Name : Shafi Ullah

ID# : 16079
Subject: Operation and Production management
Assignment: Case Study
Semester : BBA 8th
Submitted to : Ma’am Aliya Syed
Department : Department of management science, Abasyn university, Peshawar.
Case Study Scenario:
The e-commerce company has experienced significant growth in recent years, resulting in an
increased volume of orders and inventory. The current warehouse operations are struggling to
keep up with the demand, leading to delays in order fulfillment and frequent inventory
inaccuracies. Customer complaints regarding late deliveries and incorrect orders have been on
the rise. The company recognizes the need to optimize the warehouse operations to improve
efficiency, accuracy, and customer satisfaction.

CASE STUDY ASSIGNMENT TASKS:

Q1)A detailed report analyzing the current warehouse operations and providing
Recommendations for improvement.

CURRENT WAREHOUSE OPERATIONS

Receiving
Receiving is the first warehouse process and one of the most crucial. To perform the receiving
process properly, the warehouse should be able to verify that it has received the right product,
in the right quantity, in the right condition, and at the right time. Failing to do so will have
consequent impacts on all subsequent operations
Receiving also involves the transfer of responsibility for the goods to the warehouse. This places
accountability on the warehouse for maintaining the condition of the goods until they are
shipped. Properly receiving cargo will allow you to filter out damaged goods and avoid liability
for them.
Put-Away
Put-away is the second warehouse process and is the movement of goods from the receiving
dock to the most optimal warehouse storage location. Failing to place goods in their most ideal
location can impair the productivity of warehouse operation. When goods are put away
properly, there are several benefits:
Cargo is stored faster and more efficiently
Travel time is minimized
Safety of goods and employees is ensured
Warehouse space utilization is maximized
Cargo is easier and faster to find, track, and retrieve

Storage
Storage is the warehouse process in which goods are placed into their most appropriate storage
space. When done properly, the storage process fully maximizes the available space in your
warehouse and increases labor efficiency.

Picking
Picking is the warehouse process that collects products in a warehouse to fulfill customer
orders. Since it is the costliest process in the warehouse, comprising as much as 55% of the total
operating expense, optimizing this process will allow you to reduce costs significantly and
increase your warehouse efficiency. Streamlining of this process should also focus on achieving
higher accuracy, as errors can have a direct impact on your customer satisfaction.

Packing
Packing is the warehouse process that consolidates picked items in a sales order and prepares
them for shipment to the customer. One of the primary tasks of packing is to ensure that
damages are minimized from the time items leave the warehouse. Additionally, packaging must
be light enough so as not to increase the weight of the goods and minimal enough to control
packaging costs.
Shipping
Shipping is the final warehouse process and the start of the journey of goods from the
warehouse to the customer. Shipping is considered successful only if the right order is sorted
and loaded, is dispatched to the right customer, travels through the right transit mode, and is
delivered safely and on time.
Recommendations For Improvement Current Warehouse Operations
The warehouse industry is growing in response to developments such as the rise of e-
commerce, globalization, and the trend of outsourcing warehouse services. These major
changes in the market are opportunities waiting for you to exploit by taking swift actions to
optimize your warehouse processes
1. Review effectiveness
You can’t improve something if you don’t know what’s wrong. You need to do some analysis. It
is important to gauge if you are using your available resources to the fullest. Is there a flow of
goods in and goods out? Any inefficiency within the chain will impact negatively throughout the
whole process, like a ripple effect. Quite often this means that to resolve a problem in the
system, the whole system has to be reviewed. It’s no use enforcing a new system in one area if
something else isn’t working correctly.

2. Warehouse layout
It’s an obvious point to make that good warehouse efficiency and the layout of a warehouse go
hand-in-hand, but even a well-organized warehouse can quickly become disorganized and
difficult to navigate, which can slow your staff down and lead to numerous safety hazards.
Always keep check on the layout of your warehouse and make sure your staff are following the
correct procedures and sticking to the most efficient routes. Knowing where each item is using
RFID technology can allow safer and quicker locating of items around the warehouse.

