1

Project TardisMAIN WAREHOUSE RACKING INSTALLATION

CREATED BY DAVE GRAYSON

14TH NOVEMBER 2014.

2 Project Management Plan (P.M.P.)

Project Sponsor: Dave Grayson Project Members:

Project Managers-Dave Wilkins/Steve Broad

I.T.-Chris Fowles

Maintenance-Garry Hall

Goods In-Marcus Dale

Purchasing-Brian Wade

MHE-Marcus Dale/Supplier

P.I. –John Longsden

Racking/Sprinklers-Andy Manktelow/Supplier

H&S-Donna Saville

3 Background

As the business continues to expand at a significant rate the need for warehousing space has become business critical during 2014.

This has lead to a makeshift extension of the warehouse via stillage purchase and storage on site, 4 hire trailers used as storage and Sims being used as a third party storage warehouse. This has lead to increased cost totalling £26.5k at the time of writing for third party storage and £280per week for trailer hire.

Other additional costs include the need to do increased hours, overtime, shift work in order to keep the warehouse flowing to cope with both inbound and outbound peaks.

As part of the remedy for the main site there is to be an extension built to accommodate office and canteen space. This will enable additional floor space to become available in the main warehouse that is to be filled with long pallet and euro storage racking This project covers the additional racking build.

This work cannot physically start until the new extension has been built.

4 In Scope

Once the extension is built and ready to occupy then there will need to be a move from the existing Trade Counter/Showroom/Works Office/Canteens/Stationary office and Drilling and Returns area.

The existing warehouse floor will then need to have VNA log on wires installed for the relevant 11 aisles of extended racking.

Once complete there will be a major build of euro and cantilever racking in the newly created space.

There will also be modifications made to the old Trade Counter/Showroom mez which will then become a new work area for carrier /secondary ops returns and drilling.

These new areas will require sprinkler coverage.

Phase 1 will require P&D’s to supply the increased location capacity and expected growth in volumes as well as regular replen/de van single sku pallets from our satellite warehouse.

5 In Scope

The euro racking will be scoped out for MTM; roller racking;1245 panels storage etc.

Create a nominated secondary Ops team and Team Leader to run it.

Purchase any relevant MHE trucks for the supply of product to the mez floor.

Reconfigure the warehouse once the new locations are in place to provide a) new pick slots for new ranges and b) moving fast moving product to the front end of the warehouse and slow/non moving stock to the furthest point in the warehouse.

Remove the cantilever racking adjacent to the goods out bays to replace the current euro X aisle. Absorb the lost euro locations in the new extended aisles. This will increase the marshalling area on the outbound bays.

Achieve all this whilst the business continues to operate on a daily basis, where possible. There is an expectation that there will be additional out of hours work required during some parts of the project.

6 Out of Scope

Supplying backfill labour to other parts of the business during this project. There is a huge challenge here to complete this project at the same time as normal trading which will stretch operational resource to its limit.

In aisle picking sequencing reconfiguration for the existing aisles and pick faces. This will need to be done post project Go Live.

7 Expected Outcome

To provide a medium /long term solution to the warehouse space issue-especially the long pallet locations.

Enable the main warehouse to operate more safely and efficiently.

Enable the company to introduce more new ranges into its sales portfolio by increasing pick face availability and bulk storage capacity.

Provide exceptional delivery service standards to both internal customers and external customers.

To eliminate third party storage costs and have the main warehouse as a picking and short lead time stock holding warehouse.

8 C.D.P.

Jul-06 Jul-13 Jul-20 Jul-27 Aug-03 Aug-10 Aug-17 Aug-24 Aug-31 Sep-07 Sep-14 Sep-21 Sep-28Move existing offi ces Make ready T/Count MezDemolish current drilling areaMove drilling and carierLay VNA long in wiring Rollback or Build rackingInstall P&D'sInstall SprinklersInstall RF hardwareCommision/Test MHE/RFH&S Risk AssessProject MeetingMigrate Stock into locationsGo LiveOperational KPI'sPIR Meeting

9 Capex Budget

Budget Actual Diff +/-Cost £ Cost £

Demolition of offi ces/drillingMake ready T/CounterIT RF hardware installationRackingSprinklersVNA floor log on wiresMHE purchaseManitenance WorkIT hardware/software Stock transferOut of hours working

10 Risks

There are some key members of the current operational team who will be taken out of the mainstream operational day, at times, until the project is complete. Backfill will be required by less experienced staff which could have an impact on the main warehouse service levels

Costs going over budget

The extension build overshoots the start of July which means this project also being delayed. That would encroach into October and November-traditionally our two busiest months of the year.

New ranges being introduced into the business due to a major increase in sales demand before this option is up and running.

With a major demolition and racking build alongside probability of maintenance work there are likely to be a lot of contractors on site. These must be controlled properly or could pose a H&S risk.

Failure to complete the project on time due to a project overshoot on tasks involved will have the same ramifications as per the failure to start on time.

11 Governance

Periodic project meeting, (as per CDP)-all.

Weekly review of the CDP-between Project Manager and Project Sponsor.

Weekly budget review between Project Manager and Project Sponsor

Weekly update to the Director’s from the Project Sponsor.

Operational KPI’s post Go Live.

12 Project Sign Off /Closure

All project team members will be required to sign off that their area is closed off.

A final close out meeting will be held to review both success and also any lessons that can be learnt for future projects. (Post Implementation Review meeting.)

Final sign off will then be done by the Project Sponsor/Directors.