Understand and learn how DMAIC lean six sigma works on this simple warehouse example. By simple changes you can do a lot to save time and money. Warehouse processes are sometimes hidden. But still it is crutial part of whole facility influencing other processes, or final customer satisfaction.

This article covers:

• Warehouse DMAIC project definition
• How project can be launched
• Measure and Analyze phase in warehouse project
• DMAIC Warehouse project Improving phase
• Control phase – very important

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Warehouse DMAIC project definition

There are 3 divisions In the Pumps mania company, making oil pumps. One division is making castings, second provides components machining. There is electrical components and assembly done in the third division. These 3 divisions are supported by one, common warehouse.

All materials, components, supplies, and tools goes through this warehouse. Longer term problems with delivering right material to particular working cell on time, pushed management to do something about it. Leaders from all divisions decided to run an improving project to stabilize current situation.

Defined project goal is: To improve current 2-3 hours late deliveries to be on-time, to start production.

erik form six sigma mania

DMAIC tool list used by team, you can download on the link below:

I do videos, blog posts, and all templates for free, in my free time. I will appreciate if you can donate me a cup of cofee, for more energy in my creation. (1 dollar counts, too 😉 Click on this link: I would like to support Erik in his effort

How DMAIC project can be launched

Identified Team leader – the warehouse supervisor, developed a project charter based on consultation with the sponsor, the Warehouse manager. Stakeholders are divisions managers and facility general manager. In the project scope are warehouse transfers to specific division. Out of scope is material ordering and production itself.

Why Lean and Six Sigma are used together? – read here

Team, consisted of all division supervisors, warehouse technician and one planner. Planner is there to have not influenced set of eyes in the team.

There was SIPOC developed. This revealed 3 different delivery requirements. Detailed current state mapping showed how complicated current process is.

All starts with placing order into planning system. Order contains all material needed to finish particular product. Order is sent to printer located in warehouse. That triggers warehouse action to delivery. Material is assigned to order in the computer. Printed labels are required to identify items. Material is picked from shelves and put on pallets. Then delivered to required location. All material at once.

Or download SIPOC template on this link:

Measure and Analyze phase in warehouse project

All these steps takes 6 to 8 hours. Team did a Gemba walk with process map in their hand. There were identified steps slowing down whole process. Orders in printer are mixed time to time, when schedulers prints at the same time. Material assigning and printing labels takes hour and half. Steps in the computer are complicated and not user-friendly. Warehouse man is seeking pallets all-around. There is material mixed in shelfs. Similar parts are located in the same shelf. That makes picking right material complicated with high chance, that wrong part will be picked.

Current material delivery is in batches. Team tries to figure out more continues delivery. That could lower space requirement at divisions work cells. One large order was divided to smaller once. Rule is to divide most common 100 pieces order to 4 times 25 pieces orders. 3 created FIFO lines helps continuously distribute orders. Logic is to finish one smaller order for 1 division, fulfill 2^nd division, then 3^rd one and back to 1^st. Repeat this sequence over again.

I have prepared nice check sheet for you with all 3 Waste walk/ Gemba walk phases. Do not hesitate to use it, and share it.

And here is promised link:

Fishbone diagram easy explanation (+template)- read here

I provide 30 minutes of consultations for free:

DMAIC Warehouse project Improving phase

Big sign in header and footer clearly identifies which division order belongs to. This was quick win for the team.

There are many small parts for division 2 and 3 delivered piece by piece. Team decided to develop 2 bin system with average monthly consumptions at cell that needs it. Empty bin is delivered to warehouse, filled by material, and delivered back. There is no scheduling required and manipulation with these parts was minimized.

Material mixed in shelves were resolved by locations reorganization. There are limits of parts that can enter warehouse. Volumes are calculated to support 3 month production max. Material ordering was redesigned accordingly.

21 yellow belt certification companies review – read here

Heavy parts were relocated into lower shelfs, lighter material on higher. Each part type must have own location.

One Location for returning palettes was specified. That will help to keep all palettes on one place and reduce searching.

IT consultant was called to help withs software set up, to be more user-friendly and to fit warehouse technicians needs.

Team successfully reached the goal. Material flow through warehouse is smooth now. Discrepancies were eliminated to minimum. And material for each division is available just on-time to start production. Team did a great job here.

Green belt project selection – calculator

I recommend you testing project idea on project calculator, I have developed based on my training experiences. It will help you to determine, how demanding leading project will be for you.

Selection tool downolad

You can download selection tool on the link below:

The best continuous improvement tools? – read here

Control phase – very important

To sustain changes team updated instructions to be actual, with actual pictures and layout. Visualization is very powerfull tool to continue working witch changes. Team know it. So, every pallet place was marked and identified its function.

Everybody can see if there is material out of standard place and fix it.

All 3 divisions team members communicating to warehouse were trained about new process set up. Regular and lower batches material distribution helped also planners to balance their processes. Final stakeholders review successfuly approved changes and process was overhanded to process owner, the warehouse manager. Team had common lunch together to celebrate this great success.

I do videos, blog posts, and all templates for free, in my free time. I will appreciate if you can donate me a cup of cofee, for more energy in my creation. (1 dollar counts, too 😉 Click on this link: I would like to support Erik in his effort

Do not forget to visit and subscribe to my YouTube channel. I upload short explanatory videos on Lean Six Sigma topics, and tools regurarly.

Do not hesitate to post your comments, questions, or themes you are interested in.

Yours sincerely Erik