3. Forecast ahead
For most businesses, there are generally times of the year which attract increased demand for
certain items i.e seasonal trends like Christmas. A business software system, which includes
demand forecasting, can predict shifts in your items and adjust the automatic reordering to fit
the demand. Monitoring the items leaving a warehouse using RFID technology can provide
evidence for forecasting and prove if certain months had higher outgoings of a certain item in
comparison to the previous year.
4. Track your products
You can now get complete tracking and end-to-end traceability of products. By using latest
location tracking technology, RfiD Discovery tracks the location of your products through
manufacturing, quality control, warehousing and dispatch. If you choose to track individual
items, handheld readers allow you to identify products off-site to detect counterfeits or access
maintenance records. Using an automated tracking system not only reduces search times, it
reduces labour costs and business process delays. It also ensures quality records are accurate by
eradicating errors typically associated with manual processes.

5. Keep on top of stock

Overstocking of items is one of the biggest pain points for wholesale distributors, and many end
up writing off large amounts of unsold or expired stock on a regular basis. Start putting an RFID
system in place which shows your stock in real-time, providing reporting to help your inventory
management. RfiD Discovery uses real time location systems (RTLS) and automated
identification and data collection (AIDC) to automatically track inventory on a daily basis. This
means every pallet movement is recorded so you’ll always be able to keep on top of any stock
issues and maintain FIFO and LIFO procedures.

6. Take advantage of technology

The implementation of warehouse technology provides more visibility through data, which
allows each employee to collect real time information on the various warehouse and logistics
processes. Plenty of options are available – this includes bar codes, radio frequency, pick-to-
label and voice-activated technologies. These new technologies are all designed to provide
different levels of increased productivity and improved accuracy.

7. Reduce shipping errors

Shipping errors can lead to customer dissatisfaction and reduce sales in the long term. They also
take up a lot of internal resources to put right as procedures need to be carried out to correct
these mistakes. Tracking identification technologies can significantly reduce the number of
incidences where the wrong product is shipped to a customer. RFID technology can help ensure
the correct items are loaded onto trucks leaving a warehouse and are shipped to the right
customers. This reduces shipping errors and also the time taken to sort items later on.

8. Train your staff

Making sure managers are properly trained and understand the trigger points for efficiency is
essential. This should be an ongoing process with regular reviews and updates on new
technology, as well as inviting feedback in order to address problems swiftly and effectively. The
sharing of information freely helps to reduce risk and increase efficiency and inclusion. When
tracking assets with RFID technology, bottlenecks and lost items become more visible and can
therefore indicate whether training is needed in certain areas of the warehouse to solve this.

Q2) Diagrams, flowcharts, or visual aids to illustrate the proposed warehouse Layout and
material handling improvements.

WAREHOUSE LAYOUT
Planning a warehouse layout design can be a complex process due to the various factors
involved. This process includes strategically planning a facility layout that can properly utilize the
space available, facilitate the smooth functioning of operations, and increase efficiency.
Designing a practical warehouse layout is a crucial process as it has a direct impact on the
efficiency and productivity of your warehouse. The planned layout should arrange the processes
in a logical sequence that can help streamline operations, boost productivity, and reduce
expenses. A well-executed and optimized warehouse layout design can provide easy access to
stored goods, minimize travel time, and improve order fulfillment rates.
Additionally, it is vital to consider all the requirements according to your business needs during
the planning phase itself. This is because altering the planned layout once the construction of
your facility starts is costly due to the additional material and labor costs involved.

