Warehouse Layout Analysis for Ferro Electronics By Roberto E. Estrada Rajan Batta Rakesh Nagi April 13, 2001.

Warehouse Layout Analysis for Ferro Electronics

By

Roberto E. Estrada

Rajan Batta

Rakesh Nagi

April 13, 2001

Contents

• Motivation

• Current Situation

• Data Collection

• Alternatives

• Recommended Alternatives

• Suggestions on Implementation

• Suggestions on Racks/Trucks

• Acknowledgements

• References

Motivation

• Lease on “other” warehouse expiring

• Additional manufacturing space needed

• Improve organization of materials

• Improve utilization of space

Current Layout

• Area A—finished goods ceramic division– 17 rows– Door walkway– 36 more rows– Each row fits 10 pallets deep on ground

Current Layout…

• Areas B and C—center of warehouse– Divided into two sides– Each side has 31 rows– Each row can hold 7 or 8 pallets deep

• Area D—WIP from Electronics division– 18 rows, door walkway, 38 more rows– 10 pallets deep on ground in each row

Current Layout…

• Area E—3 rows of 10 pallets each– Mostly products that are to be shipped soon

• Area F—each end of warehouse– Fits 30 rows– First 20 rows—8 pallets deep on ground– Remaining rows used half deep– Mostly raw material stored

Current Layout…

• Areas G1, G2 and G3 have four ground spaces each

• Racks PR1-PR4 hold several products– Organized in 43”X36” pallets– Mostly finished products in totes and paper

bags

• New Rack—144 spaces

Current Layout…

• Total of 4804 pallet spaces

• An additional 585 pallets will be transferred to the warehouse

Data Collection

• Dimensions of warehouse

• Current forklift trucks used

• Required aisle width

• Dimensions of current racks

• Dimensions of materials to be stored

• Average holding quantities of raw materials, WIP and finished products

Data Collection…

• Information also gathered on:– Available push-back racks– Available fork-lift trucks

Alternatives

• Three models were initially generated.

• Model 1: Places aisles length wise – Narrow aisles so turret truck is needed– Able to view warehouse from front (safety

advantage)– Capacity: 5446 pallets

Alternatives…

• Model 2:– Makes use of current racks– Places racks longwise on one side– Horizontal on other side– 3 deep racks for pallets– Makes necessary the use of a turret rack– Capacity: 5185 pallets

Alternatives…

• Model 3:– Places one central aisle longwise– Either side has racks with various pallet depths– Uses narrow aisles– Capacity: 6208 pallets

New Alternative

• Use current racks

• Rack material that is currently stored at 1 or 2 pallets high

• Leave 600 rack spaces for WIP; 200 in single racks, 400 in 3 and 4 deep racks

• Leave 30 long rows (10 deep) for 8.5 gallon and 6.5 gallon drums for ground storage

New Alternative…

• Place rack along end side of warehouse

• Currently there are 5 rows of 4000 lbs totes, at 2 high.

• Leave 100 rack spaces for these (wide; 52”)

• 6 more specific requirements

Recommended Alternative

• Model 4A:– Capacity is 5268 pallets– Uses narrow aisles (Turret forklift)

• Model 4B:– 13 feet wide aisles (regular forklift)– Capacity is 4963 pallets

Is new truck justified?

• Cost of turret truck is $75,000

• Get 305 pallets extra

• Work out economics based on cost of leased space

Suggestions on Implementation

• Requires a careful and graduated plan

• When one area is being re-racked the material needs to be temporarily stored

• Installation needs to be done from the rear of the building

• Revised practices in storage

Suggestions on Racks and Forklift Trucks

• Cost per rack space=$125

• Model 4A: $343,750 + turret forklift ($75K)

• Model 4B: $315,250

Acknowledgments

• Close contact with company personnel

• Special thanks to company main contact (kept minutes) and person whom we got data from

• Weekly meetings

References

• Tompkins, White,…, Facilities Planning, Wiley (1996).

• Tompkins and Smith (eds.), The Warehouse Management Handbook, McGraw Hill (1998).