AYS/YRS: Automated Yogurt Storage / Yogurt Retrieval System

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1 AYS/YRS: Automated Yogurt Storage / Yogurt Retrieval System Presented by: Dean Starovasnik Practice Director, Distribution Engineering Design 2016 MHI Copyright claimed for audiovisual works and sound recordings of seminar sessions. All rights reserved.

2 Presenter / Sponsor Background Dean Starovasnik Practice Director, Distribution Engineering Design MIT BS Aerospace Engineering NPS MS Space Systems Ops 20+ yrs of supply chain engineering Expertise: o o o o Strategic analysis Facility configuration Material handling design Objective decision support Peach State Supply Chain Consulting & Engineering Material Handling Systems Engineering and Integration Founded 1975 Subsidiary of Associated Solutions 2

3 Agenda Project Evolution Design Fermentation Facility Configuration Lesson Acquisition 3

4 Agenda Project Evolution Design Fermentation Facility Configuration Lesson Acquisition 4

5 Project Evolution Yogurt demand ramped up sales of Greek yogurt rose by 2500% from 2006 to Dannon production facilities were operating at capacity. Finished goods warehouse space offered attractive opportunity for production. Offsite, 3PL facilities already involved in supporting FG storage and distribution. West Jordan facility real estate configuration constrained expansion. 5

6 Site Constraints

7 Site Constraints

8 Agenda Project Evolution Design Fermentation Facility Configuration Lesson Acquisition 8

9 Design Fermentation - Overview Original finished goods storage was traditional fork truck and rack (on site) as well as with 3PLs. Absent internal resources, Dannon first discussed the challenge with a refrigeration partner. As automation became more of a consideration, they moved to an MHE vendor who manufactured AS/RS. Having done some initial design development work for Dannon at another facility, they then requested our independent evaluation of the MHE vendor s solution under consideration. 9

10 Design Fermentation - Maturation The traditional storage option was retained as a comparative baseline throughout the development. Initial design development with refrigeration partner was conventional AS/RS. Results were promising. The AS/RS vendor was already involved with Dannon on a separate automation project. They improved on the original concept and had a solid ROI developed. Our involvement in independently evaluating the manufacturer s solution led to considerable improvement in throughput and operational efficiency while also reducing capital expense. 10

11 Design Fermentation - Technology The initial option, double deep storage, drives high crane counts. Low SKU population with high pallet counts indicates more dense storage. This led us to consider the use of a satellite cart-based storage configuration. 11

12 Design Fermentation - Layout Given the options and constraints of this effort, multiple iterations of the configuration were developed, each one addressing a shortcoming or enhancing a benefit of the preceding. Some iterations were the result of revisions to growth projections and product mix. Eventually a final design was frozen and then simulated. 12

13 Design Fermentation - Layout 13

14 Agenda Project Evolution Design Fermentation Facility Configuration Lesson Acquisition 14

15 Facility Configuration Product information: o o o o <600 SKUs, ~100 active SKUs Multiple lots per SKU FEFO requirement ~7,000 pallet storage capacity Daily activity: o o ~1,600 pallets per day 60+ truck loads per day 15

16 Plan View Concept 7e 16

17 Elevation View 17

18 Simulation 18

19 AGV Drop / Stretch Wrap Area 19

20 Facility Rendering 20

21 Post-Construction Aerial View

22 Pre-construction Street View

23 Post-construction Street View

24 Agenda Project Evolution Design Fermentation Facility Configuration Lesson Acquisition 24

25 Lesson Acquisition Projects evolve. Allow them time to mature by starting early. Where you stand depends on where you sit. Consider the role and nature of the partners with which you work. Or, cynically: There are no facts, only interpretations. Nietzsche Simulation is worthwhile insurance. This allows you to educate senior leadership while ensuring the system performs as intended (not as designed!). 25

26 For More Information: Speaker Website: Or visit MODEX 2016 Booth