How AGVs Improve Safety and Flexibility at Minimal Cost in Warehouses and DCs

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How AGVs Improve Safety and Flexibility at Minimal Cost in Warehouses and DCs Sponsored by: Presented by: Bryan Knott, Dematic Brad Moore, Swisslog 2015 MHI Copyright claimed for audiovisual works and sound recordings of seminar sessions. All rights reserved.

Overview AGVs vs. conventional material handling Storage Replenishment Picking Transportation Safety Flexibility Cost/ROI

AGVs vs. conventional material handling? Space- Provide reliable horizontal transportation without impeding other traffic. Economical- Long distance delivery without fixed assets such as conveyor. Agile- Intelligently completes complex multi-point moves. Flexible- Capable of interfacing to a variety of stands, automation, manufacturing operations. Dynamic- Easy path modifications in changing environments. Redundancy- Natural redundancy built in due to multiple AGVs on same guide path

Business Drivers Labor - 100% Labor reduction, overtime and turnover cost eliminated Damage Elimination of facility and equipment damage by conventional fork trucks. Shipping Accuracy Reduction in miss-shipments and product loss. Energy- Potential savings associated with lights out operations. Safety- Elimination of fork truck related accidents.

Transport/Storage AGV forked vehicles Material movement solutions when pick up and delivery points are at different elevations (floor, rack, stands, stretch wrapper and conveyor) Automated warehouse solutions Low to medium throughputs 2 and 3 shift operations 9-12 + rack aisle widths for storage Lift heights up to 30+ Pallets, bins, etc.

Transport/Storage Case Study Challenge Handle pallets in both open areas and very narrow aisles (1.8m/5.9ft wide) 81,200 pallet places up to a height of 10.65m/35ft System Solution 7 AGVs Multi-navigation (laser and inductive wire) Lifting capacity of 1,000kg/2,200lbs (750kg/1,650lbs at 10.65m/35ft). Transport capacity is 173 pallets/hour Benefits compared to using manual VNA (Very Narrow Aisle) trucks Minimized operational cost less personnel and less damage to pallets, goods, racks and trucks Reduced energy consumption the temperature in the narrow aisle racking area is lower and there is less light than in a traditional warehouse with manual trucks

Transport/Storage Case Study Solution 4 compact laser guided forked AGVs Material movements by AGVs empty pallet stacks to pallet dispenser Single empty pallets to the palletizer Palletized loads to the stretch wrapper Stretch wrapped loads to storage lanes Move work-in-process System to be expanded in 2015 Benefits Improved efficiency with timely delivery Increased safety Increased productivity Payback in under 2 years

Transport/Storage Case Study The Objective: Transport pallets from palletizers to warehouse Production reporting and verification Communication with WMS The Solution: 8 Dematic Fork AGVs with wireless navigation Chain Driven Live Roller Conveyor 2 Pallet Dispensers AGV control software The Results: On time removal & accurate delivery of pallets from palletizers to warehouse. Detailed production & transportation reporting Seamless communication & visibility to WMS

Replenishment Material movement from full/split pallets down to case handling by order pickers within pick modules or pick lines Density is large driver: NA and VNA style vehicles Minimum turning radius, high reach Lower cost alternative to ASRS or turret truck forklifts Eliminates ergo-issues Fully automated into WMS, reduces operator error Ability to change aisles, redundancy

VNA to replenish pick lanes Case Study 1.25 million square foot distribution center, supplies 495 retail stores in Canada Very Narrow Aisle AGV system and software to receive, store, track and ship products to stores. The Objective: Decrease Order Fulfillment time Productivity Decrease Labor while meeting increased throughput Maximize Storage Capacity in Existing Warehouse The Solution: 19 Laser guided automated guided vehicles (AGVs) with turret fork attachments. Aisle changing capability with a 35ft lift. Material Tracking and Control Software to Manage Fork Trucks (RF Terminals) AGVs and ASRS The Results: Significant decrease in product and facility damage Increased productivity (significant improvement of missed diverts ) measured by a drop in misdirected pallets and canceled orders to stores No facility modification required 10

