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Totes & Containers

Appliance assembly operation

Use of returnable containers and a JIT replenishment strategy help this facility kick up the volume and keep customers happy

roductivity at this facility is measured in terms of its ability to build a large number of different types of kitchen appliances (about 3000 SKUs) on 3 lines. The facility builds about 2,500 units daily in flexible work cells. Approximately 40% of the parts required to build these appliances travel to the facility and are delivered to assembly lines in large, collapsible reusable containers. Incoming containers are staged adjacent to the assembly line for quick and efficient JIT replenishment to the line. The remainder of SKUs arrive in pallets and cases and are staged in 4-high, single deep pallet racks. A small amount of finished goods is staged on single deep pallet rack adjacent to the dock area. Completed orders are staged on the floor at the shipping dock for delivery to retail stores.

  • Staging of inventory adjacent to assembly lines allows for quick delivery of replenishment parts to the assembly line
  • Placement of the assembly lines at the center of this facility reduces travel distances for both assembly components and finished goods
  • Locating receiving and shipping at opposite ends of the facility results in a streamlined flow of components and finished goods through the facility
  • Orienting pallet racks at right angles to the assembly area allows lift truck drivers to run replenishment pallets directly to the line, saving both travel time and distance
  • Locating packaging adjacent to assembly cells reduces handling steps and travel times and distances
  • Empty containers can be folded flat for staging, reducing the amount of floorspace required
  • Containers can be stacked up to six high for minimum floorspace requirements
  • To maximize storage density, the 40 by 48-inch footprint containers are available in a variety of heights

FACILITIES OVERVIEW

Product Type: Kitchen appliances
Facility Size: 105,000 square feet
Equipment Budget: $1,900,000
Shifts: 1
Number of employees: 55
Clear Heights: 20 feet
Normal Aisle Width: 11 feet 6 inches
SKUs: 3,000
Activity Level: Medium volume

Facility Layout


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NOVEMBER 2001
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