Professional Documents
Culture Documents
Warehouse Design
Unit - 13
Introduction:
The strategic issues affecting warehouse design have been discussed in the last class.
The factors represent the starting point for warehouse design are, particularly:
As they define;
o the warehouse’s precise role,
o throughput requirements,
Warehouse throughput refers to the number of units that are processed and moved through your building, either during stocking and
inventory processes or when fulfilling orders
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Introduction:
The strategic issues affecting warehouse design have been discussed in the last class.
The factors represent the starting point for warehouse design are, particularly:
As they define;
o the warehouse’s precise role,
o throughput requirements,
o inventory levels and
o customer service levels.
Customer service level is the percentage of occasions on which the order is delivered as promised. It is a set of rules and strategies put forth to
evaluate the performance of a system. We can determine the satisfaction of the customers it deals with, and how much more of an effort it
needs to make.
Customer service level in a supply chain is a function of several different performance indices. The first one is the order fill rate, which is the
fraction of customer demands that are met from stock. Another measure is the backorder level, which is the number of orders waiting to be
filled.
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Design procedure:
The design of a large and modern warehouse is very complex and requires a range of skills
and disciplines, including:
o Operations,
o Construction,
o Materials handling,
o Information systems,
o Personnel,
o Finance and
o Project management.
Design procedure:
The operations (e.g. supply chain or logistics) function often sponsors the project, as that
function will be responsible for its eventual successful running.
External warehouse designers may be an important part of the team, as many organizations
only design warehouses on an infrequent basis and therefore do not necessarily possess all
the necessary skills in-house.
Usually, a Steering Group, comprising senior directors and executives, oversees the project
and provides guidance on future business strategy and financial resources.
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Design procedure:
The design process is a series of steps. In reality, these steps are normally undertaken in an
iterative manner. Suggested steps are:
Iterative: as decisions at a later step may necessitate decisions made at an earlier step being reconsidered.
Design procedure:
The design process is a series of steps. In reality, these steps are normally undertaken in an
iterative manner. Suggested steps are:
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These requirements will also specify how quickly the warehouse needs to be operational, any
financial constraints (e.g. on capital expenditure) and any wider corporate policies that may
affect the design (e.g. information technology, environmental and personnel policies).
o government agencies, for example in terms of health and safety regulations (e.g.
manual handling and equipment), working time directive, packaging regulations,
product recovery and environmental legislation;
o fire officer (e.g. requirements in terms of evacuation, fire exits and fire/smoke
containment);
o insurance company (e.g. regarding fire detection and fire suppression – overhead
or in-rack sprinklers, etc.);
o local authority (e.g. maximum building height, working times, noise, etc.)
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Although data are often obtainable for recent months and years, the warehouse will
almost certainly need to be designed for future requirements.
The data will therefore need to be adjusted to reflect likely changes such as business
growth, changing customer requirements and competitive market pressures.
Normally, data are collected for the base year (eg the most recent year of the current
operation) and then projected forward in line with the business plan to the planning
horizon.
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For example,
a 1-year horizon may be used to calculate the initial staffing level,
a 5-year horizon may be used for sizing the building and the design of fixed equipment, and
a 10-year horizon may be considered for the purchase of land and for possible modular
expansion of the building.
Products:
For each product line, information is required concerning:
product group;
– quantity throughput (eg by item, case, pallet or cubic metre);
– value throughput (to reconcile to business financial figures);
– seasonality;
– inventory turn (at average and peak);
– characteristics (eg unit load weight/dimensions);
– number of order lines.
Order characteristics:
– order profile (eg lines per order and units per order line);
– order frequency (by season, week, day and time);
– number of order lines for each SKU (to identify pick frequency);
– time profile (eg percentage of orders received by week, by day, by hour);
– unit load and packing requirements;
– service levels (eg cut-off times, order lead times, and order fill target).
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Warehouse operations:
– basic operations to be undertaken;
– ancillary functions, eg packing, returns, quality control, battery charging, offices,
– warehouse cleaning, maintenance workshop, services, stand-by generator,
restaurant, locker rooms.
