Lean Management Thinking Programme
DHL - Case Study
DHL, Westfield, is an established facility that
acts as a Regional Distribution Centre (RDC) for
Marks & Spencer. Located in central Scotland the
RDC services all Marks and Spencer stores within
Scotland and North East England for general
merchandise.
The Lean Project
The project was to concentrate on the
Boxed Receiving area. On average 6,000
stock rooms packs (boxes) are received
during non-peak time rising to 26,000
during peak activity. With 16 workstations
throughout the process the business
operates to an average of 120 boxes per
person per hour. The objective was to
analyse activities for improved streamlining
and waste reduction.
Lean tools utiised
Lean Team
Stephen Hutchison - Stock-handler
Iain Valentine Admin & Finance Assistant
Lindsey Martin - Section Manager
Ricky Pender - Operations Manager
The Lean tools utilised were:
Process mapping
Ishikawa diagrams
Problem / objective statements
Low cost / no cost analysis
Current state and future state analysis
7 Wastes analysis
Spaghetti charting / flow diagrams
Measuring current activity
As the team were utilising the Lean tools
they took photographs to capture the
current state and also measured non
value activity. They calculated that each
operator was walking 9,600 metres per day,
equivalent to 6 miles the Spaghetti chart
visualised this for all to see.
Issues arising from Lean analysis
The team felt that the Boxed Receiving
layout and flow through the conveyor loop
was not ideal resulting in stop/start in-feed
to workstations. The analysis showed that
there was poor use of the grid system for
stock once received which was resulting in
excessive walking by operators. The overall
poor flow of work was making it difficult
for operators to optimise their resources.
The Tote process and marshalling of
stock to drop zones was incurring some
significant inefficiencies.
Project Plan tasks
The team devised a project plan (as
follows) which will aim to increase overall
productivity by 3%:
Redevelop the conveyor system
Repair all sensors to improve flow of
stock
Upgrade layout to improve efficiency
Reduce the amount of walking time
(non value add)
Implement and improve the Tote process
Improve efficiency when marshalling
stock to drop zone
No cost / low cost success
The team quickly engaged with all staff
under the new Marks and Spencer One
Team concept. This led to small group
meetings where staff were encouraged to
brainstorm and trial new ideas. The Lean
project team became the vehicle to drive
forward team building across the site.
Accelerate Limited, 272 Bath Street, Glasgow, G2 4JR - t: 0870 161 4514 - f: 0870 161 4515 - e: info@[Link] - [Link]
Lean Management Thinking Programme
DHL - Case Study
Implementing the project plan
The future
They went onto demonstrate how the
improved Tote process would work. PreLean activities in this area were compared
to the proposed new process highlighting
a reduction in labour time of 6 hours per
week with an annual financial saving of
2,523.00.
After much analysis through the use of
Lean tools, the team created a new layout
within the Boxed Receiving area. They
compared the old layout to the proposed
new layout demonstrating an increase in
value added activity from 15% to 35%.
Overall the improved layout will see a
significant reduction in travelling time with
the improved Tote process and enhanced
marshalling process. The conveyor system
has been upgraded taking out obsolete
motors, adding new sensors, shortening the
belt length and creating a sleeper mode for
energy saving.
Prior to the Lean project, productivity
within the Boxed Receiving area was on
average 3,000 stock room pack labels
per hour FTE (39 hours). Following
implementation, it is anticipated that there
will be a 3.3% improvement in productivity
resulting in a business saving of 9,500.00.
Environmental benefits of Lean
With all the changes that have been made
to the conveyor system, the team analysed
the impact to the business with regards
to energy usage. The current usage of
131,040 kw/h per year will fall to 87,048
under the new system. This is a saving
of 43,922 kw/h per year resulting in a
financial benefit of 3,284.00 per annum.
The team highlighted that this energy
saving is equivalent to the running of 7
homes per year and equates to a reduction
of 24 tonnes of CO2.
The Westfield site is now engaged in
the One Team philosophy building Lean
Management into day to day activities.
A structure from process improvement
through employee engagement has been
communicated under four pillars:
Service delivery
Continuous improvement
Cost and efficiency improvements
Customer satisfaction
Since completing the Lean
Management Thinking course
there are a few observations:
No one loses from lean
thinking.
At Westfield we are now all
ABOUT Lean
Attitude
Behaviour
One Team
Understanding
Trained
Big wins:
- Staff engagement
- Increased efficiency
- Customer satisfaction
- One team ethos
- Continuous Improvement
What business would not gain
from Lean Thinking: NONE
Quote from the DHL Lean team
Since the Lean project, the team are now
progressing with more efficient energy
usage throughout the business which will
further reduce their carbon footprint.
Accelerate Limited, 272 Bath Street, Glasgow, G2 4JR - t: 0870 161 4514 - f: 0870 161 4515 - e: info@[Link] - [Link]
