klaus-michael fortmann-fundamentals of logistics
DESCRIPTION
Aim of unit and content:Logistics is the process of planning, implementing, and controlling the efficient, cost-effective of raw materials, in-process inventory, finished goods, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements.TRANSCRIPT
halotit.ppt
Slides for the course
Fachhochschule GelsenkirchenFachbereich WirtschaftStandort Gelsenkirchen
Prof. Dr. Klaus-Michael Fortmann
Fundamentals of Logistics
Special thanks for my colleagues Mrs. Dipl. Kauffrau Angela Kallweit and Miss Dipl.Betr.wirt. Angela Büttner, who helped me developing parts of the german version!
Fundamentals of Logistics
2 Weekly Semester HourLecturer: Prof. Dr. Klaus-Michael FortmannAim of unit and content:Logistics is the process of planning, implementing, and controlling the efficient, cost-effective of raw materials, in-process inventory, finished goods, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements. Theobjectives of this course are to provide the student with:• the basic-terms, concepts and principles of logistics,• the information, how components of logistics interrelate and interface with other
functions of the firm,• the traditional logistics functions such as customer service, transportation, warehousing, and
inventory management,• analytical tools for solving logistics problems and• the most important key data (key performance indicators KPI) which are used to ensure the
efficiency and effectiveness of logistics processes.Method: A combination of lecture, class discussions, logistics-videos and excursions to firms.Literature:Schulte, Christof: Logistik, München, 1999 ; Fortmann/Kallweit: Logistik, Stuttgart 2000Douglas M. Lambert, James R. Stock, Lisa M. Ellram, Fundamentals of Logistics Management, Boston etc. 1998, ISBN 0-07-115752-2; Richard J. Tersine, Principals of Inventory and Materials Management, London 1994, ISBN 0-13-126484-2
" Fundamentals of Logistics "- Definition of Terms -
Definition of Logistics
LogisticsLogistics definedefine thethe integratedintegrated planningplanning, , realisingrealising, , usageusage and and controlcontrol ofof•• all all kindskinds of of transporttransport processesprocesses, , •• thethe storagestorage of of goodsgoods andand•• thethe correspondingcorresponding informationinformation processesprocesseswithinwithin companiescompanies and and betweenbetween companiescompanies..
Informationflow
I = Information
Order I III
Materials flow TClient
T = Transport
TTT
Require-ments
planning
Produc-tion
planning
Purchaseorder
Purchaseorder
quantityplanning
SupplierWare-house
Produc-tion
Ware-house
A system contains subsystems. An integrated system is characterized by thefact, that the subsystems are connected by adapted interfaces (physically, byinformation technology or both). With reference to logistics this means: Entiresystem = company logisticsSubsystems: procurement logistics, in-house logistics resp. productionlogistics, distribution logistics, reverse logisticsIntegrated planning: Logistics must be planned in context to all subsystems, i.e. all interfaces shall work well together.Realisation: building of logistic facilities (warehouses, materials flow systems), organisation of logistic processes, design and programming of logistic IT-Systems (PPC production planning and control system, MPC merchandise...); Materials flow: In a broader sense all processes of transportation are subjectof logistic concepts, i.e. as well the transportation of men (train, ship, plane)
" Fundamentals of Logistics "- Definition of Terms -
Definition of Logistics: Explanations
Relations between flow of information and materials flow: examples
Opposite flow of information against the material flow
Concurrent flow of information: reference manual, invoice, delivery order, consignment note (way bill), freight list
Advance flow of information:lists of announced deliveries (package numbers) (Packstücknummern), order confirmation (oracknowledgement)
Onward flow of information: invoice with separate mail
" Fundamentals of Logistics "- Definition of Terms -
Definition of Logistics: Explanations
loingb06.ppt
Sphere of Influenceof Logistics
" Fundamentals of Logistics "- Definition of Terms -
Recycling Industry
Purcha-sing
Produc-tion Selling
Cycle of Logistics
Primary Industry
Converting Industry/Manufacturing Industry
Commerce
FinalConsumer
RawMaterials
Trans-forming
Mining
Recycling Collecting
Purcha-sing
Storage
Selling
Selling
Selling
Priority:
• Avoiding of waste is better than
• Recycling of waste is better than
• Elimination of waste
Therefore the law says that in the year 2010 all rests of consumptiom must be returned into a closed loop of materials.The logistics in this context has a lot of tasks.
" Fundamentals of Logistics "- Definition of Terms -
Hints on the german law of closed loop materials economy(Kreislaufwirtschaftsgesetz KrWG)
loingb01a.ppt Source: Associated with: H.-Chr.Pfohl, Marketing Logistik, Berlin Heidelberg 1972p.28;H.-Chr.Pfohl, Logistikssysteme, Berlin Heidelberg 1996, p.19
Main Aim of Logistics: Optimisation the Efficiency of Logistics
" Fundamentals of Logistics "- Aims -
• Right Product• Right Place• Right Quantity• Right Time• Right Quality• Right Costs
The 6 "R" ofLogistics
System Output:
Efficiency of Logistics = Output/Input Ratio of the Logistics System
• Costs of Inventory• Costs of Storage• Costs of Handling• Costs of Control• Costs of System• Costs of Transp.
System Input:Valued
Factor Input
Logistics System:Logistics ofCompany
• Procurement Logist.• Production Logistics• Distribution Logist.• Reverse Logistics
Personnel and Equip-ment in the Areas
loingz03.ppt Source: Associated with Christof Schulte: Logistik, 2.Edition, München 1995, p. 6
Components of Logistics Service
" Fundamentals of Logistics "- Aims -
Delivery Time = Time between issue of order and availability forthe client
Delivery Reliability (on-time delivery performance) = Percentageof keeping the guaranteed delivery time
Flexibility of Delivery = Possibility of consideration of special wishesof the clients concerning delivery time or delivery quantity
Quality of Delivery = Accuracy of delivery concerning type, quantity and quality of the delivered articles
Delivery Service Level = Percentage of articles directly deliverablefrom warehouse
Source: Associated with Christof Schulte: Logistik, 1995, p. 10.loingz01.ppt
Costs of DeliveryService
Costs of Shortfalls
TargetActual
TotalCosts
Optimal Delivery Service
Costs
Delivery Service 100 %
" Fundamentals of Logistics "- Aims -
Postulated Delivery Service
ActualTarget
Costs
Delivery Service 100 %
Costs of D
elive
ry Serv
ice
Alternative Strategies
loingz05.ppt
Example of a statistic Evaluation of Delivery Reliability
Weeks of delay
Quantity of deliverd Orders within the first Quarter
Comparision between the guaranteed dateand the real delivery date: Negative values indicate too-early-dates. Positive values point out on dates too late.
" Fundamentals of Logistics "- Aims -
020406080
100120
-8 -6 -4 -2 0 2 4 6 8 10 12 14
loingz04.ppt Source: Associated with Christof Schulte: Logistik
Important Types of Logistics Costs
Costs of Inventory = Interest rate of the bounded capital, insurance,depreciation, loss by theft
" Fundamentals of Logistics "- Aims -
The costs of logistics can reach between 15 and 20 percent of the total costs, therefore they have considerable influence to the company profit!
Costs of System = Planning, realisation and control of the material flow
Costs of Control = Planning of production programm, production planningand control, order processing, shop-floor scheduling ...
Costs of Tansport = Costs of internal and external transportation
Costs of Handling = Picking, Handling, Packing
Costs of Storage = Fix costs of the warehouse equipment, efforts fortransfer to and release from stock
Source: http://www.marketingteacher.com/Lessons/lesson_boston_%20matrix.htmGroup)loinge03.ppt
Selling Conditions and Requirements of the Market
" Fundamentals of Logistics "- Influencing Factors -
Stars
Cash CowsPoorDogs
MarketGrowth
Market Share
high
low
highlow
??QuestionMarks
?
The Boston Matrix
The Boston Matrix is a Classification ofproducts for buildingnorm strategies.
Source: Associated with Christof Schulte: Logistikloinge02.ppt
Selling Conditions and Requirements of the Market
" Fundamentals of Logistics "- Influencing Factors -
Logistic Consequences:
: Optimisation of: material flow, production and planning control systems,shop-floor scheduling, delivery service, customer service, purchasingmanagement, distribution system, order processing
: Search for a suitable production location, increasing or decreasing of thedistribution system, improvement of the delivery service, orientation of the logistics to special market segments
: Hold up of the delivery and customer service, rationalise of logistics,rigorous realisation of inventory management and valuation policy
?
: Stock minimisation, hold up of delivery service only in selected marketsegments, minimisation of distribution costs
Source: Associated with Christof Schulte: Logistik loinge05.ppt
Influences of the Production Program
Consistency and type (Size, weight,
sensibility, deterioration) of products, value
Storage,packing,transport
Range of goods,variety of goods,
frequency ofselling
Inventory,inventoryturnover
Life cycle ofproducts, changes in
demand
demands on delivery service,
warehouselocations
Product
Logistics
" Fundamentals of Logistics "- Influencing Factors -
" Fundamentals of Logistics "- Company Organisation Structure -
Source: Associated with Christof Schulte: Logistikloinga02.ppt
Questions before fixing the Company Organisation Structure
Which functions should be part of the logistics organisation ?Level of centralisation resp. decentralisation?What kind of organisation should be used within thelogistics departement?Amount of costs of the above mentioned logistic functions?Desired delivery service?Complexity of product structure and vertical range of manufacture?Typology of operation: Production of individual ordersor large-scale production? Order-oriented manufacturing / anonymous market?Structure of suppliers (Quantity, geographical distribution)?Structure of customers (Quantity, geographical distribution)?