RECOMMENDED LAYOUT

Consider While Designing Your Warehouse Layout

BUDGET CONSIDERATIONS
Before starting with the design of your warehouse layout, it is essential to assess all your
business requirements, review associated budgets, and then plan the layout accordingly. During
this process, you might come across some layout designs that are more comprehensive and
expensive than others, but it is recommended that you consider the most suitable and cost-
efficient solution for your warehouse.
SPACE AVAILABLE
Effectively utilizing the warehouse space available can help improve inventory visibility, reduce
travel time, and increase overall operational efficiency. When designing your warehouse layout,
it is crucial to allocate maximum space to storage and inventory processing purposes while
minimizing space for office areas, empty pallets, charging stations, etc. Additionally, how you
decide to allocate space will impact shelving designs, installation capacity, and placement of
goods inside your facility.
FLOW
Ensuring the uninterrupted flow of goods, personnel, and equipment is vital to consider in the
design layout for the smooth functioning of your warehouse. You can avoid inefficient routes
and disruptions by strategically planning your warehouse layout design so as to facilitate each
operation in a sequential manner.
ACCESSIBILITY
While Planning your warehouse layout, it is crucial to ensure easy accessibility to all the areas
and products in your facility. The layout should be designed in a way that makes it easy for
personnel to navigate throughout the facility while conveniently locating and picking items
without having to move other products. As a result, your productivity can be enhanced and
orders can be fulfilled at a faster rate.
EQUIPMENT
The Use of different types of equipment in your warehouse, such as lifting & packing tools,
pallet racks, or conveyors, can influence the layout design. By identifying the equipment
needed, you can evaluate and design the most suitable layout according to your requirements
and boost the productivity of your facility.
THROUGHPUT
Throughput in a warehouse refers to the number of products that are processed and moved
through various warehouse processes such as receiving, putaway, storage, picking, packing, and
shipping. By collecting and analyzing this data, you can design a layout to ensure an efficient
flow of goods and accommodate the necessary equipment for your warehouse.
PERSONNEL
Knowing the number of people required, their current levels of training and shift timings, and
other related factors can help you design your warehouse layout in a way that doesn’t limit your
workforce’s productivity. Also, the layout must be planned in a manner that can safely
accommodate new employees and their needs in the future.

Q3)Performance metrics and measurement tools to monitor the effectiveness of The

implemented changes.

Performance Metrics
Performance metrics are data used to track processes within a business. This is achieved using
activities, employee behavior, and productivity as key metrics. These metrics are then used by
employers to evaluate performance. This is in relation to an established goal such as employee
productivity or sales objectives.
Businesses use performance metrics to measure various aspects of their business.
This can include sales, project management, employee productivity, and their overall business
processes.
These metrics can be grouped into four different categories:
Business performance
Sales performance
Project management performance
Employee performance

Business Performance
Business performance metrics track and assess how your business is performing. This is in sales,
the marketing department, and overall profitability.
These metrics help businesses decide where to make various improvements and adjustments.
This is with the aim to help boost performance and growth.
They will tend to look at things such as the return on investment and the profitability of certain
aspects. It also focuses on productivity within the overall business.
Sales Performance
The sales metrics measure a team or an individual’s performance in the sales department.
These metrics can be measured against the target’s sales actions, lead generation, and lead
retention. It can also look at key performance metrics such as total revenue and customer
reach.
These metrics are then weighed up against the goals that were originally set. This enables you
as a business owner to see any trends of overperformance or underperformance.

Project Management
These metrics are used to track and measure the effectiveness and profitability of various
projects.
Each stage of the project is tracked and measured against the goals that the project set out to
achieve.
The data compiled from the metrics can be used to plan future projects and gives insight on
how to make projects more efficient.

Employee Performance
The final performance metric is related to employee performance.
If your employees aren’t performing to the standards set, then your business will suffer.
However, this may not always be a case of an employee not doing their job properly. Sometimes
they are not supplied with the correct tools to successfully complete their tasks.
Therefore these metrics can show you how to adjust or make necessary improvements to help
employees reach their goals.
You can measure an employee’s performance by the quality, quantity, efficiency, and
productivity of their work.

Key Takeaways
Performance metrics is a key tool for any business owner to finely tune their business and
streamline their processes. To create an efficient and profitable business, it is key that
everything is running smoothly and at an acceptable level.
PERFORMANCE MEASUREMENT TOOLS
Below are the performance Management tools that are recommended for the implemented
changes;

360-degree feedback
This tool is designed to address the question, “How well are our people performing in the eyes
of those who are invested in their success?” It gives people a comprehensive appraisal of their
performance based on the opinions of those around them, such as their boss or manager,
subordinates, colleagues, customers, and suppliers. The results are tabulated and provided to
each employee in confidence, generally by the management. The 360-degree feedback insights
are frequently employed in staff training and development. If done correctly, this feedback tool
serves to democratize the review process by considering the perspectives of many people rather
than just the individual’s line manager.

