Client: Instarmac

Sector: Warehouse and Distribution

Key tools or services

Lean Thinking / VSM, Stock Reduction, Warehouse Improvements, Error Proofing and Visual Management

Requirement

The Introduction of own brand tile products at Instarmac had brought with it a change in the type of orders received. The new range required the building up of a pallet from a wide range of SKU's, compared with full pallets for existing products. This manual process had many opportunities for error and required 100% checking of picked pallets. Data showed that there were errors on 2.5% of all pallets and there were still customer complaints for incorrect deliveries.

Response

A cross-functional team led by picme mapped the picking process and identified possible sources of error. These included:

• The pick list order did not match the physical layout of the items in the warehouse.
• Item layout did not match the order that a pallet was assembled
• Products have similar packaging making identification difficult
• Pallets were left part picked resulting in duplication and missing items

The steps taken to improve the process were:

• Items were stored in the order that a pallet is assembled
• The picking note was modified to match the warehouse layout
• Orders are picked in full so that there are no errors due to part picked pallets
• A hand pallet truck is used to minimise the room needed for storage
• Visual Management was used to clearly identify the locations of different SKUs
• Changes to product packaging have been made to make product identification easier

Result

100% inspection of pallets for 3 months showed a 0.25% error rate (90% reduction). Further improvements have removed the need for any checking of pallets after 6 months.

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