march 26, 2015 - enfasis.com...the pareto principle 6 ©2013 abco automation, llc 3/26/2015 history...
TRANSCRIPT
March 26, 2015 © 2012 abco automation, llc. 1
Data-driven Automation Design
Introduction – “The Knack”
March 26, 2015 © 2012 abco automation, llc. 3
First Law of Material Handling
March 26, 2015 © 2012 abco automation, llc. 4
We’re dealing with Engineers! How fast?
How many?
How long?
How high?
How heavy?
Six Sigma: “We measure what we value”
What do we measure?
How much comes in every day?
Maximum? Variation/stability?
How much goes out every day?
Maximum? Variation/stability?
How much stays in inventory?
How do we measure?
Pieces per day?
Lines per day?
© 2012 abco automation, llc. March 26, 2015 5
The Pareto Principle
3/26/2015 ©2013 abco automation, llc 6
History
Italian economist Vilfredo Pareto, observed in 1906 that 80% of the land in Italy was owned by 20% of the population
Business management thinker Joseph M. Juran developed the 80/20 principle and named it after Pareto by observing that 20% of the pea pods in his garden contained 80% of the peas.
Point: 20% of your SKUs make up 80% of your volume
Class SKU SKU Cumul SKU, %SKU, %
CumulLineas/ Dia
Lineas/ Dia
Cumul
Lineas/ Dia,
%
Lineas/ Dia
Cumul, % Piezas/ Dia
Piezas/ Dia
Cumul
Piezas/ Dia
%
Piezas/ Dia
Cumul, % Cu. Vel./ Dia
Cu. Vel./ Dia
Cumul
Cu.
Vel./ Dia%
Cu. Vel./ Dia
Cumul, %
Piezas por
Linea
A 13 13 2.0% 2.00% 820 820 9% 9% 52 ,350 52,350 19% 19% 3 3 6% 6% 64
B 118 131 18.0% 20.0% 4 ,440 5,260 50% 60% 134 ,275 186,625 49.6% 69.0% 10 13 19.0% 24.7% 30
C 98 229 15.0% 35.0% 1 ,740 7,000 20% 79% 48 ,590 235,215 18.0% 87.0% 5 18 9.2% 33.9% 28
D 196 425 30.0% 65.0% 1 ,360 8,360 15% 95% 31 ,049 266,264 11.5% 98.4% 32 50 62.4% 96.3% 23
E 228 653 35.0% 100.0% 460 8,820 5% 100% 4 ,228 270,492 1.6% 100.0% 2 52 3.7% 100.0% 9
Totals 653 100.00% 8 ,820 100% 270 ,492 100% 52 100%
<- Format axis interval between labels and tick marks to 13
Sorted by ABC
<- Format axis interval between labels and tick marks to 13-3.0%
2.0%
7.0%
12.0%
17.0%
22.0%
27.0%
32.0%
37.0%
42.0%
47.0%
52.0%
57.0%
62.0%
67.0%
72.0%
77.0%
82.0%
87.0%
92.0%
97.0%
102.0%
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500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,500
7,000
7,500
8,000
8,500
0%
2%
4%
6%
8%
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%
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68
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72
%
74
%
76
%
78
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80
%
82
%
84
%
86
%
88
%
90
%
92
%
94
%
96
%
98
%
10
0%
OL
/Dia
100%
-8,8
20
SKUs
OL
/Dia
100%
-
8,8
20
SKUs 100% - 653
Pareto Classico
March 26, 2015 © 2013 abco automation de méxico S de RL de CV 7
History
3/26/2015 ©2013 abco automationsaudi arabia 8
All operations used to be manual
In manual operations, we measure order-lines
Dematic Multi Shuttle (DMS)
March 26, 2015 © 2012 abco automation, llc. 9
Manual vs. Machine
When designing automated
systems, everything changes
Automated systems are
concerned with tub
movements
Introducing “Cubic Velocity”
© 2012 abco automation, llc. March 26, 2015 10
The Automation Tote
© 2012 abco automation, llc.
Tote & Location Configuration
Schaefer LTF-6210 Length Width Height Cube
Outside Dim. 600 mm 400 mm 210 mm 85%
Internal Dim. 566 mm 366 mm 205 mm 36.1 l.³
Class SKU SKU Cumul SKU, %SKU, %
CumulLineas/ Dia
Lineas/ Dia
Cumul
Lineas/ Dia,
%
Lineas/ Dia
Cumul, % Piezas/ Dia
Piezas/ Dia
Cumul
Piezas/ Dia
%
Piezas/ Dia
Cumul, % Cu. Vel./ Dia
Cu. Vel./ Dia
Cumul
Cu.
