31. Picking & Packing Operations

[MUSIC] Welcome back to our lesson on Picking, Packing, and Packaging operations. Upon completion of this lesson, learners should be able to provide a definition of the picking function, explain the main objectives of the picking function. Describe the main functions carried out in packing and packaging operations and identify the key metrics used to measure performance.
Order picking is the process of pulling items from inventory to fill a customer order. A variety of techniques and equipment may be utilized. Ranging from labor intense, manual operations to fully automated operations.
The Key Objective of picking is to present to packing and shipping function the Correct Quantity of required items to fill a customer order at timely and efficient manner.
Picking is often a labor intense and high cost operation in a warehouse. Accordingly, emphasis should be place on gaining efficiencies through a number of different techniques. Let’s take a look at some ways to improve efficiency. Central to improving picking efficiency is reducing movement and travel time. The more items in a warehouse, the larger the facility maybe, and the more complex picking operations may become and travel times increase. So, how can we reduce the time and associated cost of providing a wide variety of goods, along with order picking efficiency? Typically a small number say 20% of items result in 60 to 90% of order throughput. An inventory stocking approach called Popularity Storage dedicate space for the grouping of the fast moving say 20% of items to reduce movement times during picking. So, picking employees, material handling equipment, and employee combinations, or even robots, can handle a majority of the order lined picks in a relatively small area of the warehouse. The 80% of the skews remaining are spread across the warehouse. They taken majority of the space as phasings for individual need to be accessible. However, they may only represent 20% of the total lines picked.
Another approach that has a similar objective reducing picking travel time is creation of a forward picking area of inventory coupled with reserved storage.
In this approach, a product range is duplicated in a separate picking area, as well as in the reserve area. The advantage of a separate forward stock is a smaller picking area with less inventory and less movement. However, the disadvantage is that it requires additional inventory controls and double handling to move the stock from the reserve area to the forward storage position.
This entails a potential restocking each day between reserve and forward storage. Careful sizing of the forward picking area is required. And order processing patterns are analyzed to determine the minimum and maximum levels of stock to be kept in a primary picking location.
Following the order picking process, items typically are moved to an order consolidation and shipment preparation area.
In many instances, an intermediate step may take place. Where value added activities such as kitting, labeling, where other customization of the picked items takes place prior to shipment preparation.
The objective of Packing and Packaging is to ensure those items are properly protected during further processing and delivery. And that items are received by the customer and satisfactory condition. They’re a numerous considerations to determine effective Packing and Packaging such as, fragility how easily might the item break during movement and transport, temperature control and exposure to elements such as humidity. In many cases, the terms packing and packaging are use interchangeable. Packing is generally the First after picking and consolidation, and it defines the methods by which items are individually wrapped and protected for subsequent processing. Typically bubble wrap, tissue paper, and other protective materials are used to pack individual items. Packaging on the other hand is the process of placing in the individually packed items into a larger unit container, possibly supplemented with foam peanuts or other protective materials. This package container is designed to withstand rough handling including accidental drops and other forms of mishandling. For example, with lining fixtures, each fixture is packed individually with protective materials and glass globes may even be further packed individually. When items are packed sufficiently, they’re further packaged in a shipping container. Possibly with a digital product or materials to avoid damage from rubbing, vibration and rough handling.
And now we have a question. Think about a time you have received a shipment of some kind that has been damaged. Consider, what was the cause of the damage, improper packing or packaging? Could something different and reasonable, have been done to prevent the damage? If so, what?
In picking and packing operations some typical key performance indicators include the cost per line item, this is taking the sum of picking and packing department cost and dividing by the number of lines on how orders picked and packed during a given time period. Often the primary cost item may be viewed as labor cost, so the focus becomes labor cost per order line.
Productivity includes order lines per hour, a simple measure of how many order lines are handled per hour, which maybe a chronological hour or could be expressed in terms of labor hours.
Utilization can be measured based on labor and equipment utilization percentages.
Quality in terms of perfect line percentage of orders is a representative metric picking and packing operations are perhaps the number one source of potential quality errors. So measures tracking the number of errors per lines handled are instructive.
Cycle time order cycle time per order is the measure that keeps track of the life cycle of an order flowing through the facility. How long does it take from the time an order is received at the facility until it is shipped. In many industries this is important with high customer service expectations. In other industries, customers may not need or want immediate fulfillment, so cycle time is less important. Finally, waste reduction, which focuses on minimizing scrap and promoting the reuse of materials such as cartons and containers.
For this lesson, in addition to watching the lecture you will also want to watch the following videos on the website of dcvelocity.com. The links to these videos can be found at the lower right hand side of this lesson shown as links. They are 9,000 Series Swing-Reach Raymond truck, a day on the life of an Amazon package, staples in Orlando, shipping the right sized package every time, going with the flow fashionably early.
In this lesson, we have provided a definition of the picking function, explain the main objectives of the picking function. Describe the main functions carried out in packing and packaging operations and identify the key metrix used to measure performance. Thank you for watching and we’ll see you on the next lesson. [MUSIC]

Jim Rohn Sứ mệnh khởi nghiệp