Methodology of evaluating finished goods warehouse performance through lean methods

Abstract

This paper considers the problem of evaluating the effectiveness of the finished goods warehouse of a manufacturing company, in which a modified TPM method - Total Productive Management (TPM2) - was applied to improve productivity. A multi-stage methodology was proposed, including a decision to modify the system, determination of the scope of changes, monitoring the results obtained and a multi-criteria evaluation of the changes made. The decision to make modifications to the existing system was motivated by the lower-than-expected quality of customer service (frequent delivery delays). With regard to the transport department, lean flow pillar activities were focused on analysing losses (muda) in warehouse processes (product loading and package unloading). The purpose of these activities was to minimise interruptions in warehouse processes (product loading and package unloading). "The steps for solving the problem" methodology based on Deming's PDCA cycle was used to solve the problem. The analysis covered, among other things, the information flow processes between production planning and the customer service department, the planning processes of the dispatcher, the efficiency of the loading processes, and the causes of interruptions in warehouse operations. The analyses employed the chronometry of selected works, the 5W + 1H method and the Pareto method. By using the 5S method and some characteristics of the SMED method, the organisation of loading work was decisively changed (shunting yard changes, appropriate buffers for transport equipment). The changes introduced in the system were monitored for several months. Appropriately defined OEE indicators were used to assess the behaviour of the system after the changes. The indicators consider the use of available warehouse time, the efficiency of the loading process and the quality of the tasks performed. The results that can be achieved are presented using the specific example of the finished goods warehouse of a manufacturing company in the FMCG sector.