Vel./ Dia%
Cu. Vel./ Dia
Cumul, %
Piezas por
Linea
A 13 13 2.0% 2.00% 820 820 9% 9% 52 ,350 52,350 19% 19% 3 3 6% 6% 64
B 118 131 18.0% 20.0% 4 ,440 5,260 50% 60% 134 ,275 186,625 49.6% 69.0% 10 13 19.0% 24.7% 30
C 98 229 15.0% 35.0% 1 ,740 7,000 20% 79% 48 ,590 235,215 18.0% 87.0% 5 18 9.2% 33.9% 28
D 196 425 30.0% 65.0% 1 ,360 8,360 15% 95% 31 ,049 266,264 11.5% 98.4% 32 50 62.4% 96.3% 23
E 228 653 35.0% 100.0% 460 8,820 5% 100% 4 ,228 270,492 1.6% 100.0% 2 52 3.7% 100.0% 9
Totals 653 100.00% 8 ,820 100% 270 ,492 100% 52 100%
<- Format axis interval between labels and tick marks to 13
Sorted by ABC
<- Format axis interval between labels and tick marks to 13-3.0%
2.0%
7.0%
12.0%
17.0%
22.0%
27.0%
32.0%
37.0%
42.0%
47.0%
52.0%
57.0%
62.0%
67.0%
72.0%
77.0%
82.0%
87.0%
92.0%
97.0%
102.0%
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500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,500
7,000
7,500
8,000
8,500
0%
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4%
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62
%
64
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66
%
68
%
70
%
72
%
74
%
76
%
78
%
80
%
82
%
84
%
86
%
88
%
90
%
92
%
94
%
96
%
98
%
10
0%
OL
/Dia
100%
-8,8
20
SKUs
OL
/Dia
100%
-
8,8
20
SKUs 100% - 653
Piezas Pareto Classico
(Lineas)
March 26, 2015 © 2013 abco automation de méxico S de RL de CV 12
What if both products are right next to each other on the Pareto curve & both push 100 OL/day @ 2 pieces/line?
Significance of Cubic Velocity
How many bowling balls
would fit in this tote?
2
How many eyeliner
pencils?
Aprox. 5,115
© 2012 abco automation, llc. March 26, 2015 13
Significance of Cubic Velocity
Bowling balls would
move 100 tubs per day
Eyeliner pencils would
have enough stock in a
single tub to cover more
than 25 days (5115/200
pcs/day)
© 2012 abco automation, llc. March 26, 2015 14
Class SKU SKU Cumul SKU, %SKU, %
CumulLineas/ Dia
Lineas/ Dia
Cumul
Lineas/ Dia,
%
Lineas/ Dia
Cumul, % Piezas/ Dia
Piezas/ Dia
Cumul
Piezas/ Dia
%
Piezas/ Dia
Cumul, % Cu. Vel./ Dia
Cu. Vel./ Dia
Cumul
Cu.
Vel./ Dia%
Cu. Vel./ Dia
Cumul, %
Piezas por
Linea
A 13 13 2.0% 2.00% 820 820 9% 9% 52 ,350 52,350 19% 19% 3 3 6% 6% 64
B 118 131 18.0% 20.0% 4 ,440 5,260 50% 60% 134 ,275 186,625 49.6% 69.0% 10 13 19.0% 24.7% 30
C 98 229 15.0% 35.0% 1 ,740 7,000 20% 79% 48 ,590 235,215 18.0% 87.0% 5 18 9.2% 33.9% 28
D 196 425 30.0% 65.0% 1 ,360 8,360 15% 95% 31 ,049 266,264 11.5% 98.4% 32 50 62.4% 96.3% 23
E 228 653 35.0% 100.0% 460 8,820 5% 100% 4 ,228 270,492 1.6% 100.0% 2 52 3.7% 100.0% 9
Totals 653 100.00% 8 ,820 100% 270 ,492 100% 52 100%
<- Format axis interval between labels and tick marks to 13
Sorted by ABC
<- Format axis interval between labels and tick marks to 13-3.0%
2.0%
7.0%
12.0%
17.0%
22.0%
27.0%
32.0%
37.0%
42.0%
47.0%
52.0%
57.0%
62.0%
67.0%
72.0%
77.0%
82.0%
87.0%
92.0%
97.0%
102.0%
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3,000
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4,000
4,500
5,000
5,500
6,000
6,500
7,000
7,500
8,000
8,500
0%
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%
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%
96
%
98
%
10
0%
OL
/Dia
100%
-8,8
20
SKUs
OL
/Dia
100%
-
8,8
20
SKUs 100% - 653
Actual Customer Data
March 26, 2015 © 2013 abco automation de méxico S de RL de CV 15
This is their Pareto curve
of their order lines
traditional view of lines
Actual Customer Data
March 26, 2015 © 2013 abco automation de méxico S de RL de CV 16
Class SKU SKU Cumul SKU, %SKU, %
CumulCu. Vel./ Dia
Cu. Vel./ Dia
Cumul
Cu.
