CKF Inc. - Business Consulting Project

Project Details

Project Client: CKF Inc.
Project Description: Process Improvement Project
Students: Gurp Purewal and Larry Kwan
Term: Spring 2011
BCIT Program: Business Operations Management
The purpose of the study was to minimize travel times dealing with the handling of finished goods in Building 4 resulting in yearly process time savings of 72 hours. With the suggestions that were made regarding what could be improved or modified for the CKF Inc. there will be additional process time savings on top of the proposed Fixed – Floating layout. The recommendations were directed towards facility layout within the organization dealing with the storage of finished goods.

The identified project symptom was long travel times for retrieving and putting away finished goods resulting in tied up time for the forklift operators. A review of the current layout was conducted for comparison to the proposed layout to show the process time savings.

Through interviewing employees at CKF Inc. and also talking with advisors, the project team was able to create three alternative layouts and three suggestions for the company. The alternatives were evaluated down to one proposed layout from the criteria supplied. With the criteria established the project team was able to evaluate the three alternatives. The unique bulk product storage needed a layout to maximize CKF Inc.’s space utilization concerns which were addressed. The recommended lay features fixed A B C Zones with floating bin locations for items within those zones. The A B C Zones were determined based on an items annualized movement volume and overall expected storage space requirements.

As the layout is implemented process time savings of 7% will be gained by CKF Inc. The implementation will be done slowly by allocated bin locations by the internal system at the company. Once fully implemented and the workers are educated about the new process then CKF Inc. will benefit the long term process time saving. The results will be beneficial for the company by clearing up time for the forklift operators to do other tasks or move more product in the same amount of time.