“H.E.B. Simulation Project”
Gabriel Carreno Gonzalez
Richard Wambua
Andrew Fails
Stephen Rosales
Supervisor: Dr. Jesus Jimenez
Industrial Engineering
Ingram School of Engineering
Capstone Design Project
1
Agenda
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Background
H.E.B Logistics/System Configuration
Terminology
Witness Simulation Overview
Objective
Model
Data Mining(R studio)
Simulation model and Analysis
Assumptions of Improvement
Recommendations
2
Background
Supply Companies
Stores
 A Retail Support Center is
a warehouse that is
stocked with inventory to
be redistributed to
wholesalers, retailers, or
directly to consumers.
Distribution Warehouse
Source: Material Handling Institute of America (http://www.mhi.org)
3
Company Background
 Formally known as H.E. Butt Grocery Company.
 Started in Kerrville, Texas with one family-owned store in 1905.
 One of the largest food chain, with annual sales of more than $15
billion.
 Supplies families all over Texas and Mexico in 155 communities,
with more than 340 stores and 76,000 employees.
 Named Retailer of the Year in 2010 by Progressive Grocer
Magazine.
 Ranked 15th in America’s Largest Private Companies by Forbes.
Source: http://www.heb.com/sectionpage/about-us/company/heb-history/3000002
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H-E-B Logistics
Existing Facilities Layout:
San Marcos Retail Support Center
(SM-RSC)
Purpose: Slow-Moving Merchandise
Size: Approx. 400K sq. ft.
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Terminology
 A picker is the human
resource who:
1.
2.
3.
4.
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Receives assignments
Picks products on to Pallet
Wraps the Assignmentfilled pallets
Loads all work
assignments into the truck
supported by machinery
equipment.
Problem Statement
 Arrange the locations of products in order to improve cases per hour
by at least one percent.
 Make travel routes shorter to increase efficiency.
 Reduce traffic congestion due to unnecessary transport moves.
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Objectives
 Use R to data mine
associations between
items ordered by stores
8
 Use Witness simulation
to compare the order
picking process of
current layout
configuration and
proposed data mined
solution
Witness Simulation Model
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Proposed Layout
 The new layout is based on market basket analytic
techniques using an apriori algorithm
 Rules formulated using the CRAN “arules” and
“arulesviz” package for R
 Implemented rules chosen based on a measure of
how frequent the items are selected together
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R-Studio Results
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Rule Example
12
Results for New Layout
Number of
Pallet Jacks
Current Layout
New Layout
Avarage Order with
Total
Number of
Number
Max
numbrer of
Max
Number of
orders to
of unique Number
orders per Number of
products
finished
products of items
pallet jack
items
to load
Time to
Finish
orders
(Hours)
% of time Cases per
to finish
hour
5
20
4
5170454
2923
360
5330
10.8
100
1.85
5
20
4
5170454
2923
360
5330
10.6
98.148148
1.89
Example of New Layout for Certain Products
New
Assigned
ProductID AisleName
AisleName
(Witness)
55538
TH
Aisle40
124616
TH
Aisle40
151935
TH
Aisle40
129589
TH
Aisle40
22195
TH
Aisle40
98854
TH
Aisle40
71715
TH
Aisle40
663302
TG
Aisle30
165426
SM
Aisle30
800797
SM
Aisle30
129627
TH
Aisle40
44524
TH
Aisle40
33019
RS
Aisle15
67762
RS
Aisle15
155002
TH
Aisle40
48184
TH
Aisle40
AisleNumber
Aisle Section
40
40
40
40
40
40
40
30
30
30
40
40
15
15
40
40
1
2
3
4
5
6
7
1
2
3
5
1
2
3
4
5
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Conclusion
 Several valuable process improvement variables
(Relevance, Timeliness, Accessibility and Comparability)
were considered and implemented to the results.
 With a series of process improvement goal, an objective of
reducing cases per hour throughput by one percent was
achievable
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Recommendations
 Implement a family grouping storage assignment system to
ensure time efficient traveling routes.
 Rearrange the products according to association rules
support.
 Reduce traffic flow by adopting unidirectional routing.
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Q&A & Acknowledgements
Q&A Session
Special thanks to:
Jessica Johnson (HEB)
&
Dr. Mendez( Fm16@txstate.edu)
McCoy School of Business Texas State University
*Sponsor of problem and data
*Sponsor of WITNESS simulation language
Would like to become a sponsor of a IE capstone design project?
If Yes, please contact Dr. Jesus Jimenez (jj30@txstate.edu)
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