" Fundamentals of Logistics "- Company Organisation Structure -
Source: Associated with Christof Schulte: Logistikloinga05.ppt
Staffs Logistics
PlantLogistics
Research andDevelopement
ProductionManagement
Sales
Finance andAccounting
Plant I
PlantLogistics
Research andDevelopement
ProductionManagement
Sales
Finance andAccounting
Plant II
PlantLogistics
Research andDevelopement
ProductionManagement
Sales
Finance andAccounting
Plant III
PlantLogistics
Research andDevelopement
ProductionManagement
Sales
Finance andAccounting
Plant IV
BoardStaff-Line-Organisation
" Fundamentals of Logistics "- Company Organisation Structure -
Source: Associated with Christof Schulte: Logistik, 2.Edition, München 1995, p. 6loinga07.ppt
Grading within the HierarchyDefinition of levels
• Executive board
• Area management
• Sector management
• Department Department 1
Department 2
Department 3
Department 4
Sector 1
Department 1
Department 2
Department 3
Department 4
Sector 2
Area 1
Department 1
Department 2
Department 3
Department 4
Sector1
Department 1
Department 2
Department 3
Department 4
Sector 2
Area 2
Board
Positioning of Logistics within thelevel of executive board isrecommended, when the costs of logistics are relatively high and theflow of material and information isvery complex.
" Fundamentals of Logistics "- Company Organisation Structure -
Source: Associated with Christof Schulte: Logistikloinga13.ppt
Effects of an integrated Organisation of Logistics
• Avoiding redundancies
• Higher transparency
• Reduction of logistic costs
• Reduction of stock
• Optimal use of central und decentral information
Processes within the company
Thinking restricted to area
Order process
Process 1
Thinking in processes
Develop-ment
Offer Orderprocess
TREND
" Fundamentals of Logistics "- Process Organisation -
loingg02.ppt
Process 2 Process 3
Client
Order center
Materials managementConstruction/Work scheduling
Production
Finance and accounting
Supplier
Order
Order receiptprocessing
Procurement oflong deliverytime material
Materialprovision Shipping
ProductionProductionorder
Preparinginvoice
Product Invoice
Datecheck
Procurement ofRemainingmaterial
Construction
Confirmorder
Order confirmation
Purchaseorder
Example of an order process within a small company
" Fundamentals of Logistics "- Process Organisation -
loingg04.ppt
Processes within the company
Purchaseorder Delivery
Time
Flow of a logistical Organisation Process
" Fundamentals of Logistics "- Process Organisation -
Associated with Christof Schulte: Logistik, 2.Edition, München 1995, p. 341loingg08.ppt
Phases
Decision about theproject
As-Is analysis
Recognition of theweaknessesDevelopment of theTo-Be conceptIntroduction of thenew logisticsorganisation
Results
Goal setting, project team, limitation of the area of investigation, project schedule, budget
Analysis of activities incl. related efforts, flow of information, inspection of documents etc.
Duplication of work, overlap of competencies,laborious ways of information, missing information
Valued alternatives, plan of realisation by stages,job charts, job descriptionsTrained employees, new process organisation, instrumental support of work, higher logisticsperformance
Important are all results of the decision phase: The project team should beinvolved in the planning: this leads to a better motivation within the projectwork. A team coworker who planned his own tasks concerning the timelineand the project results will do all to reach his goals. The definition of the aims of project is essential because every decisionwithin the daily routine depends on their contribution to the project success.„Without target every way doesn‘t care“. „Without target every shot is a hit“. The task designation of a project consists in doing all necessary works to reach the defined aims.Generally an aim is a status in the future which must be desirable, reachable and measurable .The project schedule should be differentiated and the phases as well as theactivites must be briefly described and planned in the right order.Typically this is done in form of a critical path diagram with thecorresponding Gantt-diagram.
" Fundamentals of Logistics "- Process Organisation -
Explanation
The area of investigation must be limited prototypically for reducing theproject effort. The portability of the project results to the not consideredareas must be ensured.The budget for the „paper-phases“ must be defined exactly, whereas forthe realisation phase it is enough to give a qualified estimation.At the end of the To-Be-concept it is also necessary to develop an exactinvestment calculation. Each phase will be terminated by a milestone i.e. there must be issued an interim report with interim results, deadline check and, if necessary, a new scheduling for the rest time of the project.One of the concept results consists in developing alternative proposals forsolution and in comparing them by means of a value benefit analysis. Itmust be clear, which solution is preferred by the team. Otherwise it ispossible that the project owner (that is the „client“ of the project) opts foranother solution because of special information which only he knows: thatcan be for example a planned corporate merger which leads to othercriteria weights within the value benefit analysis.
" Fundamentals of Logistics "- Process Organisation -
Explanation
Source: Associated with Christof Schulte: Logistik
Criteria for the Choice of the adapted Transport System
" Fundamentals of Logistics "- Transport Systems -
loingtal.ppt
Requirementsof market
Material to betransported
Auxiliarymeans of Transport
TransportSystem
require-ments forproducts
extern (truck)
intern
externpackage
mesh box pallet
in-houseproduction
bought-in partlogisticalrequire-ments
Intern (fork lift)
Source: Associated with Christof Schulte: Logistik
Functions of Auxiliary Means of Transport (AMT)
loingt01.ppt
• Intake and aggregation of the material to be tranported whichleads to a faster handling
• Protection of the cargo against damage, theft etc.• Manipulability: simple grabbing and deposition of the AMT• Suitable for storage• Information carrier (when the material to be transportedit is not allowed or possible to be marked itself (glasses, fluids))
" Fundamentals of Logistics "- Transport Systems -
Examples of Auxiliary Means of Transport (AMT) )
loingt02.ppt
pallet mesh box pallet work piece carrier
box ISO-Container tank pallet
" Fundamentals of Logistics "- Transport Systems -
External Transport Systems
Source: Christof Schulte: Logistik, München 1999, p.135 (there Vogt and others)loingt07.ppt
Judging the means of transportation by aspects of costs:
• Costs of freight• Additional costs of transportation (customs, service fees)• Costs of handling (loading/unloading; changing of thethe transport system: multimodal transport)
• Additional costs of logistics (insurance, theft, depreciation)• Cost effects outside of logistics (costs of shipping routeoptimisation within the IT-department; administration of depreciation when using own trucks; administrationof truck personnel)
" Fundamentals of Logistics "- Transport Systems -
Source: Christof Schulte: Logistik, München 1999, p.135 (there Vogt and others)loingt08.ppt
Judging the means of transportation by performance characteristics:• Transport time• Transport frequence (how many times per day/week/month)• Technical features (special technique for fluids, gases etc.)• Connectivity to other transport systems• Flexibility (changing of clients wishes)• Start- and endpoint of the transport system (relation)• Reliability (dependency of weather?)• Additional service (feeding of animals; tracking/tracing; load/unload; publicity; control of temperature)
External Transport Systems
" Fundamentals of Logistics "- Transport Systems -
Advantages and Disadvantages of the several carriers
Source: Christof Schulte: Logistikloingt10.ppt
Road Transport:plus: the only system which delivers directly to the customersminus: dependent on traffic and weather; cargo load max. 25 tonsRail Transport:plus: up to 1000 tons per train; independent from weatherminus: rail terminal connection necessary, Costs for special wagonsInland Navigation:plus: 1000 – 3000 tons, on the Rhine up to 16.000 tons with combined ships,low freight costsminus: limited relations, dependent on water level and weather
" Fundamentals of Logistics "- Transport Systems -
Maritime Navigation:plus: up to 100.000 tons, big shipping spaceminus: ports only at the North sea resp. Baltic sea, dependent on weather,
seaworthy packaging necessary
sources: Christof Schulte: Logistik; Fortmann/Kallweit: Logistikloingt11.ppt
Aircraft Transport:plus: high speed, no seaworthy packaging necessaryminus: high freight costs, limitations at dangerous goodsCombined Transport:plus: Usage of the advantages of all carrier typesminus: time-consuming handling of cargo because of intermodal transportPipeline Transport:plus: lowest costs, when permanently usedminus: high investment, only cost-efficient when used over a long time
" Fundamentals of Logistics "- Transport Systems -
Advantages and Disadvantages of the several carriers
Rocket Transport:plus: in space no other transport system usableminus: extreme high costs
In-House Transport Systems
sources: Christof Schulte: Logistik (dort Schulze/Weber)loingt12.ppt
Points ofinfluence
Transportsystem
Aims
Transport System
Material to be
transportedTransport-intensity
Transportway
Laws
OptimalUsage
HighService-
levelFlexibi-
lityTranspa-
rency
" Fundamentals of Logistics "- Transport Systems -
= function of availability
Given is the following conveyor track for transport of brown coal into a power plant. The availability of each component can be seen in the drawing.
a) Please calculate the availability of the whole system!b) Calculate the total availability for the following structur:
Solution:a) Vtotal = 0,97*0,95*0,98*100 %=90,307 %b) Vtotal= [1-(1-0,94)*(1-0,93)]*100=99,58%
V1=94 %
V2=93 %
V3 = 98 % means, thatthe belt conveyor 3 isusable in 98 of 100 hoursV1=97 %
V2=95 %
V3=98 %
" Fundamentals of Logistics "- Transport Systems -
The Technical Availability of a System depends on each Component
FM 1 FM 2
V1 = 0,97 V2 = 0,99
Vtotal = V1 x V2, e.g. conveyor FM1 and FM2 must be both in function at the same time (so-called „and“-relation, mathematically: multiplication)
FM1 for example belt conveyor or fork lift
FM2 for example belt conveyor or fork lift
V1 = 0,97
V2 = 0,99
Failure probability A = 1 – VA1 = 1 - V1, A2 = 1 – V2Atotal = A1 x A2, e.g. FM1 and FM2must both be in malfunction at the same timeVtotal = 1 - Atotal = 1 - (A1 x A2)
= 1 - (1 - V1) x (1 - V2)Tip: For every parallel way i must be applicated a bracket-expression of theType (1 – Vi)
„Series connection“
„Parallel-connection“
Vtotal = 0,9603
Vtotal = 0,9997
" Fundamentals of Logistics "- Transport Systems -
V1 V2
V3
V12 = V1 x V2
Vtotal = 1 – (1-V12)(1-V3)
The Total Availability must be developed successivly from the Partial Availabilities considering the rules for Series resp. Parallel Connection.
