WAREHOUSE MANAGEMENT

The Yogurt Company and Security
1. Review Action Time 3.1: The Yogurt Company and Security (found in Chapter 3 of the text). In 250 words, identify a potential cause of the thefts and provide two recommendations to the management of The Yogurt Company on how they can eliminate this problem.

ACTION TIME 3.1: THE YOGURT COMPANY AND SECURITY
The following is a briefing note given to a security expert by the Yogurt Company which has a warehouse complex of 50000 square feet located in London next to a railway line. Housing in the area is expensive.The perimeter has a chain fence around the premises and access is through one entrance only. Parking is allowed inside the premises as parking in the local area is not allowed.There are over 100 vehicle movements in and out per day. Goods are packed in cartons and are shrink wrapped onto Euro pallets.
A local small independent company based nearby handles the security. They work 24 hours a day. There is a CCTV system in the premises and there are two cameras watching externally. The
86 EXCELLENCE IN WAREHOUSE MANAGEMENT
monitor is situated in the traffic manager’s office. Loads are re- corded in and out of the premises.
A series of small-scale thefts have been going on for some time. In the months of October and November, the thefts have increased and more discarded cartons of yogurt can be seen in the ware- house.The claims from major supermarkets for short deliveries have also increased.
Emmett, Stuart. Excellence in Warehouse Management: How to Minimise Costs and Maximise Value. John Wiley & Sons P&T, 07/2005. VitalBook file.

Live Racking at B.M.W.

2.Review Case Study 5.1: Live Racking at B.M.W. found in Chapter 5 of the text. Assume that you are the warehouse director for B.M.W. B.M.W. has learned that the 39-second cycle time described in the case is inadequate for 21st century operations and has asked you to reduce the
cycle time down to 30 seconds or less. In 250 words, identify a technique described in Chapter 4 or 5 that could potentially be used to reduce cycle time down to 30 seconds or less.

CASE STUDY 5.1: LIVE RACKING AT BMW
Pallet live, carton live and mobile line side live-storage are all fea- tures of the investment that will help the plant to achieve a 39 second cycle time for engines to support the BMW group’s pro- duction network.The production of the engine requires a supply of 400000 varied components to assembly lines every day.
Hams Hall is a pristine, state-of-the-art manufacturing and assem- bly facility for BMW’s 1.61.8 and 2 litre, four-cylinder ‘Valuetronic’ petrol engines, with highly automated operations that adhere to the principles of lean, JIT production.
‘Our storage and component delivery systems have to support a truly 21st-century enterprise,’ says Hughes of BMW,‘a floor plan was devised for our “small container supermarket” comprising nine
EQUIPMENT 123
aisles of pallet live storage, providing 110 pallet pick locations, each with a reserve pallet location and a single tier carton live storage, above the empty pallet return system services each bay for efficient pallet return, safety and minimal congestion at the pick face.’
The feed sides face on to wide aisles, replenished by electric fork- lift trucks operating from a conveyor feed from an auto store, while special commissioning vehicles operate in narrow aisles fronting the pick face.
‘The components within the bays are positioned in such a way as to allow the components to be picked sequentially, exactly in the order that they will be required at the production line.There is no need for pick vehicles to back up or travel along the feed aisles,’ says Hughes.
Inside the main assembly hall, engine sub-assemblies are delivered to work stations by AGV’s (automated guided vehicles). At these stations, line side live units are an integral part of a pick-to-light system. Ergonomics are a key consideration and the minimal motion required of operators at each station is immediately noticeable.
‘The main live storage installation services our slow moving com- ponents which on average draws between one and two boxes of a particular part number, per hour’ explains Hughes. ‘Fast moving components are delivered to the line by pallet-load.’