Week 4 - Lecture 7.1 Thru 7.6

8/2/2019 Week 4 - Lecture 7.1 Thru 7.6

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WEEK SEVEN (4)

Lecture 7-1: Automated Storage andRetrieval Systems

Introduction

The demands on distribution, storage, and materials handling systems today have

resulted in greatly increased demands on the efficient use of space, stock turnaround,order fulfillment, and error-free delivery to customers. With an efficient order fulfillmentsystem in place, a company can:

Reduce inventory levels, Improve material flow and inventory control, Drastically reduce labor costs, Improve stock rotation, and Increase safety.

Todays storage facility no longer consists of racks and conveyors, but is a highly

sophisticated automated storage and retrieval system (AS/RS) that operates withprecision and synchronization, collecting materials (which can range from raw materialsto final products) from within a designated area, and delivering those materials toprogrammed stations.

Definition and Description

An automated storage/retrieval system (AS/RS) is a combination of equipment andcontrols that handles, stores, and retrieves materials with precision, accuracy andspeed under a defined degree of automation. Systems vary from relatively simple,manually controlled order-picking machines operating in small storage structures togiant, computer-controlled storage/retrieval systems totally integrated into themanufacturing and distribution process [MHIA (n.d.)].


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Automated storage and retrieval systemsare very complex computerizedmachines, which works as follows.

With the new system in the warehouse,information identifying the incoming part(s) iskeyed into the mainframe computer. A barcode label is printed and the part(s) is

inspected and sent to the appropriate storage area (shelf or carousel).When the bar code label(s) is scanned, it enables the systemscomputer to store the parts data. The operator then places the part(s)on a scale and the system computes the quantity, by weight. Anotherbar code label is generated for the part(s), indicating part number,quantity, and lot number is ready for storage. The carousel controller

tells the operator where to put the part(s) and updates the locationand inventory status - a paperless transaction.

When its time for picking, a list is generated and sent to the PCscreen. The operator merely clicks the cursor on the appropriatepart(s) and lot number(s) while the carousel moves to the correct row.A digital readout and indicator light guide the operator to the correctpicking location. Finally, a bar code label is printed and accompaniesthe part(s) to production, while the inventory status is automaticallyupdated.

History

Automated storage and retrieval systems (AS/RS) have been around since the late1960s and used primarily in libraries. With the introduction of the Internet, "the firstAS/RS combined with an online catalog was heralded as a 'pilot project' when it wasintroduced in 1990 at California State University at Northridge (CSUN). Librariansacross the country were watching to see whether the system would suceed or fail"(Kirsch, 1999). As one might imagine. the success of the AS/RS would solve thestorage problems that libraries have encountered, especially large college libraries. It isnot hard to believe that the majority of automated storage and retrieval systems werefirst implemented in libraries around the world as the automated storage and retrievalsystems can store large amounts of materials that were previously kept offsite in largestorage areas. Today, automated storage and retrieval systems have become more andmore popular with other types of businesses such as automakers, factories, hospitals(for medication) and other manufacturing industries.


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WEEK SEVEN (4)

Lecture 7-2: Types of Automated Storageand Retrieval Systems

Automated storage and retrieval systems come in several sizes and capacities toaccommodate many, different applications.

Click on each of the types of ASRS to learn more.

Mini-Load System

On the lower end of the capacity scale, the mini-load system (MLS) usesa storage racking architecture and stores material in specially-designedcontainers or totes. The mini-load system uses a robotic arm or lift to loadand retrieve the totes. The mini-load system can handle these totes withhigher speed and efficiency and can store more material in less spacethan manual methods, thereby increasing throughput and reducing

floor/storage space. Mini-load systems can normally handle a totecapacity of 100 - 500 pounds, and are 10 - 50 feet tall. Heavy-duty mini-load systems can handle totes up to 1,000 pounds, and can reach over 50feet tall.

An application of the mini-load system is shown in the success story ofCalifornia State University- Northridge's Oviatt Library: "A unique featureof the Oviatt Library is the Automated Storage and Retrieval System(ASRS) in the east wing. The ASRS consists of 13,260 steel bins, each 2'x 4', on a rack structure that occupies an 8000 sq. ft. room forty feet high.The ceiling of the room is at the level of the ceiling of the main floor of the

Library. As shown, the bins are arranged on both sides of six aisles, eachof which has a 'mini-load crane' guided by rails at top and bottom" (CSUN,2005).

