Tips for finding and fixing gaps in material and data flow

By John Hill, principal, ESYNC -- Modern Materials Handling, 3/23/2006

I continue to be amazed at the number of operations managers who, when asked, cannot readily provide me with a snapshot of inventory status by discrete location.

One of my first lessons upon entering the material handling industry some thirty years ago was that the real key to manufacturing and warehousing productivity improvement lay with accurately matching material and data flow. That is, having the ability to capture and process, disseminate and use the information associated with receipts, internal moves, inventory adjustments, order picking and shipments as those events occur. Or, in other words, every time a product moves, the information on its identity, characteristics and location should be updated.

However obvious it may sound, this was (and is, yet today) a tall order for operations whose data capture technology consisted of clipboards and pencils, bullhorns and walkie-talkies.

In the mid-1970s, the data capture tool kit was enhanced with bar code scanning and radio frequency data communications. More recently, voice data entry and RFID have joined the party. These tools facilitate capturing information on goods and work-in-process in real-time, setting the stage for material and data flow synchronization.

How do you leverage their capabilities? Your first step is to grab a couple of D-size drawings and carefully map material and information flows. Put one of them on acetate (or a transparent sheet) and overlay it on the other. Then, compare them. Every time there is a “disconnect” – that is, material goes one way and the data associated with it sits there or goes another – there is an opportunity for improvement.

Disparities or gaps between material and data flow create time lags that impact the accuracy of inventory and affect space and labor utilization, order fulfillment and shipping efficiency. Disparity analysis not only identifies opportunities for AIDC deployment to close the gaps, but may also reveal additional potential for performance improvement through minor changes to layout, material flows, storage and picking processes.