Wednesday, January 30, 2008

Class II Item Creation

After focusing on the holidays in December and working through the early January rush period, we are back in the saddle and focused on process improvement in Phoenix!

A Continuous Improvement team addressed the issue of creating new Class II items when an item has too much product to fit only in a bin-pick position. Too often, such items were being held for 1-4 days waiting until someone had time to change the status and find a bulk rack position for the product. This was causing inventory discrepancies as orders would be released but no one could find the product.

Several solutions were attempted over the past year, but nothing seemed to make an impact. A team of associates in Phoenix met and divided responsibilities for the process, making some adjustments to the process along the way. Now all Class II items are processed and put away in bin and bulk racks before the next production shift begins. Manual stock-outs have dropped by 40% in the two weeks since. What a wonderful improvement!