GENCO ATC CONTRACT LOGISTICS IMPROVEMENTS

Cost Savings (page 1): Biflex (annual savings of $58K), Crayola (annual savings of $62K) Time Savings (page 2): Canadian Tire (weekly savings of 40 hrs.), Heinz N.A. (5S) Safety (page 3): Simple Solutions

B I F L E X FAC I L I T Y I M P ROV E S S H I P M E N T S
Facility Statistics
Location: Fernwood/Summit, MS Offering: Shipping center (Womens Apparel) Total # of TMs: 64 full-time & occasional temps

June 2011

Problems Encountered: Our Customer, Biflex, challenged us to investigate and improve the process of preparing shipments (known as the 754 process) to JC Penney. The improvement would need to address our hoshin goals (productivity increase, customer satisfaction, and on time shipments). It would also address the labor involved in the very manual process, the potential of mislabeling cartons, printing issues, and safety.

Improvements Processes: The original process was reviewed to determine opportunities for improvement. The process was analyzed to determine the current costs associated with labor to process and inspect each shipment, as well as chargeback cost related to label quality/errors. Using root cause analysis, it was determined that the auto label machine was the best solution. Results: The facility was able to save the customer approximately $58,000 annually. The solution to procure an X-Press PAL Labeling System automated the scanning, printing, and labeling of the cartons. The new automated process reduced labor and increased quality. In addition to the consistent printing and labeling of the cartons, this machine also grades the print quality of the labels which will result in a reduction of charge backs related to poor print grade.
Each carton scanned manually

Prior Situation

Each label must be manually matched to each carton

Each carton must be manually inspected

Biflexs shipping process before improvements took place.

Facility Statistics

C R AYO L A C U T S C O S T S ,
I M P ROV E S C U S T O M E R S A T I S FAC T I O N

Location: Fredericksburg, PA Product: Parcel picking/Shipping (Craft Supplies) Total # of TMs: 72 full-time, seasonal temps

Problems Encountered: After the customer implemented a new ERP system (SAP), the number of orders that shipped via FedEx increased by threefold. The current area and process could not handle the increased volume of orders so labor cost increased with overtime and additional shifts. Improvement Processes: We held a two day kaizen event. The team consisted of the customer liaison, area teammates, supervisors and an office clerk. We created a current and

future Value Stream Map which resulted in many projects. We rearranged the area into a new layout over several weeks and implemented 5S floor markings to clearly define where every pallet belonged all while implementing visual aids to ensure we could keep track of orders. We were also able to improve the process flow and level loaded through releasing work into two hour increments. We created standard work instructions so every process was clearly document.

Results: Costs were reduced in the area by $62,000 annually. This was a result of increase productivity, reduced overtime and keeping activity to one shift. Results also included improved customer satisfaction, improved flow and improved communication in the area.

GENCO ATC Contract Logistics

June 2011

H E I N Z N. A . C O M P L E T E S 5 S P R O J E C T
Facility Statistics
Location: San Bernardino, CA Offering: Distribution Center Total # of TMs: 22

Disorganized maintenance cart BEFORE 5S project

Problems Encountered: Teammates had an issue with supplies being misplaced. The facilities maintenance team was also spending too much time searching for cleaning supplies. Teammates observed the supply cart and noticed that it was in need of a 5S event. Improvements Processes: Teammates held a one day 5S event to organize the supply cart and area around the cart. The cart was stripped and cleaned and all of the supplies loaded onto the cart in an organized manner. Kanban cards were made to indicate reorder. 5S floor markings were put down in accordance with the 5S requirements. Results: The team reduced time for gathering supplies from 10-15 minutes to 2-3 minutes, and reduced cost from $520.00 to $104.00 annually.

Maintenance cart AFTER 5S project complete with labels & Kanban cards

Facility Statistics
Location: Calgary, Canada

C A N A D I A N T I R E S AV E S T I M E A N D E F F O R T

Offering: Automotive & General Merchandise Total # of TMs: 350

Problems Encountered: Teammates in the automotive department receive all picking commands through voice using the Manhattan system. These commands are broken down into multiple small components to confirm location in the picking area. Every step requires the teammate to confirm location by saying ready. A Teammate in the area , Marilyn Agbayani, noticed that they had to stop and wait at every ready. She asked the question, Can we reduce the amount of confirmations required by Vocollect? Improvements Processes: Just Do It was the best tool used for this project: simply asking the question to the right group of teammates. A process flow diagram was used to illustrate the potential savings and to demon-

strate the overall validity of the project. The Manhattan support team, was engaged to determine if these changes were possible and if they were able to schedule any changes required. Results: Through the efforts of the Manhattan team, the change was made. Teammates now say ready to confirm location three less times which results in a savings of four seconds on every pick, currently averaging over 35,000 per week. This adds up to 40 hours saved per week for every week going forward. This was the suggestion from a teammate that is resulting in ongoing savings to the client and reduces the work effort for every picker. Teammate Marilyn Agbayani

GENCO ATC Contract Logistics

SAFETY:

A TOP PRIORITY
June 2011

SIMPLE SOLUTIONS TO SAFETY HAZARDS

GCL Junes Safety Awareness: As we all know, GENCO ATC prides itself on keeping safety a top priority. In order to continue to take preventative measures to protect our teammates, here is real-life accident that occurred at one of our facilities that we can all learn from. The injury occurred when a teammate went to close a dock door and a pallet that had not been properly secured ended up falling between the rack and the dock door. The pallet ended up striking the teammate on the head and shoulder. This teammate suffered a concussion and an open wound on his head that required staples. For all GCL facilities that have racks placed above dock doors, there are a few easy things that can be done to prevent similar accidents like the one mentioned from occurring to one of your teammates. Unsecure pallets (picture 1) can be very dangerous. Simply ensure that proper back braces are placed on the racks (picture 2) and make sure that all empty pallets/product is completely secured by stretch wrap and/or banded together (picture 3).

The top and bottom pallets are not fully wrapped. This is incorrect. All pallets and/or product must be completed secured to prevent a fall hazard.

Back braces for the racks to help prevent pallets/product from falling.

3
This picture shows that all of the pallets are completely wrapped and secured.