V1 V2 V4
V3
V5
V12345 = Vges
V12
V123
V1234
V1 V2 V4
V3
V5
V12345 = Vges
V12
V123
V1234
Examples for the Total Availability of Transport Networks
" Fundamentals of Logistics "- Transport Systems -
V12345 = Vtotal
sources: Christof Schulte: Logistik (dort Schulze/Weber)loingt14.ppt
" Fundamentals of Logistics "- Transport Systems -
Structure of In-House Transport Systems
Continuousconveyor
Cranes Stacker cranes
Withoutrails
Railbounded
Trackbounded
Floorconveyors
Elevators
Conveyors for In-House Transports
Discontinuousconveyor
AGVS automated guidedvehicle system
locomotivewagons
fork lift
In-House Transport Sytems: Examples for Continuous Conveyors
Source: Jünemann: Materialfluß und Logisticsloingt22.ppt
Roller conveyor Belt Conveyor Platform Conveyor
Tilt Tray Sorter Paternoster conveyor Circular Conveyor
" Fundamentals of Logistics "- Transport Systems -
Computer controlled In-House Transport System
sources: Christof Schulte: Logistik (dort Schulze/Weber)loingt21.ppt
FERTIGUNG
MONTAGE
Trans-port or-ders
ConveyInstruc-tions
Feedback
Computerfor Transport
ControlProduction In-House
Transport systems
" Fundamentals of Logistics "- Transport Systems -
Manufacturing
Assembling
Chapter Outline
Source: Christof Schulte: Logistikloinglue.ppt
Selection Criteriafor the suitableStorage System
Warehouse Functionsand Types ofWarehouses
Stock accountingand Warehouse
Control
Centralisation Levelof Warehouses
External orInternal Warehousing
Storage SystemsOutline
" Fundamentals of Logistics "- Storage Systems -
Selection Criteria for the suitable Storage System
" Fundamentals of Logistics "- Storage Systems -
loinglal.ppt Source: Associated with: Zeitschrift Materialfluß: Lagerplanung (Sonderpublikation), Verlag Moderne Industrie
Very SmPa Small Parts Parts Long Good
Small Box Box Box Pallet Cassette
Drawer-styleCabinet
Shelving PalletRack
CantileverRacking
Stock Goods
WarehouseUtility
StorageSystem
Warehouse Functions
" Fundamentals of Logistics "- Storage Systems -
loingl-1.ppt Source: Christof Schulte: Logistik, 2.Edition, München 1995, p. 91 (dort: Kupsch)
„The basic task of a warehouse consists of the economiccoordination of different dimensioned good flows“
Compensation Function: concerning time and quantity
Security Function: risk compensation against production malfunction,
delay of supply, variation in requirements
Assortment Function: help with building assortments
Speculation Function: absorb expected increase in prices
Refinement Function: maturing processes, drying processes
Kinds of Warehouses classified
" Fundamentals of Logistics "- Storage Systems -
loingl-2.ppt Source: Christof Schulte: Logistik, 2.Edition, München 1995, p. 90
InboundStorage
IntermediateStorage
OutboundStorage
Phase ofadded Value
Process
CentraleStorage
PeripheralStorage
Level ofCentralisation
MaterialorientedStorage
ConsumptionorientedStorage
Sortation
GeneralStorage
ProvisionStorage
Area forSmall Parts
Storage
Number ofpossible
Consumers
Kinds ofWarehouses
" Fundamentals of Logistics "- Storage Systems -
loingl-3.ppt Source: Christof Schulte: Logistik 2.Edition, München 1995, p. 90
Warehousingwithin Buildings
Storageoutside
WeatherProtection
ExternalStorage
InternalStorage
Location
SelfAdministration
ExternalAdministration
Administration
Kinds ofWarehouses
Kinds of Warehouses classified
Types of Warehouses
loingl-4.ppt Source: Christof Schulte: Logistik, 2.Edition, München 1995, p. 91
Flat Rack
High Rack
Gravity Flow Rack
fixed
Mobile Rack
horizontal
vertical
Rotating Rack
movable
Shelving
Flat Rack
High Rack
Drive-in Rack
Drive-through Rack
Gravity Flow Rack
fixed
Mobile Rack
Rotating Rack
movable
Pallet Rack Flat Goods Rack Special Rack
Racks
Block Storage
Line Storage
Floor Storage
Types ofStorage
" Fundamentals of Logistics "- Storage Systems -
Examples: Floor Storage without Storage Device, Line Order
Source: Zeitschrift Materialfluß: Sonderdruck Lagerplanungloingl01.ppt
Advantages:• Flexibility• Low Investment• Overview• Low Staff• Barely technical Faults
Disadvantages:• No Possibility of Automation• Storage Location Order necessary• Low Use of Room• Low Number of Articles• Impact Pressure downstairs• Fifo only by means of Rearrangement
" Fundamentals of Logistics "- Storage Systems -
Examples: Storage in Pallet Racks
Source: Zeitschrift Materialfluß: Sonderdruck Lagerplanungloingl04.ppt
Advantages:• Direct Access to all Articles• Automation possible• Free Storage Allocation• High Order Picking Performance• Fifo-Principle possible• High Use of Room• Adaptable to new Tasks• Low StaffDisadvantages:• High Investment• High Turnover necessaryfor being economic
• Standardised Load Units necess.• Security Conditions, given by
the Authorities (dep. of Hight))• High-Level Organisation necc.when using Random Storage
• Vulnerable to technical Faultswhen automated
" Fundamentals of Logistics "- Storage Systems -
loingl05.ppt
Using Fork Lift Using Stacker Cranes
" Fundamentals of Logistics "- Storage Systems -
Examples: Storage in Pallet Racks
Examples: Storage of long Goods Cantilever Racks
Source: Zeitschrift Materialfluß: Sonderdruck Lagerplanungloingl06.ppt
Advantages:• Changeable into a Shelving• Expandability• Adaptable to the Assortment• Picking with Stacker Crane poss.• Low Investment• Good Use of Room• Direct Access to each Article• Possibility for Automation
Disadvantages:• Autom. only when using Cassettes• Partially only LiFo• Floor Conveyors necessary• Risk of Accident
" Fundamentals of Logistics "- Storage Systems -
Examples: Storage of long Goods Cantilever Racks
" Fundamentals of Logistics "- Storage Systems -
Examples: Storage in Miniload Warehouse
Source: Zeitschrift Materialfluß: Sonderdruck Lagerplanungloingl07.ppt
Advantages:• Goods-protection againsttheft and pollution
• Highest Automation Level poss.• Ergonomic „Goods to Man“Principle
• Good Organisation because of Electronic Data Processing
• No Inventory• Standardised Load Units• No Weight Limits• Adaptation to AssortmentDisadvantages:• Limited Dimension Variance• Vulnerable to technical Faults
because of Usage of Computers• High Investment
" Fundamentals of Logistics "- Storage Systems -
Examples: Storage in Mobile Rack
Source: Zeitschrift Materialfluß: Sonderdruck Lagerplanungloingl09.ppt
Advantages:• Good Use of Room• Good Use of Area• Lock-ability• FiFo• Possibility for Semi-Automation
Disadvantages:• No Possibility for Full-Automation• Low Turnover• No direct Access• High Costs of Maintenance• High Investment• Low Order Picking Performance• Stable Ground necessary• Limitation for Expansion
" Fundamentals of Logistics "- Storage Systems -
Examples: Storage in Gravity Flow Rack
Source: Zeitschrift Materialfluß: Sonderdruck Lagerplanungloingl10.ppt
Advantages:• Good Use of Room• High Performance• Good Use of Area• FiFo• Possibility for Automation• IT-Organisation• Expandable
Disadvantages:• Risk of Accident• High Requirements to Tolerances• Run down depends on Weight• Impact Pressure in Front• Drive-against Crash• Security of Loads necessary• High Investment• Only single Material Channels• High Costs of Maintenance
" Fundamentals of Logistics "- Storage Systems -
Examples: Storage in horizontal Rotating Rack
Source: Zeitschrift Materialfluß: Sonderdruck Lagerplanungloingl11.ppt
Advantages:• Good Use of Room Depth• Ergonomic „Goods to Man“Principle
• Free Choice of Storage Allocation• FiFo• Possibility of Automation• Parallel Serving of more than oneRotating Rack
Disadvantages:• Serial Order Picking• Limited Payload• Low Flexibility against variable Turnover Performance
• Payload/Rack Weight unfavourable• Long Access Time• High Investment• Expansion limited• High Costs of Maintenance
" Fundamentals of Logistics "- Storage Systems -
Examples: Pick an Pass by Means of a Rotating Rack
loinbk09.pptSource: Praxishandbuch für den MaWi-Leiter, Augsburg 1995, Teil 10, Kap. 3.2.2., Seite 6
" Fundamentals of Logistics "- Storage Systems -
Examples: Remote Picking with a Rotating Rack System
" Fundamentals of Logistics "- Storage Systems -
loinbk10.pptSource: Praxishandbuch für den MaWi-Leiter, Augsburg 1995, Teil 10, Kap. 3.2.2., Seite 6
Stock Accounting and Warehouse Control
Source: Christof Schulte: Logistikloingl12.ppt
Functions:• Optimisation of the sequence of Storing and Retrieval fromStorage
• Allocation of Storage Orders to empty Bins• Allocation of Retrieval Orders to Load Units• Instigation and Control of carry commands for the Stacker Cranes• Smooth Identification and Control of Storing and Retrieval of Storage Devices
• Storage Slot Status Database (occupied/available)• Real-Time Update of the Quantities of all inbounded resp. Outbounded Articles
" Fundamentals of Logistics "- Storage Systems -
Source: Oeldorf/Olfert: Materialwirtschaftloingl15.ppt
Central Warehouse: Mainly used in small and medium-sized Enterprises
Advantages of central Storage versus decentral Storage:• Stock lower than the Sum of decentral Stock• Minimum Stock lower than the Sum of minimum Stock decentral• Lower Capital Lockup• Better Use of Room• Higher Turnover: Therefore lower Perishableness• Personnel Placement more economic• Use of Storage Devices more efficient
" Fundamentals of Logistics "- Storage Systems -
loingl16.ppt
Decentral Warehouses: Necessary...