Vel./ Dia,%
Cu. Vel./ Dia
Cumul, % Lineas/ Dia
Lineas/ Dia
Cumul
Lineas/ Dia
%
Lineas/ Dia
Cumul, % Piezas/ Dia
Piezas/ Dia
Cumul
Piezas/ Dia
%
Piezas/ Dia
Cumul, %
Piezas por
Linea
A 13 13 2.0% 2.00% 29 29 57% 57% 340 340 4% 4% 23 ,481 23,481 9% 9% 69
B 118 131 18.0% 20.0% 14 44 28% 85% 3 ,684 4,025 41.8% 45.6% 158 ,439 181,920 58.6% 67.3% 43
C 98 229 15.0% 35.0% 5 48 9% 93% 2 ,025 6,050 23.0% 68.6% 50 ,368 232,289 18.6% 85.9% 25
D 196 425 30.0% 65.0% 3 51 6% 99% 2 ,066 8,116 23.4% 92.0% 32 ,462 264,750 12.0% 97.9% 16
E 228 653 35.0% 100.0% 0 52 1% 100% 704 8,820 8.0% 100.0% 5 ,741 270,492 2.1% 100.0% 8
Totals 653 100.00% 52 100% 8 ,820 100% 270 ,492 100%
<- Format axis interval between labels and tick marks to 13
Sorted by ABC
<- Format axis interval between labels and tick marks to 13
-3.0%
2.0%
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17.0%
22.0%
27.0%
32.0%
37.0%
42.0%
47.0%
52.0%
57.0%
62.0%
67.0%
72.0%
77.0%
82.0%
87.0%
92.0%
97.0%
102.0%
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0%
Ve
locid
ad
Cu
bic
o p
or
Dia
100%
-
52 m
³
SKUs
Ve
locid
ad
Cu
bic
o p
or
Dia
100%
-
52 m
³
SKUs 100% - 653
This is their Pareto curve of their cubic velocity
Holy s@#t! 13 SKUs generate 57% of the cubic velocity!
These SKUs should not be automated
Y SKUs (16-25 Days)
March 26, 2015 © 2013 abco automation, llc. 17
Y SKUs (16-25 Days)
March 26, 2015 © 2013 abco automation, llc. 18
Z SKUs (15 days or fewer)
March 26, 2015 © 2013 abco automation, llc. 19
March 26, 2015 © 2013 abco automation de méxico S de RL de CV 20
Frecuencia de Picking Cajas –
Vol.
Top 20% (84 SKUs) generate 67% of the lines, 68% of the cube, and over half of the cases (2,853) per day!
Top 14 SKUs
March 26, 2015 © 2013 abco automation de méxico S de RL de CV 21
Only 14 SKUs move more than 1 pallet per day
These SKUs would benefit from double-deep pallet flow
The remaining 70 SKUs can go in single-deep pallet locations
Pallet Locations
Only 8 SKUs require more
than 0.6 pallets per day
The other 62 SKUs may
go in B-locations based
upon use
Need to review the
receiving data to see if we
receive partial pallets for
this concept
© 2013 abco automation de méxico S de RL de CV March 26, 2015 22
March 26, 2015 © 2013 abco automation de méxico S de RL de CV 23
Frecuencia de Picking Cajas –
Frec.
This set of SKUs (199 SKUs) generate only 6% of the lines (41), 3.9% of the cube, and 2.6% of the cases (87) per day
These SKUs should be picked with a TSP to prevent excess carton flow
March 26, 2015 © 2013 abco automation de méxico S de RL de CV 24
Frecuencia de Picking Cajas –
Frec.
This set of SKUs (139 SKUs) generate 27% of the lines (185), 28% of the cube, and 12% of the cases (396) per day
These SKUs should be placed into carton flow-rack to compress the pick-path and SKU density
March 26, 2015 © 2013 abco automation de méxico S de RL de CV 25
Frecuencia de Picking Cajas –
Frec.
