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Cliff Holste is Supply Chain Digest's Material Handling Editor. With more than 30 years experience in designing and implementing material handling and order picking systems in distribution, Holste has worked with dozens of large and smaller companies to improve distribution performance.

Logistics News

By Cliff Holste

November 9, 2011



Correct Poor DC Performance By Adopting The CSI Model

Why Celebrate Poor Performance By Repeating It?


There may be no better opportunity to modify DC operations than right now during the end-of-the-year holiday peak shipping season. Why? Because there is no better time to see how current systems and processes respond to the stress and pressures typical during this period. There is no better time to make adjustments and immediately appraise the results.

For some this suggestion may seem a bit too gutsy. It goes against the old adage – “if it’s not broken, don’t fix it”. However, doing nothing guarantees that last season’s poor performance will be repeated. There is no reason to celebrate poor performance by repeating it. Not all changes have to be disruptive to on-going operations. The following is a list of poor performance symptoms that can be corrected without shutting down anything:


Holste Says:

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  • Failure to optimize floor space and cube utilization
  • Inventory accuracy issues
  • Piles of material in aisles, and on the floor in various departments
  • Excessive manual handling and re-handling
  • Long movements resulting in too much walking/traveling time
  • Unbalanced sequence of operations
  • Operators waiting for material handling equipment
  • Excessive overtime
  • Worker safety issues
  • Excessive temporary storage
  • Shipping delays
  • Errors and product damage
  • Excessive back charges and customer complaints

 

While the above list just scratches the surface, it should be noted that these are all standalone operational issues that can drag down performance regardless of whether the DC is automated, semi-automated, manual or some combination thereof, and could be eliminated or improved through the application of a systematic analysis.

Adopt A “CSI” Planning Approach

 

When poor performance is suspected, adopt the “CSI” model by investigating and collecting evidence at the source of the problem, a.k.a. “crime scene”. Make sure a specific problem isn’t a symptom of a still far greater problem perhaps more serious in nature. Sometimes it’s the subtle problems which sap the operation’s vitality. Dig deep. This sometimes requires help. Take enough time. Set a realistic schedule.

 

The following are the steps that are required to properly define and correct a poorly performing operation:



1. Investigate and assemble pertinent data

2. Analyze the data

3. Apply sound logistics principles

4. Develop and test potential solution(s)

5. Integrate solution(s) organizationally

6. Evaluate results

 

Some solutions may seem to be easily defined and easily implemented. For example: some of the symptoms may be quickly resolved through better training and communications. But even on these, allow sufficient time to properly prepare supervisors and associates.

For large and/or more complex operations there will be a tremendous amount of data to be collected. Getting everyone’s input can be a time-consuming effort spread over days, if not weeks. Unfortunately, this background work has to be done prior to analyzing data, doing any preliminary engineering, or even being able to get a hint as to the economic justification of the probable solution(s). Moving ahead too quickly defeats the whole systematic approach and can ultimately defeat the effort.

 

Keep An Open Mind And Think Creatively

Creative thinking and ingenuity is essential if any comprehensive attempt is made to take into consideration the scope of consumer changes brought about by the Great Recession and on-going economic crises – such as high volatility, customer demands for more VAS, quick response, and greater accuracy just to mention a few. All of which creates uncertainty, which is of course hard to manage.

It’s a good idea to remember that given the constant changes taking place throughout the consumer marketplace, new operational problems and issues are going to popup frequently. Therefore, having a disciplined approach for resolving them is essential.

It takes ingenuity to stay ahead of competition in the highly competitive global market place. This is the time to really get as much help and use as much creativity as possible in developing potential solutions. Consider involving someone who is not specifically connected to the operation and can provide an “out-of-the-box” idea with impunity. Or, maybe it’s time to consider an outside objective viewpoint such as provided by an independent consultant or industry expert.

 

Final Thoughts

The focus during any peak period must be on servicing customer’s requirements. However peak periods are the best time to observe logistics operations under stress. And, therefore it’s the best time to collect data, analyze processes and procedures, make minor adjustments, and to immediately see the results. However, if a major revamp of a critical process or operation is indicate – the physical work should take place during a low volume period.

 

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