PRESENTATION TITLE
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Presented by:
Rupert Hoecherl
Paul Shotto
Flexible Goods–
to-Man
Automation Where do I start?
Is Automation Right for You?
Introduction
• Case Study – New Logistics and Manufacturing Center
– Project Approach
– Automated vs. Manual
– Plan for Project Success
• Summary
Overview
Key Takeaways: • Solve your order fulfillment challenges through technology, process
optimization and design
• Risk mitigation in large investment projects
• Cost saving ideas for your project
• ROI through optimal application of goods-to-man equipment automation
• Meet the main project objectives of scope, budget and time
• In this seminar io-consultants will provide you with the right project
approach and tools to evaluate if automation is right for your application.
Introduction
io-consultants - A Global Consulting Group • International consulting group established 1958
• Provides services in Logistics, Supply Chain Management, IT Automation
and Flight Catering
• Expert in the design, implementation and support of automated distribution
centers, fulfillment centers, intralogistics planning and systems
• Extensive experience in upstream network optimization and site search,
highly specialized in WMS, SAP LES / EWM expertise with customization
experience and knowledge of the planning process in SAP
• Independent from software, hardware and solution providers
Introduction – Overview
• MSc. Industrial Engineering
• 8 years experience in large scale distribution center planning and supply
chain management projects in aftersales and production related
environments
• International experience, assignments in Europe, USA and the Middle East
involving managing geographically distributed project teams working in
multi-cultural environments
• Focus on Strategic Planning, Material Handling Design, Implementation,
Ramp-up Support and Project Management
• Partner at io-consultants and currently serving as Business Unit Manager
for the io-consultants’ North American operations
Introduction – Rupert Hoecherl
• MBA with focus on Supply Chain, BSc. Civil Engineering
• 5 years experience in large scale distribution center planning and supply
chain management projects in aftersales and production related
environments
• International experience, assignments in Europe, Central America and USA
involving managing geographically distributed project teams working in
multi-cultural environments
• Focus on Strategic Planning, Material Handling Design, Implementation,
Ramp-up Support and Project Management
• Senior Consultant at io-consultants
Introduction – Paul Shotto
• BELIMO is a global market leader in the development, production and marketing of valve, actuator and sensor solutions for controlling heating, ventilation and air conditioning systems.
• BELIMO offers customized products with rapid turnaround that requires access to a large amount of components.
• Approximately 4,000 different SKUs from small screws up to 36” valves.
• Approximately 450,000 order lines and 125,000 deliveries (145,000 parcels / 20,000 pallets) per year.
• Final assembly done based on exact customer orders.
BELIMO Automation AG
• High number of items due to the
customization options available.
• Inventory reduction vs. very high
availability requirements.
• High customer service expectations
- deliver when others can’t.
• Parts variety by size, weight &
storage requirements.
• Optimize flow between logistics and
manufacturing.
• Prepare the business for future
growth.
Typical Challenges for BELIMO
• Introduction
• Case Study – New Logistics and Manufacturing
Center
– Project Approach
– Automated vs. Manual
– Plan for Project Success
• Summary
Overview
BELIMO wanted to develop a semi-automated logistics concept to help make
their new facility as efficient as possible and to be able to handle future growth
and expansion possibilities. The solution had to make sure that:
• Service levels were maintained
• Make to order, make to stock and finished goods processes were efficient as
possible.
