AIM Warehousing v3'0: Managing Wave Picking

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AIM Warehousing v3.0 Managing Wave Picking
Pick Planning

• Kyle Bethke
• kyb_at_qad.com

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Introduction Agenda
Advanced Inventory Management
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Agenda

• Release History and AIM Overview
• Opportunities and Challenges
• Lean Distribution
• Lean Warehousing Step 1 Batch picking
• Lean Warehousing Step 2 Wave Planning

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AIM History of Releases

• Current Releases AIM 2.3a (Oct 04)
• Batch (Wave) Picking
• Next Release AIM 2.3b and AIM 2.3b SSD
• New MFG/PRO SPs supported in 2.3b sub-release
• Minor enhancements
• language support (FR, DU, GE, SP, PL, PO)
• Next AIM v3.0 and AIM 2.4a SSD
• Wave Planning
• RF Containerization
• RF Truck Loading
• Truck Shipment
• RF Bar-code Identifiers
• AIM v3.0 is the biggest release for many years

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Warehouse Management Scope through v3.0
RF Task Management
Maximum Flexibility
Other Features
Carrier Lane Management
Receipts
Picking
AIM
New - Wave Planning
RF Container Move Ship
Put-away Logic
Flexible Replenishment
Cross Docking
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Warehousing Costs
Total Warehouse Costs
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Lean Distribution

• Objectives
• get an agile, synchronized and responsive to
  customer needs system
• Serve customers faster, with less space, less
  inventory and with more accuracy
• Eliminate waste in warehousing operations, e.g
  Pick Tasks

Pick Task Simplification
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Lean Warehousing

• Eliminate Waste
• Time
• Reduce Travel distances by using a Forward
  Picking Area
• Reduce Travel distances by organizing the travel
  path sequences
• Reduce truck Waiting time at the dock (consistent
  with US HOS regulations)
• Organization
• Spread order lines to fulfill accross workday
  based on Truck appointments
• Avoid aisle congestion by spreading workers in
  the warehouse
• Space
• Reduce Shipping Zone space requirements
• Reduce Inventory requirement by Streamlining
  Picking Operations
• Streamline operations
• Synchronized Replenishement of Forward Picking
  zone to avoid picking interruptions
• Spread the workload accross the entire working
  day based on truck schedules

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The QAD Solution
Advanced Inventory Management
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Lean Warehousing

• Lean Warehousing Step 1 Batch Picking
• Available since AIM 2.3a
• Enhanced in AIM 2.3b
• Lean Warehousing Step 2 Wave Planning
• Will be available in AIM v3.0
• In production at an Eaton Distribution Center,
  Cleveland TN
• General Availability April 06

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Lean Warehousing Step 1 Batch Picking

• Dedicated for companies working with small items,
  small volumes but lots of Order lines

Pick Path
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5
4
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A
B
C
D
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Push Cart with Totes or Boxes
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Batch Picking Enhancements (2.3b)

• User Location stock is moved to the Cart (User
  Location) upon picking
• Multi-Box Picking ability to pick multiple boxes
  to reach the quantity required
• Enhanced visibility on what is on the User Cart
• Drop off/All at any time during Batch Picking
  process to empty the cart

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Lean Warehousing Step 2 Wave Planning

• Functionality dedicated for Warehouses
  Distribution Centers
• A Wave is a collection of Orders we want to
  pick/ship at a certain point in time
• The Objective of Wave Planning is to have a
  continuous throughput across replenishment,
  picking and shipment activities
• 3 Steps in executing this NEW FUNCTIONALITY
• Wave Selection we create the wave and select the
  orders which belong to the wave (often by
  Carrier, appointment)
• Wave Replenishment We move to the picking area
  all the stock required for the wave
• Wave Release we create the picking tasks and
  assign them to the pickers
• Additional Objectives
• Shipping Lane Management
• Workload Calculation per working aisle

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Lean Warehousing Step 2 w/o Wave Planning

• Worst case scenario
• Warehouse w/ Picking Everywhere
• No Travel Sequences
• No Order Prioritization Increases Travel
  Distances

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Lean Warehousing Step 2 New Wave Planning

• Better Case Scenario
• Reduced Picking area Forward Picking Area
• Replenishment from Reserve Area (Separate or
  above Forward Picking Area for Fast Movers)
• Decreased Travel Distances
• Decreased Extracting Time (Items in accessible
  levels only)
• Organized Travel Picks through Travel Sequences
  (Batch Picking)

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New Wave Planning Execution
Reserve Area
Picking Area
Shipping Lanes
Step 1 Wave Selection
Docks
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Wave Replenishement
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Reserve Area
Optimized Pick Sequence
Pick Face
Pick Face
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Other Key features of Wave Planning

• Allow Selection and handling of Sales Orders
  (incl. Customer Schedules) and Distribution
  Orders in one common flow
• Allow to have carrier at SO/DO Line level
• Different Pre-shippers by carriers
• Selection of Orders by Carrier/Route/Profile on
  top of Due Date/Order/ship-to
• Entire visibility of the Wave Status
• When a Wave is Ready/Complete/Need replenishment
• How many open/complete tasks per Wave

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Also available in v3.0

• RF Containerization
• For both SO and DO (!)
• Recommended Pallet for consolidation
• Check on the pre-shipper (SO)/Ship-to (DO)
• Allows scan a box in one location to containerize
  on a pallet in another location
• Allows Box removal
• Order Status Detail Inquiry
• Show the status of all orders (e.g. on a Wave)
• Allocated/Picked/on Cart/Consolidation/Packed/Stag
  ed/Loaded
• Drill-down on containerization structure
• RF Container Move
• Movement of a container with all containers and
  detail allocation
• Used for truck loading e.g.
• RF Bar-code prefixes
• Allows define barcode prefix (up to 4 digits) for
  each barcode type
• Generic requirements in some industries

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But what does it look like?
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Step 1 Wave Selection
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Wave Status Reporting/Inquiry
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Step 2 Wave Replenishment
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Step 3 Wave Release
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Checking on Wave Status
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RF Containerization
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RF Container Move Truck Shipment
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Lean Warehousing and Hours-of-Service (HOS)
Regulations (US)

• Effective January 2004
• The new rule impacts how time is accounted for
  during a drivers day and week
• May result in cost increases for the trucking
  industry which will undoubtedly be passed along
  to the customer
• Estimated carriers to be hired in the US 84,000
• Wal-Mart estimates 24m investment in new trucks
  and personnel
• This means shippers have to become more
  efficient
• Live load and unload appointments
• Excessive driver time at the dock to load/unload
• Miscellaneous waiting time (i.e. paperwork)
• Those who make an effort to help out when their
  carrier arrive will be less impacted by cost
  increase on trucking companies

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Thank You!

• Contact kyb_at_qad.com