Warehouse layout design for Cha/se Ventures, Inc.

• Main Authors: Tan, Emerson C., Tiu, Stephen F., Yen, Ting-Chin
• Format: text
• Language: English
• Published: Animo Repository 2000
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/12083
• Institution: De La Salle University

Executive Summary. This study is about designing a new warehouse for Cha/SE Ventures, a third party warehousing company, who will be taking over the management for the warehousing of its new client, Company XYZ. Company XYZ is a leading producer of nutritional products around the world. The company also manufactures pharmaceuticals and cosmetics under its subsidiaries. Company XYZ has a finish goods warehouse situated about 15 kilometers from its manufacturing plant in Makati. Since the lease of the company on the warehouse is about to expire, the management has decided to pass control of its warehousing to a third-party logistics company. With this move, Company XYZ expects a reduction in operations costs. The main task of the study group is to design a new warehouse in order to accommodate the capacity of the existing warehouse with an option for future expansion. However, constraints for the design include the site and the structure of the new warehouse and the present equipment including the racking system. The research process of this study starts with the problem identification, then observations and interviews followed by a study on previous related literatures and researches. Next comes the gathering of data needed for the most crucial part of the study which is the actual warehouse design and development. A testing and evaluation will be done on the design, and if everything is working up to standards, the implementation phase is then started. The design process starts with the procurement of the basic data needed in this study, then the material flow analysis, and the activity relationship analysis which are done simultaneously, then the relationship diagram is developed, after which the space requirements are determined versus the space available. Multiple layouts are then developed, which are also evaluated. Finally a layout is selected and is subjected to testing through simulation. The study group chose to use Vis-Factory CAD/Plan and Opt. Factory Plan is a tool for designing and analyzing layouts based on how desirable it is that activities be close to each other as determined by an assigned proximity value and flow relationships. It is very critical of a study to have a reliable simulation tool to be able to validate the model. The group used Vis-factory Flow for the simulation, it shows that in terms of material handling equipment, the new warehouse has more than it currently needs, especially for pallet trucks which has only 9.8% utilization. The group concludes that the optimal combined pallet movement in a day in the new warehouse is approximated to be at least 620 given a 100% efficiency of both manpower and equipment. Exceeding the required combined 404 pallet movements daily. The recommendations of this study includes the reduction of manpower from 35 to 23 the monitoring of Key Performance Indices (KPIs) in their logistics operations benchmark with other companies regarding logistics management and operations, monitor and analyze pallet space utilization and the education of Proper Material Handling Good Housekeeping, Safety, and Pest Control to all warehouse personnel.