5 ways to increase profits with simple picking...

© 2014 MHI®

Copyright claimed as to audiovisual works of seminar sessions and

sound recordings of seminar sessions. All rights reserved.

Sponsored by: Presented by:

Tim Archer – Sales Trainer

5 Ways To Increase Profits With Simple Picking Automation

5 Ways To Increase Profits With Simple Picking Automation

• Define Simple Picking Automation

• Review 5 Possible Areas Of Profit

• Real Life Case Studies

Vertical Lift Module

A VLM Is An Enclosed Systems Of Vertically Arranged Trays, An Extraction Platform And A Series Of Computerized Controls That Delivers Items To An Ergonomic Workstation

Simple Picking Automation


Vertical Carousel

A Vertical Carousel Consists Of Shelves That Rotate Up Or Down Via The Shortest Path, Delivering Items To An Ergonomic Work Counter

Horizontal Carousel

A Horizontal Carousel Is A Series Of Storage Carriers With Shelving, Mounted On An Elongated Oval Track That Rotates To Deliver Carriers With Stored Parts To An Operator


Possible Areas Of Profit from Simple Picking Automation

• Reduce Labor Costs (or Expand Operations Without Adding Labor)

• Reduce Floor Space Costs

• Reduce Picking Costs

• Reduce Worker Absentee & Injury Costs

• Reduce Costs of Mispicks

Possible Areas of Profit

Reduce Labor Costs (or Expand Operations Without Adding Labor)

• Reduce The Number Of Employees Up To 2/3 While Maintaining Current Productivity Levels

• OR… Increase Throughput While Maintaining The Same Number Of Employees

Automated Picking Manual Picking


Increase Productivity by Eliminating Walk and Search Time

• Bring Goods To Person

• Eliminate Walk & Search Time

• Optimized Machine Movement

Toronto, ON, Canada

Joanne Fabrics

• Application

– Wholesaler & Distributor Of Decorative Fabrics

• Situation

– Adding 1,100 SKUs To Warehouse At Capacity

• Solution

– Four Shuttle VLMs

– Integrated Software

– Pick To Light

Toronto, ON, Canada

Joanne Fabrics

• Results:

– Orders Are Picked In Half The Time With Only One Worker Required

– Reduced Pick Time 70% (From Ten Minutes To Three Minutes )

“The Shuttle VLMs Allowed Us To

Expand Our Hardware Line Without Adding Labor and Maintain Our

3pm Order Cutoff Time” Kim Hovesen Krasa

Vice President, Joanne Fabrics

• Application

– Spare Parts Distribution To End Users

• Situation

– Struggling To Meet Order Demand

• Solution

– 13 Shuttle VLMs Grouped In 4 Pick & Pass Workstations


– Pick to Light

Florence, KY

Mazak

• Results

– Reduced Labor By 44% (From 9 Workers To 5 Workers)

– Reassigned 4 Workers

Florence, KY

Mazak

“The Shuttle VLMs have also helped us increase our same-day shipping

percentage, we’ve gone from 95% to 97.5% - same day shipping is no longer

an issue.” Steve Trammel

National Parts Manager, Mazak

Reduce Floor Space Costs

• Reclaim Up To 85% Floor Space • Maximize Density Within The Unit


Technology Wasted Unit Space

Shelving 50 – 70%

Drawers 40 – 60%

Horizontal Carousels 25%

Vertical Carousels 20%

Vertical Lift Modules 10%


Create Space For Value Added Activities

• Create Floor Space

– Floor To Ceiling Space Utilization

– Eliminate Waster Aisle Space

– Maximize Unit Density

• Increase Value Added Activities

– Increase Manufacturing Capacity

– Add Kitting Operations

– Expand Quality Control

• Application

– Parts Distribution For Manufacturing & Spare Parts

• Situation

– Production at Capacity

• Solution

– Eight Shuttle VLMs


– Pick to Light

Chesapeake, VA

Plasser

• Results

– Recovered 70% Floor Space (From 19,000 sq ft to 1,440 sq ft)

