CIPs L4M7 Chapter 1

Question 1

What is a Stores?

Answer 1

Small local storage facility for immediate use items

Question 2

What is a Warehouse?

Answer 2

Large scale storage facility - there is a stand alone warehouse which is not connected to manufacturing assembly and integrated which is attached to the assembly line or at least on the same site

Question 3

What are Distribution Centres and Hubs?

Answer 3

Warehouses which are a focal point for a specific activity or geographic area.

Question 4

What is a Stock Yard?

Answer 4

An open area which can have a canopy used to store bulky items and vehicles

Question 5

What is the purpose of Stores, Warehouses etc?

Answer 5

Make stock available in alignment with stock management
Maintain a safe environment for material handling
A secure environment to avoid stock loss
A secure environment to minimise stock loss from damage or deterioration

Question 6

What Warehousing options exist?

Answer 6

Centralised warehouse - a single location used to supply whole country
Regional warehouse - used to supply a specific area of a country
Local warehouse or stores - multiple locations situated close to the users
Warehouse in another country - obvious
Outsourced warehousing - specialist organisation manage stock movement
Partnering - sharing warehousing cost and facilities with other companies

Question 7

Can you explain Porters Diamond Model?

Answer 7

Firm strategy, structure and rivalry - rivalry/ competition in the market place encourages innovation and differentiation to drive competitive advantage. It is therefore critical for strategy and structure to inhibit behavior that drive competitive advantage. This can also include the structure/ strategy of government i.e. funding of engineering degrees, high rate of graduate programme encouraging uptake of higher education. In return, this can reduce competition as other companies and nations cannot compete

Demand conditions- whole market demand for product or service. A nations increasing demand for a product or service drive companies to need to push product develop and technology to avoid market saturation, thus giving that nations and companies the push to innovate and create competitive advantage

Related supporting industries - success of one industry impacting another. Related industry under the same pressure to reduce costs and innovate can benefit to the top tier supplier thus nation for greater access to cheaper and more innovative product, thus creating competitive advantage

Factor conditions - Resources. Resources are split into 2 categories i) basic i.e natural resource ii) advanced i.e. specialist skills labour force. Note, competitive advantage can only be created by advance resources!

Government & Chance 2 other determinants which are obvious

The term “Home Base” is where a nation becomes famous for being the best at producing something i.e. Germany for car manufacturing

Question 8

What are Docks?

Answer 8

A feature of a warehouse design used for unloading and loading of vehicles also known as loading/ unloading bays

Question 9

What is Zoning?

Answer 9

Clearly marked/ designated area of a warehouse mapped by different requirements for different stock, equipment, access ETC

Question 10

What is Cross Docking?

Answer 10

When a delivery is unloaded but immediately prepared for dispatch without being stored. In some cases a vehicle may delivery goods and sit there for an immediate reload to delivery something else elsewhere

Question 11

What is a Tote Box?

Answer 11

Reusable storage boxes

Question 12

What is Picking?

Answer 12

Activity of retrieving stock from storage

Question 13

How does CIPS describe the flow of a warehouse?

Answer 13

The ability for stock to move around a facility in the quickest and safest manor. A poor flow reduces efficiency.

Question 14

What are Aisles?

Answer 14

Areas between racking and or pallets for access

Question 15

What % of of retailer deliveries are made from October to December?

Answer 15

80% with requirement to manufacture and store stock for the rest of the year

Question 16

What is a Mezzanine floor?

Answer 16

Elevated additional working storage space. Most importantly it enables storage underneath so a work station can be created without loosing storage space per sq ft

Question 17

What is a quarantine area?

Answer 17

Area set aside for items which are awaiting inspection, including other faulty goods which are due to be returned to supplier. it is important that defective goods do not make it past this point as they risk being mixed with other good stock

Question 18

What is kitting?

Answer 18

Activity in warehouse or stores of assembling groups of items that are to be used together for a specific task or build

Question 19

What is Return Logistics, otherwise known as Reverse Logistics?

Answer 19

The movement of material is the opposite direction of supply to facilitate return of defective goods, warranty claims, surplus goods etc . This can also involve recycling or scrapping

Question 20

What is a Bottleneck?

Answer 20

A restriction inside a warehouse, store etc which holds up or slows down activity.

Question 21

What is Flexible Warehousing?

Answer 21

Technique which allows short term ability to increase or decrease storage space

Question 22

What is Consignment Stock?

Answer 22

A facility offered by supplier to deliver stock to buyer and only charged once used or sold on

Question 23

Do you know the size of UK and euro pallets?

Answer 23

UK - 1200mm x 1000mm

Europe - 1200mm x 800mm - must conform to European pallet association UCI435-2

The largest international size is 1200 squares

Question 24

What types of product codes exist?

Answer 24

Own product code
Manufacturers product code
Customer product code
Industry standard product code
Multiple product codes
Then…

Numerical - all number, no letters
Alphanumerical - all letters, no numbers
Random generated or created - system randomly generated code, less chance of keying wrong pattern in caused my human error
Sequential - New item added take the next letter or number in the sequence i.e. 1000 –> 1001 or abc –> abd or 459/1000 –> 459/1001
Structured - when numbers signify characteristic of the product i.e 121769 –>121 means it is paint and 769 means the colour, thus if you were searching for paint you would start by searching 121

Question 25

What is a does SKU stand for?

