Evador is a small manufacturing company based in Glasgow, Scotland. It produces a small range of high-quality toolbox products from plastic and steel and buys-in a range of other products, all for sales to domestic (UK) customers.
You are a team of consultants from Logistics Excellence Consulting Limited. You’ve been appointed to review the site’s physical logistics capacity and ascertain what needs to be done to accommodate the planned growth.
This means conducting an analysis and making suitable recommendations to meet them. This will include:
an analysis of inbound & finished goods from production product flows
an analysis of outbound product flows of all finished goods to customers
an analysis and assessment of on-site storage capacities for raw materials & components, packaging and finished goods
suitable recommendations for increasing storage / product flow capacities through alternative material handling and / or extending / building infrastructure
a review of materials handling equipment commensurate with the proposed facilities.
a review of site vehicle management flows
NOTA BENE: Although this is a high-level feasibility study, there may be a lot of data that can be used in calculating flows. However, you will be working with averages and general trends rather than detailed design.
Your task is to work as a team and come up with a viable solution at a concept level for the movement and storage of goods on-site, which means:
inbound volumes (vehicles and pallets/cartons) of raw materials, components, packaging and finished goods
storage of all products on site – raw materials & packaging as well as finished goods
outbound despatch of finished goods to UK customers
Specifically, this includes:
calculating new product flows from forecast information requested / provided
inbound vehicles (raw materials, components, packaging, finished goods)
outbound vehicles (finished goods)
product flows to / from production
assessing, evaluating and calculating spatial requirements for storage and vehicle operations (current capacity versus future needs);
assessing / deciding on (alternative) storage media (i.e. types);
selecting materials handling equipment;
assessing and selecting operational requirements including staff for inbound goods (e.g. unloading and storage locating activities, including from production);
assessing and selecting operational requirements including staff for outbound goods (e.g. picking and loading activities);
any potential re-location of facilities on-site or extension / building work, if you conclude these are needed;
approximate resourcing plans (staff numbers and approximate costs);
budget-level costs for all and any changes;
the health and safety aspects of the site.
Read this case study brief along with the chapters 16 and 19 of Ruston et al (2014) [chapters 18 and 23 if you have a copy of the 2017 (6th) edition]
Look at the site plan (below)
Tooloxes – Large, Medium and Small
1,230 pallet locations
Block stack: 1,040 locations at 2 high Blue racking : 138 locations at 3 high
Yellow racking: 1,428 locations at 3 high Case pick: shelves, 3 high, 10 locations per level