• when a Factory must be supplied directly• as Buffer Storage within the Production• when the short-term supply is very important for the customers• when the direct Contact to the Clients is Part of the Business
" Fundamentals of Logistics "- Storage Systems -
Decentral Stock versus Central Stock
Sources: Gudehus, Tim: Logistik 1, p. 308, Berlin, Heidelberg, New York, 2000 , there: Maister, D.H.,(1976), Centralisation of Inventories and the „Square Root Law“, International Journal of Physical Distribution, Vol. 6, No.3, p.126 ff.lohdgt35a.ppt
Warehouse 1Stock Article A:300 pieces
StockArticle A:400 pieces
StockArticle A:500 pieces
Central Warehouse
Stock Article A:
3002+4002+5002
= 707 Pieces
1200 Pieces - 707 Pieces = 493 Pieces is equivalentto 41 % Reduction of Stock, when centralized
Additional correction factor, when more technicalperformance is installed in the central warehouse than in the decentral locations:0,7 bis 0,8 (that means for example: 0,7x707 pieces)
General Conditions:
• Optimal Disposition of Stock and further Supplies
• Same Turnover decentraland central
• Same Assortmentdecentral and central
Re-
storage
" Fundamentals of Logistics "- Storage Systems -
Warehouse 2
Warehouse 3
Criteria for the Decision: Own-Storageor Warehousing by a Logistical Service Provider (LSP)
Source: Christof Schulte: Logistikloingl17.ppt
• Needs for Investment for Facilities or/and Equipment• Grade of Dependency on external Personnel• Current Operating Costs• Requirement of Personnel and Know how of Experts• Peaks of Workload and Variation of Capacity Requirements
Warehousing by a LSP often takes place within theProcurement Logistics and the Distribution Logistics.Production Warehouses normally are administratedautonomously.
" Fundamentals of Logistics "- Storage Systems -
„ Procurement Logistics "
loinbtitle.ppt
Procurement Logistics =
All logistical activities within the area of procurement
• Optimal Disposition of Quantities• Early Requirements Identification• Responsible Integrating of Suppliers• High Disposition Quality• Adapted Selection of Suppliers• Fixing of Quality Standards• Short ways from the Supplier to
the Factory• Optimisation of the Costs of Freight• Costs-favourable Place and Equipment• Optimisation of Storage Processes• Clear Stock Policy• Short Delivery Cycles• Accurate Supervisory of Stock
„ Procurement Logistics "
Aims and Tasks of Procurement Logistics
loinbg05.ppt
Favourable Purchase Price
Supply Security
Flexibility of DeliveryHigh Quality
Low Costs of Freight
Low Costs of Storage
Low Stock
loinbs05.ppt
Value Benefit Analysis for Suppliers
SumRank
Suppliers
Criteria
Product Quality
Price
Delivery Time
Fulfillment of Contract
Delivery Date Reliability
Quantity Reliability
Weight
1....5
Supplier Miller Supplier Mayor Supplier Smitt
5
2
4
1
4
2
3
5
4
2
2
1
15
10
16
2
8
2
4
4
2
3
3
5
20
8
8
3
12
10
5
2
1
5
5
3
25
4
4
5
20
6
Points1...5
Points1...5
Points1...5
PxG PxG PxG
53III.
61II.
64I.
„ Procurement Logistics "
Alternative Procurement Concepts
GlobalSourcingGlobal
SourcingModularSourcingModularSourcing
Multipleor SingleSourcing
Multipleor SingleSourcing
“World wide” “Purchase ofComponentsinstead of Parts”
“A Lot of or onlyone Supplier(s)”
loinbd01.ppt
„ Procurement Logistics "
Traditional versus Modular Sourcing
Source: Ch.Schulte: Logistik 2. Edition, München 1995, p.149loinbd03.ppt
SystemSupplier
PRODUCER
Supplier 1
Supplier 3
Supplier 4
Supplier 5
Supplier 2
Supplier 6
„ Procurement Logistics "
Supplier 2
Supplier 3
Sup.4
Suppl.5
Supplier 1
Sup.6
PRODUCER
loinbd05.ppt
10/06PlanPlan Act. Diff. Plan Plan
10 11 12 01Plan
Edition11/05
11/06PlanPlan
02Plan
12 01 02 12/06Plan
Responsible:Sales Department!
Responsible:Sales Department!
Forecast: 12 Months
Edition12/05
Edition01/06
Moving Period Planningfor each Finished Product
11 12 01 02
„ Procurement Logistics "
Plan Act. Diff. Plan Plan
Plan Act. Diff. Plan Plan
loinbd06.ppt
Finished Product 11 12 01/98 ...X 1000 900 1300 ...
Y 3000 2500 4000 ...
Purch.Prod. 9 10 11 ...A - 6.000 5.000 ...
B 18.000 15.000 24.000 ...
C 45.000 37.500 60.000 ...
IHPT 1) = 1Month
IHPT = 1Month
Y
2A 3Q
2B 5C
ProcurementProgram
Moving PeriodPlanning
„ Procurement Logistics“
The MPP leads to thein-time procurement
1) IHPT= In-House Production Time
Just-In-Time-Concept
loinbd17.ppt
Coordination of the Production Control Systems with the Assembly Control SystemsTimely Delivery of Parts „as late as possible“No or (at most) small BuffersSmall Lots, high Delivery Frequency
Because of the Complexity of the JIT-Process this is onlyeconomic with A-X-Parts 1)
AssemblyControl
ProductionControl
„Procurement Logistics“
1) A=high value, X=constant requirement
Information and Material Flow at JIT
loinbd18.ppt
„Procurement Logistics“
Material Flow
In-HouseProducts
FERTIGUNGProduction MONTAGEAssembly
AssemblyControl
ProductionControl
ProductionControl
Supplier
FERTIGUNGProduction
Own
Information Flow
PurchaseProductsMaterial Flow
While processing JIT the Assembly “pulls” the Material
Material Flow
„ Production Logistics "
loinbtitle.ppt
Production Logistics =
All logistical activities correspondingto the production process
lointm04.ppt Source: REFA MLBO: Planung und Gestaltung komplexer Produktionssysteme
Definitions: Linking of Work Stations
„Production Logistics“
Fixed linked Loose linked Flexible linked
Occupancy time: equal approximate equal variable
Work piece sequence: equal equal variable
Without buffer buffer buffer, collecting, distributing
Material move: tact dependent tact independent tact independent
„Production Logistics“
Calculation of the Buffer Capacity between two loose linked Working Places
n = quantity of work pieces to be bufferedtv1, tv2 = maximum possible time without working at each station
(reasons: the worker has to go to toilet or is outside for smoking)te = working tact in minutes per piece (always the same)
lointm04.ppt Source: REFA MLBO: Planung und Gestaltung komplexer Produktionssysteme
Example: tv1=10min, tv2=14min, te=4 min/piecen=(10min+14min)/(4min/piece)=6pieces
lointf30.ppt Sources: Chr.Schulte: Logistik (there: Kettner, Aggteleky, Nestler)
Transport Matrix and Sankey-Diagramm1
1) H.R.Sankey (1853-1921), Irish engineer
„Production Logistics“
Raw material storage
Production
Assembling
Finished goods stor.
Waste, cuttings
Forwarding
Scrap
Sum
Goods receipt 100 100
Raw material storage 72 20 10 102
Production 52 16 8 76
Assembling 4 65 3 72
Finished goods storage 91 91
Waste, cuttings 2 9 11
Sum 102 76 72 91 11 91 9
To
From
Goods receipt
Raw material st.
