Proceedings of the 12th European Conference on Knowledge ...

John T Young
Comparison <strong>of</strong> <strong>the</strong> conceptual model (Fig 7) with <strong>the</strong> real world is shown in <strong>the</strong> following table 2
9. Comparing <strong>the</strong> Conceptual Model with Reality
Conceptual Activity Reality Proposed knowledge management
required
Identify Storage Capacity Required Storage dispersed across numerous Consolidate stock in one central
for:
Regular Orders
Seasonal and Bulk Orders
warehouses in different states distribution centre
Plan Storage Space for:
Congested flow <strong>of</strong> material Some Structure flow <strong>of</strong> material and work.
New Material
materials stored in aisles. Finished Separate inbound and outbound
Finished Product
product stored on trolleys not in stock. Install comprehensive slickrail
Work in process
locations. Hanging garment slickrail system. New door for outbound
Hanging Garments
system installed piecemeal with
limited coverage
goods
Plan Space for order picking, Packing presently centrally located, Located outbound activities toge<strong>the</strong>r.
consolidation and packing
not near exit. No room for order
consolidation
Include space for order consolidation
Plan Distribution Channels:
All orders received centrally but Close all o<strong>the</strong>r distribution centres
Distribution Centre
processed at individual distribution and consolidate distribution centrally
Direct Customers
Export Orders
centres
Plan Order Entry Model:
Order entry system incompatible Upgrade order entry system to
On line Orders
with computer system. Multiple include web based input, credit
Manual Orders, Phone, Email etc. crashes & confusion
control and generation <strong>of</strong> picking slips
Provide Customer Feedback
No established channel available for Develop customer feedback system
Channel
customer feedback
and encourage its use
Monitor and Control Production and sales reports to CEO Accurate costing <strong>of</strong> stock turnover,
distribution costs and productive use
<strong>of</strong> space. Customer feedback
available to management.
Table 2: SSM Comparison Stage – Case 2
The interviewees were asked to consider how <strong>the</strong>y would approach <strong>the</strong> task in a new greenfield site.
The conceptual diagram represents <strong>the</strong> ideal situation considered without <strong>the</strong> constraints <strong>of</strong> <strong>the</strong>
present facility. To achieve <strong>the</strong>se ideas, <strong>the</strong> following three areas <strong>of</strong> change were addressed:
9.1 Attitudinal change
The management had decided on <strong>the</strong> manufacture <strong>of</strong> a line <strong>of</strong> economy products with department
store branding. Although <strong>the</strong>se represented high volume orders, <strong>the</strong>ir total cost was questionable
when considering <strong>the</strong> need to manufacture and consolidate stock before delivery.Management, and
<strong>the</strong> CEO in particular, were reluctant to use <strong>the</strong> latest technology for stock control. Barcoded labels
were in use but RFID (Radio Frequency Identification) was not being used and could be considered.
Picking <strong>of</strong> individual items was all by manual means. No mechanisation was considered.
9.2 Structural change
A review <strong>of</strong> <strong>the</strong> warehouse floor plan and part <strong>of</strong> <strong>the</strong> manufacturing space indicated that all present
stock could be accommodated in <strong>the</strong> present warehouse with <strong>the</strong> use <strong>of</strong> a mezzanine floor. This
would obviate <strong>the</strong> need for a secondary warehouse across town and <strong>the</strong> associated difficulties with
data communications and stock transfers being experienced with that site. Although traditional
warehouse design calls for a single story building, <strong>the</strong> present site has sufficient height to
accommodate a mezzanine floor without infringing building regulation or OH&S regulations. Present
access methods to SKUs could be utilised on a mezzanine floor and also slick-rail can be routed to
upper levels such as mezzanines. Assess to <strong>the</strong> building by constructing ano<strong>the</strong>r door, providing
separate inward and outwards loading and unloading docks could improve associated material flow
9.3 Procedural Change
The concept <strong>of</strong> establishing and servicing distribution centres in each state was questioned. The
alternative was to hold all stock at <strong>the</strong> main warehouse and distribution centre and ship to retail
customers from <strong>the</strong>re. This would enable a reduction <strong>of</strong> <strong>the</strong> overall inventory held and an increase in
<strong>the</strong> service level <strong>of</strong> customer orders due to <strong>the</strong> elimination <strong>of</strong> stock fragmentation. Urgent customer
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