FACTORS FOR CONTINOUS IMPROVEMENT IN WARE HOUSE LOGISTICS
To run
a successful and competitive warehouse, you need to improve your flow and
organization constantly.
However, what
often happens is they are stuck in analysis paralysis” they do not have the
courage for several reasons to implement suggested solutions in production.
This can be due to several reasons. It is common that organizations have a
culture who have too much focus on failure instead of highlighting success.
Warehouse management becomes unsecure and try to analyze too much in theory
before implementing change.
It is important to understand
you can´t analyze every improvement in theory before implementing in
production. Even if you have a university degree, it is impossible to predict
the consequences. That is why PDCA is the perfect tool for warehouse logistics.
PDCA : (plan–do–check–act or
plan–do–check–adjust) is an iterative four-step management method used
especially in production environments for continuous improvement and quality
work. Concept of PDCA is based on the scientific method developed from the work
of Francis Bacon (Novum Organum, 1620). The scientific method is often written
as “hypothesis–experiment–evaluation” or as “plan–do–check”. The fundamental
principle of PDCA is iteration, once a hypothesis is confirmed (or negated),
executing the process again will extend the knowledge further. Repeating the
PDCA cycle can bring its users closer to the goal, usually a perfect operation
and output.
PDCA stimulates critical
thinking and involves all people in the organization from the floor to the top.
You want warehouse staff to have a critical thinking and try new things in the
warehouse production in order to have continuous improvement. The warehouse
assistants is the real experts in the warehouse flow. In order to stay ahead of
the competition you want a problem-solving culture with innovation mindset.
When PDCA is used for more
complex or business critical operations, checking with senior management should
happen before the Do stage, since changes to projects that are already in
detailed design can be costly; this is also seen as Plan-Check-Do-Act. This is
important to remember and need to be clearly communicated in the whole
organization.
PDCA is very simple but that is
what I like about it. It reminds me of “trial and error” but in a scientific
approach.
Plan – Study and
analyze the current process on the floor. Often the person performing the
process already done this and have a suggestion for improvement.
Do – Carry out the
objectives from the previous step. After having a standing meeting the
management and staff decides to try the proposal.
Check – The check phase is very
important, now you evaluate the change. Do you see any positive effects in KPI
as you expected? It can be efficiency or quality for example. Compare
historically data with current. Talk to the staff performing the process. You
cannot measure everything; there can be ergonomic side effects and so on.
Two-way communication is essential. Remember the PDCA cycle is iterative look
at the process again maybe there is things you need to “fine tune”. If you do
not have the expected outcome return to step one.
Act (also called adjust) – This is where you implement your solution and standardize the process with documentation like manuals for example. However I say again, remember that PDCA/PDSA is a loop. The improved process is the new baseline for more future improvements.
This is continuous
improvement when it is best! PDCA is a simple and educational tool that fits
perfectly in warehouse logistics. It involves people and make the staff feel
ownership. You take advantage of the expertise closest to the processes in the
warehouse flow. It is a system for building critical thinking. A culture with
this mindset is more able to innovate and stay ahead of competition.
With e-commerce and omni-channel in warehouse logistics, you
need all improvement and innovation you can get.
Note : Content owner Roberth Karlsson
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