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Focus: Distribution/Materials Handling

Feature Article from Our Distribution and Materials Handling Subject Area - See All

From SCDigest's On-Target E-Magazine

- Sept. 24, 2013 -

 
Supply Chain News: Task Interleaving in the DC Brings Big Productivity Gains to Some, but Only if Conditions are Right


Obstacles to Interleaving are Many, but Some are Achieving Significant Productivity Gains; 9 to 13 Moves an Hour at One Company

 

 SCDigest Editorial Staff


Task interleaving - the combining of tasks types in a distribution center, such as a putaway and replenishment - has long been touted as a important driver of potential labor savings from adoption of advanced Warehouse Management Systems (WMS).

But in what circumstances can task interleaving really be used? Is it more myth than reality?

SCDigest Says:

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A well-known food company put receiving doors next to shipping doors. That way, a driver bringing a pallet to the shipping staging area could pick up a putaway pallet right next door.
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In part 1 of this two-part series, SCDigest explored the basics of task interleaving, and noted that a recent survey of logistics managers by Motorola found that 48% of them wanted to increase use of interleaving in their distribution centers over the next few years. (See DC Managers Want Task Interleaving - What it's All About?)

Whether 48% of DCs, or anything like that, can really effectively use task interleaving beyond a few simple scenarios is really the question, SCDigest research has shown.

The goal of task interleaving is primarily to reduce ""deadhead miles," or fork truck drivers moving empty after a task is complete. That by itself implies that task interleaving is a truck-oriented opportunity.

Some companies using interleaving have reported productivity gains of as much as 15-20% and even more in some situations.

While executing task interleaving can be difficult, there are two rather easy exceptions.

The first is to combine a cycle count of a location - any type of location - when it is easy and convenient to do so, such as when a location is empty or nearly empty. For example, if a order picker is believed by the WMS to have emptied a location, the WMS would send a cycle count task to the picker. While that will add a little bit to picking times, it will be more efficient than sending a separate, dedicated cycle counter to the location when a full count has to be done.

That type of task interleaving, SCDigest believes, should almost universally be used - though it often isn't.

The other pretty easy scenario is for companies using very narrow aisle (VNA) technology in their DCs. Here, almost universally, a VNA truck will pick a pallet from the storage, drop it at the end of the aisle, and hopefully pick up another pallet for putaway. So, a VNA pick and a putaway are linked.

Beyond that, there are challenges. They include:

Handling Units: Task interleaving works best in DCs that handle a lot of full pallets or loads in and out. Those include sectors such as food, beverages and chemicals. Those scenarios make it favorable to combine putaways with say full pallet picks.

In theory, a company could combine a full pallet putaway with a full pallet replenishment to a case pick line - but since the driver would then have to head back to receiving empty, it is not clear if there would be any real benefit. Only if a third move after the replenishment, saY to take a picked pallet to staging. would the benefit of task interleaving be clear - but that is probably not in the cards for many DCs due to its complexity.

Building Design/Process Flow: Even if tasks types can realistically be linked, a given building design and physical flow may mute or eliminate the chances for interleaving benefits. For example, if receiving doors are on one side of a building, and shipping doors are on the other, the chance to use interleaving are significantly reduced because even if a driver can pick up a pallet after a putaway, when they take a pallet to shipping they will return to receiving driving empty again.


(Distribution/Materials Handling Story Continues Below )

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A well-known food company came to that realization when it was building a series of new DCs a few years ago, changing its original plans to instead put receiving doors next to shipping doors. That way, a driver bringing a pallet to the shipping staging area could pick up a putaway pallet right next door.


Union Rules: In some cases, union agreements prevent the company from being allowed to have a driver to do two different types of tasks.

Consult
ants and WMS Vendors Weigh In

 

Mark Fralick, president of consulting firm GetUSRoi and a long-time figure in the WMS market, says task interleaving can be implemented in some cases, but they are usually limited.

 

"The issue with task management generally is really about coordination," Fralick says. "Interleaving is a type of coordination. Coordination is about maximizing resource - vehicles and human assets - in a way that best serves the operation at any given second. But the realities of how an operation runs play into the idea of interleaving. It can work if an operation has a lot of inbound and outbound trailers at the dock at the same time - AND those dock doors or the staging lanes are relatively close to each other."

 

Even if that is the situation, he adds, a given operation may have decided it would like to stock in the second shift and pick on first shift. In this case, the operation is either focused on putaways or picking at a given time - but not both - and these are the most common tasks that are combined in interleaving.

 

Fralick also notes the continuing shift away from full pallet operations (pallets in and pallets out) and more toward case picking or even split case picking. This tends to limit the opportunities for interleaving.

 

He believes companies should often focus on just better tuning of the basic WMS task management configuration, and how product moves through the DC. He found that in one company, by optimizing flow and reducing congestion, it was able to achieve an astounding 70+% gain in movements per day, without any interleaving.

Jim Barnes, CEO of consulting firm enVista, says that he sees task interleaving in VNA scenarios such as described above, but not much beyond that - even though some operations may have an opportunity for interleaving.

"It sounds great in principle, but we find that many customers never turn it on," Barnes told SCDigest.

But Tom Kozenski, a VP of Product Strategy at JDA Software who works directly with customers on WMS opportunities, says that in settings where there is a lot of full pallent movements, task interleaving is not only quite possible - it is commonplace.

He says the key is if a given type of equipment is performing more than one task.

 

"For pallet/case operations, over 50% of companies will use it," Kozenski told SCDigest. "Any operation that has multiple functions performed by an equipment operator can benefit from task interleaving. It might only apply to 15 employees out of 50 total in a pallet/case operation, but you can get real productivity gains from that group."

 

He agrees that many companies that could use interleaving don't, and offers the following suggestions for overcoming obstacles to implementing the practice:

 

(1) Promote interleaving opportunities by coordinating receiving and shipping activities during the same time frames, and from the same dock areas

(2) Negotiate new job classifications that are broader. In other words, don't classify staff by function, but rather by the equipment they are qualified to operate.


(3) Run the numbers and compare productivity and throughput of interleaving versus traditional dedicated resources.

 

I ran a study for an existing customer a number of years ago where they used the dedicated resource model with our WMS," Kozenski added. "We turned on task interleaving and their pallets per our rate went up about 30% (from 9 to 13 pallets per hour)."

 

Exel Logistics makes broad use of task interleaving in the distribution centers it operates in the consumer goods sector, says Nancy Rapelje, senior director, operational improvement at Exel.

 

She also has some words of advice for potential users.

 

"You will not get interleaving to work by just setting up the WMS system correctly," Rapelje told us. "The success comes from a series of trials and errors and requires a site to stick with it."

 

"There is no one size fits all solution," she added, noting that every WMS is also different, and its functionality in terms of the number of work requests that can be issued at a time or the number of units that can be carried on a particular piece of equipment can impact how far you can take interleaving in a specific operation.

 

The Bottom Line: Task interleaving is not for every DC, and probably in fact suitable for a modest minority of operations. That said, many in that minority might significantly benefit from interleaving and are not. "Run the numbers," to gauge the opportunity. Greenfield DCs, unless the company in general is well experienced in interleaving, should often wait a while to adopt interleaving as part of a continuous improvement program.

What are your thoughts on task interleaving? Reality or myth? Where does it fit the best? Let us know your thoughts at the Feedback section below.


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