The Warehouse will look like this after lean improvement

1. Common problems of warehouse:

The warehouse is not well managed. On the one hand, there are thousands of materials and hundreds of suppliers. On the other hand, there are a few warehouse keepers with average jobs. The system and process are basically not used. In the final analysis, warehouse problems basically come from inadequate on-site management, such as:

  1. Failure to comply with the first in, first out principle (First In, First Out—-FIFO), and the remaining materials are not reported to the early warning in time, resulting in dull materials and waste.
  2. The materials are not placed according to the location, or after the materials are moved, the materials of the new location are not marked in time, resulting in the inability to find the relevant materials.
  3. The warehouse manager did not send the order to the statistician in time, and the statistician did not enter the computer system in time. As a result, the computer system data was out of touch with the actual situation, which affected the accuracy of the computer system data and ultimately affected the implementation and execution of the production plan.
  4. The identification is not uniform or standardized, either there is no material code or the material name is incorrect or there are several names of material so that the historical status of the material cannot be traced.
  5. Some warehouse managers have an insufficient sense of responsibility, negative work attitudes, procrastination, inaccurate inventory counting, and inaccurate manual document information (mainly copying errors, typing errors), these are common things.
  6. The old and new warehouse clerk is unclear, and there is no real handover procedure. If the state of the material managed by the former warehouse clerk is unknown, it is simply sealed up and not managed, and only “cannot be found”, causing undue sluggishness And waste.
  7. The models are delisted, no materials are produced, and they are not reported for digestion or resale in time.

2. How to manage the warehouse:

First of all, we should clarify our thinking and figure out a few basic issues.

2.1 What is “material”? What is the “warehouse”?

Materials are all-encompassing and exist objectively, but they are only their manifestations. In fact, materials are money, materialized money, and warehouses are pockets of money. Money cannot increase in value at home. Money must flow through use or investment to generate value. In the same way, the materials that flow quickly for production and sales can create benefits.

2.2 What does material management manage?

Any management activity will involve time (T), quality (Q), and cost (C). These three are interrelated and restrict each other, and material management is also indispensable.

  • T-Time: refers to the delivery date, warehousing period, use time, storage time, return time, etc. of materials.
  • Q—-Quality: refers to the quality of the material itself, the quality of storage, the treatment of materials with quality problems, and so on.
  • C—-Cost cost: Refers to the price of materials, the cost of storage, the cost of sluggishness, the cost of downtime caused by the shortage, the cost of storage capacity caused by excess, and the capital turnover cost caused by the capital occupation.

2.3 How to manage material management?

2.3.1 The first-in-first-out principle (FIFO).
  1. Materials and products with the same status and different storage time shall be issued in the order of their storage time;
  2. For materials and products with different states and different storage times, the order of distribution is: trial production materials-returned materials from the production line-re-inspected materials-new materials from manufacturers;
  3. For materials and products in different states at the same storage time, the order of distribution is: trial production materials — production line returned materials — re-inspection materials — special harvested materials — acceptance materials.
2.3.2 The principle of lock location.

Certain material is fixed in a certain location, and the physical location must be consistent with the computer system. The location code is as important as a person’s home address. Without a fixed location, the relevant materials cannot be found quickly.

2.3.3 The principle of special materials. Do not misappropriate materials corresponding to the order at will.
2.3.4 ABC management principles of inventory:

The quantity of Class A materials may only account for 10~15% of the inventory, but the value of the goods can account for 60~70% of the inventory value;

The number of Class B materials may only account for 20~35% of the inventory, but the value of the goods can account for 15~20% of the inventory value;

The quantity of C materials may account for 50~70% of the inventory, but the value of the goods may account for 5-10% of the inventory value.

Therefore, it is necessary to strictly control the critical minority and the minor majority, that is, to strictly control the A and B materials.

