5 Ways To Increase Profits With Simple Picking Automation

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1 5 Ways To Increase Profits With Simple Picking Automation Presented by: Sponsored by: Tim Archer Sales Trainer 2014 MHI Copyright claimed as to audiovisual works of seminar sessions and sound recordings of seminar sessions. All rights reserved.

2 5 Ways To Increase Profits With Simple Picking Automation Define Simple Picking Automation Review 5 Possible Areas Of Profit Real Life Case Studies

3 Simple Picking Automation Vertical Lift Module A VLM Is An Enclosed Systems Of Vertically Arranged Trays, An Extraction Platform And A Series Of Computerized Controls That Delivers Items To An Ergonomic Workstation

4 Simple Picking Automation Vertical Carousel A Vertical Carousel Consists Of Shelves That Rotate Up Or Down Via The Shortest Path, Delivering Items To An Ergonomic Work Counter

5 Simple Picking Automation Horizontal Carousel A Horizontal Carousel Is A Series Of Storage Carriers With Shelving, Mounted On An Elongated Oval Track That Rotates To Deliver Carriers With Stored Parts To An Operator

6 Possible Areas Of Profit from Simple Picking Automation Reduce Labor Costs (or Expand Operations Without Adding Labor) Reduce Floor Space Costs Reduce Picking Costs Reduce Worker Absentee & Injury Costs Reduce Costs of Mispicks

7 Possible Areas of Profit Reduce Labor Costs (or Expand Operations Without Adding Labor) Reduce The Number Of Employees Up To 2/3 While Maintaining Current Productivity Levels OR Increase Throughput While Maintaining The Same Number Of Employees

8 Possible Areas of Profit Increase Productivity by Eliminating Walk and Search Time Bring Goods To Person Eliminate Walk & Search Time Optimized Machine Movement Automated Picking Manual Picking

9 Toronto, ON, Canada Joanne Fabrics Application Wholesaler & Distributor Of Decorative Fabrics Situation Adding 1,100 SKUs To Warehouse At Capacity Solution Four Shuttle VLMs Integrated Software Pick To Light

10 Toronto, ON, Canada Joanne Fabrics Results: Orders Are Picked In Half The Time With Only One Worker Required Reduced Pick Time 70% (From Ten Minutes To Three Minutes ) The Shuttle VLMs Allowed Us To Expand Our Hardware Line Without Adding Labor and Maintain Our 3pm Order Cutoff Time Kim Hovesen Krasa Vice President, Joanne Fabrics

11 Florence, KY Mazak Application Spare Parts Distribution To End Users Situation Struggling To Meet Order Demand Solution 13 Shuttle VLMs Grouped In 4 Pick & Pass Workstations Integrated Software Pick to Light

12 Florence, KY Mazak Results Reduced Labor By 44% (From 9 Workers To 5 Workers) Reassigned 4 Workers The Shuttle VLMs have also helped us increase our same-day shipping percentage, we ve gone from 95% to 97.5% - same day shipping is no longer an issue. Steve Trammel National Parts Manager, Mazak

13 Possible Areas of Profit Reduce Floor Space Costs Reclaim Up To 85% Floor Space Maximize Density Within The Unit Technology Wasted Unit Space Shelving 50 70% Drawers 40 60% Horizontal Carousels 25% Vertical Carousels 20% Vertical Lift Modules 10%

14 Possible Areas of Profit Create Space For Value Added Activities Create Floor Space Floor To Ceiling Space Utilization Eliminate Waster Aisle Space Maximize Unit Density Increase Value Added Activities Increase Manufacturing Capacity Add Kitting Operations Expand Quality Control

15 Chesapeake, VA Plasser Application Parts Distribution For Manufacturing & Spare Parts Situation Production at Capacity Solution Eight Shuttle VLMs Integrated Software Pick to Light