This set of SKUs (199 SKUs) generate only 6% of the lines (41), 3.9% of the cube, and 2.6% of the cases (87) per day
These SKUs should be picked with a TSP to prevent excess carton flow
March 26, 2015 © 2013 abco automation de méxico S de RL de CV 26
ABC-XYZ de Cajas Data Tota l % Sum % CUM X Y Z Total %X %Y %Z Total
Count SKUs 8 2 .0% 2.0% 8 0 0 8 1 .9% 0.0% 0.0% 1 .9 %
Sum OL 8 5 12 .4% 12.4% 85 0 0 8 5 12 .4% 0.0% 0.0% 1 2 .4 %
SUM Cases 9 8 5 29 .5% 29.5% 985 0 0 9 8 5 29 .5% 0.0% 0.0% 2 9 .5 %
SUM Cube 3 0 0 .9% 0.9% 30 0 0 3 0 12 .3% 0.0% 0.0% 1 2 .3 %
Count SKUs 7 6 18 .0% 20.0% 76 0 0 7 6 18 .0% 0.0% 0.0% 1 8 .0 %
Sum OL 3 7 3 54 .5% 66.9% 373 0 0 3 7 3 54 .5% 0.0% 0.0% 5 4 .5 %
SUM Cases 1 ,8 6 8 56 .0% 85.5% 1,868 0 0 1 ,8 6 8 56 .0% 0.0% 0.0% 5 6 .0 %
SUM Cube 1 3 3 4 .0% 4.0% 133 0 0 1 3 3 55 .5% 0.0% 0.0% 5 5 .5 %
Count SKUs 6 3 15 .0% 35.0% 49 13 1 6 3 11 .6% 3.1% 0.2% 1 4 .9 %
Sum OL 1 1 6 16 .9% 83.8% 92 22 2 1 1 6 13 .5% 3.2% 0.3% 1 6 .9 %
SUM Cases 2 8 1 8 .4% 93.9% 207 61 13 2 8 1 6 .2% 1.8% 0.4% 8 .4 %
SUM Cube 3 0 0 .9% 0.9% 25 4 0 3 0 10 .6% 1.6% 0.1% 1 2 .3 %
Count SKUs 1 2 7 65 .0% 85.0% 5 72 50 1 2 7 1 .2% 17.1% 11.8% 3 0 .1 %
Sum OL 9 5 13 .8% 97.7% 6 65 23 9 5 0 .9% 9.5% 3.4% 1 3 .8 %
SUM Cases 1 8 3 5 .5% 99.4% 8 120 55 1 8 3 0 .2% 3.6% 1.7% 5 .5 %
SUM Cube 4 1 1 .2% 1.2% 0 38 2 4 1 0 .1% 16.0% 1.0% 1 7 .1 %
Count SKUs 1 4 8 65 .0% 100.0% 0 0 148 1 4 8 0 .0% 0.0% 35.1% 3 5 .1 %
Sum OL 1 6 2 .3% 100.0% 0 0 16 1 6 0 .0% 0.0% 2.3% 2 .3 %
SUM Cases 1 9 0 .6% 100.0% 0 0 19 1 9 0 .0% 0.0% 0.6% 0 .6 %
SUM Cube 7 0 .2% 0.2% 0 0 7 7 0 .0% 0.0% 2.8% 2 .8 %
Total SKUs 4 2 2 138 85 199 4 2 2 32 .7% 20.1% 47.2% 1 0 0 .0 %
Total OL 6 8 3 555 87 41 6 8 3 81 .3% 12.7% 6.0% 1 0 0 .0 %
Total Cases 3 ,3 3 6 3 ,068 181 87 3 ,3 3 6 92 .0% 5.4% 2.6% 1 0 0 .0 %
SUM Cube 2 4 0 189 42 9 2 4 0 78 .5% 17.6% 3.9% 1 0 0 .0 %
A
B
C
D
E
Palle
t
Flow
TS
P
Palle
t
Flow
TS
P
Carton
Flow
Carton
Flow
ROI Tension -- SALT
pace:
Cost/sq.ft., cases/sq.ft., ability to find locations
Operational cost of travel distances, lighting, fire- suppression, HVAC, maintenance
ccuracy
Cost-per-error
Cost-per-loss
Product damage
abor
Quantity of labor / Quality of labor
Pick performance
Downstream (in-store) labor
hroughput
Order volume
Cycle-time
Range of distribution
3/26/2015 27 ©2013 abco automation, llc
Cory Flemings
VP Sales
abco automation
326 19th Street
PO Box 7
Carlstadt, NJ 07072
+1 (201) 589-1041
March 26, 2015 © 2012 abco automation, llc. 28
Thank you for your
interest in
abco automation