• Picking and put away was optimized
• System had to integrate with existing WMS
• Building requirements were adequate
Case Study – Logistics and Manufacturing
• Introduction
• Case Study – New Logistics and Manufacturing Center
– Project Approach
– Automated vs. Manual
– Challenges of Automation
• Summary
Overview
Strategy Development
Concept Design
Detailed Planning &
Bidding
Implementation Support
Start-up Management
Detailed
layouts
Bidding
documents
Firm
competitive
quotes
Contracting
Engineering and permitting
Installation
Testing
Start-up
Phase 1 Phase 2 Phase 3
Data Analysis
Concept Design
Scenario development
Block layouts
Business case
Build or lease decisions
Budget development
Strategy Development
Concept Design
Detailed Planning &
Bidding
Implementation Support
Start-up Management
■ Supply Chain Design
■ Network Optimization
■ Location finding
1-x warehouse
Prod. & After-Sales
warehouse
■ Forecast & Growth
■ Data Analysis
■ Concept design
■ Scenario development
■ Block layouts
■ Business case
■ Build or lease decisions
■ Budget development
Anlieferposi MT-Gebinde / h 88
Anlieferposi GT-Gebinde / h 187
vereinnahmte MT Gebinde / h 90
vereinnahmte GT Gebinde / h 190
Sonderfläche Beschleuniger 1.436
Anzahl WE-Stellplätze Seite 14 Anzahl WE-Tore Heck 14
Anzahl WE-Tore Seite 7
Entladefläche Kalthalle 1.456
Stapler WE Entladung [Stk] Stapler WE Entladung [Stk]
WE-Pufferfläche Aufbereitungszone (m²) 2.073
QS-Fläche, etc. [m²] 800
Stapler WE Fläche [Stk]
Einlagerung AN Posi/h 187 Einlagerung AN Posi/h 88
Einlagerung Gebinde/h 187 Einlagerung Gebinde / h 88
Auslagerung VE Posi/h 124 Auslagerung VE Posi/h 70
VE Gebinde / h 125 VE Gebinde / h 72
Auslagerung NS Posi/h 44 Auslagerung NS Posi/h 15
NS Gebinde / h 44 NS Gebinde / h 15
BZL: Anteil Posi/h "normal" 13%
BZL: Anteil Posi/h ÜG 57% BGL: Anteil Posi/h 30% BGL: Anteil Posi/h 62% BZL: Anteil Posi/h 38%
Einlagerung AN Posi/h 6 Einlagerung AN Posi/h 13 Einlagerung AN Posi/h 9 Einlagerung AN Posi/h 6
Einlagerungsgebinde/h 6 Einlagerungsgebinde/h 13 Einlagerungsgebinde/h 9 Einlagerungsgebinde/h 6
Einlagerung AN Posi/h ÜG 25
Einlagerungsgebinde/h ÜG 25
Auslagerunge Gebinde /h 29 Auslagerung Gebinde /h 19 Auslagerunge Gebinde /h 18 Auslagerunge Gebinde /h 28
Auslagerung AN Posi/h 86 Auslagerung AN Posi/h 129 Auslagerung AN Posi/h 69 Auslagerung AN Posi/h 155
Auslagerunge Gebinde /h ÜG/keine Konsi 232 Auslagerungen AN Posi ohne Konsi 55
Auslagerung AN Posi/h ÜG/keine Konsi 232 Auslagerung AN ohne Konsi Gebinde /h 55
Verdichterfläche 100 Pufferfläche Overflow [m²] 588 Pufferfläche Overflow [m²] 252 Verdichterfläche 30
Verdichterfläche 50 Verdichterfläche 30
GT BZL: Anteil Pick-Pack Posi/h 18% GT-BGL: Anteil Pick-Pack Posi/h 32% MT - BGL: Anteil Pick-Pack Posi/h 43% MT - BZL: Anteil Pick-Pack Posi/h 65%
GT BZL: Anteil Pick-Pack Gebinde/h 17% GT-BGL: Anteil Pick-Pack Gebinde/h 42% MT - BGL: Anteil Pick-Pack Gebinde/h 70% MT - BZL: Anteil Pick-Pack Gebinde/h35%
GT-BZL: Anteil nicht P&P Posi/h 82% MT - BGL: Anteil nicht P&P Posi/h57%
GT-BZL:Anteil nicht P&P Gebinde/h 83% MT - BGL: Anteil nicht P&P Gebinde/h30%
GT-BGL: Anteil nicht P&P Posi/h 68%
(De)-Konsolidierungs-Gebinde/h 35 GT-BGL: Anteil nicht P&P Gebinde/h 58% (De)-Konsolidierungs-Gebinde/h 24 MT BZL: Anteil nicht P&P Posi/h 35%
(De)-Konsolidierungs-Posi/h 159 (De)-Konsolidierungs-Posi/h 94 MT BZL: Anteil nicht P&P Gebinde/h 65%
