strategicinsight
required to bring a product from
order to delivery); just-in-time pro-
duction (making and delivering the
exact amount needed, when and
where it’s needed); the “ 5 Ss” (five
principles of an organized work-
place); work leveling (ensuring con-
sistent type and quantity of work
over a period of time to avoid batch-
ing and backlogs); kaizen (continu-
ous improvement); and Plan-Do-
Check-Act (an improvement cycle
that consists of proposing a process
change, implementing the change,
measuring the results, and taking
appropriate action).
Lean is not just for manufacturing,
however; its techniques and tools can be
adapted to almost any type of operation.
In warehouses and DCs, it can improve
efficiency, inventory, safety, and costs, say
experts in the discipline. And because
Lean changes the way people think about
processes and communication, it can be
especially effective in helping facilities use
warehouse labor more efficiently and
cost-effectively. It’s a complex subject that
requires formal training to master, but the
following will provide a general idea of
how lean principles can have a huge
impact on warehouse labor.
A GOOD FIT
What makes a concept originally developed in the auto industry a good fit for
warehouses and DCs? For one thing,
Lean’s objectives are similar to those of
warehouse and DC operators, says
Timothy Sroka, senior manager-lean
operations for third-party logistics service
provider (3PL) Menlo Worldwide
Logistics. “The goal of the Toyota
Production System is lowest cost, highest
quality, shortest leadtime. You want that
in a warehouse, too,” he says.
For another, the seven wastes that lean
management seeks to eliminate are all
present in warehouses and DCs. They
include (with examples):
▪ Transportation (driving a forklift
without a load)
▪ Defects (time spent fixing work done
incorrectly, such as mispicks)
▪ Inventories (piling staged product in
locations that create congestion)
▪ Motion (temporarily placing inbound
pallets on the floor instead of directly into
storage)
▪ Wait time (waiting to load or unload
trucks)
▪ Overproduction (making or ordering
more product than is needed or before
there is demand for it)
▪ Overprocessing (performing steps in a
process like packing and shipping that are
unnecessary)
Some companies have added other
wastes to that list. Those interviewed for
this story named unused employee creativity or knowledge and overengineering
(applying a complex solution when a sim-