Production
Assembling
Finished goods storage
Forwarding91
100
72
5220
6516
2
9
4
8
310
Waste-
Cut -tings
Scrap
Material Flow in Tons per Month
lointm42.ppt Source: Fortmann/Kallweit: Logistics, Stuttgart 2000, p. 82
„Production Logistics“
The Transportation Work depends on the Allocation of the Machines
Tons per monthbetween the Production machines
Distances between thelocations of the production facilities
FromTo
1
2
2 3
70 40
50
A
B C
80 m
60 m
100 m
Variations of allocationof the production machinesto the production facilities
A B CV1
V2
V3
1 2 3
1 23
2 3 1
Transportation work fo the alternatives:
optimalVariant 1: 70 t x 80 m + 40 t x 100 m + 50 t x 60 m = 12.600 tm
Variant 2: 70 t x 60 m + 40 t x 80 m + 50 t x 100 m = 12.400 tm
Variant 3: 70 t x 100 m + 40 t x 60 m + 50 t x 80 m = 13.400 tm
Sources: Chr.Schulte: Logistik, there: Brankamp, Ellinger/Wildemann, Hammer et al.)loinmf01.ppt
Aims when using Production Planning and Control Systems (PPC)
„Production Logistics“
• High delivery reliability• High and continuous utilization of capacities• Short throughput time (also called lead time)• Low warehouse inventory• Low workshop inventory• High delivery service level• High information service level• High flexibility• Low procurement costs• High material availability• Increase of planning security
loinmf02.ppt Source: Fortmann/Kallweit: Logistics, Stuttgart 2000, p.89
Functionsof
PPC-Systems
Client orders Forecast
MovingPeriod
Planning
Stochast.Planning
Production programm for finished products = Primary requirement with the items: article number,
lots, delivery date
Computer aided net require-ment planning for in-house
products and bought-in parts
Bills ofmaterial
LotOptimi-sation
Availablestock
Production pro-gram (in-houseproducts)
Procurement-program
(bought-in parts)
Production
Finished products
Provision of material Goods receipt
Assembly
IHP BIP
Procurement
Pro-duction-control
Work-shop
Schedu-ling
C o
n t
r o l
P l a
n n i n
g
Workingplans
„Production Logistics“
Deterministic Requirements Planning: Based on Bills of Material
Source: Associated with Oeldorf/Olfert: Materialwirtschaftloinmf12.ppt
1 T12 G1
4 T1 1 T2
1 T24 T1 1 T4
1 T31 G22 T11 G1
E1
Single-level BOM
E1 G1 G2
Name Quantity Name Quantity Name Quantity
G1 1T1 2G2 1T3 1
T1 4T2 1
G1 2 T1 1T4 1
Finished product structure of E1
The deterministic requirements planning normally is used with high-value parts (A-,B-Parts) and is based on orders (resp. expected orders)
„Production Logistics“
Source: Associated with Oeldorf/Olfert: Materialwirtschaftloinmf13.ppt
1 T12 G1
4 T1 1 T2
1 T24 T1 1 T4
1 T31 G22 T11 G1
E1
Listing of the Structure BOM for E1
NameLevel Quantity
E1
1 G1 1.2 T1 4.2 T2 11 T1 21 G2 1.2 G1 2..3 T1 4..3 T2 1.2 T1 1.2 T4 11 T3 1
Finished product structure of E1
Two Ways of Presentation of Structure BOM
„Production Logistics“
Stochastic Requirements Planning: Types of Models for Consumption
Source: Associated with Oeldorf/Olfert: Materialwirtschaft; REFA: Planung und Steuerung, Teil 2loinmf18.ppt
The stochastic requirements planning normally is used with lower-value parts (C-Parts) and is based on the consumption in the past.
Consumption
TimePure constant-model
Season- constant-model
Season- trend-model
Consumption
Time
Consumption
Time
Consumption
TimePure trend-model
„Production Logistics“
Stochastic Requirements Planning: Forecast Methods
Source: Associated with Oeldorf/Olfert: Materialwirtschaftloinmf20.ppt
Moving average value = Average consumption over x past periods; at thebeginning of each new period the oldest one is cancelled;suitable for the pure constant model
Weighted moving average value: Each period-consumption corresponds withweight factors: the oldest one receive the lowest weight; suitable for thepure constant model
Regression analysis = Used for the forecast with trend-type function; linear case: y=a+bt ; non-linear: polynomal of n-th order
Exponential smoothing: Most important stochastic method; the new forecast isbuilt from the old one to which is added the with α weighted differencebetween the old actual value and the old forecast value;suitable for the pure constant model; with the exponential smootingof second order it is possible to take into account trend functions ofthe past-consumption values
For season models are suitable mathematic combinations of the above models.
„Production Logistics“
Source: Associated with Oeldorf/Olfert: Materialwirtschaft; Kernler: PPS der 3. Generationloinmf21.ppt
FC Act.
V(11) V(12) V(14)T(11) T(12) V(13) T(13)
Δ Δα αα
Week 11 Week 12 Week 13 Week 14
Vt+1 = Vt + α(Tt-Vt)α = 0,1 ... 0,3
Vt+1: new forecastVt : old forecastTt : actual requirement
of the old periodα : smoothing factor
Consumption
Time
Advantage:Low calculating amount: Onlythe data of the month beforeare necessary (the total pastis involved in the values of the earlier months).; Influenceof the newest values is strongerthan the effect of elder ones.
Effective copnsumptionα bigα small
Stochastic Requirements Planning: Exponential Smoothing
FC Act. FC Act. FC
„Production Logistics“
loinmf24.ppt
Calculation of Material-Availability in the Future by means of a Simu-lation of the Function „Stock over Time“, dependent on Events
Stock
Start-stock
Time
Planned outgoing of material 2)
Planned incoming of material 1)Incoming of material as an effectof computer- planned orders (netrequirements planning program)
Day ofevaluation
1) Possible reasons:- purchase orders- production orders
2) Possible reasons:- material needed for production orders- material needed for sales
„Production Logistics“
Source: Associated with Oeldorf/Olfert: Materialwirtschaftloinbd08.ppt
Top stock T = 3 S
Safety stock S = S
Order point O = 2 S
Deliverytime Delivery dates
Time
Stock of a definite material Ideal Model
Order quantity 2 S
Order
The Order Point System as a function of a PPC System
„Production Logistics“
loinmf26.ppt Source: Chr.Schulte
Optimal Order Quantity Formula, developped by ANDLER :
OptimalOrder Quantity(pieces)
=200 x J x F
E x TWER [%]
J: annual requirement of bought-inmaterial
F: fixed costs of the purchase processfor one orderline
E: delivered price per pieceTWER: Costs of all storage activities
EconomicLot Quantity(pieces)
=200 x J x SC
MC x TWER [%]
Similarly is valid for in-house-products: J: annual requirement of in-housematerial
SC: costs of the set-up process at theproduction machine: once per lot
MC: manufacturing costs for theconsidered in-house part
TWER: Costs of all storage activities
„Production Logistics“
loinmf28.ppt Source: Chr.Schulte: Logistik
Graphical Interpretation of the ANDLER Formula
Costs per Year in €
Optimal Order Quantity
Minimum ofTotal Costs
Order quantityRequirement
per year
Costs of storage (incl. in
terest)
Purchasing process costs
Total costs
Assumptions for the Validity:- Exact knowledge of the requirement per year
- regular consumption- price independent of the lot quantity
- no corresponding parts- exact knowledge of costs
„Production Logistics“
loinmf29.ppt
The calculation of the purchase order date within the requirementsplanning is based on the lead time offset along the structure of the billof material (BOM) plus the delivery time.
Final assembly 4 days
Pre-assembly 3 days
Manufacture ofcomponents 10 days
PurchasingDelivery time 25 days
4
3
10
25
Total throughput time17 working days = 4 calendarweeks
Delivery time25 working days = 5 cal.weeks
Conclusion: The material mustbe ordered 9 calendar weeksbevore the delivery date of thefinal product.
„Production Logistics“
Functions of PPC
loinmf30.ppt
Scheduling: Calculation of the start dates and finish dates of eachoperation without involvement of capacity restrictions
OP1 OP2 OP3
Time
Start Finish
Basic dates from therequirements planning
OP3OP2OP1
Start
Finish=Start
Finish
FinishStart
FinishStartStart
Finish
B B
B=Time bufferT=Transit time
T T
„Production Logistics“
OP2OP1
Functions of PPC
loinmf31.ppt Source: Associated with REFA MLBO Planung und Steuerung Part 3
Variants of Scheduling
Capacity
Time
Capacity
Time
Capacity
TimeS F TS FS=today T
Forward scheduling Backward scheduling Combined scheduling
S=Start dateF=Finish date
T=Target dateS=Start date
Beginning with T, the start date lies in thepast: Changing to Forward scheduling
„Production Logistics“
Functions of PPC
loinmf32.ppt
Possibilities of reduction of the throughput time (TPT)
Actual operationsequence
Shortening ofTransit time
Parallelising
Shortening ofIndividual TPT
Overlapping
TPT
Transit time
Total TPT
TPT
TPT
TPT
TPT
The combination of all actions leads to the
biggest effect.
