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Internet-basedDataEnvelopmentAnalysisforWarehousing,Outline,TheproblemThecurrentsolutionTheneedAnewsolutionHowitworksInternetdeploymentandresultstodateFuturedirections,PerformanceAssessment,Howwellareyouperforming?Doyouhaveopportunitiestoimprove?,WarehouseOperations,ReceivingFunction(inbound),Unload,Inspect,PutAway,StorageFunction,ShippingFunction(orderfulfillment),Load,Pack,OrderPick,StorageFunction,StorageFunction,SingleFactorProductivityMetrics,Productivity=,TraditionalPerformanceMetrics,FillrateInventoryturnsLines/hourOrders/hour$/line$/order,Workokwhen,RequirementsarenotchangingTechnologyisnotchangingCompetitionisnotchanging,Itsveryhardtointerpretasinglefactorproductivitymetricwhentheenvironmentissubjecttorapidchangeinproducts,customerrequirements,technology,orcompetition.,Butinadynamicworld,CantcompareovertimeCantcompareacrosslocationsCantcomparetoothercompaniesAtleastnotwithoutalotofadditionalexplanatorydataandinformation!,Benchmarking,RelativeperformancelevelBest(effective)practices,INPUTS,OUTPUTS,System-orientedPerformanceMeasure,TheNeed,Resources,Services,Activities,TotalFactorProductivity?,Cantsolvethepricingproblem,INPUTS,OUTPUTS,ONEPERFORMANCEINDEX,DataEnvelopmentAnalysis,Resources,Services,Activities,System-basedassessmentmethod,Resources:capital,labor,overheadActivities:inbound,orderfulfillmentServices:lines/qtyshipped,fillrate,etc,Comparetootherwarehouses,AllotherwarehousesAllotherwarehousesinyourindustryAllotherwarehousesinyourcompanyYourwarehouseinthepast,ProductionFunctionTheoryforoneinput,oneoutput,Resource/Input,Production/Output,SystemEfficiencyConcept,Resource/Input,Production/Output,O,B,A,SystemefficiencyofwarehouseBistheratioOAOB,DEAModel:Charnes,Cooper,andRhodes,ConstantReturnstoScale,DataEnvelopmentAnalysis,Allowsustoconsidermultiple“inputs”Allowsustoconsidermultiple“outputs”Determinesthereferencepointontheproductionfunctionbyconstructingahypothetical“bestpractices”warehouseusingrealwarehousedataBestpossible*notaverage*fromdata,DEAPerformanceScore,ContributiontoProfit,Input/OutputSpecification(theFrazelle/Hackmanmodel),Efficiency,Warehouse,LinesShipped,StorageFunction,Accumulation,TotalStaffing,Equipment“Replacement”Cost,Warehousearea,Htmldocuments,Solver,Database,Atyoursite,GTServer,Web-basedTool,Overtheinternet,Over150qualifiedusers,ResultstoDate,Experience,ExistingdatabaseMorethan150warehousesNotsegmentedbyindustry(yet)No“descriptive”datatouseforsegmentingCansegmentbasedoninputsandoutputs,OutputSegmentation,brokencase:49fullcase:32pallet:13mix:65total:159,Input-oriented,all159together,BrokenCase,InputEfficiencyComparedtoAll(49/159),BrokenCase,InputEfficiencyComparedWithin(49/49),PickRateforBrokenCasePicking,Ave=17SD=27,Fullcase,InputEfficiencyComparedtoAll(32/159),Fullcase,InputEfficiencyComparedWithin(32/32),PickRateforCasePicking,Ave=14SD=27.7,Pallet,InputEfficiencyComparedtoall(13/159),Pallet,InputEfficiencyComparedwithin(13/13),PickRateforPalletPicking,Lines/Laborhour(pallet),0,2,4,6,8,10,0.0,10.0,20.0,30.0,40.0,50.0,100.0,150.0,200.0,More,lines/laborhour,Frequency,Ave=25SD=27.7,Mixed,InputEfficiencyComparedtoall(65/159),Mixed,InputEfficiencyComparedWithin(65/65),PickRateforMixedPicking,Lines/LaborHour(mix),0,10,20,30,40,50,60,0.00,20.00,40.00,60.00,80.00,100.00,lines/laborhour,Frequency,Ave=10.6SD=23,AggregatePickRateforAll159,Wheredowegofromhere?,ManyOpportunitiestoImprovetheBenchmarkingTool,Enhancethebasicinput/outputmodelEnhancetheabilitytobenchmarkfortechnology,practice,&requirements,SomeSuggestedMetrics,InputsSpaceCapitalLaborInventory#ofskusturns,OutputsInboundreceiptmixreceiptvariabilityreturnstimetoavailabilityFulfillmentpickvolumepickvariabilitypickaccuracyfillrate,but,Sorta,“Marker”Analysis,Performance“Marker”Attribute,DEAPerformanceScore,Performance“Marker”Practice,DEAPerformanceScore,Results,Biggerisnotalwaysbetter,atleastwithregardtoequipmentandlabor.Thereis,however,someevidencethatmorewarehousespaceleadstobettersystemefficiency.Laborhourswasnotfoundtobeasignificantfactor,byitself,inpredictingsystemefficiency.However,theinteractionoflaborwithinvestmentwasfoundtobesignificantinthesensethatlaborhoursmitigatestheeffectofinvestment(inotherwords,thoughhighinvestmentwarehousestendedtobelessefficientthanlowinvestmentwarehouses,thedifferencesbecomeslessprominentthehigherthelaborhours).,MoreResults,Theinteractionofinvestmentandareawasfoundtobesignificant.Thismeansthathighinvestmentwarehousesareevenlessefficientiftheyarealsolarge.Nomatterhowwesegmentthedata,averylargeproportionofwarehousesareoperatingatorbelow50%systemefficiency.Whilethismayreflectseasonalfluctuationsincustomerorders,itstillrepresentsaverysignificantopportunityforimprovement.,MoreResults,Theopportunityforimprovementseemslargestforthesegmentofwarehousesdoingpredominantlyfullcasepicking.Inthatsegment,asmallerproportionofthewarehousesareefficientthaninanyothersegment,andalargerproportionareoperatingbelow50%efficiency.,OtherDataRequirements,Type(wholesale,retail,manufacturing)Industry(pharma,auto,electronics,)OrdervolumeSkuspreadOrdersizedistributionPallet/case/eachdistributionPlanninghorizonDegreeofautomationPushvsPullPickingstrategy,Sorta,StillMoreDataRequirements,PracticesWMS?Compliantshipping?Spaceutilization?VelocitybasedslottingetcDiagnosticscost/car
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