Homepage-r x l 6 Introduction x l e MYTOWNEC x U Linkedln Lean x | u Homework He x [ 0 Facebook x l a: William McTie x l 9 MY TOWNEC x l M Thankyoufor x + v c (D File l [Users/ryleegrooms/Downloads/MY%20TOWNE%ZOCASE%ZOSTUDY%20(1),pdf [5 1:, e: U MY TOWNE CASE STUDY (1 ).pdf 100% + 1:] CASE 2 8 MYTOWNE FOOD STORES MyTowne Food Stores was a small independent chain that had been in business for over 50 years. The chain had been very sumessful with its ability to buy in large enough quanties from producers and distribute to the individual stores through a central warehouse. Recently they were bought out by a large holding company and plans are being made to upgrade the current warehouse. The new owners are not currently interested in increasing the volume through the warehouse, but would like to see major improvements in inventory turnover, throughput time, and labor pro ductivity with a reduction in the damage to goods during handling. The distribution center is currently running three shifts per day, ve days per week with a parttime shift on the weekends. The weekend shift is very exible in their ability to hire local college students as needed to catch up on late shipments, put away receipts from the week before, perform general cleanup duties, and ship special orders during holi- day seasons. Lahor costs at the distribution center have been consistently above budget with frequent overtime being used to keep up with demand. This causes dis- ruptions when workers carry over into subsequent shifts and vie for much needed equipment The weekend shift may even be required to go to two shifts during the upcoming holidays. The new owners are open to productivity improvements and are willing to buy new equipment if it can be justified Any improvements would, however, use the current facility due to its prime location to distribution channels both inbound and out. Homepage-i x l 6 Introduction x l e MYTOWNEC x U Linkedln Lean x | u Homework He x [ 0 Facebook x l a: William McTie x l 9 MY TOWNEC x l M Thankyoufor x + v c (D File l [Users/ryleegrooms/Downloads/MY%20TOWNE%ZOCASE%ZOSTUDY%20(1),pdf [5 1:, 5: U MY TOWNE CASE STUDY (1 ).pdf 100% + 1:] ii\" 9' {it MERCHANDISE The merchandise handled at the facility is considered dry goods, which can normally be found in any grocery store This excludes dairy products, fresh fruit and vegeta- bles, meat, sh, and frozen foods. Those items are handled in different facilities due to the specialized storage and shipping and handling required for each. The total vol- ume of dry goods handled in the main warehouse is approaching 450,000 pallets per year. There are 15,000 individual SK'Us in the facility of the goods shipped, 60% are for quantities of 1 to 10 cases. There are many small box items (30% of the SKUs) such as baby foods, specialty crackers, and low-volume imported goods that account for only 5% of the volume shipped. Some of the bulky items are identied as pallet load quantities and are transported directly to maxshalling via low~litt trucks. Dam- age is a considerable expense accounting for approximately 1% of total goods shipped due to handling and transporting within the facility. THE FACILITY The current warehouse, which was originally opened in 1963, is approximately 800,000 square feet in total area (see gure). Of this, 20% consists of the original structure with usable ceiling height of 16 feet. Approximately five years ago a mas- sive addition was made to the building, which has a usable ceiling height of 30 feet. The facility is in good shape and both the old and the new oors can withstand the weight of the new high-lift reach trucks. Ofces and support services are all in the new section and consume less than 3% of the total oor space. RECEIVING Goods shipped to the warehouse by rail are received directly from a spur line located on the east side of the old part of the building. Goods shipped in by truck are re- ceived through 12 docks in the north end of the plant There is a dispatching area to hold the goods received in truckload quantities, which are then transported to their home location in the picking aisles or taken to the bulk storage area. Most received goods are taken by operatorcontrolled tow vehicles pulling trains of up to eight carts to the bulk storage locations. Lift truck operators unload the carts into bulk storage or directly into the home locations The bulk storage area is located on the east side of the building in the new high-ceiling section. This area is used to hold any excess goods that can't be stored in the home locations. It also allows MyTowne to obtain large quantity discounts on carload lots of canned goods and preserves in season. ORDER PICKJNG Crews of two or three operators travel through the picking aisles operating