Cost data:
– rent (or land and building costs) and rates;
– building maintenance and security;
– heat, light and power;
– wage rates and shift premiums;
– equipment costs, depreciation rules, maintenance costs.
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Most organizations do not keep the exact data required for warehouse design and
therefore a wide range of methods normally need to be used to assemble the data.
Assumptions often have to be made based on informed opinion and experience, and these
should be clearly highlighted and agreed with the Steering Group.
This requires detailed data analysis (eg using spreadsheets) and needs to be presented to
the project team, Steering Group and external stakeholders as clearly as possible; for
example, by means of summary tables, graphs, charts and drawings.
A useful way to present the throughput and storage data is as a warehouse flow diagram
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A number of such warehouse flow diagrams may be constructed for the various planning
horizons that are relevant to the design.
Similarly, consideration needs to be given to whether to draw these at average, peak or some
other level of activity in the planning year.
The level used will depend on the precise purpose for which the flow diagram will be used.
For example, the design of AS/RS equipment is likely to be based on peak flows, whilst
staffing may be based on a figure such as average plus a specified percentage uplift (eg 10
per cent). This uplift will depend on the extent of seasonal, weekly and daily variations, and
how these may be accommodated.
The flow diagram forces some initial consideration of warehouse zoning, in terms of whether
to separate picking stock from reserve storage inventory (which is likely to be the case if the
volume of goods is too great to fit into one convenient size location).
Also, the warehouse may be divided by product groups, by temperature regime, by the
degree of hazard, by the need for security, by size of items or by Pareto classification.
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For example, if there is a late-evening cut-off time for orders and the service level is for next-
day delivery, then the time window available for order picking may be limited to only a few
hours.
On the other hand, it may be possible to instruct suppliers to deliver goods to the warehouse
earlier, so this activity could be scheduled for the morning in order to balance the workload
over the day.
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Order Picking
At this stage, general operational methods may be identified for each activity.
For example, if there are many small orders across a wide range of SKUs, then batch picking
may be identified as the most likely picking concept.
Each activity should be examined to determine whether some general operational methods
of this nature can be identified at this early stage.
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At this stage, general operational methods may be identified for each activity.
For example, if there are many small orders across a wide range of SKUs, then batch picking
may be identified as the most likely picking concept.
Each activity should be examined to determine whether some general operational methods
of this nature can be identified at this early stage.
The choice of unit loads (e.g. pallets, stillage, roll-cage pallets, skid sheets, tote boxes and hanging garment rails)
to be handled and stored in a warehouse is critical and should therefore be established early in the design
process.
UNIT LOAD
Suppliers may impose the unit loads in which material arrives at a warehouse, and customers may specify
dispatch unit loads, but the warehouse designer should use whatever freedom of choice exists to ensure the
most appropriate unit loads for the processes being carried out.
As an example, if roll-cage pallets are specified for dispatch to retail stores, then it may be advantageous to pick
directly into these.
Stillage
Roll cage
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It should be noted that the reasons for discarding equipment at each stage are just as
important as the reasons for selecting equipment.
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Push-back
APR: Adjustable Pallet Racking
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Push-back
APR: Adjustable Pallet Racking
Racking Systems
APR: Adjustable Pallet Racking
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Racking Systems
APR: Adjustable Pallet Racking
Racking Systems
APR: Adjustable Pallet Racking
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Racking Systems
APR: Adjustable Pallet Racking
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APR: Adjustable Pallet Racking 6 Most Common Types of Pallet Racking Systems - YouTube
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It is important to include all the relevant cost factors. For example, when
choosing storage equipment, it is likely to be necessary to include costs
for land, buildings, services, sprinklers, lift trucks, operators,
maintenance and running costs, as well as the cost of the racks
themselves.
For example, when choosing storage equipment, it is likely to be necessary to include costs for land,
buildings, services, sprinklers, lift trucks, operators, maintenance and running costs, as well as the cost
of the racks themselves. As some of these costs are capital and some are annual, a satisfactory method
of comparison is needed, for example by using net present values or annualized costings (ie converting
all capital costs to annual costs).
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Powered Mobile
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https://t2storage.com/
Internal layout
The warehouse flow diagram is a useful starting point as this shows the relative flows between
the different zones.
