Design framework for a lean warehouse – a case study-based approach

Purpose - This purpose of this study is to develop a simple framework for designing a warehouse incorporating lean principles. Multiple objectives like resource planning, material handling, storage, inventory management, including internal and external logistics, are considered. Design/methodology/approach - A design procedure to incorporate lean principles for designing a warehouse for a complex multi-model production line has been proposed. The preferred standards and factors affecting warehouse design, the inputs and outputs of process flow characteristics, are incorporated into the design. Current and future state value stream mappings are drawn to bring out the challenges in the value flow. Findings - The framework for designing a lean warehouse have been implemented and validated in a heavy machinery manufacturer. This framework will ease the work of the future lean-based warehouse designers to apply simple step-by-step processes to achieve the goal with the nearest accuracy. The steps followed can be summarized as defining the lean processes, making the lean process as the design base, collecting inputs like stock-keeping unit master, inventory and space details, and building the lean warehouse design with the step-by-step processes. Practical implications - Practical tips on warehouse design have been explained focusing on the part volume, quantity handled, inventory and throughput. This will assist the practitioners in designing a lean warehouse and leading to an improved operational performance. Originality/value - A simplified design procedure for designing a lean warehouse, along with a real-time case study has been enumerated in detail. Effective use of space and resources with lean tools and techniques lead to better storage and picking efficiency resulting in an overall reduction in cost.