Implementing Modern Warehouse and Automation In Indonesia. Abdul Rahim Tahir 20 October 2016

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1 Implementing Modern Warehouse and Automation In Indonesia Abdul Rahim Tahir 20 October 2016

2 What is the role of warehousing in Supply Chain? The positioning of products and services close to major markets and customers

3 Warehouse in the Supply Chain characteristics to be considered Seasonality in either Production or Consumption Demand variability Manufacturing economics Marketing and promotional initiatives Transportation economics Service requirement, customizability and variant of product

4 Warehouse Design or Layout Objective Lower warehousing and handling costs? More efficient processes? Improved customer service?

5 Factors to be considered when designing a warehouse The Product Flow How it is received, the nature of customer orders, service levels, and transportation mode Include weight and dimensions, packaging, shelf life, temperature and lot control requirements, and hazardous material requirements

6 Factors to be considered when designing a warehouse The Product Accessibility Storage equipment selection should be matched to product characteristics, volume, and any additional unique requirements Automation to reduce transit time in the distribution center almost always represents an opportunity for improved efficiency.

7 Factors to be considered when designing a warehouse Supporting Areas & Facilities Design of supporting areas such as: receipts and dispatch, returns, destroyed, cross docking, office facilities, is also crucial! Depth of receipts and dispatch area: Minimum: 15 meters Optimum: 20 meters Maximum:25 meters

8 Factors to be considered when designing a warehouse The Product Throughput Throughputs is defined as the hourly rate of which the storage system receives and puts loads into storage and or retrieves and delivers loads to the output station

9 Warehouse Storage Automation The automation in this area often covers systems such as Carousels, A-frames, and Automated Storage and Retrieval System (ASRS)

10 Technology Assessment High Storage/ product range Mechanically assisted (e.g., PPT) Simple, manual Simple automation (e.g., conveyors) Full automation (e.g., sorters, AGVs) Low Throughput High Note: This diagram is only intended to demonstrate the concepts. Many other factors also need to be taken into consideration. Source: Cranfield University 10

11 Comparison of MHE Types Source: Crown Equipment Corporation

12 Basic Technical Structure of Warehouse A few factors to be considered in the layout design, such as: the number of blocks; the length, the width, and the number of picking aisles; the number and shape of cross aisles if they are present; the number of rack levels; a and the position of input and output gates in the warehouse.

13 Warehouse Monitoring: Aisles Orientation Aisles Length A new Flying-V and Fishbone design of cross aisles, which offers a 10% 20% reduction of traveling distance. Traditional Layout Fishbone Layout

14 Materials Flow, Goods In, Goods Out Proposed for warehouse over 30,000 sq. m. Material Flow Only if necessary due to space limitation Proposed volume utilization and dock, better control

15 Efficient Loading & Unloading and Maneuvering Area Width A typical 17 m truck needs maneuver area of 35 m. Use of 45 degrees saw tooth type docks decreases this space to 26 m. Cantilever with external Docks Hypsometric Level: +1,0 m from ground Small Trucks & Vans Internal Docks Hypsometric Level: +1,20m from ground Big Trucks & Containers

16 MHE Maintenance Area Handling Equipment (MHE) Area MHE area will be Epoxy coated with a thickness of 2mm Number and size of MHE charging areas Number of 3 phase power outlets to correspond with number of MHE Dedicated MHE repair room to house spares and tools within the warehouse building. Exhaust fan in MHE Charging area covered with 16 gauge wire mesh.

17 Fire Protection System Active: Portable Fire Extinguisher Yard Hydrant Hose Reel Hydrant Sprinkler System Passive : Alarm Emergency Exit Emergency Lamp Assembly Point Evacuation Layout

18 Managing Change Change X Acceptance = Effectiveness

19 Recommendation The Chartered Institute Logistics and Transport, Indonesia 2014 Graduates in International Diploma Enrol in a Certified Logistics Program i.e. the definitive standard for measuring competence and professionalism in logistics and supply chain management. Encourage Continuous Professional Development

20 Conclusion Best practices, don t just happen by throwing a lot of money at your supply chain problems.it takes time, talent, energy, focus, commitment. Those are the qualities that the best-run companies in the world share, and it s why they re on top Quote: David Blanchard author SCM Best Practices

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