„Production Logistics“
Functions of PPC
loinmf45.ppt Source: Chr.Schulte: Logistik
Order control by means of order completion confirmation (feedback):
Order-related data:Start and finish dates of all operations, produced quantities, scrap, missed deadlines, processing timesIndividual-related data:Performed working hours, attendance time, illness timeMachine-related data: Output (as percentage of input), work load, amount of time for: set-up, production, idle and hold-upMaterial-related data:Inventory and consumption of material; quality defects; deviation of planned consumption; availability of the needed material
Important: Realtime Feedback
„Production Logistics“
Functions of PPC
loinmf46.ppt
Masterdata are the base of an operative PPC System
Data of workstations
(work center)
Capacity in man hours and machine hours per day:Basic information for the capacity load, base of working plans
Working plans(routing)
Operation sequences; standard times per OP: personal time,machine time, setup time: Base of continuous scheduling
Material-masterdata
Material type: in-house part or bought-in part; in-house productiontime rsp. replenishment lead time; lot-sizing procedure; consump-tion history; requirements indicator (determin. or stoch.)Base of: requirements planning, basic date building, BOM
Bills of material Description of all building blocks and structures; base of require-ments planning, basic date building (lead time offset), in-houseproduction orders rsp. procurement of bought-in parts
„Production Logistics“
Functions of PPC
loinmf47.ppt
Transaction data within a PPC-System
Productionorders
PO-No., article number of the parts to be produced, quantity, date, PO-routing, PO-BOM
Purchaseorders Purchase order no., art. no., quantity, date, vendor, conditions
Independent requirements
Article number, quantity, date
Reservations Article number, quantity, date, connection to PO or CO
StockArticle number, quantity, planning type, storage locationnumber of the material requirements planning group
Planned orders,dependent
requirementsArticle number, quantity, basic dates, pegged requirements
„Production Logistics“
Functions of PPC
loinmf48.ppt
The basic data construction of a PPC-System needsa special sequence
1. Building and storage of material master data2. Building and storage of the master BOM by means of a combination of articles3. Building and storage of work units4. Building and storage of working plans by means of combination of work units
via operation sequences5. Building and storage of supplier master data6. Capture an input of the actual stock7. Input of the independent requirements on the level of finished goods8. Requirements planning: building of planning orders and purchase order proposals9. Convert of the planned orders into production orders
10. Convert of the purchase order proposals into purchase orders
„Production Logistics“
Functions of PPC
„ Distribution Logistics "
Distribution Logistics =
All logistical activities correspondingto the distribution process
Definition:The distribution logistics represents the connection between the production process(industry) rsp. the merchandise provision (commerce) and the client site. It contains all warehousing- and transport-processes of goods to be delivered to theconsumers incl. the corresponding activities of information, directing and controlling.
Aim of the Distribution Logistics:The main aim is the provision of the right goods to the right date in the right quantityand in the right quality, optimising the ratio between the wished delivery performanceand the associated costs.
Main Activities of the Distribution Logistics:The main activities of the distribution logistics are directed at:- the choice of the right locations of the distribution warehouses, - the warehousing itself, - the order processing, - the order picking, - the packaging, - the goods issue, - the load securing and - the transport
loindü02.ppt Source: Ch. Schulte: Logistik, 2. Edition, München 1995, page 275
„ Distribution Logistics "
lohddb04.ppt / Sources: Weber; Kummer: Logistikmanagement, p. 156 andKrampe; Lucke: Grundlagen der Logistik, p. 267ff.
Alternative Distribution StructuresFactory Warehouses:They are used for storing the finishedgoods at the producer site, realising thequantity compensation betweenproduction and transport.Central Warehouses: They contain the full assortment of a company (evtl. from several factories),realising the time- and quantity-compensation between the productionsite and the sales site.Regional Warehouse: Realises the regional presence; thelocation near the clients makes it possibleto transport big quantities over longdistances (producer regional warehouse)Distribution center: In big distribution regions a division intodistribution areas is useful. Activities in distribution centers are order picking andshipping route optimisation.
factoryWare-Houses
centralware-houses
regionalware-houses
distribu-tioncenters
clients
3-leveldistributionwith factorywarehouses
3-leveldistributionwith centralwarehouses
2-leveldistributionwith centralwarehouses
1-leveldistributionwith centralwarehouses
„ Distribution Logistics "
lohddb07.pptSource: Tietz, B.: Handelsbetriebslehre, 1993, p. 797
Costs as function of Decentralisation
Model forcalculating theoptimal number of warehouseswithin thehorizontal distributionstructure
Costs
Centralisation
Number of warehouses
Decentralisation
Costs of warehousing
Freight forreceiving goods
Freight for sending goods
„ Distribution Logistics "
Costs of transportand warehousing
Source: Chr. Schulte: Logistik, 2. Edition, München 1995, Page 279loinds10.ppt
Points of Influence while defining the Number of Warehouse-Levels within the vertical Distribution-Structure
The decision for an adapted number of warehouses depends on the aimsof the company, for example a wishable delivery time.
Costs are caused by:• Number and size of the warehouses• Transhipment and Handling• Costs for transport between the warehouses• Costs of distribution to the clients• Capital lockup (stock)
With a low number of clients and/or big delivery quantitiesa centralisation is possible.
„ Distribution Logistics "
lohddb15.ppt Source: Tietz, B.: Handelsbetriebslehre, 1993, p. 799
Example for forecasting the storage area demand
“Dis
trib
utio
n Lo
gist
ics“
. /.Sales by third-party deals
2004
= Stock sales2004
As-isarea-
produc-tivity
-
Warehouse-area 2004
Forecast
Clearing -difference 1)
Sales 2017
. /.
2017
2017
Requiredarea 2017
Additional Require-ment for Ware-house capacity2004 to 2017
Locations for andtypes of warehouses
1)e.g. by means of anassortement clearingand/or removing of slow-moving items
Sales 2004
Sales by third-party deals
= Stock sales
To-bearea-
produc-tivity
Calculation of the Warehouse Size, based on planned Sales
„ Distribution Logistics "
To-be sales per day: 100 T€Average value per pallet: 500 € 200 pallets per dayAssumptions:• working time: 8 h per day, 300 days p.a., 50 weeks p.a.• 400 different articles, for each a pallet place• Ø delivery time: 2 weeks• Investment price per pallet place
in a warehouse: 600 €
500€
500€ 500
€
500€
500€ 500
€500€
500500 500
500
100 T€daily
200Palletsdaily
500€
500€ 500
€
500€
500€ 500
€500€
500500 500
500
100 T€daily
100 T€daily
200Palletsdaily
Sales p.a.=300•100 T€=30 Mio€Sales per week=30 Mio €/50=600 T€Sales per article per week=600 T€/400=1.500 €
corresponding with 1.500 €/500 €=3 palletsSafety stock=6 pallets (for 2 weeks in „Ideal Model“)Average stock=12 pallets per articleTotal # of pallets: 12•400=4.800 palletsØ capital lockup=4.800•500 €=2,4 Mio€Inventory turnover = 30 Mio€/2,4 Mio€=12,5Warehouse invest=4.800•600€=2,9 Mio€Warehouse performance=200 pallets/8h=25 double cycles per hour
Top stock T = 3 S
Safety stock S = S
Order point O = 2 S
Deliverytime Delivery dates
Time
Stock of a definite material Ideal Model
Order quantity 2 S
Order
lohddb03.pptSource: Schmidt, Klaus Jürgen: Logistik, 1993, p. 194
Global Aims while planning a Distribution System
• To ensure a unified, customer-oriented service at the POS• Minimising the costs of the total supply chain through all distribution levels
Strategies for reaching the Aims• Realisation of a networked traffic organisation• Shorten the stream of goods (commodity flow): With big and often needed
supply quantities use of regional centers (receiving of goods fromthe suppliers and forwarding to the outlets); with small and rare neededsupply quantities use of central warehouses and delivery directly to theoutlets
• Area-wide networking of information• Through shipment with the same packaging and identification
„ Distribution Logistics "
lohddb09.pptSource: Krampe, H.; Lucke, H.-J.: Grundlagen der Logistik, 1993, p. 269f.
Influencual Factors while planning Distribution Systems
• Delivery service (primary goal: reaching a defined logistics service level)• Demand variation (changing of the market requirement: casual, due to
economic situation, seasonal fluctuation)• Customer related criteria (quantity demanded, required assortment, special
needs, geografical allocation of the customers)• Properties of the transport goods (types, quantities, volumes, tolerances,
sensitivities)• Infrastructure (networking of goods traffic, energy and communication)• Environmental impact (ecolocical and social burden for cities and
communities like emission of noise and harmful substances, damages and victims caused by traffic accidents, area requirement and traffic conditions, social consequences for the urban development)
• Costs (for stream of goods, i.e. costs for transport, warehousing, capitallockup and information flow)
„ Distribution Logistics "
lohddb14.pptSource: partially: Wildemann, H.: Das Just in Time-Konzept, p.165
Contract Warehouse and Consignment Warehouse
Idea
Main focus of negotiations
Advantages
Dis-advantages
Contract Warehouse Consignment Warehouse
Third party storage place, nearthe buyer
Changing the property of theproducts to the buyer
Costs don‘t lead to negotiationproblems because normallyrented rooms are used
Marginal transparency for thebuyer; the supplier is notallowed to deliver biggerquantities whenever he wants
The warehouse areas are provided bythe buyer
Amount of warehouse costs = controversial article of a contract
Planning scope for suppliers, stock transparency for buyers, changing of property as well as invoicing at the point of withdrawal
Not suitable for many clients and/orunimportant clients
„ Distribution Logistics "
“For the Succes in Retail there are threeThings important:First the Location,
Secondly the Location and Thirdly the Location!”
lohdds01.ppt Source: Bienert, L.M.:Standortmanagment,Methoden und Konzepte für Handels- u. Dienstleistungsunternehmen, Gabler, Wiesbaden 1996, p. 3, there: Berekoven, L.: Erfolgreiches Einzelhandelsmarketing, Grundlagen und Entscheidungshilfen, München 1990, p.351
„ Distribution Logistics "
lohdds02.ppt Source: Bienert, L.M.: Standortmanagement, Methoden und Konzepte für Handels- u. Dienstleistungsunternehmen, Gabler, Wiesbaden 1996, p. 3-4
Relevance of the Decision on a Location
Choosing of locations are fundamental decisions , which fix the externals marketingconditions (like structure of the competition, traffic connection at al.) and which also arebounded to long-term fixations of internal prameters like operating facilities, personnel orform of contract
“Opening new stores is inherently risky. There are significant monetary costs associatedwith opening a new outlet” ( GHOSH & Mc LAFFERTY 1987, S.1 ). “Large new stores cannow cost many millions of pounds to develop, so the consequences of poor locationdecisions are extremely serious” ( Mc GOLDRICK 1990 , S.183 ).
