifetime

regular maintenance will be provided. However, SLAs will be considered to inform the customers of the

measurable logistics services provided by the warehouse and to implement this there will be an agreement,

which approves that goods will be delivered in the right quantity, quality and on time otherwise, the
warehouse will afford paying 20% of the owed bill. The agreement will also indicates a percentage of 96% of

delivering the right goods and if not 30% discount will be given. What is more, when the customer receives

damaged goods the warehouse will handle the costs of replacing it with new one and will offer an extra

number of goods for free .

Quality assurnce:

It is neccessery to have a quality assurance section in your warehouse as it helps in improvingthe quality of

picking and minimize spending money on fixing mistakes (Skuvault, 2013). Quality assuranse roleis to make

sure that the goods are coming or leaving in the right quantity,

quality and on time. Additionally, theykeep a record of orders to

ensure employees are meeting the right pack, assure that the

warhouse is well maintained and clean as well as receive

complaints or problems and sort it out. In other words, it makes

sure that the warehouse meets its target, which is good flow of operations and less errors.

MHE and Pallet storage:

Equipments used in the warehouse must be stored in the right place to ensure the safety and guarantee the

utilization of it for the longest time possible. Therefore, there going to be a section in the warehouse for

storing MHE and a room for keeping pallets, both are going to be in the middle of the warehouse to ensure

that it is near to all the areas as this will help in time utilization and enhance performance.

Figure 5: MHE storage section

Safety in the warehouse:

The warehouse is the main part in logistics management and a valuable component in supply chain (Lohrey,

n.d.). Therefore, it is important to maintain the warehouse in a good condition to assure effective and safe

operations.

Hit-not software:

To minimize collision riskshitnot system will be used in the warehouse.Hitnot is a detection system that

consists of magnetic field generator and has an alarm to notify any

coming danger. It notifies person to equipment collision and

equipment to equipment collision so it will minimize risks and so

insurances, compensations and maintenance costs.

Personal protective equipments:

No matter how safe the warehouse is wearing the required PPE is still important as it reduces harm when

accident happens. PPE provides protection for threats like, falling objectives, slips and trips, heavy equipment

accidents and fire (Handling, n.d.). For the ambient area PPEs like safety

boots, hard hats, globes and high visibility clothing should be

worn.Protective heavy clothing, thick socks, leather topped footwear,

headgear and scarf will be provided to protect employees who are working in

the cold section of the warehouse. Figure 6: required PPE for the
frozen area
Further rules and regulations:

All employees must be trained on how to deal with hazards and new employees will be sent to take safety

courses. Smoking is not allowed in the warehouse and for those who do not obey the rules serious actionslike

expulsions or fines will be taken against them. Fire exits will always be open and not blocked in case of

emergencies. There should be a regular maintenance for MHE to ensure it works safely and employees must

check it daily before using it.

Increase the use of signs:

To eliminate risks, plenty of signs will be distributed among the warehouse. Some will be to give instructions

to the employees like the aisles or docks numbers and signs to show the roads and directions. The other signs

will be for safety guidance and cautions. However, to assure safe operations there will be lines in the

warehouse, which shows the roads to be taken for employees and the ones for forklifts.

Figure 7: lines to show employees roads

Figure 8: aisles numbering system

Figure 9: lines to show forklifts roads

Figure 10: signs to lead employees
Figure 11: safety signs
References
Aqeel, M. (2014). Retrieved from http://www.bayt.com/en/specialties/q/32372/how-could-you-make-a-maximum-
use-of-space-in-a-warehouse/
Arena, R. (2013, November 14). Retrieved from http://www.rfidarena.com/2013/11/14/benefits-of-implementing-
rfid-in-supply-chain-management.aspx
Bertorello, C. (2009). Retrieved from http://mhlnews.com/facilities-management/critical-steps-planning-cost-
effective-warehouse
Blacker, A. (2005). Retrieved from www.freequality.org/documents/Training/consolidation_warehousing.ppt
Chand, S. (n.d.). Retrieved from http://www.yourarticlelibrary.com/marketing/marketing-
management/warehousing-function-benefits-and-types-of-warehousing/27952/
Cluster, L. (2013). warehouse management. Retrieved from http://log.logcluster.org/response/warehouse-
management/
Eribo, S. (2014, December 17). Retrieved from https://www.odoo.com/blog/business-hacks-1/post/lifo-vs-fifo-the-
method-to-manage-your-stock-190
Handling, P. (n.d.). Retrieved from http://premierhandling.com/warehouse-personal-protective-equipment/
Jungheinrich. (n.d.). Retrieved from http://www.jungheinrich.com/en/storage-systems/mobile-racking-system/
Lohrey, J. (n.d.). Retrieved from http://smallbusiness.chron.com/importance-warehousing-logistics-system-
74825.html
Management, W. (n.d.). Retrieved from http://www.accountingtools.com/procedure-receiving
Obyrne, R. (2009, July 24). key factors to be considered. Retrieved from logisticsbureau:
http://www.logisticsbureau.com/warehouse-design-key-factors-to-consider/
Rogers, L. K. (2012, January 1). best practices for managing cold stoerage. Retrieved from MMH:
http://www.mmh.com/article/best_practices_for_managing_a_cold_storage_warehouse/
Skuvault. (2013, February 7). Retrieved from http://skuvault.com/blog/10-ways-to-improve-warehouse-efficiency-
and-inventory-management-with-without-software/
Witron. (n.d.). Retrieved from http://www.witron.de/en/storage-systems-warehouse-technology/automated-
storage-and-picking-systems/picking-onto-pallet-roco-grid-box/opm-order-picking-machinery/

