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Reduction of the warehouse finished product reprocessing index by applying lean warehousing and DMAIC

Abstract:

This paper is developed in an animal food processing company in their divisions Animal Health, which produces feed pellets for animals, and Aquaculture, which makes feed pellets for shrimp. The forklift driver handles the product, and the unit load is forty and seventy sacks per pallet, respectively. The company aims to reduce the finished product reprocessing index principally due to ripped bags and spilled products during receiving, put away, storage, replenishment, picking, and dispatch activities in the warehouse. This waste in reprocessing is a problem because requiring storage space for reprocessed products, a workforce to reprocess sacks, and, most importantly, represents an additional cost for the company. With the application of lean warehousing philosophy and the DMAIC methodology, it was possible to reduce 51.6% of the finished product reprocessing index.