"Older periodicals (all before 1990 except for a limited number of veryhigh use titles) and books that have been used infrequently are stored inthe bins. Their bar codes are mapped to their bin locations in the ASRS


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computer system. Requests for retrieval of ASRS items are submitted viathe Library catalog, and are transmitted electronically to the ASRSManager, which directs the automatic crane in the appropriate aisle todeliver the bin to a pickup station on the mezzanine at main floor level.

The approximate location of the book in the bin is displayed on a terminalat the pickup station, along with author, title, and bar code" (CSUN, 2005).

"The last two digits of the bar code of each book were written on the topedge when it was stored, allowing the ASRS operator to find the bookeasily. The operator reads the bar code in the book with a light pen, toconfirm that it has been picked up, and places the book, along with adelivery ticket printed by the ASRS computer, in an electric track vehicle(ETV) that carries it through the ceiling to the Circulation desk. Time frominitial request to availability at the Circulation desk is under ten minutes. Inthe Northridge earthquake on January 17, 1994 almost 100% of the

library's open shelf collection was dumped on the floor. Not one book inthe ASRS was damaged. No bin was in danger of falling" (CSUN, 2005).

Lean-Lift System

Hanel USA, headquartered in Pittsburgh, PA, created what Hanel calls the"Lean-Lift System". This AS/RS has a 60% greater storage capacity thanthe normal MLS; faster storage and retrieval capabilities; and can hold

bulky, heavier parts with optimum use of storage volume due to its height.[Hanel.USA (n.d.)] The Lean-Lift System is an improvement over thenormal MLS, due to storage shelves in front and back of the lift, and thelift in the middle of the two columns operating like an elevator. (See photodepiction of the Lean-Lift System and comparison to the normal MLSshown at the left.)

Vertical Carousel System

In addition to the Lean-Lift System, companies like Hanel USA havecreated the vertical carousel storage system, what Hanel calls the"Rotomat System." This system is used mostly for filing, storing, andretrieving office documents such as binders, paper files, and folders,stores documents vertically instead of horizontally.


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This increases storage capacity and saves floor space. This carousel (orFerris Wheel) storage method provides quick and accurate documentstorage and retrieval, while retrieving the documents to an "ergonomicretrieval height". The maximum load capacity per shelf in the Rotomat

System is from 331 - 1,324 pounds, but because of its vertical storagecapacities the maximum load capacity per carousel system is nearly31,000 pounds. [Hanel.USA (n.d.)]

On the higher end of the capacity scale, automated storage and retrievalsystems, using automated cranes and pulley systems, are most common.These systems use heavy-duty pallets and large racking structures thatcan exceed 100 feet. The cranes run on guide rails along the length of therack structure, with many models using laser beams to accuratelymeasure the distance needed to properly position the crane in front of thecolumn where the material is being stored/retrieved.

Expanding on this technology for industrial use, companies have now created 3-dimensional storage racking structures to store materials vertically and horizontally,together in the same structure. While this minimizes floor space, it also increases workflow, as the system is designed to move material to the requested location just asefficiently as it stores the material. Companies like Cisco-Eagle have developed a 3-dimensional system, named "ACTIV," to meet such a need. "ACTIV is Super HighDensity Dynamic Storage technology that moves unit loads in a continuous flow. ACTIVassigns the unit loads into a path and subsequently through the system rather than to astatic location within the system, as with conventional S/R operations" [Cisco-Eagle(n.d.)].

"ACTIV's patented technology is based on four basic components:

1. Rack Structure,2. Vertical Transfer Lift (VTL),3. Deep Lane Transfer (DLT), and4. Cross-Aisle Transfer (CAT)" [Cisco-Eagle (n.d.)].

"The rack structure is a 3-dimensional rail system that can store material vertically andhorizontally within the same structure.

The vertical transfer lift (VTL) is a robotic lift/hoist system moves material up and down,between levels within the structure. The deep lane transfer (DLT) is a conveyor systemthat moves material back and forth within the rack in the structure. The cross-aisletransfer (CAT) is a conveyor system that moves material side to side, from one rack toanother, within the structure" [Cisco-Eagle (n.d.)]


