Welcome to Session 327

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1 Welcome to Session 327 Reducing Costs with Automated Carousels and Vertical Lift Modules Presented by: Sponsored by the Member Companies of: Ed Romaine Sapient Automation David Schneider Hänel Storage Systems 2012 Material Handling Industry. Copyright claimed as to audiovisual works of seminar sessions and sound recordings of seminar sessions. All rights reserved.

2 MATERIAL HANDLING INDUSTRY OF AMERICA (MHIA) Automated Storage/Retrieval Systems (AS/RS) Industry Group Carousel/Vertical Lift Module (C/VLM) Working Group

3 Carousel/Vertical Lift Module (C/VLM) Working Group The development and promotion of standard nomenclature. Assisting and coordinating the efforts of related trade associations and product sections of MHIA. The preparation and distribution of promotional and educational materials. The establishment of liaison and cooperation with private and governmental entities establishing standards and/or safety codes. The collection and dissemination of reliable industry statistics.

4 Automated Storage Carousels & Vertical Lift Modules

5 Fixed Shelves

6 SHELVING = User to the item

7 C/VLM = Item to the user

8 Automated Carousels Horizontal Carousel

9 Automated Carousels Vertical Carousel

10 Vertical Lift Module VLM

11 C/VLM Applications Warehousing, Distribution, Manufacturing, Assembly, Hospitals, Office Filing, Machining, Fabrication, MRO. C/VLM Industries Office, Automotive, Fixed Ops, Medical Devices, Pharmaceuticals, Electronics, Fleet Maintenance, Food & Beverage, Laundry, Government.

12 Pick Fast, Pick Often Not ideal for long-term storage.

13 Why C/VLM?

14 Improved R.O.I. A C/VLM System greatly reduces costs over time, providing a greater return on the investment.

15 Cost Savings 1. Space Utilization 2. Productivity 3. Accuracy 4. Security 5. Ergonomics

16 Space Utilization Use less space to store inventory and store what you have more efficiently.

17 Space Utilization

18 Space Utilization

19 Space Utilization Eliminate aisles to reduce wasted floor space. Store vertically to use wasted overhead space. Bring items to user to utilize all available space. Reduce wasted space between shelves and items. Make use of low and high spaces.

20 Space Utilization

21 Space Utilization

22 Space Utilization

23 Space Utilization Cost Savings example: Shelving: 5000 sq/ft x $150 sq/ft = $750,000 Vertical lift module: 400 sq/ft x $150 sq/ft = $60,000 Immediate Savings of $690,000

24 Space Utilization Other Costs Off-site storage fees and transport expenses. Design, permitting, and construction costs. Lighting, HVAC, and janitorial costs.

25 Productivity Get more done, in less time, with fewer people.

26 Productivity Item to the user, not user to the item. Single pick/pull location per floor. No walking of aisles or climbing of stairs. Make multiple picks simultaneously. Job optimization - place items together.

27 Productivity Item to the user, not user to the item. Single pick/pull location per floor. No walking of aisles or climbing of stairs. Inventory can be stored in the area used.

28 Productivity

29 Productivity

30 Productivity

31 Productivity

32 Productivity Receive order, walk to storage location, search for part, pick part, count part, weight part, walk to packing location, deposit picked part, record pick into inventory management system. Shelves = 120 sec. each 30 picks per manhour / 240 per day C/VLM = 40 sec. each 90 picks per manhour / 720 per day

33 Productivity Shelves 5 people x 8 hours x $12/hr 1200 picks/$480 day 8 manhours overtime x $18/hr 240 picks/$144 day

34 Productivity C/VLM 2 people x 8 hours x $12/hr 1440 picks/$192 day Savings of $75,000 - $110,000 annually

35 Productivity Secure stock slip, pick stock from source, check stock, deliver to storage area, find stock location, replenish storage location. 500 sec. Shelves = 7 places per manhour 57 per day 93 sec. C/VLM = 39 places per manhour 310 per day

36 Productivity Shelves 9 people x 8 hours x $12/hr 510 places/$864 day

37 Productivity C/VLM 2 people x 8 hours x $12/hr 620 places/$192 day Savings of $174,690 annually.

38 Accuracy Know what you have, where, and for how long.

39 Accuracy C/VLM includes advanced inventory mgmt. Move from a paper-based system. User to identify correct item and quantity. User to identify correct location. User to accurately record every transaction. User to report transactions back to master file.

40 Accuracy C/VLM: Controller operates machine. Stand-alone or integrated inventory mgmt. The unit must know item location to retrieve. All items are checked in and out of machine. Operator provides visual identification Operator confirms each operation.

41 Accuracy Barcode cross-check. Item photo for visual identification. Exact location identification for pick/place. Digital imaging cross-check. Dynamic weighing.

42 Accuracy

43 Accuracy

44 Accuracy

45 Accuracy Shelf error percentage = 0.50% Cost per error = $50.00 Shelf picks per year = 36,000 Total cost / year = $9, C/VLM error percentage = 0.10% Cost per error = $50.00 C/VLM picks per year = 96,000 Total cost / year = $4,800.00

46 Accuracy Dated entries prevent loss from expiration. 99.9% accuracy prevents rush costs for out-of-stock items. Historical data eliminates cost of overstocking items. Item tracking allows productivity improvements for A,B,C.

47 Security Restricted access and protected storage.

48 Security

49 Security Restricted access. - Locking Doors - Password Protection - RFID Badge - User-Level Access - Item Level Access

50 Security Enclosed/Protected Storage - Metal Enclosure or Room Enclosure. - Single Access Point. - Locking Doors. - Difficult to reach/access items.

51 Security

52 Security

53 Security

54 Security Reduce costs related to: Stolen inventory. Over-picked inventory. Safety inventory. Incorrect inventory.

55 Ergonomics Reduce costs related to injuries.

56 Ergonomics

57 Ergonomics

58 Ergonomics C/VLM items delivered at ergonomic height. No climbing stairs/ladders - Risk of falls. No bending/stooping - Risk of muscle strains. Minimize lifting/carrying - Risk of dropping. Easy use of Cranes and transfer carts.

59 Ergonomics

60 Cost Savings 1. Space Utilization 2. Productivity 3. Accuracy 4. Security 5. Ergonomics

61 Calculate ROI Tools to calculate your return on investment.

62 Calculate ROI AS/RS Publications & Resources C/VLM Carousel and VLM Planning Tool College Industry Council on Material Handling Education (CICMHE)

63 Calculate ROI

64 Calculate ROI

65 Vertical Lift Module 100% reduction in pickers. - (Reduced from 2 to 1) 96% reduction in floorspace - (850 sq/ft to 32 sq/ft) Annual savings of $97,000

66 Vertical Carousel 17% reduction in pickers. - (Reduced from 6 to 5) 80% reduction in floorspace - (1240 sq/ft to 250 sq/ft) Annual savings of $173,500

67 Horizontal Carousel 75% reduction in pickers. - (Reduced from 16 to 4) 66% reduction in floorspace - ( sq/ft to sq/ft) Annual savings of $1,868,267

68 Questions?

69 For More Information: AS/RS Members Speaker: Speaker: Visit MODEX 2012 Booth Material Handling Industry. Copyright claimed as to audiovisual works of seminar sessions and sound recordings of seminar sessions. All rights reserved.