Optimizing Warehouse Operations Using the DMAIC Framework: A Case Study on the Implementation of 5S and FIFO in Industrial Logistics

Abstract

The current competitive and sustainable logistics environment demands skilled warehouse management in the quest for operational flexibility, cost-effectiveness and environmental sustainability. This present study is a systematic improvement project aiming to optimize warehouse efficiency within an industrial setting through the DMAIC (Define, Measure, Analyse, Improve, Control) approach. The project included the application of lean thinking, specifically the 5S work organization system and FIFO (First-In, First-Out) inventory rotation strategy to minimize waste and improve operational effectiveness. The key issues found included suboptimal layout configuration, delayed fulfilment time, inventory discrepancies and the lack of standardized practice. Root cause analysis by means of tools like the 5 Whys and the Fishbone Diagram identified process-level gaps hindering performance. Improvement interventions entailed redesigning the layout of the warehouse conducting employee training, introducing standardized labelling and the implementation of Standard Operating Procedures (SOPs) all guided by precisely defined performance indicator. Outcomes from such interventions revealed noteworthy enhancements toward better utilization of space, stock accuracy and the elimination of non-value-added activities, each representing potential environmental benefits through improved efficiency of resources. The study concludes that integrating lean tools within the DMAIC framework offers a practical and effective pathway for warehouse transformation with broader implications for scalability and continuous improvement in industrial logistics.