2.3.5 “Six no entry” principle:
  1. If there is a delivery note but there is no physical object, the storage procedure cannot be done;
  2. If there is a physical object but no delivery note or related bills, storage procedures cannot be done (for urgent purchases, relevant information can be filled in temporarily);
  3. If the quantity, specification, and model of the incoming materials and the delivery note are different, the stored procedures cannot be done;
  4. If the IQC inspection fails and the leader has not signed and agreed to use it, the stored procedures cannot be completed;
  5. If you don’t go through the warehouse, you can’t go through the warehouse formalities (you can check-in and out at the same time);
  6. If the delivery note or invoice is not the original, the storage procedure cannot be done.
2.3.6 The principle of “five non-sending”:
  1. There is no material requisition or the requisition is invalid, and materials cannot be issued;
  2. If the procedures do not meet the requirements, materials cannot be issued;
  3. Materials with unqualified quality cannot be issued unless approved by the leader;
  4. Materials with incorrect specifications and incomplete accessories cannot be distributed;
  5. Materials that have not gone through the storage procedures cannot be issued.
2.3.7 One-time delivery principle:

Material delivery must be done accurately, in time, and one-time. The materials used in the production line must be pulled back to the location of the production line and cannot be stacked in the warehouse to avoid confusion and errors.

2.3.8 Access control principle:
  1. Except for warehouse management personnel, movers and designated reclaimers in the workshop due to work needs, all other personnel are not allowed to enter the warehouse material area;
  2. It is strictly forbidden for anyone to carry materials without going through the formalities when entering and leaving the warehouse;
  3. When there are guests inspecting, they must be accompanied by personnel above the supervisor level to enter the warehouse.
2.3.9 The principle of “the day is finished, the day is high”:
  1. At the end of the daily work, each warehouse clerk conducts self-confirmation and verification of the relevant dynamic accounts of the day to ensure the balance of the accounts, identify deficiencies, and make timely improvements.
  2. Inspect the material locations under management at least 1 to 2 times a day to ensure that all materials are correctly labeled, and those that should be returned must be returned to the factory to avoid sluggishness.
  3. The warehouse clerk’s receipt of the day must be sent to the statistician according to the time requirement, and the statistician’s receipt of the day must be entered into the computer system on the same day.
2.3.10 The old-for-new principle:

For materials with regulations, strictly follow the principle of “returning the old before renewing, and returning the old before receiving the new”.

3. Work requirements of warehouse keeper:

Generally speaking, the daily work of warehouse clerk can be summarized as receiving, shipping, returning, stocking; material identification, placement, and sorting of accounts (computer system data); “accident material” reporting and Its management (when the supply of materials is delayed due to non-compliance with the delivery date, it will cause a shutdown event, and the materials at this time are called “accident materials”).

We often see that warehouse managers need to spend a lot of time and energy to find the missing goods. We also know that if the inventory information is inaccurate, the materials may be ordered in advance or not ordered in time. Either the inventory increases, funds are occupied, or the order is delayed or canceled due to lack of stock.

The above questions are actually related to personal responsibility. Responsibility is a work mentality and work style. Responsibility mainly depends on the quality of the personnel and the influence of the working environment. The warehouse keeper is the steward of the warehouse, with little power but a great responsibility.

The sense of responsibility of the warehouse clerk can be expressed in:

  • Confirm and reconfirm daily accounts and objects to ensure consistency;
  • After finishing a job, self-check (do) to find the problem and solve it in time;
  • Summarize and reflect on the daily work to improve the quality of work;
  • Have a strong sense of time, handle everything in time, don’t say “wait a minute”;
  • Work proactively instead of passively waiting for arrangements;
  • The management of the worksite is “see and hand”, according to 5S requirements.

Warehouse Clerk’s work specification requirements:

In the warehouse check and acceptance, on the premise that the materials are correct, there are three checks to be done when putting in the warehouse:

  1. Quantity check: check the quantity when entering the warehouse;
  2. Quality: IQC inspects and controls the quality of incoming materials;
  3. Documents clearance: incomplete documents will not be accepted, and irregular procedures will not be handled. Check whether the received bills are consistent and consistent with the incoming materials, and send the bills to the statistician in time.
  1. Scientific placement: reasonable placement, tidy, clear signs, easy access;
  2. Ensure quality: anti-rust, dust-proof, moisture-proof, anti-pressure, anti-deterioration, anti-drop;
  3. Ensure safety: anti-mildew, anti-loss, anti-sluggishness, anti-scrap;
  4. Accounts, cards, and objects are consistent (quantity, location, and status must be consistent with the computer system).

inventory: It is equivalent to summarizing and standardizing the material verification and write-off system to prevent waste and eliminate bad materials and bad debts.