Picking Case Study Applying Proven Automation technology (AGVs) to a typical warehouse manual case order selection process Objective: Remove non-productive tasks from pick process Increase productivity Improve working conditions keep orderfiller in the zone Solution: 40 Swisslog dual pallet laser guided AGVs, voice picking, AGV traffic control system, automatic pallet dispensers Results/Benefits: 25% gain in pick productivity, 2 shifts/day x 7/365 Green solution. 11% increase in battery life Improved Safety (guided) AGV movement directed by voice AGV autonomous delivery to stretchwrap and shipping dock Less Facility & Product Damage (racks & trucks) Reduced Fatigue on Order Fillers Safe & Productive w/ other manual trucks and forklifts

Transport Case Study AGV STORAGE AGV A standard laser guided pallet truck AGV to haul products from receiving to warehouse storage and from warehouse storage to shipping Solution: RECV Objective: Eliminate labor associated with repetitive movement of products around large bulk store warehouses 15 Swisslog dual pallet laser guided AGVs, AGV traffic control system, improved coordination of movements/warehouse activities SHIP Results/Benefits: Elimination of over 40,000+ hours of hauling transport Green solution. 14% increase in battery life Improved Safety (no labor involved) Less Facility Damage (racks & trucks) Safe & Productive w/ other manual trucks and forklifts Real-time graphic monitoring of warehouse movements

Transport Case Study Challenge Minimize damage to paper rolls System Solution Two AGVs transport paper rolls from the strip station to a temporary storage The temporary storage is filled with paper rolls to be used during the day/night The AGVs also transport paper rolls from the temporary storage to the printing presses when new rolls need to be loaded Benefits Elimination of material damage Increased material movement accuracy Repeatable accuracy and consistency when interfacing with other equipment Lower operational costs and fewer interruptions in the printing process

Transport Case Study Project Description/Features Transport of Building Materials 3,000 kg (6,600 lbs) Five (5) Multi-Conveyor AGVs Optical Guidance Integrated with Customer WMS Omni-Directional Travel Project Benefits Reduced labor costs Improved material tracking Reduced damage to facility Improved safety Increased facility throughput Product Traceability

Tugger Case Study Project Description/Features Transportation of trains from finished goods to the warehouse IP-65 Rated for Outdoor Travel Laser Guided Tugger 10+ AGV System Integrated with an ASRS and a WMS Pulls loads of up to 65,000 lbs.

Safety ANSI B56.5 is industry-wide accepted safety standard Owner & operator responsibilities Manufacturer responsibilities Clear markings E-Stops Safety rated scanning, multiple fields

Safety Fields (ANSI B56.5) Gray is Warning Field When an object enters this field the AGV decelerates to a predetermined travel speed of.1 m/sec Red is Protective Field When an object enters this field the AGV will come to an immediate stop locking the drive and steer functions. The error will produce flashing lights and an audible beep. Upon clearing a bumper stop, the vehicle will automatically resume operation.

Operating Costs - Conventional Typical fully-burdened FT operator per shift is ~$35k-45k 2 shift operation Varies geographically, labor pool, VNA operators higher Conventional sit down vehicle ~ $50k Monitors, software for WMS tie in 5 vehicles Annual costs for damage/loss $10k Initial cost $250,000, Annual operating cost ~$400,000

Operating Costs AGV 8-3000 lbs. capacity AGVs, laser navigation ~$1.3M Elimination of 10 FTEs +$400k Elimination of facility/product damage budgets +10k Same annual maintenance costs (AGV Cap Cost) (Conv. Cap Cost) (Annual Cost savings) 2.3 years **assumes similar annual maintenance, uptime, utilization rates, 1:1.5 rounded up replacement ratio

Key Takeaways Higher upfront capital cost on equipment Similar annual maintenance/operating costs Reduction in emissions within facility compared to LP machines LEASING may be attractive option, 1 st month potential savings Elimination of manual labor Levels demand fluctuations Consistent throughput Resolves turnover, training Systems are flexible in design, scalable, redundant and provide maximum material handling flexibility Typical 2-3 year ROI is based on multi-shift operation, median labor rates (burdened) Safety is built-in

For More Information: Speaker email: Bryan.Knott@Dematic.com Website: www.dematic.com Speaker #2 email: Brad.Moore@swisslog.com website: www.swisslog.com Or visit ProMat 2015 Booths: #1203 Dematic #2912 Swisslog