Management By Objectives (MBO)

MBO is the process of defining particular objectives and then determining how to accomplish
each one. It’s especially useful for small tasks that must be completed one at a time, and it’s a
terrific approach to fostering a culture of collaboration. The idea is that as each goal is met,
those in the organization become more aware of their accomplishments, which raises their
morale and motivation. The management by objectives is all about assessing individual
performance and comparing it to established benchmarks.

Self-Evaluation
Employees can utilize self-evaluation tools to grade themselves against the same or similar
criteria that their boss use. This frequently includes both qualitative and quantitative criteria.
This strategy can increase the process’s credibility in the employee’s eyes, especially if the
employee’s self-assessment score matches that of the supervisor. When the ratings differ, this
program provides discussion mechanisms that allow these disparities to be explored safely and
constructively.

Enterprise risk management (ERM)

After management by objectives (MBO), ERM is a set of tools and methods for identifying,
assessing, and managing company risks. While risk management began as a back-room internal
control role, it has already made its way to the top of most companies’ boardroom agendas.
Organizations are aware that they face several business risks, which, if not managed and
controlled, could result in the type of corporate disasters seen in recent years.
ERM should begin by identifying the most significant strategic risks the organization faces. After
the hazards have been mapped, they can be prioritized and compared to the risk tolerance.
Finally, action strategies must be implemented to control or minimize substantial business risks.
This is frequently followed by developing key risk indicators, which serve as early warning
indications and allow firms to continuously monitor risk levels.

Q4)An implementation plan outlining the steps, timeline, and responsibilities for Carrying out
the proposed improvements.

Warehouse Implementation Plan

Once the WMS implementation checklist is complete, creating a warehouse implementation
plan is time. This plan should include a timeline for each step in the process and a list of
resources needed for the implementation. Additionally, the plan should include a timeline for
testing the system and going live. Finally, the plan should include a budget and a plan for
evaluating the success of the implementation.

Step 1: Project Planning

The first step in the WMS implementation process is project planning. This includes creating a
timeline for the entire process and identifying the resources needed for the implementation.
Additionally, it is essential to create a budget for the implementation, as well as a plan for
evaluating the success of the implementation. Finally, creating a plan for training staff on the
new system is crucial.

Step 2: Create Your Implementation Team

A successful WMS implementation starts with a talented team. You’ll want a variety of skills,
and more than one person, as the whole process will be way too much for any individual to
handle.
The entire makeup of your team will vary based on the size and scope of your company and
project, but here are the essential personnel you should add to that WMS implementation
checklist:
Project Manager: leads the entire effort, keeping a high overview and problem-solving. If you’re
reading this WMS implementation guide, you’re probably the PM.
Warehouse Manager: you’ll need someone from leadership to be involved. They will help you
understand budget limitations and process requirements. They’re your second in command.
Database Administrator: This team member will manage your existing data and assist with the
migration process.
On-staff Engineer: Bring your IT team whenever possible to monitor and help. Their final role
will vary — sometimes as QA testing, others to help customize applications — but there is a
need.
Wms Expert/trainer: identify the person who will use your new WMS the most. They must be
involved to ensure they’re adequately trained and can guide you on features and the practical
day-to-day operations that will influence use. In the long run, this person will likely train new
hires on your WMS.
Go-live Team: Bring extra help when you’re ready to go live. Other hands in the warehouse can
reduce the impact of errors or bottlenecks, while extra IT staff can help troubleshoot any issues.

Step 3: Change Management Plans and New Practices

After your team is assembled, it’s time to start creating a plan to implement your new WMS and
address the changes and challenges during any significant business process shift.
Elements of your planning should include the following:
Creating expected WMS implementation costs, then developing and approving a budget
Using your budget to build out WMS implementation steps and schedule
Addressing data backups and migrations
Training your staff in multiple avenues
Building out a test list as well as go-live actions
Launching your new WMS implementation
Reviewing your WMS and evaluating the success
Ensure you communicate well throughout the project, and then you can quickly see if
something is wrong or if the next phase should begin. We recommend you use tools you’re
already familiar with for project management and ensure your team has access, can use them
to communicate, and checks your tools regularly. Be sure to loop in company leadership and
stakeholders so they can see your progress and ask for what they need.

