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Presented by: Myles Harmon What Level of Automation Makes Sense An Incremental Approach © 2016 MHI® Copyright claimed for audiovisual works and sound recordings of seminar sessions. All rights reserved.

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Page 1: What Level of Automation Makes Sensecdn.modexshow.com/seminars/assets-2016/1080.pdf · 2016-04-20 · Automation Justification Matrix Criteria to Automate Automation Level 1 Automation

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Presented by:

Myles Harmon

What Level of Automation Makes Sense

– An Incremental Approach

© 2016 MHI® Copyright claimed for audiovisual works and sound recordings of seminar sessions. All rights reserved.

Page 2: What Level of Automation Makes Sensecdn.modexshow.com/seminars/assets-2016/1080.pdf · 2016-04-20 · Automation Justification Matrix Criteria to Automate Automation Level 1 Automation

Agenda

• Defining automation

• Automation scalability

• Automation examples

• Framework for automation justification

Page 3: What Level of Automation Makes Sensecdn.modexshow.com/seminars/assets-2016/1080.pdf · 2016-04-20 · Automation Justification Matrix Criteria to Automate Automation Level 1 Automation

Defining Automation

• What does "automation" mean to you?

– The different perspectives and fears of the

word “automation”

• Too expensive

• Inflexible

• No ROI

• Not right for my business

• Etc.

Page 4: What Level of Automation Makes Sensecdn.modexshow.com/seminars/assets-2016/1080.pdf · 2016-04-20 · Automation Justification Matrix Criteria to Automate Automation Level 1 Automation

The Automation Scale

Low High

• Implement new WMS

• RF Picking

• Voice Picking

• Labor Management

Level 1 Conventional Picking with

Process Improvements

• Conveyor / Pick Modules

• Auto stretch wrap & label

• Layer Picking

• AS/RS high-density storage

• Conveyor

• WCS/WMS software

• AS/RS

• Conveyor

• Automated Layer picking and case palletizing

• WCS/WMS software

Level 2 Mechanized

Solutions

Level 3 Semi-Automated

Solutions

Level 4 Fully-Automated

Solutions

$500K-$1M $40+ Million $2M-$5M $10M-$15M

Page 5: What Level of Automation Makes Sensecdn.modexshow.com/seminars/assets-2016/1080.pdf · 2016-04-20 · Automation Justification Matrix Criteria to Automate Automation Level 1 Automation

Level 1 Example Replace paper pick tickets with Voice Picking

Key Features

• Improved safety - Eyes and hands free

• Increased productivity – Typically 15 – 20%

• Improved order accuracy – Up to 99.99%

• Improved inventory control – FIFO, LIFO, etc.…

• Easy to train employees

After Before

Page 6: What Level of Automation Makes Sensecdn.modexshow.com/seminars/assets-2016/1080.pdf · 2016-04-20 · Automation Justification Matrix Criteria to Automate Automation Level 1 Automation

Level 2 Example Conversion of bulk stack warehouse to high-density drive-in racking with pallet moles for putaway/retrieval

Key Features

• 17 pallet moles in plant-attached warehouse

• 26K pallet positions (mostly 100” openings) in 250K

square feet

• Business case included 20% productivity increase,

reduction in product damage, and shuttle cost

reduction by gaining 2,200 pallet positions onsite

After Before

Page 7: What Level of Automation Makes Sensecdn.modexshow.com/seminars/assets-2016/1080.pdf · 2016-04-20 · Automation Justification Matrix Criteria to Automate Automation Level 1 Automation

Level 3 Example High-bay ASRS design with 6 cranes, pick tunnels, conveyor loop feed/transport, print/apply and inline stretch wrap

Crane #1

Crane #2

Pick Aisle #1

Crane #3

Crane #4

Crane #5

Crane #6

Pick Aisle #2

Pick Aisle #3

Pick Aisle #4

Pick Aisle #5

Pick Aisle #6

Freezer

Room 9

Key Features

• 100K sq ft expansion to existing

conventional site

• 3-shift operation with 70 total FTE’s

• 21,000 pallet positions / 600 pick

faces for 20% casepick customer

• Over 1,000 pallets/day shipped with

2,500+ crane moves/day at peak

• 32% labor savings vs. conventional

Cooler

Room 10

Page 8: What Level of Automation Makes Sensecdn.modexshow.com/seminars/assets-2016/1080.pdf · 2016-04-20 · Automation Justification Matrix Criteria to Automate Automation Level 1 Automation

Level 4 Example Fully automated, mixed case palletization, 100% casepick for high volume retailer

Auto Trailer

Loading

ASRS Pallet

Storage via Cranes

De-Layer Robotic

Stations

Auto-Palletizing,

Stretch Wrap

Case Storage via

Shuttles / Mini-load

Sequence out

cases by

store

Page 9: What Level of Automation Makes Sensecdn.modexshow.com/seminars/assets-2016/1080.pdf · 2016-04-20 · Automation Justification Matrix Criteria to Automate Automation Level 1 Automation

Automation Fact or Fiction?

Level 1 Implementations: >10,000

Level 2 Implementations: > 8,000

Level 3 Implementations: > 3,000

Level 4 Implementations: > 15

Page 10: What Level of Automation Makes Sensecdn.modexshow.com/seminars/assets-2016/1080.pdf · 2016-04-20 · Automation Justification Matrix Criteria to Automate Automation Level 1 Automation

Automation Justification Matrix Criteria to Automate Automation

Level 1

Automation

Level 2

(includes Level 1)

Automation

Level 3

(includes Levels 1&2)

Automation

Level 4

(includes Levels 1-3)

• Process Improvements • Improve order accuracy • Increased operations

efficiency

• WMS with RF/voice directed picking

• 1000 - 2000 Pallets per Day Received & Shipped

• Need to ship mixed SKU pallets

• WMS with RF/voice directed picking

• Automated Layer Picking

• Mechanized horizontal transportation conv/AGV

• > 2000 Pallets/Day in Receiving

• Case & pallet order selection

• High labor costs/availability

• Cooler/freezer work environment

• WMS/WMS inventory control and automation optimization

• Automated Layer Picking

• Mechanized horizontal transportation conv/AGV

• Automate Receiving, Put Away & Pick slot replenishment (Hi-Rise AS/RS)

• “Goods to Person” product delivery

• High volume pallet & case pick “Store Friendly” Order Sequencing

• WMS/WMS inventory control and automation optimization

• Automated Layer Picking

• Mechanized horizontal transportation conv/AGV

• Automate Receiving, Put Away & Pick slot replenishment (Hi-Rise AS/RS)

• “Goods to Person” product delivery

• Fully Automated Random Case Unitizing & Piece Picking

• ROI Factors

• Modest FTE reduction, reduce stock outs, improve inventory & order accuracy

• Order selection • efficiencies, 10-15% FTE

reduction, improve inventory& order accuracy

• Building construction savings, Order selection

• efficiencies, 25-50% FTE reduction, improve inventory& order accuracy

• Order selection • efficiencies, >50% FTE

reduction, Store Replenishment efficiencies – high customer service levels

Page 11: What Level of Automation Makes Sensecdn.modexshow.com/seminars/assets-2016/1080.pdf · 2016-04-20 · Automation Justification Matrix Criteria to Automate Automation Level 1 Automation

Q&A

Page 12: What Level of Automation Makes Sensecdn.modexshow.com/seminars/assets-2016/1080.pdf · 2016-04-20 · Automation Justification Matrix Criteria to Automate Automation Level 1 Automation

For More Information:

Speaker email: [email protected]

Website: www.viastore.com

Or visit MODEX 2015 Booth 1439