Decisions on locations are not rapidly or only with extreme costs revisable; the rent-risk withsupermarkets for example amounts from 1 to 15 Mio€ (depending on the size of the rentalobject) with a usual duration of the rent contract of 15 years (HEEGER 1991 , p.92 ).
„ Distribution Logistics "
lohdds03.ppt Source: Bienert, L.M.: Standortmanagement, Methoden und Konzepte für Handels- u. Dienstleistungsunternehmen, Gabler, Wiesbaden 1996, p. 3-4
The achievable sales, made by commercial enterprises, are determined by locationconditions. Disadvantages of the location of an outlet lead quickly and directly to continuous economic consequences.
Good locations are a bottle-neck ( MÖHLENBRUCH & NICKEL 1994, p.4, talk aboutentry barriers in form of slender locations) : The decreasing number of “lucrative“location-alternatives and therewith the increasing risc of poor location decisions point thevalue of careful location analyses out.“Experience becomes a less reliable guide” ( BREHENY 1988, p.41 ).
In contrast to the other marketing parameters the location decision is barely imitable byother commercial enterprises. “ Location is the only marketing mix variable, that cannotbe duplicated” (GOLDEN & ZIMMERMANN 1980, p.119).
Opening of new outlets rsp. the aquisition of existing (competition-) locations are themost effective single measures for realising the (necessary) growth. “The pressure to invest in new outlets increases” (BREHENY 1988, p.42).
„ Distribution Logistics "
Relevance of the Decision on a Location
lohdds04.ppt Source: Bienert, L.M.:Standortmanagment,Methoden und Konzepte für Handels- u. Dienstleistungsunternehmen, Gabler, Wiesbaden 1996 p. 25
Location Dynamic
• Changing of the number of outlets within the considered trading area(closing or new-opening of outlets)
• Quantitative and qualitative changing of existing outlets(especially concerning the size of the sales area, the design of the salesroom and the assortment)
• Development of complete new types of outlets• Changing of the infrastructure (e.g. traffic ways, available types of means
of transportation, all types of building projects), urban development• Changes in the populations structure (e.g. age structure, trends in earnings,
level of education)• Structural and “stylish” changes within the behaviour of the consumers• Political-legal changes of location-relevant basic conditions
„ Distribution Logistics "
lohdds05.ppt Source: Bienert, L.M.:Standortmanagment,Methoden und Konzepte für Handels- u. Dienstleistungsunternehmen, Gabler, Wiesbaden 1996, p. 26
Location Dynamic
Locationcomplexity
TrafficDemandCompetition
...
individualexternalenvironment
Locatio
n Dynamic
Outlet size
Sales roomdesign
Marketing mix...
individualinternalOutlet conception
Living space
Outlets
Business park
2005
2006
„ Distribution Logistics "
lohdds13.ppt Source: Bienert, L.M.: Standortmanagement, Methoden und Konzepte für Handels- u. Dienstleistungsunternehmen, Gabler, Wiesbaden 1996, p. 69
Location Rating by Global Analysis
Start-Infos for a case study:
Sector: Food retailer
Inhabitants within the trading area : ITA = 10.000(Source: e.g. national/ country/ regional statistics; marketing research institutes)
Existing sales area within the trading area (alimentation): ESA = 2.500 m²(Source: e.g. GFK, Nielsen, local companies/ authorities, own investigation)
Average to-be area performance: TBAP = 4.500 EUR/m² and year(Source: e.g. intercompany comparisions, information of associations)
Average efforts for food: AEFA = 1050 EUR / Person(Source: e.g. GFK – indicators of buying power, regional statistics)
„ Distribution Logistics "
lohdds14.ppt Source: Bienert, L.M.: Standortmanagement, Methoden und Konzepte für Handels- u. Dienstleistungsunternehmen, Gabler, Wiesbaden 1996, p. 70
Location Rating by Global Analysis
= 4.200 EUR / m² As-Is area performanceITA x AEFA
ESAThe ratio between the As-Is area performance and the To-be area performance resultsin the competition index; hereby are three constellations possible:
CI =As-Is area performance
To-be area performanceCI = 1 normal competitionCI > 1 weak competitionCI < 1 strong competition
The result here is: 4200 / 4500 = 0,93 ; i.e. the distribution area is slightly„overstaffed“. Opening a new outlet would tend to result into a risky situation,
a cutthroat competition is probable.
„ Distribution Logistics "
lohdds20.ppt Source: Bienert, L.M.: Standortmanagement, Methoden und Konzepte für Handels- u. Dienstleistungsunternehmen, Gabler, Wiesbaden 1996, p.115
Phases of the Location Planning
Choice of a region
Region-pre-selection
Trade arealimitation
punctuallocation analysis
MAKRO ANALYSIS
MIKRO ANALYSIS
„ Distribution Logistics "
lohdds22.ppt Source: Bienert, L.M.:Standortmanagement,Methoden und Konzepte für Handels- u. Dienstleistungsunternehmen, Gabler, Wiesbaden 1996, p. 127
Methods for the Limitation of the Trading Area
„ Distribution Logistics "
Time Distance Method
Retailer location
Living building
Lake
Radii of trading areas
lohdds23.ppt Source: Bienert, L.M.:Standortmanagement,Methoden und Konzepte für Handels- u. Dienstleistungsunternehmen, Gabler, Wiesbaden 1996, p. 141
Methods of punktual Location Analysis
The potential of clients near the projected new outlet-location can befound out by means of interviewing actions.Contents of questions: domicile, buying practice
Location of outletDomicile of clients
„ Distribution Logistics "
SumRanking
Locations
Criteria
No. of parking places
Transport connection
No. of competitors
Image of the comp.
No. of consumers
Buying power
Weight
1....5
Location A Location B Location C
5
2
4
1
4
2
3
5
4
2
2
1
15
10
16
2
8
2
4
4
2
3
3
5
20
8
8
3
12
10
5
2
1
5
5
3
25
4
4
5
20
6
Punkte0...5
Punkte0...5
Punkte0...5PxG PxG PxG
53III.
61II.
64I.
„ Distribution Logistics "
Methods of punktual Location Analyses: Value Benefit Analysis
Definition of Order Picking
„Order Picking" is the combination of determined subsets(articles) from a provided total quantity (assortment), based on demand information.
The following basic functions are necessary with order picking:
• Provision of demand information,• Provision of groups of articles, • Contolled withdraw of subsets from the total quantity,• Planned walking to the withdrawal coordinates and picking action, • Transfer of the subsets to the next process station and signalling the
execution
lohddk02.pptSource: Christof Schule: Logistik
„ Distribution Logistics "
Order-picking warehouse with separated charging and picking
lohddk01.ppt Source: Rudolf Pieper: Auswahl und Bewertung von Kommissioniersystemenp. 8-9
„ Distribution Logistics "
Charging system Picking systemProvisioning system
Variants of Order Picking
static provision dynamic provisioncentral delivery de-central delivery
Source: Rodolf Pieper: Auswahl und Bewertung von Kommissioniersystemenp. 10-11lohddk05.ppt
Man to Goods Goods to Man
„ Distribution Logistics "
Source: Krampe; Lucke: Grundlagen der Logistik, 1993, p. 241lohddk06.ppt
Variants of Order Picking LegendLegend:one zone: one order picking zonemulti zones:many separated order
picking zonesserial: one picking order after
the otherparallel: picking order will be
served in several zonessimultaneously
single-level: customer-related order picking in one step
multi-level: article-related rsp. storage-unit-relatedpicking in the first step, then customer-relatedpicking from theprovided quantities
Order picking systems
one zone
serial serialparallel parallel
multi zones
single-level
multi-level
„ Distribution Logistics "
single-level
multi-level
single-level
multi-level
single-level
multi-level
Example for serial and parallel single-level Order Picking
several sourceslohddk08.ppt
Picking Orders:Client A: 2 x 4711, 1 x 4812, 10 x 5014 and Client B: 3 x 4812, 2 x 4913
article in warehouse
4711 4812 4913 5014
order A
order B
2 1 10
parallel, order-related
3 2serial, order-related
order A
2 1 10
order B
3 2
„ Distribution Logistics "
Σ2 x 4711; 4 x 4812;2 x 4913; 10 x 5014
Picking Orders:Client A: 2 x 4711, 1 x 4812, 10 x 5014Client B: 3 x 4812, 2 x 4913
Example for parallel multi-level Order Picking
4711 4812 4913 5014
2 4 102allorders
114711 1349131212 45 5 5014
order A
order B
4812 45 5 50141. levelparallel
2. levelserial
several sourceslohddk10.ppt
2 1 10
3 2
„ Distribution Logistics "
article in warehouse
Quelle: Chr. Schulte: Logistik, 2. Auflage, München 1995loindw00.ppt
Main Tasks of Goods Issue
The main tasks of goods issue are:• Provision of the articles• Identity- and quality control• Printing of shipping instructions• Combination and packaging of the parcels for each consignment• Provision of the consignments• Loading of the goods
„ Distribution Logistics "
Material Flow Information Flow
loindw01.ppt Souirce: Chr. Schulte: Logistik, 2. Edition, München 1995, page 295 (source there: ZVEI)
Material- and Information FlowWithin the Goods Issue
„ Distribution Logistics "
ProductionWarehouse
Sales DepartmentOrder
Provision of goods Order Copy
Put down of the goods
Control of identityand quantity
fulfilled ?