Obviously, the designer will try to minimize the distances for the greatest flows and will avoid
any backtracking or major cross-flows.
Typically, a number of draft designs will be drawn and these will be compared by the design
team.
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Internal layout
The warehouse flow diagram is a useful starting point as this shows the relative flows between
the different zones.
Obviously, the designer will try to minimize the distances for the greatest flows and will avoid
any backtracking or major cross-flows.
Typically, a number of draft designs will be drawn and these will be compared by the design
team.
Internal layout
Parameters to be Planned when Designing
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Internal layout
Parameters to be Planned when Designing
Internal layout
Parameters to be Planned when Designing (WH Management Processes)
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Internal layout
Parameters to be Planned when Designing (Type of Material Flow)
Internal layout
Parameters to be Planned when Designing (Type of Material Flow)
U – Flow Advantages
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Internal layout
Parameters to be Planned when Designing (Type of Material Flow)
Internal layout
Parameters to be Planned when Designing (Type of Material Flow)
Through Flow Advantages
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Internal layout
Parameters to be Planned when Designing (Type of Storage Systems)
Internal layout
Parameters to be Planned when Designing (Temperature Controlled Storage)
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Internal layout
Parameters to be Planned when Designing (Controlled Rooms and Freezer Rooms)
Internal layout
Parameters to be Planned when Designing (Material Type)
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Although the warehouse should be designed around the operational requirements, there is a
significant interface at this stage with building design. For example, building spans, feasible
floor slab dimensions, and fire officer requirements (eg fire walls) may all be important.
dock area design for vehicle loading and unloading, eg the number, pitch (ie distance
between doors) and whether raised or level access (eg for end or side loading);
the location of, for example, offices, battery-charging area, pump room (for sprinklers),
restaurant, toilets, and facilities for delivery and collection drivers.
The design also needs to be planned for potential further expansion. For example, the designer needs to consider how
the building can be expanded to accommodate increased throughput (eg more marshalling area, more raised docks, etc)
and greater storage (eg extension to a high bay AS/RS area), bearing in mind that disruption to the ongoing operation
should be minimized during any further construction work.
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For example, if zone picking to plastic tote bins on conveyors is adopted, the process of
issuing the pick instructions, confirming the pick, and conveyor sortation (eg the
accumulation of multi-bin orders) needs to be established to ensure that it is in fact a
good and workable solution.
In conjunction with this, the information system requirements should be established. For
example, in the above instance, it would be possible to use a variety of information
systems, such as paper pick lists in the totes, reading an RFID tag on the tote and issuing
instructions by radio data terminal to the picker, pick by light, or voice technology.
This decision will form the basis of the specification for the warehouse management
system and associated information and communications systems.
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Shift working patterns will affect these calculations, and also determine whether spare
batteries will be required for battery-powered trucks.
The number of order picking trucks will depend not only on total warehouse throughput but
also on order sizes and frequencies.
Quite clearly, staffing levels have to be established as part of the design and to enable a full
costing of the warehouse to be made.
Allowance needs to be made for absenteeism, sickness and holidays, as well as for shift
rotas (eg for 24/7 working).
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It is not uncommon for the design to have strayed away from the original criteria during all of
the detailed work that has taken place and therefore this is a very useful checkpoint.
It is important not only to ensure that the design works well for ‘the business plan’, but also
to identify how, and at what cost, the various other business scenarios would be
accommodated. The use of simulation may well therefore be of benefit again at this stage.
At this final stage, all of the aspects of the design need to be finalized, including layout, operating
methods, equipment, staffing, information technology and costing. This complete ‘operational
specification’ is then normally put forward to the organization’s executive body (eg the board of
directors) for approval.
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o building: site search, building design, tendering and selection of the construction
company, detailed design, and construction, as well as ancillary specialisms such as
sprinklers and security;
o materials handling: detailed design, tendering and supplier selection (or development
with preferred supplier), manufacture, installation and commissioning;
o information systems: specification, selection, development and testing;
o personnel: job specifications, recruitment and training;
o associated areas: for example, transport.
All of these strands will need to be co-ordinated by a project management activity, which will
involve implementation planning, a project network, and change management procedures
and continuous control.
Thank You
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