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WEEK SEVEN (4)

Lecture 7-3: ASRS Software

These automated storage and retrieval systems are managed through the use of keypad devices or computers with AS/RS software. The AS/RS software, too, has beenupgraded through the years to perform more tasks than operate the robotic componentsof its automated storage and retrieval system. Today, companies like RemStar andEgemin Automation have developed inventory or warehouse management software tocontrol and report the material workflow of the AS/RS. [Remstar (n.d.)] The software is

further enhanced to more effectively manage the work flow of office records AS/RS.Todays software incorporates the Microsoft Office Suite, has Crystal Reports Writerfunctionality, and can interface with a companys existing ERP platform such as SAP.Hanel USA has developed inventory management software that connects their AS/RSto a systems network, where employees with a designated PC with communicationsoftware can request materials from the AS/RS. The software tracks the inventory levelsand usage of each material and each AS/RS, increasing the overall efficiency of thecomplete, networked system. (See Diagram Below) [Hanel USA. IT Systems (n.d.)]


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WEEK SEVEN (4)

Lecture 7-4: ASRS Components, Purposes,and Implementation Considerations

ASRS Components

Automated storage and retrieval systems consists of three major components: (Gaither& Frazier, 2002)

Click on each of the photos to reveal each component's information.

1. Computers andcommunication

systems

2. Automatedmaterials-handling

and delivery systems.


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3. Storage andretrieval systems in

warehouses

ASRS Purposes

There are four main purposes for installing an automated storage and retrieval systemwithin a company: (Gaither & Frazier, 2002)

Think about each purpose listed. Once you have done that, click on each purpose tolearn more.

1. Increased storage capacity.

2. Increased system capacity.


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3. Reduced labor costs.

4. Improved product quality.

Implementation Considerations

ASRS implementation requires companies to consider the following:

1. Determine return on investment.

"There are typically five categories of tangible justification:

Operational Savings - This includes the reduction of labor, increased productintegrity due to the precision of movement and facility savings in terms ofhigher densitiy, lower utility costs and smaller footprints.

Strategic Advantages - This includes increased visibility and efficiencythroughtout the supply chain.

Safety - This includes producing consistent performance in hazordousenvironments, such as freeezer or cooler environments, without thepersonnel risks.

Functional Benefits - This includes 100% inventory accuracy, intellegentslotting of goods, JIT production sequencing, and time controlled storage.

Security - This includes physical and logical security inherent in a secure,

computer driven automated storage and retrieval system involving highvalue or government-regulated materials" [HK Systems (n.d.)].

The Chart below indicates a typical return on investment spread of automatedstorage and retrieval systems. [HK Systems (n.d.)]


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2. Conducting data analysis and design research.

A company's operating plan and the activites it expects the automated storage andretrieval system to accomplish helps to decide what equipment will be needed andthe system layout that best works for the company.

3. Integrating equipment and control into the company's material flow strategy.

"This involves selecting the appropriate input/output interface technology and balancingsystem throughput with your sources of supply and demand. There are severalalternatives for interfacing to the automation and a few are illustrated below" [HKSystems (n.d.)].


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4. Cultural adaption.

Owning and operating a "justified, properly designed, and integrated AS/RS notonly provides many years of high return on the company's investment, but alsobrings several responsibilities; a few of these newly added responsiblities are listedbelow.

Safety - Though such systems are designed with compliant safety features,owners and operators must subscribe to safe practices in operation andmaintenance.

Commitment - Reaping the rewards of an automated storage and retrievalsystem requires a trust in equipment repeatability and data integrity, oftenuncommon with typical manual alternatives.

Ownership - Like any other technological asset, electromechanical systemsrequire regular maintenance and periodic upgrades to maintain their level ofperformance and reliability" [HK Systems (n.d.)].


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WEEK SEVEN (4)

Lecture 7-5: ASRS Benefits and Challenges

ASRS Benefits

One of the most important benefits of ASRS technology is the reduction ofstorage space requirements. (Boss, 2008) To put things into prespective usinglibraries as his example, Boss writes that: "Storage of 400,000 books and book-equivalents requires no more than 2,000 square feet of storage space as compared to40,000 square feet of space using the conventional shelving system." (Boss, 2008)

He continues by arguing that another important benefit is low operating costs, andhe provides the following hard numbers:

"The cost of maintaining 2,000 square feet of ASRS space with a ceiling height of 40feet (HVAC and custodial) is approximately $16,000 per year. The custodial cost is lowbecause the area is small and not open to the public; the HVAC cost is slightly higher

because of the greater ceiling height and stricter temperature and humidity controls. Incontrast, the cost of maintaining 40,000 square feet of open stacks space isapproximately $60,000 per year" (Boss, 2008).

