Ceramics Warehouse OptimizationJanuary2012(Update 06/03/2012)

Optimization directions

• Ceramics warehouse optimization:• Directions:

1. Improve organization (JP Cabrera+Max Dos Santos)

1. Order preparation flow : define efficient process + standardize

2. Outbounds Dock usage : 8 docks for a better activity concentration

3. Replenishment : along each aisle instead of a central area

2. Improve storage (JP Cabrera+Dominique Collot)

1. Define all external areas close to the building for storage

2. Move far external storage areas close to the warehouse:

1. Leroy Merlin in the external storage areas

2. The rest inside the building, function of ABC classification

3. Full pallet products movings close to the docks

4. The rest in the racks, function of ABC classification

C class

Picking area (done in Aug.)

A classB class

After

sales

Area

New Produc

t

s

A class

(20% items)

Reserve area (Stacks)

OverflowArea

Reserve area (Racks)

C class(45% items)

Obs + SAV

Area

5% items

B class

(30% items)

Reserve area (All)

C class(45% items)

Obs + SAV

Area

5% items

B class

(30% items)

A class

(20% items)

Reserve strategies (simplified)

INB

INS

EXB

INT

INR

RIR

North Park Reserve area (Target)

North Park = All items for Leroy Merlin excluding carton packaged materialVery low moving material in the PND area

Preparation of the internal storage space

• Directions:• I propose that we manage the dismantling by ourselves:

– We have the knowledge, and we already did cartridge racks dismantling – We need 2 temporary people, 4 weeks

• Method:• We will start by the racks on the top left corner (area IPIL3) to create free space• then we continue with the racks on the top right (the rest of IPIL3)• and then, the racks on area IPIL1 in the drawing :

– At the end because there are many products to move to free spaces• We will not change the set-up in SAP during the dismantling period:

– We will block the cells to avoid entry – We will remove the products that are stored in the cartridge racks – Place them in a « virtual » stacks identified like today:

> Example: parts that stored in RAC1-01 today will be physically transfered to an area on the floor, named and identified RAC1-01

– As soon as a rack is dismounted, it becomes a virtual area available for the products of the next rack to be dismounted

– We loop on this previous activities till the end of the dismantling

New testing environment

• Directions:• The testing in the « Quality » environment is key to be sure that we define perfectly the

set-up to be migrated to the « Production » SAP system

• Method:• Phil, George: set-up the new strategy environment in the Quality system• JP and Dominique : define the list of articles in the test-playing• JP and Dominique: testings with the help of George

– Inbounds into blocks, into racks, into the North Park– Picking replenishment– Outbounds from blocks, racks, North Park:

> Full pallets> Mixed pallets

– Returns

Current strategies:

SAP layout migration

Projected strategies:

Ideal scheme

Reference

data table

Strategies

data table To be built with help of WM

expertFeuille Microsoft Office Excel 97-2003

Feuille Microsoft Office Excel 97-2003

Current storage

ABC classification

Bins

ABC reserve Project team

• Steering comitee:

• Laurent Daraignez, project supervisor• Udo Wessels, consultant• Jean-Pierre Cabrera, project manager• Phil Timmis, part time consultant, WM expert• Sylvie Leobardy, part time consultant, WM expert

• Project members:• Jean-Pierre Cabrera, project manager• Dominique Collot, WM supervisor• Nelly Vezin, WM local team

• IM :• Włodek Hałas • Garry Powers

Pictures

Before Before Dismantling

DismantlingIPIL5 ready Painting

PaintingIPIL3 and 4 Painting IPIL3 ready (INT) IPIL3 ready (INT)

07/03/2012 07/03/2012

22/02/2012