new translating carousel & vertical lift module (vlm) productivity … · 2013. 1. 10. ·...

A U T O M A T I O NThe Intelligent Material Handling Company

S A P I E N T

Translating Carousel & Vertical Lift Module (VLM)Productivity into Prosperity

W H I T E P A P E R S E R I E S

30 South Pine Street | Doylestown, PA 18901 | [email protected] | www.GetSapient.com

877.451.4044 215.489.7820

Subsidiary of MDCI

It’s becoming more apparent that the U.S economy is in a

slow but accelerating recovery. According to the Institute for

Supply Management (ISM) semi-annual forecast, the U.S.

manufacturing sector will grow in 2011, with manufacturing

revenue increasing by 5.6%. ISM also predicts that business

investment, a major driver in the U.S. economy, will increase

substantially in the manufacturing sector.

In the ISM survey, manufacturers also indicated that they

expect employment in the sector will increase by 1.8%.

Along with that employment increase, respondents said

they expected labor and benefits costs to increase an average

of 1.9% in 2011.

In positioning business to take advantage of the growing

economic recovery, companies and organizations have to take

a close look at their methods of operation and find ways to

improve productivity in all areas, particularly in view of the

potential for rising employee compensation costs.

In a strict economic sense, productivity is the ratio of the

quantity and quality of units produced to the labor per unit of

time. This means that improved productivity can and does have

a significant impact on bottom line profitability by producing

more for less. Therefore, to take full advantage of the

economic recovery, it is imperative that businesses look to

improving employee productivity as a means to ultimately

improve profitability efficiency.

One area in many organizations and companies that is ripe

for improvement is storage and retrieval operations.

According to Operations and Fulfillment Magazine, in most

warehouse operations, 45% of costs are for direct labor while

an additional 16% are for indirect labor. Picking and packing

activities account for the majority of those costs.

Automating for ProductivityHow can organizations reduce labor costs and improve

efficiency and customer service at the same time? One way

many companies and organizations have met this challenge is

by looking at automated storage and retrieval systems as a

means of improving employee productivity.

Automated storage and retrieval systems, such as vertical

and horizontal carousels and vertical lift modules (VLMs), can

increase productivity by 2/3 or more through the simple

concept of bringing goods to man, rather than having man

search for goods.


P R O D U C T I V I T Y


877.451.4044 215.489.7820Subsidiary of MDCI

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Automated storage and retrieval systems work by

delivering stored items to an operator an ergonomically

positioned removal area. By delivering items to the operator,

these systems eliminate one of the most costly factors in

retrieval operations—walk and search time. Conventional

static storage systems like shelving require employees to spend

up to 70% of their time traveling aisles searching for items and

only 30% actually retrieving items.

Typically, using automated storage and retrieval systems,

an operator’s walk and search time is reversed from that

of conventional systems to 70% picking and only 30%

searching time.

When operators spend more time picking and less time

searching, they become more efficient and the productivity

of the picking operation increases substantially. Because

operators are more efficient, businesses and get by with fewer

of them, even when the business begins to grow. Indeed, some

businesses might not be able to keep pace with increased

demands, no matter how many pickers are added to the staff

simply because more labor doesn’t necessarily translate into

more efficiency and productivity.

To find out how much productivity and reduced labor

your organization can obtain through using carousels and

VLMs, organizations such as Sapient Automation

(www.GetSapient.com) provide free on site analysis.

The access area of automated systems is ergonomically

designed to present stored items at an ideal height for picking,

usually about waist high. This location of the access area

contributes to employee safety since this positioning design

eliminates the bending, climbing and stretching associated

with conventional shelving and rack systems. Throughput

generally improves as well.

Redundant or non-essential handling can be reduced with

automated systems by using retrieval techniques such as batch

picking and slotting. Batch picking is the process of picking

multiple orders simultaneously. Since an operator will visit a

storage location once for the batch total picking time is

reduced. The time saved also results in less operating cost and

usually improved customer service. Labor costs are reduced due

to quick retrieval times and the capability to meet varying

throughput requirements while not being bound by thresholds

imposed by limited-access systems.

Slotting is the assignment of items to a particular

location, and in appropriate quantities for specific distrib-

ution needs, in a storage and retrieval system to maximize

system capacity and improve efficiency. Storing parts in

their appropriate distribution quantities significantly reduces





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MMH_9951_0_0211



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part handling time and, consequently, the costs associated

with unnecessary handling.

Saving Space, Improving AccuracyAnother reason for choosing to automate storage and

retrieval operations is improved space utilization. Automated

storage and retrieval systems can recover up to 85% of the

floor space typically required for rack and shelving systems.

Recovered floor space can be re-allocated from cost-associated

functions of inventory to value added production operations.

Improved space utilization can also extend the useful life of

existing facilities, eliminating the need for expensive brick and

mortar expansion to meet growth requirements.

Automated storage and retrieval systems, when combined

with microprocessor controls, position indicators, information

displays, and PC-based inventory management and control

software, offer increased speed and picking accuracy levels of

99.9%. Higher accuracy levels reduce waste and can result in

significant savings, while improving customer service.

Accelerated ROIWhat is the return on investment for an automated

storage and retrieval system? At Sapient Automation, we’ve

found that most customers who chose to install an automated

storage and retrieval system reported an ROI in the range of

nine to 18 months. This is based on a number of factors

including labor savings, recovered floor space, increased

manufacturing capacity or additional lines, reduced inventory

levels and increased inventory turns, fewer mis-picks and

returns, reduced training costs, fewer injuries and possible

litigation costs.

Reducing costs and adding value translates into economic

prosperity for the company, and its employees. Automated

storage and retrieval systems are a cost effective way to reduce

the cost of doing business and position a company for growth.

About Sapient AutomationSapient Automation, a subsidiary of MDCI, is a leading

provider of automated storage and retrieval systems for

manufacturing, distribution, warehouses, institutions, retail

and wholesale. For information about the Viper VLM, Avenger

Vertical Carousel or Hornet Horizontal Carousels, please call

800-639-5805 or visit the Sapient Automation web site at

www.GetSapient.com/

Space Savings(sq ft)

317 - 328461 - 472569 - 616713 - 724821 - 868to 929

Space Savings(percentages)

76%82%85%88%89%91%

CeilingHeight

15’20’25’30’35’40’

EliminatedShelving Sections

31 - 3545 - 4959 - 6573 - 8087 - 94to 100

new translating carousel & vertical lift module (vlm) productivity … · 2013. 1. 10. ·...

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