Step 4: Forecast Your Costs and Budget

The main areas to look at are:
On-premise installations tend to be more expensive and require more time spent by your
vendor because they are adjusting the system to your specific infrastructure and often require
the vendor to send a team to your location; cloud systems can often be installed remotely, so
there are fewer travel costs, plus you tend to have to bring your infrastructure up to meet their
demands with customization coming as separate costs.
Maintenance costs are often included in the original purchase price. However, some WMS may
base your maintenance costs on installation and implementation, which would defer them until
your implementation wraps — that could add 5% to 20% of your purchase price, depending on
licensing and subscription agreements.
WMS training costs will vary based on the use or combination of digital learning, hands-on
training, and on-site training from the vendor.
Factor in consultant fees if you hire any.
Create a list of infrastructure upgrades you need to deploy the WMS based on vendor
requirements.
Budget extra hours or even overtime for your team during training and the go-live.
Secure cost estimates for data services as you create additional backups or need to store your
data in the cloud for the new WMS. Storage costs are sometimes included in your WMS costs,
but they tend to come with limits or pricing that rise as you meet different data thresholds.
And the final piece of the budget that tends to get forgotten: give yourself room to grow.

Step 5: Design the Warehouse Management System

The next step in the implementation process is to design the Warehouse Management System.
This includes determining the size and layout of the warehouse, the type of inventory that will
be stored, and the types of operations that will be performed. Additionally, the design should
factor in the technology used, such as RFID tags, barcode scanners, and voice technology.
Finally, the system should be scalable to grow with the company and accommodate future
needs.

Step 6: Prepare the Warehouse

Once the WMS has been designed, the next step is to prepare the warehouse for
implementation. This includes making sure that the warehouse is clean and organized and that
there is adequate space for the new system. It is also essential to label all products and
locations in the warehouse, as this will help ensure accuracy and efficiency. Finally, ensuring
that all staff are trained on the new system and familiar with the new procedures is vital.

Step 7: Data Backups and Migration

A Warehouse Management System implementation guide should start the data discussion on
migration because it’s 100% essential for you to maintain data accuracy and validity as you port
it over to your new system. Data migration also includes a variety of clean-up and new
governance rules so that you ensure the information your new WMS uses to manage your
business is correct.
However, don’t neglect the need to create a backup of your existing data. It’s good to have one
you use for the migration process and a separate backup on different media, just in case. Your
vendor may supply the migration backup and data management but won’t necessarily keep an
additional record of your original data available to you.To prepare for the data migration
process, call on your database administrator and on-site engineer to ensure that data formats
and aspects are not lost in translation as you move between systems.

Step 8: Install the Warehouse Management System

Once the warehouse is prepared, installing the Warehouse Management System is next. This
includes installing the hardware and software necessary for the system and configuring the
system to meet the organization’s needs. Additionally, it is essential to integrate the WMS with
existing systems, such as enterprise resource planning (ERP) software. Finally, ensuring that all
staff are trained on the new system and familiar with the new procedures is vital.

Step 9: Test the Warehouse Management System

Once the system is installed, it is vital to thoroughly test it before going live. This includes testing
the hardware and software and training staff on the new system. Additionally, it is crucial to test
the system in a simulated environment, as this will help identify potential issues that may arise
when the system is implemented. Finally, ensuring that the system runs smoothly and that all
staff are familiar with the new procedures is essential.

Step 10: Train Your Staff

Training your staff to use your new WMS can take three to five full days and require some shift
work in many cases so that your team can learn, practice, and have time to ask questions about
the new system.
Depending on your vendor, you may have access to multiple training types, such as online
courses and training materials, training at the vendor’s location, and training in your warehouse.
Training at your location with vendor staff allows you to practice on your equipment, but it may
come with higher WMS training costs.
Identifying warehouse leaders and experts with a penchant for technology can increase your
success rate. These power users may be able to learn the system faster and provide more
significant assistance to other employees during the training and after you go live.
Be sure to reward these employees for their hard work and manage other tasks or expectations
if these team members start to take on more mentoring and training roles.