Answer 25

Stock Keeping Unit - code/ reference given to help identify items

Question 26

What are Check Digits?

Answer 26

Additional number or character added to code that computers use to verify the number is valid. This is reduces mis keying and will result is an error, prompting the person keying in info to retry and look for the error.

e.g. adding up - SKU455879, number add up to 29 so code used is SKU45587929. Computer will only accept entry if number equal 29.

Multiple then add and module are also examples

Question 27

Which standards agency sets battery product codes?

Answer 27

International Electrotechnical Commission (IEC)

Question 28

What code structure does NATO use?

Answer 28

The North Atlantic Treaty Organisation used a 13 digit code to aid communication between countries

Question 29

What code structure so books use?

Answer 29

The international Standard Book Number System (ISBN) use a 13 digit code

Question 30

What is the The Harmonised Item Description and Coding System?

Answer 30

Abbreviated to HS Harmonised System for short, its an international standard governed by the World Customer Organisation (WCO). it uses a 6 digit code which is used world wide. Local country may add additional digits to the end to signify sub divisions

Question 31

What are Bar Codes?

Answer 31

They are line printing onto items which with the use of thickness and spaces signify number when read by scanning equipment.

The most common is the 13 digit European Article number (EAN-13)

EAN-13 is also compatible with Radio Frequency Identification (RFI)

EAN also use a 8 digit format for small items where 13 would struggle to fit

EAN-13 is incorporated into International Article Number (IAN) and Global Trade Item Number (GTIN)

GTIN is operated by not for profit organisation called GS1

Bar code can also be in 2-D format such as QR (quick response code) codes which hold capacity for more data than typical bar codes

Question 32

What are Fixed Assets?

Answer 32

Accounting term used to describe items which are land and building, fixtures, offices, equipment. these are also known as non-current assets

Question 33

What 2 types of RFID exist?

Answer 33

RFID (Radio Frequency Identification)

Passive - lays dormant until asked, then announces various data

Active - periodically announces what it is and therefore can be tracked

A good example of RFID use is on Tote boxes. Boxes can be tracked around a warehouse, avoiding losses.

Other uses:

Tracking items/ locating equipment
Stores unique to help identify items and locations
Trigger alarms i.e. stealing a laptop from a shop

RFIS are often used in partnership with Gateways which are arch over doorways which trigger events when an RFID chip passes through.

Question 34

What common equipment can you find in a warehouse, store etc?

Answer 34

Dollies
Sack trucks
Trolleys
Turntable trucks
Roll cage
Order pickers
Pallet trucks
Pallet stackers
Grabs
Drum lifters and loaders
Counter balance forklifts trucks
Reach trucks
Vacuum lifters
Roller systems
Conveyor systems
Cranes
Carousels
Stacker canes
Access to higher levels
Waste storage and compression
Weighing
Weight bridges
Floor scales and platform scales
Conveyor belt scales
Forklift and pallet truck scales
Load cells
Suspended balance and cranes scales
Counting scales
Racking and storage
Pallets
Skids
Slip sheets
Packing and packaging
Cardboard boxes

Question 35

What is Unit Load?

Answer 35

Grouping of different items into a convenient stack or stacks which make them easy to move. Typically pallets and plastic wrapped

Question 36

What is Harmonized Item Description and Coding System, abbreviated to HS - Harmonized System?

Answer 36

UN codes for transportation of hazardous goods which dictate how goods and labelled and packaged i..e use of pallets, boxes, wrapping etc

Question 37

What is Void Filling?

Answer 37

Various materials used to fill empty space in boxes. Environmental impact of material used should be considered as well as their ability to protect goods in transit

Question 38

What are Product Trays?

Answer 38

Moulding trays to fit specific items to support them in transit. Think of fruit trays in a supermarket, or foam for a laptop

Layer pads/ trays are the same materials but plane in nature and intended to separate units.

Question 39

What packaging regulations exist?

Answer 39

EU - EU Packaging and Packaging waste Directive requires each member state to enact laws

International Organisation for Standardisation (ISO) regs:

18601 - Generally requirement of the use of ISO in the field of packaging and the environment - explains procedures for using various ISO in this field to organisaton. Introduces the top of using packaging in a sustainable manor, why the origanisation needs to tackle it etc.

18602 - Optimising the packaging system - covers concept of optimum package usage for weighing up right level to protect goods in transit vs challenging organisation to use just enough to reduce environmental impact

18603 - reuse

18604 - material recycling

18605 - energy recovery from burning waste to create energy e.g. steam electric generators

18606 - organic recycling using packing for compost etc

Question 40

What is Warehouse Management System (WMS) software?

Answer 40

Umbrella phrase used to describe a wide range of system available in warehouses. It involves the use of technology and system to drive automated processes in warehouses and their connectivity (IoT).

Examples:

RFID tags
Bar codes
Hand held devices
Smart glasses
AGV Automated guided vehicles
and so on

Question 41

What is a Good Receipt Note (GRN)

Answer 41

Electronic entry into a system that confirm goods or services have been received