Table of figures
Figure 1: warehouse design ............................................................................................................................................ 4
Figure 2: Mr Airdrie......................................................................................................................................................... 5
Figure 3: Egmin Automated sorting system .................................................................................................................... 7
Figure 4: mobile racking system ..................................................................................................................................... 8
Figure 5: MHE storage section ...................................................................................................................................... 11
Figure 6: required PPE for the frozen area ................................................................................................................... 12
Figure 7: lines to show employees roads...................................................................................................................... 13
Figure 8: aisles numbering system................................................................................................................................ 13
Figure 9: lines to show forklifts roads ........................................................................................................................... 13
Figure 10: signs to lead employees ............................................................................................................................... 13
Figure 11: safety signs................................................................................................................................................... 14
 The marking framework for the report is tabled below:
Met criteria to an
excellent standard
A B
(25 – 21)
(20 – 17)
(10 - 8.5)
Role & functions
of warehouse The role and functions of
and principles of the warehouse and
principles of warehouse
design
design are excellently
explained.
20 Marks
The daily operations for
Daily operations receiving, consolidating,
storing and dispatching of
25 marks goods mentioned in the
case study are excellently
explained.
How warehouse
Warehouse performance would be
performance and measured and the
best practices quality/standard of work
carried out by warehousing
25 Marks employees improved is
excellently explained.
Safe working How risks in the warehouse
would be eliminated or
practices
minimized to ensure safe
working practices are
20 Marks excellently explained.
Report is excellently
Layout and
structured. Information is
presentation excellently presented with
excellent use of English.
10 Marks
APA referencing is correct.
Met criteria to a very Met criteria to a Did not meet
good standard satisfactory standard Criteria
C F
(20.5 – 17.5) (17 – 15) (14.5 – 0)
(16.8 – 14) (13.8 – 12) (11.8 – 0)
(8.4 - 7) (6.9 – 6) (5.9 – 0)
The role and functions of The role and functions of The role and functions of
the warehouse and the warehouse and the warehouse and
principles of warehouse principles of warehouse principles of warehouse
design are well explained. design are adequately design are not
explained. adequately explained.
The daily operations for The daily operations for The daily operations for
receiving, consolidating, receiving, consolidating, receiving, consolidating,
storing and dispatching of storing and dispatching of storing and dispatching
goods mentioned in the goods mentioned in the of goods mentioned in
case study are well case study are adequately the case study are not
explained. explained. adequately explained.
How warehouse How warehouse How warehouse
performance would be performance would be performance would be
measured and the measured and the measured and the
quality/standard of work quality/standard of work quality/standard of work
carried out by warehousing carried out by warehousing carried out by
employees improved is employees improved is warehousing employees
well explained. adequately explained. improved is not
adequately explained.
How risks in the How risks in the warehouse How risks in the
warehouse would be would be eliminated or warehouse would be
eliminated or minimized to minimized to ensure safe eliminated or minimized
ensure safe working working practices are to ensure safe working
practices are well adequately explained. practices are not
explained. adequately explained.
Report is well structured. Report is adequately Report is adequately
Information is well structured. Information is structured. Information is
presented with good use of adequately presented with adequately presented
English. adequate use of English. with adequate use of
English.
APA referencing is mostly APA referencing is poor.
correct APA referencing has not
been used at all.
17