Boss continues by writing that, "Maintenance of the equipment requiring 2,000 feet ofspace costs roughly $10,000 per year, plus an allowance of about $2,500 per year forcomputer replacement. In addition, an onsite technician is highly desirable, which costsover $45,000 per year, assuming 23% for fringe benefits" (2008).

Boss also writes that, "An AS/RS will require at least one operator each hour the libraryis open. One should assume that peak activity will be at least three times the average;

therefore, two or three operators will be needed during some hours. Assuming that thematerials in the AS/RS have been selected on the basis of low frequency of use, it islikely that no more than 15,000 retrievals per 100,000 volumes will occur each year. Inopen stacks, the circulation averages can be as high as 200,000 circulations per100,000 volume" (2008).

Continuing, Boss states, "Assuming as many as 60,000 retrievals and 60,000 're-binnings' in a year in an AS/RS collection of 400,000 volumes, it would take at least


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6,500 hours of staff time to handle the workload. The actual number of hours might besomewhat higher because of peaks and valleys in the activity. If one assumes 8,000hours, the cost for 8.0 FTE (full-time-equivalent) staff would be $88,000 per year-afigure that assumes an hourly cost of $11.00" (Boss,2008).

"While the open stacks shelving itself will require very little maintenance or repair for 20or more years, re-shelving, shelf-reading, and shifting will require a minimum 28,000hours a year (14 FTE) at a cost of $11 an hour - a total cost of $160,000 a year" (Boss,2008).

An ASRS can help a company's bottom line; and though strart-up costs are high, on-going operating costs are low.

ASRS Challenges

Boss argues that, "There are a number of challenges to ASRS technology, includingperceived risk of investing in an unfamiliar technology, lack of "browsability",inappropriate selection, inadequate prompting, and mechanical failure" (Boss, 2008).

Click on each of these challenges to learn more.

1. Perceived Risk

2. Lack of "Browsability"

3. Inappropriate (or incorrect) Selection

4. Inadequate Prompting

5. Mechanical Failure


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WEEK SEVEN (4)

Lecture 7-6: Closing Remarks

Whether ASRS is used for finished products, sub-assemblies, or raw materials,someone needs to be in charge. An ASRS controller or shipping supervisor needs tocoordinate efforts between production processes, the materials department, logistics,maintenance crews, and possibly quality reviews. This role includes the directsupervision of all activities related to the shipment of goods, either for use in productionor to the customer.

The integrity of a computerized inventory must be maintained, to ensure that theproducts are in their correct locations for timely delivery. In case of machinery break-down, there needs to be a backup plan. An FMEA (failure modes and effects analysis)is necessary for an effective reaction plan. A procedure must be in place to continue

picking orders in the event of a machine break-down. A team should be developed toreview each of the potential machinery or procedural failures, and devise a plan toreact to them.

BIBLIOGRAPHY

Boss, R. W. (2008, May 8). Automated Storage/Retrieval and Return/Sorting Systems.Retrieved March 2, 2009 from

http://www.ala.org/ala/mgrps/divs/pla/plapublications/platechnotes/automatedrev.pdf

California State University- Northridge (2005, October 28). About the Library,

Automated Storage and Retrieval System.Retrieved February 23, 2008 fromhttp://library.csun.edu/About_the_Library/asrs.html

Cisco-Eagle. (n.d.). ACTIV Systems: Super High Density Dynamic Storage Technology.Retrieved February 23, 2008 from

http://www.cisco-eagle.com/systems/AS%20RS%20Systems/activ/default.htmGaither, Norman and Frazier, Greg (2002) Operations Management. (9th Ed) South-Western Thomas Learning. Cincinnati, OH.

