Case Problem - Leaning the Warehouse

We are interested in lean training for our distribution center workers. Can you provide that for us, Professor Warren? the (DC) manager inquired.

Yes, we have training material on lean systems and would be happy to facilitate a series of workshops for you and your employees. We usually start with a week of manager or supervisor training and then move on to frontline employee workshops one day a week for about two months. As your workers gain experience participating in improvement teams, we would return for daylong workshops once a month for six months after that. The entire process takes about a year, after which time your facility would have its own lean trainers certified to

Actually, interrupted the manager, we don't need to educate our supervisors on leanjust our hourly workers, and I think that could be done in about two days, one day for each shift.

I see, replied Professor Warren. Perhaps you could tell me more about what your lean objectives are and why you're seeking lean training at this time.

Sure. We're implementing a new performancebased pay system from corporate in which our industrial engineering staff has determined how long workers should take to complete a task and what a day's output should be. We'll be recording task completion times and daily throughput with scanners and comparing those with the standards that have been developed. Those workers who beat the standard receive bonus pay; those who do not risk losing their position. Our pilot project at the Atlanta DC didn't go very well. None of the workers met standard and they didn't seem to get how important this is. For example, they'd be running off looking for tools, or moving the same merchandise several times to get an aisle clear or to reach a pallet in back, or picking what they'd just put away, or stopping one task to work on another more urgent one. So we thought if we taught them lean principles for eliminating waste, it'd be easier to get the job done, and performance against standard would improve.

What might be some drawbacks in approaching lean implementation in this way? What might be some advantages? Does warehouse work lend itself to lean?