Puffer leere Gebinde [m²] 150 Puffer leere Gebinde [m²] 150
Bereitstellfläche [m²] 1002 Bereitstellfläche [m²] 253
Stapler Konsi Fläche [Stk] Anzahl P&P GT Gebinde/h 13 Stapler Konsi Fläche [Stk]
Anzahl P&P MT Gebinde/h 26
GT - direkt VE: Anteil Gebinde/h Puffer leere Gebinde [m²] 150
87% Pufferfläche GT [m²] 44 Anteil Posi/h
Pufferfläche MT [m²] 38 52%
GT-Umleger VE: Anteil Gebinde/h Anteil Posi/h
13% Stapler P&P Fläche [Stk] 48%
Anteil Posi/h
97%
Umpack-VE Posi/h 15 Verpackungsposi/h 281 Verpackungsposi/h 159 Verpackungsposi/h 94 Umpack-VE-Posi Posi/h 35
Umpack - VE Gebinde/h 16 Anteil Gebinde/h Bereitstell/Konsi-Gebinde/h 281 Bereitstell/Konsi-Gebinde/h 35 Bereitstell/Konsi-Gebinde/h 24 Umpack - VE Gebinde/h 35
WA-VE-Gebinde/h 16 97% WA-Packstücke /h 281 WA-Packstücke /h 91 WA-Packstücke /h 97 WA-VE-Gebinde/h 35
Anzahl AP 3 Anzahl AP 86 Anzahl AP 24 Anzahl AP 7 Anzahl AP 4
Anzahl MA 2 Anzahl MA 57 Anzahl MA 16 Anzahl MA 5 Anzahl MA 3
Fläche Umpacken [m²] 120 Fläche Verpacken [m²] 3.440 Fläche Verpacken [m²] 967 Fläche Verpacken [m²] 213 Fläche Umpacken [m²] 105
Packmittelpuffer - Packmittelpuffer - Packmittelpuffer 370 Packmittelpuffer 470 Packmittelpuffer 0
Puffer Routenvorsortierung Puffer Routenvorsortierung Puffer Routenvorsortierung Puffer Routenvorsortierung 466 Puffer Routenvorsortierung
Stapler Konsi Fläche [Stk] Anteil Posi/h Stapler Packbereich [Stk] Stapler Packbereich [Stk] Stapler Packbereich [Stk] Stapler Packbereich [Stk]
3%
Anteil Gebinde/h
3% GT-Gebinde/h 517
MT-Gebinde/h 123
Pufferfläche 9.572
Stapler WA Fläche [Stk]
WA -Verladung
Anzahl WA-Stellplätze Seite 8 Anzahl WA-Tore Heck 42
Anzahl WA-Tore Seite 4
Beladefläche Kalthalle 832
Stapler WA Verladung [Stk] Stapler WA Verladung [Stk]
Bodenblocklager (GT) Bodenblocklager (MT)
Bodenzeilenlager (GT) Breitganglager (GT) Breitganglager (MT) Bodenzeilenlager (MT)
WE - Entladung Seite WE - Entladung Heck
(De)Konsolidierungsfläche GT-Behälter (De)Konsolidierungsfläche MT-Behälter
PP-Fläche
Umpacken GT (Umleger) Verpacken GT Übergrößen Verpacken GT Verpacken MT
WE - Aufbereitungszone
WE
Umpacken MT (Umleger)
WA-Bereitstellfläche
WA -Verladung Seite
Strategy Development
Concept Design
Detailed Planning &
Bidding
Implementation Support
Start-up Management
■ Simulation
■ Moving plan
■ Supplier selection
■ Detailed layouts
■ Bidding documents
■ Firm competitive
quotes
■ Contracting
■ Award procedure
Strategy Development
Concept Design
Detailed Planning &
Bidding
Implementation Support
Start-up Management
Strategy Development
Concept Design
Detailed Planning &
Bidding
Implementation Support
Start-up Management
■ Budget and cost
monitoring
■ Detailed
implementation plan
■ Quality control
■ Tests and acceptance
■ Shopfloor training
■ Schedule monitoring
■ IT process support
Strategy Development
Concept Design
Detailed Planning &
Bidding
Implementation Support
Start-up Management
■ Coordination of
start-up
■ Risk management
■ Monitoring KPI‘s
■ Ramp-Up und
Go-Live
■ Monitoring and
relocation process
Overall Transitioned Parts Planned vs. Actual
• Introduction
• Case Study – New Logistics and Manufacturing Center
– Problem
– Project Approach
– Automated vs. Manual
– Plan for Project Success
• Summary
Overview
Automated vs. Manual – Overview
Manual Shelf System (2-tier)
• Goal is to determine the most suitable storage system for small and medium
parts (up to 55 lbs).
