University of Twente Student Theses
Improving warehouse slotting at HTM Aerotec to decrease the order picking time.
Morsink, Jorn J. (2024) Improving warehouse slotting at HTM Aerotec to decrease the order picking time.
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| Abstract: | This research is performed at HTM Aerotec in Hengelo. HTM Aerotec is one of the five companies from the HTM technologies group. HTM Aerotec is a supplier in high precision metal parts and mechatronical integrated modules and it is operating in the advanced aerospace and defence industries. HTM Aerotec faced the following problem in the logistic department: logistic processes are taking too much time which is the action problem of this research. Right now, there is an empty hall which is destined to be the new warehouse. However, there is no clear and logical assignment of products right now, which increases the order picking time. So, the main focus of this research is to decrease the order picking time. This is done by improving the assignment of products inside the warehouse racks and slotting the SKUs. Therefore, the main research question to answer is: “What is an appropriate assignment of products inside the warehouse racks to decrease the order picking time at HTM Aerotec?” This question is answered following the seven steps of the Managerial problem solving method (MPSM). To solve the research question first the current situation is analysed. After, distinct slotting methods are researched. Then a model is conducted by Duque-Jaramillo et al. (2024) that is calculating the time it takes to fill up the warehouse for six distinct strategies. The strategy with the shortest time is exercised together with chosen slotting method, which is chosen by literature research. Finally, following the previous results a final assignment of products is made for the warehouse racks of HTM Aerotec. The new warehouse got some variables to consider since there are various slots that are obstructed and therefore cannot be reached or filled. Also, all the warehouse dimensions are revealed, which are used later in the research. In the new warehouse there is place for a total of 245 products. Besides the new warehouse, the current supply chain of HTM Aerotec is depicted with the focus solely on the logistic department. The main actions conducted in the logistic sector are deliberated. One of the actions, picking the order, is deliberated and the current order picking time is given. Right now, the order picking time is ranging from 1 to 10 minutes with an average of 4.5 minutes. The chosen slotting method, the ABC strategy, slots products according to their category A, B, or C. The Stock Keeping Units (SKUs) are prioritised based on two criteria, their revenue, and their commonality. The ABC strategy is used for its flexibility and because it can slot products following multiple criteria instead of the other researched slotting method which is the COI method. The ABC slotting method is combined with the pareto principle which states that 80% of your results come from 20% of your effort, is providing the number of slots for every category and looking into their revenue. The ABC strategy is exercised in the model by Duque-Jaramillo et al. (2024). This model calculates, with the help of VBA, which is the programming language of Excel, what has the priority when slotting your Stock Keeping Units (SKUs). The model deliberates if you should go by the rows of the warehouse, columns per rack or levels per rack. The model deliberates in which order the SKUs should be allocated to the available slots, examining both the horizontal lanes (rows), vertical lanes (columns) and storage levels (height). The model is reviewing six distinct slot assignment strategies where in each distinct strategy the row, column or level are switched. Since there are three distinct factors, there are six different variations which are the six strategies. The VBA code calculated the times for every strategy and the strategy with the lowest slotting time is strategy three. SAS 3, which is the third strategy, is prioritizing the columns, after the rows, and last the levels. So firstly, the levels are filled of row one and column one, then row two until all the rows and column ones are filled. Thereafter the levels of row two column one are filled. According to the results the final assignment of product inside the racks is made. A map is provided which displays exactly where every type of SKU is slotted. The different SKUs are placed together regarding the type of SKU or the supplier. With this final assignment of products, a rough estimate of the order picking time is measured, which is 1 to 3 minutes. So, the overall order picking time is decreased, and the new assignment of products is effective. The new average order picking time is 1.75 minutes. HTM Aerotec should start by slotting the category A products, after the category B products, and finally the category C products. The category A products should all be placed in the best available slots and category C in the worst available slots. The final phase of the MPSM is evaluating the solution, the conclusion that is formed is based on the difference in order picking time. Since there is quite a difference in order picking time compared to the old situation the results are satisfactory. |
| Item Type: | Essay (Bachelor) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Programme: | Industrial Engineering and Management BSc (56994) |
| Link to this item: | https://purl.utwente.nl/essays/104347 |
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