DUCT TAPE Not an AS/RS Modernization Toolcdn.modexshow.com/seminars/assets-2016/1060.pdfPhase I...
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Presented by: Nick Gordon James Van Thof DUCT TAPE – Not an AS/RS Modernization Tool © 2016 MHI® Copyright claimed for audiovisual works and sound recordings of seminar sessions. All rights reserved.
Transcript of DUCT TAPE Not an AS/RS Modernization Toolcdn.modexshow.com/seminars/assets-2016/1060.pdfPhase I...
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Presented by:
Nick Gordon
James Van Thof
DUCT TAPE –
Not an AS/RS Modernization Tool
© 2016 MHI® Copyright claimed for audiovisual works and sound recordings of seminar sessions. All rights reserved.
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MODERNIZATIONS –
DEFINING, JUSTIFYING, EXECUTING
Understanding the financial drivers / impacts
Turning the drivers into a successful project
Example of modernization justification and results
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DRIVERS FOR MODERNIZATIONS:
EQUIPMENT OR SOFTWARE OBSOLESCENCE
SAFETY / COMPLIANCE ISSUES
RELIABILITY / PERFORMANCE ISSUES
UNSATISFACTORY SERVICE OR SUPPORT
BUSINESS HAS CHANGED
Hard
est to
Easiest to Ju
stify
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UNSATISFACTORY SERVICE / SUPPORT
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SAFETY / COMPLIANCE
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OBSOLETE: Just like your
junk drawer at home!!!
OBSOLESCENCE OF
SOFTWARE AND HARDWARE
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OBSOLESCENCE OF
ORGANIZATIONAL SUPPORT
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Not meeting customer demands
Affecting production
Reducing employee retention
RELIABILITY / PERFORMANCE
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Overtime $$$$$
$$$$
$$$
$$
$
RELIABILITY / PERFORMANCE
PR
OF
IT
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Overtime
Rush shipments
RELIABILITY / PERFORMANCE
PR
OF
IT
$$$$$
$$$$
$$$
$$
$
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Overtime
Rush shipments
Increased maintenance costs
RELIABILITY / PERFORMANCE
PR
OF
IT
$$$$$
$$$$
$$$
$$
$
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Overtime
Rush shipments
Increased maintenance costs
Loss of inventory
RELIABILITY / PERFORMANCE
PR
OF
IT
$$$$$
$$$$
$$$
$$
$
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Omni-channel
Increased customer demands
Pallet / Case / Each fulfillment
SKU proliferation
Faster inventory turns
BUSINESS HAS CHANGED
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HOW TO TURN BUSINESS DRIVERS INTO A
SUCCESSFUL PROJECT?
DEFINE Problem Statement
FIND Partner
INVESTIGATE Solutions
DEVELOP Priorities and Plan
GET Approval
EXECUTE Project
MEASURE Results
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DEFINE THE PROBLEM
Involve cross-functional stakeholders
Define business objectives
Define current & future state
Document performance requirements
Define acceptance criteria
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FIND A TRUSTED PARTNER
Do they have extensive experience with live modernizations and new systems?
Do they have a defined process to help you make informed decisions?
- Emulation / simulation
- Defined acceptance and sign off criteria
- Breadth of knowledge across industry
- Off-hour integration testing on live system
Best of breed solution vs. One product line
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INVESTIGATE SOLUTIONS
Crane modernization
• Upgrade controls
• New positioning system
• New motor and drives
• Rebuild shuttles
• New wheels and rails
• New power rails
Reconfigure equipment
Add new equipment
Carousel controls upgrade
Conveyor modernization
• New scanners
• Additional sensors and functions
• Replace sorters
• New sequence of operations
WCS upgrade/replacement
• Run old and new equipment
• Interface with new WMS
• Additional functions
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GETTING YOUR PROJECT APPROVED
Tie to business drivers and objectives
Clear return on investment (ROI)
Early stakeholder support
Proven vendors
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Keep the strategic intent in mind
Develop phased plans to align
with budget
Quick hits vs Most pain
Logical order
DEVELOP PRIORITIES AND PLAN
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Insurance
Risk Avoidance
Challenging Financial Return
EXECUTE
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Functionality
Throughput
Reliability / Availability
MEASURE RESULTS
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Phase I (~$500k)
• New WCS
• Conveyor controls
Phase II (~$4M)
• Add two unit load
cranes
• Stretch wrapper
• Additional Conveyor
• Expanded WCS
DEVELOP PLAN
Phase I
• 20% throughput
increase
• SQL server
• Able to delay
expansion 2 years
Phase II
• Added 8500 pallet
positions
MEASURE RESULTS DEFINE PROBLEM
System 95-97% full
Throughput insufficient
IT requires SQL servers
OEM support is gone
Sales increasing
REFRIGERATED WAREHOUSE CASE STUDY
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CATEGORY NO YES COMMENTS
Safety / Compliance ✔ Corporate IT requirements
for SQL Server
Equipment or Software Obsolescence
✔ WCS obsolete
Reliability / Performance ✔ Not meeting throughput
needs
Unsatisfactory OEM Service or Support
✔ Unsatisfied with OEM support on resolving
initiative
Business Has Changed ✔
REFRIGERATED WAREHOUSE DRIVERS
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MODERNIZING IS A
COST-EFFECTIVE
WAY TO ADAPT TO
A NEW AND
CHANGING WORLD
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For More Information:
Speaker # 1 email: [email protected]
Speaker #2 email: [email protected]
website: www.Retrotech.com
585.924.6333
Or visit MODEX 2016 Booth 2447
mailto:[email protected]:[email protected]://www.retrotech.com/
