SYST 798/OR 680
Progress Report #2
31 March 2011
Thomas Kuklinski
Timothy Smith
Ling Wu
Vladimir Zivkovic
Where Innovation Is Tradition

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Clients
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Problem Statement
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Earned Value Management
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Task Breakdown Structure and Status
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Methodology/Technical Approach
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Issues/Concerns
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Way Forward
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Questions
Where Innovation Is Tradition

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Kent Renk, Materials Handling Foreman,
Washington Post, renkk@washpost.com
,
703-916-2471 (office), 703-916-2471(cell)
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Kim Hammett, Assistant Superintendent for
Materials Handling, hammettk@washpost.com
,
703-916-2447 (office), 703-869-2463 (cell)
Where Innovation Is Tradition

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Background
• Fall of 2010 GMU students did initial static analysis of the Washington Post’s Shipping and Receiving Department in Springfield, VA
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They conducted a process evaluation, an analysis of labor, and an analysis of routes which resulted in three groups of recommendations:
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Labor cuts (implemented)
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Route simplifications
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Improved data tracking
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Problem Statement
• Our objective will be to maximize the efficiency of the Washington Post’s materials handling system at their four work centers (i.e. Shipping and Receiving Department) in an effort to generate cost savings to the overall operation
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We would like to bring to life and build upon the static analysis done by previous group in a dynamic simulation model of the helper component of the work centers
• Stakeholders
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Materials Handling Foreman (Kent Renk)
Where Innovation Is Tradition

Where Innovation Is Tradition

700
600
500
400
300
200
100
0
Washington Post Project Earned Value
Earned Value (BCWP)
Actual Cost (ACWP)
Planned Value (BCWS)
Where Innovation Is Tradition

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Process Analysis (completed)
• Build upon last group’s work done on process evaluation
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Develop a complete and detailed qualitative understanding of how the Shipping and
Receiving Department operates
• Data Collection and Analysis (in progress)
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Collect data from both the materials tracking system (i.e. MTC) and subject matter experts
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Obtain descriptive statistics on each component of the system
• Model Selection and Construction (in progress)
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Evaluate model alternatives based on quantitative/qualitative data and client needs
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Construct and test model (e.g. turn system processes into Arena modules)
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Output Analysis (not started)
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Evaluate output in terms of cost and throughput
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Iterate
Where Innovation Is Tradition

Where Innovation Is Tradition

Trucks
1. Daily Insert Ads & Sunday Packaging
Materials
Handling
Racks
Daily Insert
2c. Jackets
Run of Press
Sunday Packaging
Where Innovation Is Tradition

Materials
Handling
Racks
Daily Insert
Sunday Packaging
Run of Press
Where Innovation Is Tradition

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Labor data
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Obtained labor markup data for this period
• Broken down by work center, day, shift, and role
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Assigned helpers within the work centers to specific routes so we know which moves they would be responsible for
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This required splitting helpers assigned to specific machines into subsets
(e.g. Collator 4)
Collator 1
Collator 2
Collator 3
Collator 4
Total
Sunday Packaging: Monday
1st Shift (6:30am-2:00pm) 2nd Shift (2:15pm-9:45pm) 3rd Shift (10:00pm-5:30am)
2
0
2
0
0
0
2
3
7
2
3
7
0
3
3
Where Innovation Is Tradition

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Route data
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Obtained Summary Report for February 7-12 created by MTC
• Data obtained for a “normal” week of work
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Contains pallet moves for all materials throughout the system
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Mapped all of the routes to specific areas within our system so that we know how everything interacts
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Client assisted with determining which routes were not relevant
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This all informed our Process Analysis understanding
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Obtained descriptive statistics on route times for model input, specifically route times
ISSUE DATE PALLET ID
06/22/2008
06/22/2008
06/22/2008
R555147
R555147
R555147
CLASS
CONSUMABLE
CONSUMABLE
CONSUMABLE
DESCRIPTION
Stretch wrap, clear
Stretch wrap, clear
Stretch wrap, clear
LOCATION
RD01
H52A
DATE / TIME
01/06/2011
01:14:49 PM
02/07/2011
05:30:33 PM
USER ID
HAARHOFFDS
MACKLIND
KUBEAG
LOCATION DATE / TIME
RD01
01/06/2011
12:48:45 PM
H52A
C4CON
01/06/2011
01:15:44 PM
02/07/2011
05:30:38 PM
Where Innovation Is Tradition

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Data options on route duration time
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Use estimated data from sponsor (max, min, mean) for a triangular distribution
• Sponsor recommended because of “bad” MTC data
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Use Arena Input Analyzer to find the best fit distribution based on MTC sample of “good”
MTC data
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Very small sample size
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Looked at both to obtain conclusive results
Where Innovation Is Tradition

Where Innovation Is Tradition

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Production Data
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Missing production data
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Invalid production data
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Inconclusive results for route times
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*Estimated client SME data
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Client recommended this approach for route times
Where Innovation Is Tradition

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Discussion with client and additional system understanding has allowed us to settle with an Arena simulation model
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It is very important for the client to be able to use the model to forecast the impact of different labor markups on production targets for both daily inserts and Sunday packaging
• Phase 1 - Develop an Arena model that allows the client to play with “what-if” labor markups to hit production targets (required)
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Phase 2 – Add on an optimization engine that determines labor markups at minimal cost to the client to hit production targets
(desired)
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Based on Process and Data Analysis, an Arena model has been started
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Architecture, labor markups by day/shift, and route time & assignments finished
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Arrival processes by day/shift, internal business logic, and production targets still being analyzed
Where Innovation Is Tradition

Raw Materials
Monday, Shift 1
Normal(2, 4)
U(6,8)
EXP(10)
C1 Machine
Dock Dock
S1 Machine
U(2,5)
Production Targets
Run of Press
EXP(5)
Where Innovation Is Tradition

Raw Materials
Monday, Shift 1
EXP(5)
EXP(5) U(6,8)
C1HS C1PZ
Rack Dock
S1HS C1PZ
U(2,5)
Production Targets
EXP(5)
Where Innovation Is Tradition
ROP
Jackets

Where Innovation Is Tradition

• Working with sponsor to obtain accurate business rules to apply to model components
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Currently there is no clearly defined business rules on the production processes at the work center
• Depends on sponsor’s ability to articulate, analyze, and abstract general business rules of the production processes
• Packaging the Arena simulation model
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Graphical User Interface
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Model for each day vs. Large dynamic model
Where Innovation Is Tradition

• Data Collection and Analysis
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Arrival Process Distributions (Input Analyzer)
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Determine raw material arrival processes from the rack
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Determine machine output arrival process (e.g. C1, S1, etc.)
• We are waiting for all of this data to be provided
• Modeling
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Determine internal business rules
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Rack to C1 vs. C2 vs. C3 vs. C4
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S1 to Z1 vs. Z2 vs. Z3
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Etc.
• Look into production targets
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Begin identifying output analysis components to investigate
Where Innovation Is Tradition

Washington Post Project - Web site
Where Innovation Is Tradition