Case Study: Order Picking - Distribution
AT A GLANCE
Financial Highlights
Issues Highlights
Client Objectives
The Project Approach
Project Highlights
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OVERVIEWThis leading Medical Supply distribution center was a self described company on the verge of a “huge and terrific” breakout. As an industry leader and developer in the technology required in the manufacturing their state of the art product, they had a continuous stream of new products scheduled to debut and bring to market. Their aggressive marketing plan promised not only new and exciting products, but also premier service levels that leveraged third party delivery services, and new state of the art order sorting, handling and labeling equipment that was recently purchased. As part of their integrated marketing plan the advertised “same day” and “next day” shipments service was key to both increasing market share as bottom line performance. Over the previous year rapid expansion of sales, new product configuration, change over to new and upgraded equipment and facilities resulted in a stressed warehouse order handling operation. The challenge for order handling soon became one of keeping pace with already rapid expansion which showed no signs of slowing, as well as improving shipping and service performance to expected levels. All of this needed to be done while at the same time reducing excessive cost to maintain the levels of performance which were insufficient in meeting company demands. Executives described their concerns as being founded in the lack of the management teams ability to execute the simple “blocking and tackling” of management activities, poor employee morale, and a lack of understanding of “good warehouse practices” All of these seemed to be holding the organization hostage form the explosive growth on the horizon. The Assessment process began with a partnering of Adept professional conducting detailed observations of managers, supervisors and a sampling of employees as they conducted their day to day activities. After a thorough review and validation of the data and information, it was determined that frontline supervisors were not properly trained in effective management techniques. Middle level managers did not provide frontline supervisors and managers with a plan that was executable or sufficient to achieve the goals of the Order Handling Operation. Operating problems were going un-addressed, and unresolved with no permeate or lasting solutions. Front line managers lacked the fundamental understanding of how to utilize performance metrics to recognize poor operating trends. The Analysis process also provided a quantified value of the lost productivity due to the operating deficiencies identified. The next step was to develop a comprehensive approach that, in the words of the VP of operations would “right the ship, and allow them to sale to calmer seas”. The Path Forward The approach that was developed and offered forward to the Client executives was one that called for interactive workshops for frontline supervisor and managers on basic management techniques. On-the-floor coaching and mentoring of client managers and supervisors with Adept Implementation professionals on a 5 to 1 ratio for a period of 28 weeks. An interactive development of standards and goals in conjunction with client process engineers. The training of Middle level managers in the development of a comprehensive Management Operating System that that would drive the proper management behaviors necessary to achieve the desired operating results as well as sustain them. The scope of the project included all of the Order Handling Operations and shifts. Additionally the project included the process engineers and maintenance personnel that was responsible for supporting the Order Handling Operation over a period of 28 weeks. Implementation Implementation began with an official rollout of the project and its related objectives. It was critical that the project objectives seamlessly merge with existing operational objectives. At the same time, the Adept professional began building a working relationship with all levels of the client management team. Middle level managers began learning about the importance of having a comprehensive Management Operating System to manage productivity. Additional operational changes focused on:
Summary Of Results By the end of the 28 week installation period, the culture of the order handling operation had effected a dramatic change in performance. Efficiency goals were now being attained or exceeded. Service levels had been maintained, and were now measured more accurately, and in a more timely manner. Overall, the culture of the facility had change to one that encouraged performance excellence through employee participation and performance and proactive management practices. Summary of results:
From the clients view
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