Issue: According to different production needs, the specific method of distributing materials is determined in order to ensure timely supply and production.

4. Several measures to improve warehouse management:

Strict systems, repeated training, and immediate heavy rewards and heavy punishment mechanisms have better regulated the behavior of warehouse keepers, promoted the continuous improvement of warehouse management, and provided data protection for the efficient operation of computer systems.

  • Innovative organizational structure. Establish a three-person warehouse leadership group, which should be composed of the vice president of production, the director of the materials department, and the warehouse supervisor. The three-person team is now the highest authority of the company’s material management. By participating in the warehouse’s weekly meeting and going to the warehouse site to solve problems at a fixed time every day, it achieves “1% improvement every day”, various rules and regulations, and the verification of the post responsibility system, and The performance appraisal of warehouse managers and recorders improves warehouse management.
  • Plan the warehouse reasonably. The warehouse should be connected to the production site as far as possible in terms of geographic location to reduce the roundabout transportation of materials. Connect the warehouse entrance and exit doors with elevators as much as possible, and plan out the corresponding transportation channels, and fully consider the rationality of the transportation routes.

The warehouse shall have the necessary waste storage area, material temporary storage area, waiting area, delivery area, etc. In addition, special consideration should be given to safety factors, and attention should be paid to measures such as passages, lighting, waterproof, fireproof, and anti-theft. The warehouse office should be set up near the warehouse as much as possible to shorten the time for the receipt to the recorder.

  1. The combination of batching system and requisition system is implemented. Productive materials use the issuing system, and non-productive materials use the material requisition system, such as engineering trial production materials, after-sales accessories, and replacement of defective products on the production line.

Class A materials adopt the issuing system, and class C materials adopt the requisition system. In terms of ingredient management, you can try to cancel the original material warehouses in each workshop, and be directly managed by the factory’s material department and distributed uniformly, so that the warehouse staff can rationally arrange working hours and improve the warehouse’s delivery speed.

  • Use new technology. In addition to the necessary location codes and material codes of the ERP system, radio frequency technology is introduced into warehouse management, such as the use of handheld data terminals with barcode scanning functions for data collection, to avoid manual document filing and entry errors and improve work efficiency.

It also enables managers to grasp the status of inventory, sales, and inventory in real-time, realize an information-transparent asset management method, eliminates the need for traditional inventory work, reduces the backlog of materials, accelerates capital turnover and facilitates production guidance. It solves the traditional management mode that is prone to human error and information exchange in manual statistics. Reduce the workload of manual statistics, improve operational efficiency, and curb the occurrence of misconduct from the technical means.

  1. Traditional warehouse management only relies on the brain memory of the warehouse manager and manual entry. This approach is not only time-consuming and laborious but also prone to errors. In case of quality problems downstream, it is even more important to find the cause and responsibility in the piles of paper documents. can not imagine.
  2. As the warehouse does not use any warehousing and logistics software, all material records are manually registered for the name, quantity, specification, and date of entry and exit of the materials. Manual recording is very heavy, and the timeliness and accuracy of the data are completely dependent. The sense of responsibility of the warehouse clerk.
  3. The company’s customers basically use a barcode system to manage materials, which requires that company A must print and paste barcode labels according to customer requirements before shipping. Manual data recording and label printing work are not only inefficient and have potential errors, but are also non-value-added activities for the company and affect customer relationship management to a certain extent.

The highest level of warehouse management is the lowest inventory and the fastest turnover to meet the changing needs of production and customers. Some enterprises with advanced management have introduced Kanban, established warehouse supermarkets, and established lean logistics systems. I believe it will change the extensive warehouse management in the past and greatly enhance the core competitiveness of enterprises.

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