L.L. Bean Distribution: The Monogramming Department
Download Full Case Description in PDF format
Approved for distribution: October 2000
Authors:
Jessica J. Allen and Dr. Robert Graves
Department of Decision Sciences and Engineering Systems, CII 5129
Rensselaer Polytechnic Institute
Troy, NY 12180
Keywords:
Equipment Types: Pick and Pack Equipment
Facility Type: Distribution Center, Warehouse
Analysis Methodology: Layout, Capacity Analysis, Product Flow Analysis
Abstract:
At the L.L. Bean Distribution Center in Freeport, Maine, an increase in competition for outdoor products has led L.L. Bean to increase its product line and increase the amount of monogramming for products. As the popularity of customization has grown, the monogramming department has grown and is pushing the limits of its boundaries. Aside from department growth becoming an issue, monogramming faced another hardship: the building was designed for no-exceptions processing and monogramming was an exception. This added a complication as to how the work would flow through the building and from the picking department to the packing department. The rapid growth and growing demand made the monogramming management realize that the department was ready for a process improvement. As this all began, the department received word from upper-level management that a mandatory 12% budget decrease was to be expected for the upcoming fiscal year. The supervisor realized that by eliminating overtime, the department can cut their budget by 12%. Without overtime, the department will need to process 49,000 orders per forty-hour work week. Monogramming currently employs thirty operators (each operator runs two machines) and eight support personnel, responsible for materials handling. The departments performance is based on total hours to complete weekly work volume.
Given the area maps and process flows, you must determine how many hours it would take to process 49,000 units by the current layout in a forty-hour work week. To meet budget requirements, you must increase productivity and decrease cost per unit. The material flow patterns will be re-engineered to decrease the operators travel time. Your assignment is to develop a new layout for the area that improves material flow.
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