Shamrock Foods Talk up Warehouse Productivity

MUA- 13th – 14th October 2009Stuart Kiernan – Business Development Manager, BEC

Systems IntegrationColm Branagan – Project Manager, IAWS

Agenda

• BEC Systems Integration Overview

• Advantages of using Speech

• Making the Business Case for Speech

• Speech Integration to Movex/M3

• Shamrock Foods - Client perspective

BEC SYSTEMS INTEGRATION OVERVIEW

Our Mission

“to be one of Europe’s leading data capture and processing specialists by providing our clients with innovative data collection and validation solutions fully integrated into their back office systems that

will improve quality, efficiency and profitability with a rapid return on investment.”

Our Solutions

Asset Manageme

nt

Production/Shop

floor data capture

Voice Directed

warehousing

Packaging Complian

ce

Distribution and Proof

of Delivery

ADVANTAGES OF USING SPEECH

What is Speech? – The Basics

EXAMPLE DIALOG :

Go to Aisle 15OK

Location 13, 25,8

Pick 22

Location 17,13,9

Pick 55

New Pallet, Type?EURO

• Operators get a WEARABLE COMPUTER with

• An industrial headset • Speech Synthesis (Prompts)• Speech Recognition (Answers)• Wireless communication

• Operators communicate with the central system using SPEECH DIALOGS : • prompts given by the system• confirmations/answers given by the

operator

Advantages of Speech - Ergonomics of Use

HANDS & EYES FREE Operations

ERGONOMICS OF USE USER SATISFACTION

Advantages of Speech - Ergonomics of Use

• HANDS & EYES FREE Operations

• LIGHTWEIGHT, ERGONOMIC Equipment

• NATURAL Communication between USER & System

• SHORT & EASY TRAINING TIME

• IMPROVED SAFETY

ERGONOMICS OF USE USER SATISFACTION

Quality Improvement

• Quality improved by process design• Reduction of « Product Inversion errors »

• Location/Product/Container Check Digits assure picking quality and/or traceability

• Reduction of « Wrong Quantity errors » • Verbal confirmation of quantity with verification

• Result : errors are reduced by typically 60% or more

8078 83SLOT CHECK

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COMPETITIVE ADVANTAGE

QUALITY IMPROVEMENT COST SAVINGS

Quality Improvement

• Quality improved by the nature of Speech-Directed Solutions• Continuous visual contact with location & product helps

to reduce errors• Higher concentration on the job eliminates errors

• User does not focus any longer on a device (terminal, paper, …)

• Extra Benefit or quality improvement : • Inventory counting while picking improves inventory

quality• No more Data Entry (when coming from paper/labels)

COMPETITIVE ADVANTAGE

QUALITY IMPROVEMENT COST SAVINGS

Real-Time Information

• Real-Time Integration with Warehouse Management System

• Movex/M3 WMS drives the processes

• Picking and other processes are now linked and can be streamlined

• Higher level of control and visibility over operations & operators

• Measurements & Monitoring are now Real-Time

• Full Traceability : who has done what, when, why …

Result : Real-Time operational decisions

COMPETITIVE ADVANTAGE

REAL-TIME INFORMATION EFFICIENCY & CONTROL

Speech-Directed Processes in the Warehouse

• Typical processes suited for a Speech-Directed Solution :

• Picking• Cross-Docking• Put-away• Replenishment• Movement• Inventory Check

• Will all processes in a warehouse be Speech-Directed ?• Depends on the potential gain in Productivity, Quality, Ergonomics

and Safety.• When users are multi-functional there is the option to use a multi-

functional terminal e.g. Workabout Pro Speech or CK3 Speech

• Combined Speech-Directed Solutions : Multi-Modal Speech• Speech + Barcode Reading• Speech + Label printing• Speech + RF-ID

Myth Busting Voice Technology

“My warehouse is very noisy – there’s no way voice technology can work there!”

“English is a second language to most of my warehouse team - how will they understand the system and how will it understand them?”

“I operate a frozen goods warehouse at -28C – will the equipment withstand this?”

“What if the system registers an operator’s conversation as pick data?”

MAKING THE BUSINESS CASE FOR SPEECH

Skip section

Who is Implementing Speech Solutions ?

• 3rd Party Logistics Providers

• Food, Grocery, Beverages• Retail Distribution• Cold Storage• Spare Parts• Bookstores• Apparel & Footwear• Pharma Distribution• Chemical Products• Consumer Electronics• Handcraft Tools• Fashion & Cosmetics

Status of Speech in SCL

in Europe

35 000+ Speech Terminalsin more than 800 sitesin 18 countries

The Business Case for Speech

• Productivity• Typical improvements of 5% - 25% achievable purely from

ergonomically factors• Further improvements possible by stream-lining the process

(sequencing, etc)

• Accuracy• Typical improvements from paper to voice – 85% reduction in errors• From terminal to voice, as accurate with less quantity errors

• Efficiencies• Cut-down on the amount of auditing, checking, stock counting• Remove paper printing, sorting and administration• No manual order confirmations, real-time system interaction instead.

• Central cost reduction…• Voice gives competitive advantage • Evidence of improved client retention

Business Savings - Return on Investment Areas

• PRODUCTIVITY• Net Picking/Cross-docking

time• Deadheading (Fetching

paper, labels)

• EQUIPMENT COST• Labels & Paper• Printers

• OPERATIONAL EFFICIENCY• Replenishment• Short/Late Picks• Cycle Counting• Data Entry

• TRAINING • Shorter User Training

• SAFETY• Less Accidents

• ACCURACY• Less Errors (Cost of Error

depends on administration, extra shipments, returns, compensation claims, etc)

• Cycle Counting• Inventory Accuracy• Auditing• Data Entry

Payback is based on SAVING COSTS :

Building the Business Case

• The 2 primary areas when looking at the return on investment are productivity and accuracy.