16 Chesapeake, VA Plasser Results Recovered 70% Floor Space (From 19,000 sq ft to 1,440 sq ft) Expanded Production Area by 17,000 sq ft A mandated floor space reduction for a production expansion turned out to improve the overall efficiency of the stockroom, it s a win! Daniel Boone Quality Manager, Plasser

17 Possible Areas of Profit Reduce Picking Costs Shelving or Cabinets Packing & Shipping Horizontal Carousel Work Zone Packing & Shipping

18 Possible Areas of Profit Speed Picking To Meet Customer Demand Fulfill Multiple Orders at Once One Pick Fills Multiple Orders Reduce Shipping & Manufacturing Bottlenecks Extend Order Cutoff Times Easily Accommodate Hot Picks

19 Edmonton, AB, Canada Value Drug Mart Application Order Fulfillment For Retail Pharmacy Stores Situation Struggling To Meet Order Demand Solution Six Horizontal Carousels Stacked in Two Zones of Three Integrated Software & Pick To Light Batching Station

20 Edmonton, AB, Canada Value Drug Mart Results 90% Faster Picking: Lower Carousel Zone 350 Lines/Hour & Upper Carousel Zone 575 Lines/Hour; 50 Lines/Hour From Past Shelving We were picking as fast as staff, shelving and technology would permit, but it wasn t fast enough, automation was the solution Dwayne Bilawchuk Operations Manager, Value Drug Mart

21 Possible Areas of Profit Reduce Worker Absentee & Injury Costs Lifting Reaching Walking Pushing Pulling Twisting Stretching Bending Stooping

22 Possible Areas of Profit Create a Safe & Ergonomic Work Environment Eliminate Lifting, Reaching, Walking, Pushing, Pulling, Twisting, Stretching, Bending & Stooping Easily Integrate Hoists, Lifts & Carts Safety Features Protect Both Workers & Stored Items

23 Kitchener, ON, Canada Christie Application Manufacturing Projection Systems Situation Risk of Worker Injury & Damage to Projector Solution Two Shuttle VLMs with Software Ergonomic Hoist & Automatic Tray Extraction

24 Kitchener, ON, Canada Christie Results Ergonomic Access to All Sub Assembled Projectors Reduced Risk of Worker Injury & Damage to Projector Each sub assembled projector weighs approximately 52 pounds and are accessed with an ergonomic hoist; no lifting, pushing or pulling is required. Philip Hibberd Sr. Manufacturing Engineer, Christie

25 Possible Areas of Profit Reduce Costs of Mispicks A 1% Error Rate Can Eat Your Profits: Estimate 250 Lines Per Hour 3 SKUs Per Order Eight Hours Per Shift One Shift Per Day Equals 6,000 Picked Items 1% Equals 60 Wrong $100 Cost Per Wrong Shipment $6,000 Per Day Over $1.5 Million Per Year

26 Possible Areas of Profit Streamline Picking for Increased Customer Retention Increase Picking Accuracy Up To 99.9% Reduce Picking Mistakes Fewer Returned Orders & Restocking Fewer Repicking Items Due To Shipping Mistakes Improved Customer Satisfaction Increased Repeat Customers

27 Toronto, ON, Canada Jazz Aviation Application Maintenance & Repair Operations For Aircraft Situation Expand Capacity & Maintain Batch Number & Part Traceability Solution Two Shuttle VLMs with Pick To Light Software with Batch Validation

28 Toronto, ON, Canada Jazz Aviation Results Part & Batch Number Validation Though Bar Code Scanning Integrated In The Batch Picking Process 99% Pick Accuracy Due to the batch picking process and batch validation, accuracy has increased to nearly 99% and we can track exactly which part was used to repair each aircraft. Mike Hauser Stores System Manager, Jazz Aviation

29 Possible Areas Of Profit from Simple Picking Automation Reduce Labor Costs (or Expand Operations Without Adding Labor) Reduce Floor Space Costs Reduce Picking Costs Reduce Worker Absentee & Injury Costs Reduce Costs of Mispicks

30 For More Information: Speaker Website: Or visit MODEX 2014 Booth #9323