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Ops Lift

Your client operates several fulfillment centers. The exhibit shows warehouse throughput (units per labor hour) across six processes in 2022 vs 2023: Picking, Packing, Sortation, Loading, Replenishment, Returns Processing.

Which process saw the largest improvement in throughput on a percentage basis, and roughly by how much?

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πŸ“‹ Solution:

Ops Lift

1) Eliminate non-contenders by inspection.

  • Replenishment: 80 β†’ 78 (down).
  • Returns Processing: 60 β†’ 57 (down).
  • Packing: 95 β†’ 100 (+5 on 95 β‰ˆ ~5%).
    Only three merit math: Picking (120β†’139), Sortation (180β†’205), Loading (150β†’173).

2) Compute just the contenders (percent = change Γ· 2022 value).

  • Picking: +19 on 120 β†’ 19/120 β‰ˆ 0.158 β‰ˆ 15.8% (~16%).
  • Loading: +23 on 150 β†’ 23/150 β‰ˆ 0.153 β‰ˆ 15.3% (~15%).
  • Sortation: +25 on 180 β†’ 25/180 β‰ˆ 0.139 β‰ˆ 13.9% (~14%).

Answer: Picking had the largest percentage improvement, at about 16%, narrowly ahead of Loading (~15%) and Sortation (~14%).