Understanding the First Mile in -...

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PRESENTATION TITLE © 2017 MHI® Copyright claimed for audiovisual works and sound recordings of seminar sessions. All rights reserved. Presented by: Simon Drexler, Director of Product Understanding the First Mile in Manufacturing

Transcript of Understanding the First Mile in -...

PRESENTATION TITLE

© 2017 MHI® Copyright claimed for audiovisual works and sound recordings of seminar sessions. All rights reserved.

Presented by:

Simon Drexler, Director of Product

Understanding

the First Mile in

Manufacturing

UNDERSTANDING THE FIRST MILE IN MANUFACTURING

WE’RE

IMPATIENT.

WE WANT IT

NOW.

LARGE CORPORATIONS ARE COMPETING

FIERCELY TO SATISFY OUR IMPATIENCE

THE LAST MILE CAPTURES ALL THE HEADLINES

MATERIAL HANDLING ACCOUNTS FOR UP TO:

25%

PRODUCTION COST EMPLOYEE TIME FACTORY SPACE PRODUCTION TIME

Source: Concordia University

75%

55%

87%

• SIMON DREXLER • D I R E C T O R , I N D U S T R I A L S O L U T I O N S • SIMON DREXLER • D I R E C T O R , I N D U S T R I A L S O L U T I O N S

SIMON DREXLER DIRECTOR, PRODUCT

• SIMON DREXLER • D I R E C T O R , I N D U S T R I A L S O L U T I O N S

P O L L

TODAY’S DISCUSSION:

• LAST MILE VS. FIRST MILE

• APPLY LAST MILE LESSONS TO FIRST MILE

• UNLOCK THE POTENTIAL OF YOUR FACILITY

THE LAST MILE = DELIVERY LOGISTICS

240 K DRIVERS DELIVER:

15 M PACKAGES / DAY TO > 7.9 M CUSTOMERS

THE LAST MILE

THE FIRST MILE = INTRALOGISTICS

3.7 M MATERIAL HANDLERS DELIVER: (~15X RESOURCES OF UPS IN THE US ALONE)

THE FIRST MILE

THE FIRST MILE THE LAST MILE

“THE FIRST MILE”

UNLOAD

LOAD

MANUFACTURING

STAGING

TR

AN

SP

O

RT

STAGING

TRANSPOR

T

STORAGE

TRANSPOR

T STORAGE

TR

AN

SP

O

RT

DISTRIBUTION

TRANSPOR

T

TRANSPOR

T

TR

AN

SP

O

RT

PROCESS

A

PROCESS

N

WAREHOUSE

S O U R C E : D A V I C H , D e p t . o f I n d u s t r i a l & S y s t e m s E n g i n e e r i n g , U n i v e r s i t y o f W i s c o n s i n - M a d i s o n , 2 0 1 0

Material handling accounts for 30-75% of an item’s total production cost

APPLY LAST

MILE LESSONS

FOCUS OF LAST MILE BUSINESS:

1. PROXIMITY 2. CONNECTIVITY 3. ROUTE OPTIMIZATION 4. REAL TIME TRACEABILITY 5. AUTOMATED TECHNOLOGY

PROXIMITY

S

S

S

S S

H S

• PLACE GOOD CLOSER TO CLIENT

BASE

• INCREASE AMOUNT OF HUBS

• REDUCE COMPLEXITY (ONSHORING)

• FASTER DELIVERY

S

S

S

S S

H S

S S

H S

H S

S H

S

PROXIMITY

S S

H S

H S

S H

S

• WE USE CURRENTLY USE A HUB

AND SPOKE MODEL

(WAREHOUSE)

• TRADITIONALLY BUILT ON A

CENTRAL WAREHOUSE

• CAN LEAD TO:

LONG MATERIAL TRANSFER TIME

& MORE MATERIAL LINESIDE

PROXIMITY

CONNECTIVITY

CONNECTIVITY

CONNECTIVITY

CONNECTIVITY

CONNECTIVITY

ROUTE OPTIMIZATION

ROUTE OPTIMIZATION

THEIR JOB IS HARD AND ISN’T REAL TIME

ROUTE OPTIMIZATION

REAL TIME INTERNAL

TRAFFIC ROUTING DOESN’T EXIST

INFORMATION

TRANSMITTED

INSTANTLY

REAL TIME TRACEABILITY

“THE INFORMATION ABOUT THE

PACKAGE IS AS IMPORTANT AS

THE PACKAGE ITSELF.”

• Fred Smith, Founder, Fed Ex

REAL TIME TRACEABILITY

% PACKAGES LOST BY FEDEX, 2016 = 0.55% • OF 1.2 B PACKAGES / YR – FEDEX ANNUAL REPORT

% INVENTORY LOST IN INDUSTRY = >1% • BASTIAN SOLUTIONS

AUTOMATED TECHNOLOGY

AUTOMATED TECHNOLOGY

“The factory of the future will have only two employees, a

man and a dog. The man will be there to feed the dog.

The dog will be there to keep the man from touching the

equipment.”

WARREN G. BENNIS

AMERICAN SCHOLAR, ORGANIZATIONAL CONSULTANT.

FOUNDER OF THE LEADERSHIP INSTITUTE AT USC

”Performing physical activities or operating

machinery in a predictable environment

represents one-third of the workers’

overall time.

…we estimate the technical feasibility of

automating such activities at 78 percent.”

MCKINSEY & COMPANY

’WHERE MACHINES CAN REPLACE HUMANS, AND WHERE THEY

CANT’ – JULY 2016

No Navigation Infrastructure

Safe and Collaborative

Parallel Operation

Adapts to Change

Fixed Infrastructure

Sequential

Inf lexible Limited application

Short move transfers

APPLY LAST

MILE

LESSONS

AUTOMATED

TECHNOLOGY

REAL TIME

TRACEABILIT

Y

PROXIMITY

ROUTE

OPTIMIZATION

CONNECTIVITY

SELF DRIVING VEHICLES FOR

INDUSTRY

1 0 0 1 5 0 0

C O N F I G U R A T I O N S

UNLOCK THE POTENTIAL

OF YOUR FACILITY

C O S T

E F F I C I E N C I E S

O N - S H O R I N G

O P P O R T U N I T Y

UNLOCK THE POTENTIAL

OF YOUR FACILITY

T R U E L E A N M A N U F A C T U R I N G

S U S T A I N E D

A D V A N T A G E

TRUE LEAN MANUFACTURING

“If the Last Mile is the delivery of one thing to one

person, the First Mile in manufacturing represents the

delivery of one component to one worker on the

assembly line.”

MATT RENDALL

CEO, OTTO MOTORS

COST EFFICIENCIES

ON-SHORING

IN TOMORROW’S FACTORY:

PROCESS AND DEVICE

WILL BE

INSEPERABLE

SUSTAINED ADVANTAGE

“ROBOTICS, DRIVERLESS VEHICLES, AND

AUTOMATION ARE PERCEIVED AS HAVING THE

ABILITY TO CREATE EITHER SUPPLY CHAIN

DISRUPTION OR COMPETITIVE ADVANTAGE, WITH A

12% GROWTH SPIKE SINCE LAST YEAR.”

DELOITTE/MATERIAL HANDLING INSTITUTE

THE FIRST MILE NEEDS

CHAMPIONS

AND THOUGHT LEADERS

QUESTIONS? ENGAGE AT:

WWW.OTTOMOTORS.COM