Case Study weak-spot analysis in logistics

Project period: December 2016 - January 2017,
Austria, Vorarlberg
Consultants involved: 1

Initial situation

A metal industry company in Vorarlberg commissioned the REFA consultancy with a holistic potential assessment. Production processes, material supply, material flow, productivity and coordination of interfaces were analysed.

Aim of the REFA counselling

The aim of the counselling was to conduct detailed analyses and to develop proposals as a basis for decision-making for the management on how to optimise the material flow and storage organisation.

The following topics were included in the analysis:

• Analysis of the current Workflows and Processes
• Recording the actual situation
• Workflow and activity analyses of the employees
• Storage organisation and material flow
• Valuation of the non-value-added time fractions

REFA approach

Actual state analysis

The actual state analysis revealed a number of findings which are assigned to the respective areas as follows.

Material management

• 7 different material storage areas in steel construction
• Several material storage areas in aluminium construction
• Storage locations not defined
• Storage partly horizontal - space required
• Materials not stored sorted by type
• Parts in stock not recorded in the EDP system
• Material requirements must be determined and controlled manually
• Afterwards, material requirement corrections are made
• No possibility to make bookings via EDP

Material storage

Sheet metal working

• Loading and unloading of the shelves is only possible with a forklift truck
• Waiting times for forklifts are standard
• Storage of the sheets disrupts the assembly process
• Too little storage space on the shelves
• Partly work is done without gloves - risk of accidents
• Spatial situation critical - risk of accidents

EDP - Data management

Four IT systems are used in the administrative area:

• Logikal: Creation of work order and parts list, partly with material number management
• FINK – Zeit: Recording presence times
• Hueck Map: Calculation and inventory on the basis of the material numbers
• ORG Serv: Accounting and work order times - no material number management

A transfer of the material numbers from the Hueck Map system to ORG Serv is not practised, but would be possible.

Unproductive time fractions
Unproductive time fractions become transparent using the example of the workflow "Sawing up and disposing of a wooden pallet".

Target state / potential analysis

Based on the actual state analysis, the REFA consultancy developed the following recommendations for a target state:

Material management

• Storage of materials mainly standing - space
• Definition of the storage locations
• Storage of the materials according to type
• Determination of the leading EDP system
• All materials in storage must be recorded in the EDP system.
• Entries and exits in the EDP system
• Integration of the quotation and ordering process

Storage organisation

The storage organisation/shelf organisation and storage space organisation must be changed to shuttle (paternoster) storage. Central storage in the shuttle reduces the total storage space.

Shuttle warehouse

Thus, approx. 152 m² of the current storage space can be used as office space or production and storage space.

The key data for a shuttle solution:

• Shuttle height // 7 m
• Shuttle width // 3.9 m
• Number of trays (with 200 mm container height) // 55 pieces
• Load capacity per tray // 500 kg
• Storage space //139 m²

Indicative prices:

• Kardex Shuttle // € 50,000
• Control Power Pick Global // € 2,500
• Storage container // € 2,000

Sum: 54,500 €

Unproductive time fractions

• Additional personnel in the warehouse - is planned
• Installing sheet metal working according to new layout
• Investment in an additional stacker - Leasing
• Waste container with pressing device for wood
• Preparation of material for assembly teams the evening before
• Investing in a petrol chainsaw
• IT integration of ordering and quotation process
• No Waiting times  for the employees when the storekeeper is not in the warehouse

Summary

The following benefits can be realised through the recommendations of the REFA consultants:

• Adaptation of additional office space
• Significant reduction of unproductive time fractions
• Reduction of production costs
• Reduction of the inventory effort
• Separate sheet metal working
• Technology controls material availability
• Increase of material availability through EDP (minimum stock arrangement)
• Basic and transaction data in a leading system
• Creation of a Keynumber system for the management - target/actual comparison