The Longevity Analysis provides an independent view of the operation’s current limitations, its effective capabilities, what it takes to get there, if that satisfies the business need, or how close it comes. The Analysis answers the following questions:
- Is the distribution facility using the best storage and processing techniques today?
- If not, what are the operational barriers in processes and/or bottlenecks in the material flow that are limiting the facility’s effectiveness? And, what are the recommendations for reducing the negative impacts of the operational barriers and bottlenecks?
- With improved processes and reduced bottlenecks, what are the real capabilities of the facility to store and ship product effectively?
- How do these capabilities compare with the plans for growth in stockkeeping units (SKUs), inventory, and volumes?
- Will the new processes carry the operations through the planning horizon? If not, when must some other solution be in place?
- What is that solution that provides the best balance of capacity and throughput in the existing space?
- What if we do nothing? If we do not implement the improvements in processes and layout, at what point in the growth does the facility begin to experience lower productivity?
- What is the impact on headcount as volumes increase and productivity decreases?