Step 11: Plan Your Go-Live Launch

Some of the essential WMS implementation steps come during this planning phase when you’re
prepping to launch.
Here are a few specific elements that need a plan and a review before you’re ready to launch:

Touch base with WMS implementation stakeholders to see their status

Ensure all previously required WMS implementation checklist items are addressed
Test the system for use with small-batch data and common patterns
Schedule additional staff to support the launch itself
Create a list of metrics to use to evaluate success for launch and initial months
Formulate a plan to address potential downtime or bottlenecks
Test your network itself to make sure you can support the increased demand
Verify data backups and your data migration success
Step 12: Go-Live
Once the system has been tested and is running smoothly, it is time to go live. This includes
ensuring all staff are trained and familiar with the new system and procedures. Additionally, it is
vital to test the system in a live environment, as this will help identify potential issues that may
arise when the system is implemented. Finally, ensure that all data is secure and the system can
handle the expected workload.

Current Warehouse Operations Assessment:

Review the warehouse layout and identify any inefficiencies or bottlenecks in the flow of goods
and materials. Consider factors like storage capacity, accessibility, and workflow optimization.
Analyze the picking, packing, and shipping processes. Look for opportunities to improve speed,
accuracy, and order consolidation. Consider factors like batch picking, efficient packing
methods, and streamlined shipping procedures.

Inventory Management:

Evaluate current inventory management practices, including stock levels, replenishment

processes, and tracking systems. Identify any areas of improvement, such as implementing
automated inventory tracking or using demand forecasting tools.
Identify challenges related to stockouts, overstocking, and inventory inaccuracies. Develop
strategies to address these issues, such as improving demand forecasting, implementing safety
stock levels, or establishing better communication channels with suppliers.
Consider implementing inventory optimization strategies, such as just-in-time (JIT) or vendor-
managed inventory (VMI) approaches. Assess their feasibility and potential benefits for your
specific operations.
Warehouse Layout and Material Handling:

Propose an optimized warehouse layout to improve the flow of goods and minimize travel
distances. Consider factors like product demand, storage requirements, and order processing
flows.
Explore the use of technology and automation, such as conveyor systems or robotic picking, to
enhance material handling efficiency. Assess their benefits, costs, and compatibility with your
warehouse operations.
Evaluate the potential benefits and challenges associated with implementing new technologies
or automation in the warehouse. Consider factors like initial investment, training requirements,
and potential impacts on employee roles.

Order Fulfillment and Customer Service:

Analyze the current order fulfillment process, including order processing, picking, packing, and
shipping. Identify areas for improvement to reduce order cycle time, improve order accuracy,
and enhance customer service.
Identify ways to improve order accuracy and reduce errors in picking and packing. Consider
implementing quality control checks, enhancing training programs, or introducing error-
proofing measures.
Emphasize the importance of real-time order tracking and communication with customers to
increase transparency and customer satisfaction. Consider implementing a system that allows
customers to track their orders and receive proactive notifications.

Performance Metrics and Continuous Improvement:

Define key performance indicators (KPIs) to measure and monitor warehouse performance,
such as order accuracy, on-time delivery, and inventory turnover. Establish a baseline and set
targets for each metric.
Discuss how data analytics and performance metrics can be used to identify areas for
improvement and drive continuous improvement initiatives. Consider implementing a data
management system and regular reporting processes to monitor KPIs and identify trends or
issues.
Develop a plan for regularly reviewing and updating performance metrics to ensure ongoing
optimization of warehouse operations. Establish a schedule for performance reviews and
feedback loops to identify opportunities for further improvement.

Change Management and Implementation:

Identify potential challenges and resistance to change when implementing the proposed
improvements. Consider factors like employee training needs, organizational culture, and
communication barriers.
Develop a change management plan to effectively communicate and engage warehouse staff in
the improvement initiatives. Create a comprehensive communication strategy, training
programs, and opportunities for employee feedback and involvement.
Outline the steps, timeline, and responsibilities for implementing the recommended changes in
warehouse operations. Develop a detailed project plan that includes specific tasks, deadlines,
and assigned responsibilities to ensure a smooth implementation process.