wire? guided tow vehicles that pull about ve cats each. The movement of each vehicle is + X William McTier X MY TOWNE C/ X M Thank you for X X MY TOWNE CA X E LinkedIn Learn X Homework He X f Facebook D2L Homepage - N X P Introduction Paused Update : @ File /Users/ryleegrooms/Downloads/MY%20TOWNE%20CASE%20STUDY%20(1).pdf 3 / 6 | 100% + MY TOWNE CASE STUDY (1).pdf controlled by the lead hand for each crew via a radio transmitter worn on the belt. The other members of the crew fill the orders by picking from the home locations for CASE 28 each item as the train is guided down each aisle. The lead hand gives instructions, V MYTOWNE FO helps with the picking, and checks off the pick sheet. The lead hand also tries to keep an eye open for goods in short supply to request replenishment by the lift truck driver assigned to the area. Stopping the crews or having to go back for a few items is very time consuming and error prone. Most of the items are picked from floor-level pal- let locations in the main aisles Some bulky items such as breakfast cereals or paper products are stacked on the floor in wide aisles for direct picking from storage. The trains travel these aisles as well. Although these products represent a small portion (20%) of the SKUs, due to their size they usually account for 50% of the volume shipped. It often takes more than one train to complete an order for the large stores. In this case the orders are computer sorted so that more than one train can be used simultaneously to pick from the main aisles. HOME LOCATIONS Each SKU has a home location that is restocked by narrow aisle lift trucks which travel throughout their assigned aisles in cooperation with the order pickers. Over- flow pallets of material are stored in the racks above the home locations. Home lo- 2 cations are typically at floor level and can be replenished with full pallet loads. For small volume items shelves within the pallet racking are used with up to six items stored in one location. LIFT TRUCK DRIVERS Lift truck drivers are responsible for keeping the home locations filled and putting away newly received goods that arrive in their areas by the tow trains. They are each assigned three aisles and are very familiar with the goods in their areas. No locator system is used for goods other than for the home locations and the drivers do a very good job at randomly filling the overhead racks with goods close to their home loca- tions. As home locations are emptied, the drivers need to also continuously remove 3 empty pallets and place them on trains returning to receiving. MARSHALLING When the pickers have completed their respective orders the trains are driven to a marshalling area where the trains are unloaded using counterbalanced trucks, staged in a shipping lane-hopefully behind the trailer it will be shipped in- checked for completeness, and stamped with an identification for each store. There is a special cooperation between the pickers and the order checkers in that each box is placed on the carts to be visible from the outside for checking and stamping. Liftf Facebook MY TOWNE C/ X M Thank you for X + P Introduction X MY TOWNE CA X E Linkedin Learn X Homework He X X William McTier X D2L Homepage - N X EDE Paused Update : @ File /Users/ryleegrooms/Downloads/MY%20TOWNE%20CASE%20STUDY%20(1).pdf 100% + MY TOWNE CASE STUDY (1).pdf 4 / 6 truck drivers are dispatched from the marshalling area to try to rectify shortages, which may have been due to stockouts at the time of picking. Shortages that cannot CASE 28 be filled are noted on the shipping documents. V MYTOWNE FO SHIPPING Once the orders are checked they are hand loaded into tractor trailers for delivery to the stores. Most of the stores require less than a truckload and individual stores' goods are loaded with last-off loaded first. Store orders are separated by nylon nets and the unloaders are supposed to use the store identification stamp to avoid mix- ups upon receipt. Bulk Picking Maintenance Bulk Storage Shipping Marshalling . ... Office 3 Rail Line Receiving NM Thank you for X + X MY TOWNE CA X LinkedIn Learn X Homework He X f Facebook X William McTier X MY TOWNE C/ X D2L Homepage - N X P Introduction Update : @ File /Users/ryleegrooms/Downloads/MY%20TOWNE%20CASE%20STUDY%20(1).pdf BE Paused MY TOWNE CASE STUDY (1).pdf 5 / 6 100% + MyTowne Food Stores 115 CASE ANALYSIS 1. Identify what you see as some of the problems associated with the present op- erations or the layout of the plant. 2. If there was enough money for modern systems such as pick-to-belt, how would you sort the goods by handling method (i.e., bulky goods, low-volume small package)? 2 3. What suggestions would you make about the location of the offices, mainte- nance, and so forth? -> HOME LOCATING 3 = 1 5