Rejection
Customer
Combination of theconsignments
Packaging of The goods
Packaging of consignments
Privision ofconsignments
Loading of goods
Printing of shippinginstructions
fulfilled ?
Failure report
Exceeding of delivery date
Delivery datePacking slips
Transport scheduling
Shipping advice
Finishing of shippinginstructions
yes
no
yes
no
Com
plai
nt
Res
hipm
ent
good
s re
ceip
t
Goods Issue
lohddw04.ppt
Goods Issue Posting
Posting data:
• Date• Article number• Quantity• Order item / Project• Stock transfer• Store order item
The accounting will be supported using a posting type key: Herewith are connected logical plausibility checks to ensure
the correct accounting procedure.
• Interface to invoicing• Interface to store settlement• Interface to accounting• Departure warehouse
„ Distribution Logistics "
Client
Client
Client
Client
Client
Hub
Hub
Hub
Spoke
Spoke
„ Distribution Logistics "
Hub & Spoke-System
lohdlt17.pptSource: Wolfgang Oelfke:Güterverkehr-Spedition-Logistik, S. 226
Characteristics of Inland Navigation Vessels
The special suitability of barges as means of transport is the result of
• high performance and load capacity, • save transport process and good suitability for dangerous goods,• any time enough and available cargo hold, • favourable prices, • low ecological damage because of low energy consumption,• reduction of road traffic.
The possible disadvantages are the low speed (which is nevertheless takeninto account), the sporadical dependency on the water level, the glaciationand the relative small waterway net.
„ Distribution Logistics "
Source: http://www.wsv.de/Schifffahrt/Statistik/pdf/Wegelaenge_BRD.pdfdort:
Lengths of Inland Traffic Typesin GermanyRailway: 35.600 kmRoad: 231.581- BAB 12.037- Bundesstr.: 41.246- Landstr.: 86.868- Kreisstr.: 91.430Inland waterway: 7.300Pipelines (Oil): 2.966
„ Distribution Logistics "
Proportion of Main TransportSystems as Part of all Transportsin Germany
Source: http://www.wsv.de/Schifffahrt/Statistik/Binnenschifffahrt/index.html
„ Distribution Logistics "
Cargo Handling (Mio t) of Inland Ports
Source: http://www.wsv.de/Schifffahrt/Statistik/Binnenschifffahrt/index.html
„ Distribution Logistics "
Transported ton-kilometer on the inland waterways in Germanytotal on the Rhine
Source: http://www.wsv.de/Schifffahrt/Statistik/Binnenschifffahrt/index.html
„ Distribution Logistics "
Source: http://www.wsv.de/Schifffahrt/Statistik/Binnenschifffahrt/index.html
Requirement of primary energy in liter diesel per 100 ton-kilometer
Transport range for one tonwith the same energy affort
Emission of CO2 of the different carrier types in gramm per ton-kilometer
The best Protection of the Environment is done by the low Energy Consumption of Inland Navigation Vessels
„ Distribution Logistics "
Source: http://www.shortseashipping.de/de/foto-galerie/fotos/Schubverband_in_Hamburg.JPG
A push tow1
on the Rhine can grow up to 16.000 tons
1) or pushing unit(=Schubverband)
„ Distribution Logistics "
„ Distribution Logistics "
Example of a push-tow with 6 barges and 1 motor ship
Source: http://stahlarbeiter-online.de/links.htm Original: “Die Verhaaven XIII im Sechserschubverband mit Erz”
AMS BARGE IS A KEY ELEMENT IN AN INNOVATIVE TRANSPORT CONCEPT OPERATING IN NETHERLANDS. PHOTOS OF AMS BARGE ARE COURTESY OF SHIPYARD BEGEJ.
Source: http://www.dpc-belgrade.co.yu/gallery.htm
„ Distribution Logistics "
Source: http://www.dpc-belgrade.co.yu/gallery.htm
„ Distribution Logistics "
lohdlt18.pptSource: Wolfgang Oelfke:Güterverkehr-Spedition-Logistik, S. 336
Types of Business in the Maritime Navigation
With „Types of Business“ the shipping companies indicate the kind of usingthe seagoing vessels for transportation of goods.
Types of Business
Liner traffic Non-scheduled services
conventional container- other types: charterage contractLASH-, (or consecutiveRo/Ro-, Ferry route)
„ Distribution Logistics "
lohdlt20.pptSource: Wolfgang Oelfke:Güterverkehr-Spedition-Logistik, S. 331
Types of Seagoing Vessels
„ Distribution Logistics "
1. Passenger liner2. Container ship3. General cargo vessel4. Ro/Ro ship5. Supertanker (Oil-tanker)
Important Sea Port – Cargo Handling (Mio t)
Source: http://www.wsv.de/Schifffahrt/Statistik/Binnenschifffahrt/index.html
„ Distribution Logistics "
„Logistics Performance Measurement“
„Logistics Performance Measurement“= part of logistics controlling by means of
Key Performance Indicators (KPIs)
„Logistics Performance Measurement“
The most important KPIs within the Procurement Logistics
Purchaseperformance costs of the purchasing department p.a. in EUR
total order value p.a. in EUR=
Costs perorder item
costs of the purchasing department p.a. in EUR= number of order item p.a.
This KPI valuates the performance of the purchasing departement; it indicates, whichorder value was realised per 1 EUR costs of the purchasing department. It is difficultto manipulate this KPI. Example: 50:1
This KPI is necessary for the ANDLER-formula
= sum of price deviations / sum of planned prices x 100 [%]
A negative value indicates a negotiation success because the paid prices werelower than the planned prices.
Purchasesuccess
Sources: Chr.Schulte: Logistik; Praxishandbuch für den Materialwirtschaftsleiter, WEKA-Fachverlag, Augsburg 1996; Abels et al.: Wie gut ist Ihre Logistik ?, Verlag TÜV Rheinl, Köln ´94t
The most important KPIs for warehousing
Average stock = (start stock + 12 ultimo stocks) / 13
Warehouse ex-pense ratio
total costs of warehousing p.a.average stock (capital lockup)
x 100 [%]
Total warehousingexpense ratio
Total warehousingexpense ratio
The costs of warehousing do not contain the interest costs of the capital lockup.
(WER) =
(TWER) = WER + interest for capital lockup
This KPI is necessary for the ANDLER-formula; normal value range: 15 – 25 %
„Logistics Performance Measurement“
Sources: Chr.Schulte: Logistik; Praxishandbuch für den Materialwirtschaftsleiter, WEKA-Fachverlag, Augsburg 1996; Abels et al.: Wie gut ist Ihre Logistik ?, Verlag TÜV Rheinl, Köln ´94t
Inventory turnover = warehouse sales p.a. (pieces rsp. value) /average stock (pieces rsp. value)
Range of inventory in months = 12 months / inventory turnover
The inventory turnover is one of the mostly used KPI. The average turnover over the full assortment must be built only via values!
The range of inventory tells us, how long the average stock meets the normal demand without replenishment. The average range must be built using theaverage turnover.
The most important KPIs for warehousing
„Logistics Performance Measurement“
Sources: Chr.Schulte: Logistik; Praxishandbuch für den Materialwirtschaftsleiter, WEKA-Fachverlag, Augsburg 1996; Abels et al.: Wie gut ist Ihre Logistik ?, Verlag TÜV Rheinl, Köln ´94t
Logistics cost rate = costs of logistics / sales x 100 [%]
Delivery service level demand of the customer
directly delivered number of pieces of an article= x 100 [%]
Average delivery service level: sales realised / wished sales * 100 [%]
Costs of logistics = depend on the definition, what logistics is: planning of materials,purchasing, goods receipt, included quality control, warehousing, in-house transport,External transport, order picking, packaging, shipping, logistics-IT-system, order processing, production planning and control (PPC) etc.
Sources: Chr.Schulte: Logistik; Praxishandbuch für den Materialwirtschaftsleiter, WEKA-Fachverlag, Augsburg 1996; Abels et al.: Wie gut ist Ihre Logistik ?, Verlag TÜV Rheinl, Köln ´94t
The most important KPIs for warehousing an logistics
„Logistics Performance Measurement“
Pick-Rate man hours
number of picked colli= [ pieces per hour ]
The most important KPIs for warehousing an logistics
„Logistics Performance Measurement“
Sources: Chr.Schulte: Logistik; Praxishandbuch für den Materialwirtschaftsleiter, WEKA-Fachverlag, Augsburg 1996; Abels et al.: Wie gut ist Ihre Logistik ?, Verlag TÜV Rheinl, Köln ´94t
Delivery reliability total number of delivery positions
number of on-time delivered positions= x 100 [%]
Delivery Time = time between issue of order and disposability for the client