• If an operation is working from paper then efficiencies will play a big part as well by removing the manual paper trail and the administration around it.

• If currently using terminals there will likely be a high level of accuracy already but voice can often take this slightly further by reducing quantity errors in case/item picking – using the auto count down functionality.

Information Required for Accuracy

1. You need to gather information on the current pick accuracy rate. 1. It is important that this accuracy rate is before auditing/QA

has occurred as this is the rate that voice must be compared to.

2. Typically allowing you to reduce the amount of QA you need to do.

2. Collect stats on errors:1. What types of error? (wrong product, over pick, under pick)2. Where did the error occur? Can picking process

improvements/validations stop this?

3. Collect stats on the operation:1. Pick volumes (number of pick lines a year)2. Number of hours, shifts, days of operation3. Number of concurrent users4. Labour costs to the business (including any national insurance

contributions, etc)

Information Required for Productivity

• Productivity improvements are very specific to each customers operation – sometimes even per site – and is a mix of process and ergonomic streamlining

• Typical improvements are between 5-25% - need to examine the process in detail and model the potential voice process.

• Below is an example terminal picking process with timings:

Next, is the proposed example voice process

In this example there is an average 9 second saving per pick bin visited

Why implement a Speech Solution?

• Increase in “detail picking” : size of orders goes down, but more orders

• Need for constant improvement in quality & productivity • Fierce competition & low margins• Very labour intensive operations

• i.e. Labour is in many cases 70% of the Warehouse Total Cost• i.e. Picking activities are 50% of total warehouse operations

• Voice Technology is MATURE & PROVEN• The Integrated Solution has delivered the business expectations• The Integrated Solution has proven its reliability & performance• Real-time integration into WMS/ERP systems is available and proven• Technology now also proven on Multi-Modal terminals

Typical payback period : 12-18 months (or less)

Speech vs…

Productivity QualityFlexibility + Exception Handling

Ergonomics Real-Time

Paper List

Labels

(attaching labels)

(less quantity errors)

(attach/carry labels)

RF no scan

(no paper/labels)

(less miss-reads)

(no paper/labels)

(almost hands-free)

RF + scan

(scan & handle terminal)

(less inversions, still quantity mistakes)

(scan, handle terminal)

Pick To Light

()

Eyes-free (still search-the-light

time)

(still quantity

mistakes)

(difficult to report

changes)

(not fully hands

free)

Speech

(full hands & eyes -free)

Scores from to

Example Productivity Improvements

Client Loc A Loc B Loc C Previous % increase Comments

Client 1 148 145   120 20%+ Layout changed

Client 2 161 145   130 17%+ Layout changed

Client 3 182 160   140 20%+ Layout changed

Client 4 127 113     New

Client 5 120 95     New

Client 6   144   125 15%+Ambient & Freezer layout changed

Client 7     159   New (x3)

Client 8     159   New

Client 9     170   New

Client 10   146 125 20%+ Moved Depot

Client 11   145 120 20%+ Moved Depot

Client 12     113   Increased Range and volume

Example Accuracy Improvements

Speech Integration to Movex/M3

What makes a Speech-Directed Solution ?

• Integration with WMS/ERP Systems

Speech Integration

Speech Hardware

Speech Software

Professional Services

Service & Support

Connector

Transaction Method

Protocol

Messages

Speech Terminal

Gateway Server

Workabout Pro Speech

Talkman T5

Talkman T2x

BEC eSmart data capture s/w kernel

Transaction development

eSmart client license

Implementation Services

Process Consultancy

Hardware Service

Software Update

Plan

Helpdesk

Wireless Infrastructure

Accessories

Intermec CK3

Choice of Speech Terminals

• Compatible Speech Terminals• Same Application- & Management Software• Same Breakaway headset connector increases operator safety and

reduces possible damage to the terminal or headset

• All terminals can operate in PARALLEL

Talkman T5 Talkman T2xWorkabout Pro Speech

SR-series SRX

Wireless

3 Industrial Speech Terminals Wired & Wireless Headsets

Intermec CK3 Speech

eSmart

Server

Host ERP

System

e.g. Movex

Solution Overview - Architecture

Transaction flow – Case Picking

Start (Pick)

Get Next Pick List

Get Next Pick Line

“Go to aisle …”

User confirms

aisle

“Go to location

…”

“Pick quantity

…”

User confirms quantity

Quantity OK ?

“Say Check digit”

User confirms

check digit

Confirm Pick Line

No more linesNo more pick listsHandle

Short pick

Quantity < Required

“too many”

Quantity > Required

Assistance options:

“Say again”, “Help”, “Item”, “Location” etc.

Solution Overview – Process Flow

Reporting on Voice Picking Data

BEC eSmart Console reports time spent:• WALKING versus HANDLING GOODS ?• FETCHING LABELS ?• FETCHING EMPTY PALLETS ?• DELIVER CARRIERS to the STAGING AREAS ?

Do you want to know …• How often were users sent to EMPTY LOCATIONS ?• How many times did they have to do REVISITS ?• How often were wrong Check-Digits spoken ?• How often do users take a break ?• How long do host transactions take ?• How many host transactions were execute ?

SHAMROCK FOODS - CLIENT PERSPECTIVE

References

BEC (Systems Integration) Ltd Phoenix Park. Blakewater Road Blackburn. Lancashire BB1 5RW

+44 (0) 1254 688 088 info@becsi.co.uk

WWW.BECDATACAPTURE.COM

Come and visit us in the Exhibitor area to book your free consultancy day!

Tony HampsonOperations

Director

Stuart KiernanBusiness

Development Manager

Andrew BriggsTechnical Director