Key performance indicators – KPI’s – are frequently used in general business to evaluate the success of everything from a specific department to an entire enterprise. They focus on strengths and weaknesses. Many warehousing KPI’s tend to be focused on external performance, such as on-time shipments that directly impact customers. This is a good measure, but the need to go deeper and measure the factors that drive those success rates is critical. What are some KPI’s for warehousing operations?

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A warehouse control system (WCS) directs “real-time” activities within warehouses and distribution centers. They act as a traffic regulator for warehousing activities, with the mission of running material handling systems (and in some instances, the activities of workers). A good WCS system provides a broad, yet consistent interface for material handling systems like conveyors, carousels, palletizers, sorters, etc. On the other hand, a warehouse management system (WMS) is more focused on broader activities, people, and processes, such as shipments and orders. WMS usually doesn’t reach downstream into the automated equipment itself. A WMS is more about controlling human interactions to fulfill or receive product.

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When it comes to pedestrian safety in warehouses, the problem can be plain old attention span

People who aren’t paying attention are at the most risk, particularly those who walk near and around forklifts. People don’t pay attention because they’re busy, worried about deadlines. Or they’re absorbed in their smart phone, or in a conversation with someone. The reasons vary, but when forklifts are involved, the results can be deadly.

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2014 is shaping up to be a year of transition for the manufacturing sector, with issues in talent development, an aging work force, the re-shoring of manufacturing in some sectors, and the forward moment of automation taking center stage.

Where can you go for the latest in industrial manufacturing news, trends, research, events, and discussions? Social media is one solution. With roughly one billion registered users, Twitter can be an invaluable resource for discovering what distributors, suppliers, publications, consultants, journalists, bloggers, and industry experts are discussing.

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Receiving is an often-overlooked but critical component to warehouse workflow. Receiving  mistakes can flow through every other aspect of your operation.

If you can’t quickly and accurately break down landed shipments and send them to effective putaway, you can sabotage every other aspect of the operation. It has a direct impact on inventory accuracy (and security – in fact receiving is an area of particular vulnerability), throughput, and accurate fulfillment. Too little receiving space tends to become a root cause for many errors and throughput headaches.

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When you work on order picking strategies, knowing the metrics for picking rates may be helpful. Labor productivity is the key to any warehousing or order picking operation, since labor tends to be the largest single cost factor in these operations. It’s critical to understand production rates for processes that absorb labor hours, energy, money, and time.

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In its 2011 “Skills Gap in Manufacturing” report, the Manufacturing Institute laid out the situation: as American manufacturing continues to expand, a lack of critical skills in the workforce is becoming an increasingly common limitation. In many places, we see classified ad pages full of jobs for skilled positions like CNC machinists, high-volume assembly technicians, welders, or electricians. With a reported 600,000 unfilled jobs in the manufacturing sector, it’s something that has to be addressed.

Certainly, lower-cost foreign labor is still a drain, but there is little manufacturers can do about that. What can manufacturers do?

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We talk safety a lot,  mainly because the environment we work in, and the customers we work with use equipment like forklifts and conveyors in areas where interaction with people is unavoidable. We believe the first responsibility we have to our customers, and the first responsibility our customers have to themselves, is safety. Many of the wonderful benefits of material handling equipment comes with the risk of injury. It’s powerful machinery, and people must pick from it, walk near, it or otherwise interact with it.

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You want your company to be a leader in your field. You want to provide the best product to your customers at the best price, and cut needless costs, transactions, touches, and clutter that inhibit productivity. The term “lean production system” was coined in 1988, and manufacturers have been honing their operations to conform to lean principles ever since.

It starts with making sure every part of your organization is doing its job well; and is armed by process to execute its mission.

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There are two types of pallet rack capacity to take into account: beam and upright. Getting those capacities right is a critical factor in safe, efficient rack operations, so understanding why they are very different numbers is important.

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