Operations Technologies(P. 238-239, 252-253), Supply Chain Management andE-Business(P. 444-445), Maintenance Management(P.752-754)

Hanel USA. (2006).The Lean-Lift system. Retrieved February 23, 2008 fromhttp://www.hanel.us/pc/ie/en/lean_lift/index.htm

Hanel USA. (2006) The Rotomat System. Retrieved February 23, 2008 fromhttp://www.hanel.us/pc/ie/en/rotomat/index.htm

Hanel USA. (n.d.) Control and software engineering. Retrieved February 23, 2008 fromhttp://www.hanel.us/pc/ie/en/steuerung/index.htm
http://www.ala.org/ala/mgrps/divs/pla/plapublications/platechnotes/automatedrev.pdf#_blankhttp://www.ala.org/ala/mgrps/divs/pla/plapublications/platechnotes/automatedrev.pdf#_blankhttp://www.ala.org/ala/mgrps/divs/pla/plapublications/platechnotes/automatedrev.pdf#_blankhttp://library.csun.edu/About_the_Library/asrs.html#_blankhttp://library.csun.edu/About_the_Library/asrs.html#_blankhttp://www.cisco-eagle.com/systems/AS%20RS%20Systems/activ/default.htm#_blankhttp://www.cisco-eagle.com/systems/AS%20RS%20Systems/activ/default.htm#_blankhttp://www.hanel.us/pc/ie/en/lean_lift/index.htm#_blankhttp://www.hanel.us/pc/ie/en/lean_lift/index.htm#_blankhttp://www.hanel.us/pc/ie/en/rotomat/index.htm#_blankhttp://www.hanel.us/pc/ie/en/rotomat/index.htm#_blankhttp://www.hanel.us/pc/ie/en/steuerung/index.htm#_blankhttp://www.hanel.us/pc/ie/en/steuerung/index.htm#_blankhttp://www.hanel.us/pc/ie/en/steuerung/index.htm#_blankhttp://www.hanel.us/pc/ie/en/rotomat/index.htm#_blankhttp://www.hanel.us/pc/ie/en/lean_lift/index.htm#_blankhttp://www.cisco-eagle.com/systems/AS%20RS%20Systems/activ/default.htm#_blankhttp://library.csun.edu/About_the_Library/asrs.html#_blankhttp://www.ala.org/ala/mgrps/divs/pla/plapublications/platechnotes/automatedrev.pdf#_blankhttp://www.ala.org/ala/mgrps/divs/pla/plapublications/platechnotes/automatedrev.pdf#_blank


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HK Systems. (n.d.) Deploying an Automated Warehouse. Retrieved February 23, 2008from

http://www.hksystems.com/resources/educational/es_ASRS_may.pdfMaterial Handling Industry of America(n.d.). Automated Storage Retrieval Systems.

Retrieved February 23, 2008 from

http://www.mhia.org/psc/PSC_Products_StorageRetrieval_MemberList.cfm?secid=48The Leader In Automated Storage & Retrieval Solutions for Manufacturing, Distribution,Warehousing & Retail Operations.

(n.d.) Remstar. Retrieved February 23, 2008 fromwww.remstar.com
http://www.hanel.us/pc/ie/en/steuerung/index.htm#_blankhttp://www.hanel.us/pc/ie/en/steuerung/index.htm#_blankhttp://www.hanel.us/pc/ie/en/steuerung/index.htm#_blankhttp://www.hanel.us/pc/ie/en/steuerung/index.htm#_blankhttp://www.hksystems.com/resources/educational/es_ASRS_may.pdf#_blankhttp://www.hksystems.com/resources/educational/es_ASRS_may.pdf#_blankhttp://www.mhia.org/psc/PSC_Products_StorageRetrieval_MemberList.cfm?secid=48#_blankhttp://www.mhia.org/psc/PSC_Products_StorageRetrieval_MemberList.cfm?secid=48#_blankhttp://www.mhia.org/psc/PSC_Products_StorageRetrieval_MemberList.cfm?secid=48#_blankhttp://www.remstar.com/#_blankhttp://www.remstar.com/#_blankhttp://www.remstar.com/#_blankhttp://www.remstar.com/#_blankhttp://www.mhia.org/psc/PSC_Products_StorageRetrieval_MemberList.cfm?secid=48#_blankhttp://www.mhia.org/psc/PSC_Products_StorageRetrieval_MemberList.cfm?secid=48#_blankhttp://www.hksystems.com/resources/educational/es_ASRS_may.pdf#_blank

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Week 4 - Lecture 7.1 Thru 7.6

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