3. Background
As the business continues to expand at a significant rate the need for
warehousing space has become business critical during 2014.
This has lead to a makeshift extension of the warehouse via stillage purchase
and storage on site, 4 hire trailers used as storage and Sims being used as a
third party storage warehouse. This has lead to increased cost totalling £26.5k at
the time of writing for third party storage and £280per week for trailer hire.
Other additional costs include the need to do increased hours, overtime, shift
work in order to keep the warehouse flowing to cope with both inbound and
outbound peaks.
As part of the remedy for the main site there is to be an extension built to
accommodate office and canteen space. This will enable additional floor
space to become available in the main warehouse that is to be filled with long
pallet and euro storage racking This project covers the additional racking build.
This work cannot physically start until the new extension has been built.
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4. In Scope
Once the extension is built and ready to occupy then there will need to
be a move from the existing Trade Counter/Showroom/Works
Office/Canteens/Stationary office and Drilling and Returns area.
The existing warehouse floor will then need to have VNA log on wires
installed for the relevant 11 aisles of extended racking.
Once complete there will be a major build of euro and cantilever
racking in the newly created space.
There will also be modifications made to the old Trade
Counter/Showroom mez which will then become a new work area for
carrier /secondary ops returns and drilling.
These new areas will require sprinkler coverage.
Phase 1 will require P&D’s to supply the increased location capacity
and expected growth in volumes as well as regular replen/de van
single sku pallets from our satellite warehouse.
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5. In Scope
The euro racking will be scoped out for MTM; roller racking;1245 panels storage
etc.
Create a nominated secondary Ops team and Team Leader to run it.
Purchase any relevant MHE trucks for the supply of product to the mez floor.
Reconfigure the warehouse once the new locations are in place to provide a)
new pick slots for new ranges and b) moving fast moving product to the front
end of the warehouse and slow/non moving stock to the furthest point in the
warehouse.
Remove the cantilever racking adjacent to the goods out bays to replace the
current euro X aisle. Absorb the lost euro locations in the new extended aisles.
This will increase the marshalling area on the outbound bays.
Achieve all this whilst the business continues to operate on a daily basis, where
possible. There is an expectation that there will be additional out of hours work
required during some parts of the project.
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6. Out of Scope
Supplying backfill labour to other parts of the business during this
project. There is a huge challenge here to complete this project at
the same time as normal trading which will stretch operational
resource to its limit.
In aisle picking sequencing reconfiguration for the existing aisles and
pick faces. This will need to be done post project Go Live.
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7. Expected Outcome
To provide a medium /long term solution to the warehouse space
issue-especially the long pallet locations.
Enable the main warehouse to operate more safely and efficiently.
Enable the company to introduce more new ranges into its sales
portfolio by increasing pick face availability and bulk storage
capacity.
Provide exceptional delivery service standards to both internal
customers and external customers.
To eliminate third party storage costs and have the main warehouse
as a picking and short lead time stock holding warehouse.
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8. C.D.P.
Jul-06 Jul-13 Jul-20 Jul-27 Aug-03 Aug-10 Aug-17 Aug-24 Aug-31 Sep-07 Sep-14 Sep-21 Sep-28
Move existing offices
Make ready T/Count Mez
Demolish current drilling area
Move drilling and carier
Lay VNA long in wiring
Rollback or Build racking
Install P&D's
Install Sprinklers
Install RF hardware
Commision/Test MHE/RF
H&S Risk Assess
Project Meeting
Migrate Stock into locations
Go Live
Operational KPI's
PIR Meeting
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9. Capex Budget
Budget Actual Diff +/-
Cost £ Cost £
Demolition of offices/drilling
Make ready T/Counter
IT RF hardware installation
Racking
Sprinklers
VNA floor log on wires
MHE purchase
Manitenance Work
IT hardware/software
Stock transfer
Out of hours working
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10. Risks
There are some key members of the current operational team who will be taken
out of the mainstream operational day, at times, until the project is complete.
Backfill will be required by less experienced staff which could have an impact
on the main warehouse service levels
Costs going over budget
The extension build overshoots the start of July which means this project also
being delayed. That would encroach into October and November-traditionally
our two busiest months of the year.
New ranges being introduced into the business due to a major increase in sales
demand before this option is up and running.
With a major demolition and racking build alongside probability of maintenance
work there are likely to be a lot of contractors on site. These must be controlled
properly or could pose a H&S risk.
Failure to complete the project on time due to a project overshoot on tasks
involved will have the same ramifications as per the failure to start on time.
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11. Governance
Periodic project meeting, (as per CDP)-all.
Weekly review of the CDP-between Project Manager and Project
Sponsor.
Weekly budget review between Project Manager and Project
Sponsor
Weekly update to the Director’s from the Project Sponsor.
Operational KPI’s post Go Live.
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12. Project Sign Off /Closure
All project team members will be required to sign off that their area
is closed off.
A final close out meeting will be held to review both success and
also any lessons that can be learnt for future projects. (Post
Implementation Review meeting.)
Final sign off will then be done by the Project Sponsor/Directors.
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