– Expanded Production Area by 17,000 sq ft

Chesapeake, VA

Plasser

“A mandated floor space reduction for a production expansion turned out to improve the overall efficiency of the

stockroom, it’s a win!” Daniel Boone

Quality Manager, Plasser


Reduce Picking Costs

Shelving or Cabinets

Packing & Shipping

Horizontal Carousel Work Zone

Packing & Shipping


Speed Picking To Meet Customer Demand

• Fulfill Multiple Orders at Once – One Pick Fills Multiple Orders

• Reduce Shipping & Manufacturing Bottlenecks

• Extend Order Cutoff Times

• Easily Accommodate Hot Picks

• Application

– Order Fulfillment For Retail Pharmacy Stores

• Situation

– Struggling To Meet Order Demand

• Solution

– Six Horizontal Carousels Stacked in Two Zones of Three

– Integrated Software & Pick To Light

– Batching Station

Edmonton, AB, Canada

Value Drug Mart

• Results

– 90% Faster Picking: Lower Carousel Zone 350 Lines/Hour & Upper Carousel Zone 575 Lines/Hour; 50 Lines/Hour From Past Shelving

Edmonton, AB, Canada

Value Drug Mart

“We were picking as fast as staff, shelving and technology would permit, but it wasn’t fast enough, automation

was the solution” Dwayne Bilawchuk

Operations Manager, Value Drug Mart

Reduce Worker Absentee & Injury Costs


Lifting

Bending Stretching

Pushing

Reaching

Pulling

Stooping

Twisting

Walking


Create a Safe & Ergonomic Work Environment

• Eliminate Lifting, Reaching, Walking, Pushing, Pulling, Twisting, Stretching, Bending & Stooping

• Easily Integrate Hoists, Lifts & Carts

• Safety Features Protect Both Workers & Stored Items

• Application

– Manufacturing Projection Systems

• Situation

– Risk of Worker Injury & Damage to Projector

• Solution

– Two Shuttle VLMs with Software

– Ergonomic Hoist & Automatic Tray Extraction

Kitchener, ON, Canada

Christie

• Results

– Ergonomic Access to All Sub Assembled Projectors

– Reduced Risk of Worker Injury & Damage to Projector

Kitchener, ON, Canada

Christie

“Each sub assembled projector weighs approximately 52 pounds and are

accessed with an ergonomic hoist; no lifting, pushing or pulling is required.”

Philip Hibberd Sr. Manufacturing Engineer, Christie


Reduce Costs of Mispicks

• A 1% Error Rate Can Eat Your Profits:

– Estimate 250 Lines Per Hour

• 3 SKUs Per Order

• Eight Hours Per Shift

• One Shift Per Day

– Equals 6,000 Picked Items

– 1% Equals 60 Wrong Picks

– @ $100 Cost Per Wrong Shipment

– $6,000 Per Day

– Over $1.5 Million Per Year


Streamline Picking for Increased Customer Retention

• Increase Picking Accuracy Up To 99.9%

– Reduce Picking Mistakes

– Fewer Returned Orders & Restocking

– Fewer Repicking Items Due To Shipping Mistakes

– Improved Customer Satisfaction

– Increased Repeat Customers

• Application

– Maintenance & Repair Operations For Aircraft

• Situation

– Expand Capacity & Maintain Batch Number & Part Traceability

• Solution

– Two Shuttle VLMs with Pick To Light

– Software with Batch Validation

Toronto, ON, Canada

Jazz Aviation

• Results

– Part & Batch Number Validation Though Bar Code Scanning Integrated In The Batch Picking Process

– 99% Pick Accuracy

Due to the batch picking process and batch validation, accuracy has

increased to nearly 99% and we can track exactly which part was used to

repair each aircraft.” Mike Hauser

Stores System Manager, Jazz Aviation

Toronto, ON, Canada

Jazz Aviation

• Reduce Labor Costs (or Expand Operations Without Adding Labor)

• Reduce Floor Space Costs

• Reduce Picking Costs

• Reduce Worker Absentee & Injury Costs

• Reduce Costs of Mispicks

Possible Areas Of Profit from Simple Picking Automation

For More Information:

Speaker Email: [email protected]

Website: www.KardexRemstar.com

Or visit MODEX 2014 Booth #9323

NOTE: This ending slide is OPTIONAL. Items that can be included are your

speaker’s email address/home page, the Exhibiting Member Company’s name,

home page and Booth Number.

mailto:[email protected]

http://www.kardexremstar.com/

5 ways to increase profits with simple picking...

Documents