• Comparison of multi-order picking in a two-tier shelving system vs. a Work-
to-Man picking strategy in a doube deep, miniload automated storage and
retrieval system (AS/RS).
AS/RS – Miniload
image: http://www.jungheinrich.com/
Shelf Rack (2-level)
Advantages
– Medium picking performance
– High level of flexibility
– Fail-safe system
– Low maintenance cost
– Low IT requirements
Disadvantages
– Picker-to-part principle
– Ineffective space utilization
– High labor input
– Picking accuracy
– Low ergonomics while picking
AS/RS
Advantages
– High picking performance
– Effective space utilization
– Fully automated storage & retrieval process
– Very high picking accuracy
– Excellent ergonomics at picking stations
Disadvantages
– Lack of flexibility
– High to very high invest
– No access during breakdown
– Additional IT Requirements (Subsystem)
– Special building requirements (e.g. floor)
Automated vs. Manual – Qualitative Aspects
Development of operating cost including depreciation on system
invest over the planning period:
Automated vs. Manual – Operating Cost
Break even in annual operating cost (including depreciation) is
reached after approx. 3 years.
Savings
> 16%
Yr. 1 2 3 4 5 6 7 8 9
AS/RS
Shelf-Rack
Annual
Operating
Cost
Comparison
1.0
1.1
Qualitative
Comparision
3.0
Qualitative
Annual O
pera
ting C
ost
2.0 0.8
1.0
1.2
3.0 4.0
Conclusion: The proposed automated storage and retrieval system is
the preferred picking strategy for small and medium parts
ASRS
Shelf-Rack
3.9
System Comparison – Summary
• Introduction
• Case Study – New Logistics and Manufacturing Center
– Problem
– Project Approach
– Automated vs. Manual
– Plan for Project Success
• Summary
Overview
Plan for Project Success
• Include all stakeholders early on in the process.
• Define the project approach with all team members.
• Use data to drive your decision making process.
• Develop a plan and functional specification and take it to market.
• Define the IT requirements.
• Develop a test plan to ensure that the automation will work for you.
• Monitor the implementation closely and track progress.
• Plan for Go-live and a Start-up period.
• Introduction
• Case Study – New Logistics and Manufacturing Center
– Problem
– Project Approach
– Automated vs. Manual
– Plan for Project Success
• Summary
Overview
Summary and Lessons Learned
• Introduction of automation should be based on rigorous evaluation
process.
• Automation was the correct solution to handle the anticipated growth.
• Owner involvement in an automation
project can be substantial.
• BELIMO put together an internal project
team very early on that helped define
current processes and help prepare for
the future.
• BELIMO achieved cost savings and risk
mitigation through smart contract
management and risk management.
Questions?
The decision to move from manual to automated logistics was a big decision. Faced with having to construct a new building to meet our production and logistics growth needs, we decided this was a perfect time to implement a long-term logistics strategy. The elements of our success included hiring the right partners to help us implement such a massive change, a lot of detailed planning and even more hard work by a dedicated team to execute the plan. The implementation was time consuming and not without its challenges. Now two years in, our long-term strategy is having a positive impact in our operations and our path forward is clear.
A great success!
John Forlenzo
V.P. Logistics/Customization Americas
Belimo Americas
For more information:
website: www.io-consultants.com
website: www.io-consultants.com
Visit us at ProMat Booth S2714
