oriental trading company controls its warehouseproductivity solutions for distribution, warehousing...
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m m h . c o m
PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING
September 2011
Oriental Trading Company Controls its warehouse 16
THE BIG PICTURE
The evolution of the WCS 24SPECIAL REPORT
Salary survey 30 EQUIPMENT 101 SERIES
Automatic guided vehicles basics 36
Deon Wagner, director of warehouse operations, Oriental Trading Company
MMH1109_Cover.indd 1 9/8/11 11:21 AM
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Changing business needs, new market demands, aging warehouse technology and seasonal peaks may be affecting the overall performance of your operation. Since your warehouse logistics requirements have likely changed, you may be trying to operate using a warehouse configuration designed for an activity profile of the past. That’s why you need to constantly assess and determine if your operation is performing like it could. What are your warehouse logistics issues? Can your operation perform at a higher level? What are best in class warehousing and distribution operations doing compared to yours?
This upgrade process is called Modernization. It is like getting a tune up for your car. Modernization involves upgrading, re-building, expanding, re-configuring the warehouse, including adding all new sub-systems. Modernization projects often include process improvements and engineering modifications that optimize or change system performance.
The idea is to take a fresh and holistic approach to the way you operate the warehouse today and in the future with consideration to material and information flows, software controls and equipment functionality, as well as topics like operator ergonomics. When modernization is complete, the results will be clear: optimized system performance with increased capacity, productivity, and order accuracy, while seeing a reduction in downtime, maintenance, and energy use.
The first step for a typical modernization program is to perform a current state analysis, also referred to as an audit. This involves an engineering look at the processes and material flows in the warehouse as well as the state of the automated material handling equipment including wear/condition, obsolescence, energy use, sound levels, safety, and reliability. Taking an operations planning perspective with a keen focus on labor utilization can be included in the audit. From here, solution development options are generated that include specific recommendations. The solutions may include upgrading software to the latest version, adding new technology, replacing controls/scanners, refurbishing aging conveyors, sorters, or automated storage systems (ASRS) and automated guided vehicles (AGVs).
Depending on the requirements, modernization of your system can be performed without any loss to operational time. Typically called a “cut-in”, the modernization implementation may be performed during a short window of time such as a weekend or holiday when the system is not in use.
Material handling system modernization with an ongoing focus on operational improvement will create positive warehouse logistics results. Whether it is implementing new technology or upgrading existing equipment, modernization will bring improved service to your customers with a financial return on investment.
For more detailed information about modernizations visit www.dematic.us or call 1-877-725-7500.
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Modernization typesOperations:• Process improvements
• Material & information flow
• Maintenance
• Safety & ergonomics
Facilities:• Energy management
• Re-lamping
• Arc flash analysis
Material Handling Systems:• Software/controls upgrades
• Sorter enhancement kit
• Replacement rollers
• Motorized roller retro-fit kit
• Powered pulley upgrade
• Conveyor conversion
• ASRS & AGVS rebuilds
Modernization Steps• Current state analysis
• Operations evaluation
• Process flow engineering
• Labor productivity analysis
• Solution development
• System engineering
• Planning the “cut-in”
• Implementation
• Lifecycle support
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FAST FACT
550number of first-time exhibitors at Pack expo (Sept. 26-28, 2011 in Las Vegas).
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Barcoding, a leader in enterprise-wide mobility solutions, announced that it has entered into a strategic alliance with lucas Systems to offer Jennifer VoicePlus voice picking solutions for the warehouse.
With the addition of this application, Barcoding is able to offer its warehouse management customers a next-generation voice picking solution that will increase productivity and efficiency while reducing distribution center costs.
Under this partnership, Barcoding and lucas Systems will jointly sell and market Jennifer VoicePlus, the first voice-directed warehouse appli-cation built to run on open, industry-standard mobile computers rather than single-purpose, voice-only hardware.
niSSan ForkliFt corP. earned california air resources Board (carB) certification for its 2012 model year, large spark-ignited engines. it is the first forklift manufac-turer to gain certification for its own line of industrial engines.
carB tested nissan Forklift engines for compliance with california environmental standards. these engines were rigorously tested and monitored for low-emission level performance within the guidelines set by the air resources Board.
the nissan Forklift Platinum ii and go4 series, with capacities from 3,000 to 11,000 pounds, offer carB-certified lPg or dual-fuel (gasoline/lPg) engines. the carB certification on these engines provides confidence that the forklifts produce low emissions to help protect the environment.
nissan Forklift 2012 engines receive certification from CarB
intelligrated, a leading automated materials handling solutions provider, appointed greg cronin executive vice president. cronin’s initial focus will be to assist in the ongoing development of the company’s software strategy.
intelligrated’s proprietary software solutions support a variety of computerized materi-als handling functions, including warehouse control systems, advanced order fulfillment software and machine controls to improve equipment utilization. “With his extensive experience in warehouse management systems and logistics software sales, marketing and business development, greg is the ideal person to oversee intelligrated’s software strategy,” said chris cole, ceo for intelligrated.
intelligrated appoints greg Cronin executive vice president
tHe Material Handling indUStry oF aMerica (MHia) has announced that the dates for ProMat 2013 will be Jan. 21 to 24. Held at chicago’s Mccormick Place South, it will be the largest international materials handling, supply chain and logistics show and conference held in north america. More than 700 exhibitors are expected to showcase
their materials handling solutions on the 300,000-square-foot ProMat 2013 show floor. the exhibit space draw will be held nov. 10, 2011, in chicago at Mccormick Place. this will be the first opportunity for orga-nizations to secure exhibit space at this event.
For more information, go to ProMatShow.com.
MHia announces ProMat 2013 dates, space draw
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mmh.com MODERN MATERIALS HANDLING / S E P T E M B E R 2 0 1 1 5
PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING
VOL. 66, NO. 9
DEPARTMENTS & COLUMNS 3/ Upfront 7/ This month in Modern14/ Lift Truck Tips: Narrow aisle trucks45/ Supplement: Warehouses & DCs48/ Pack Expo products54/ Focus On: Ergonomics58/ 60 seconds with...
NEWS 9/ Survey reveals concern over possible
double-dip recession10/ ISM manufacturing report is down
slightly in August13/ ISO certifications
COVER STORYSYSTEM REPORT
16 Oriental Trading Company gets its warehouse under controlThe direct-to-consumer retailer’s new warehouse relies on a sophisticated warehouse control system.
22 Explosive order fulfillmentOriental Trading’s unique picking solution handles up to 400,000 items per day.
FEATURESTHE BIG PICTURE
24 The evolution of the WCSWarehouse control systems are driving big productivity gains in highly automated facilities. Here’s a look at how these systems are evolving.
SPECIAL REPORT
30 Modern’s 4th Annual Salary Survey: On the uptickProfessionals working in the materials handling industry tell Modern that optimism is on the rise and so are paychecks.
EQUIPMENT 101 SERIES: AGVS
36 Automatic guided vehicles basicsBuilt with a number of variable components, automatic guided vehicles are versatile, unmanned solutions that can safely and efficiently move product around your facility.
PRODUCTIVITY SOLUTIONS
40 Getting a read on accurate pickingUK publisher uses voice technology to increase productivity and achieve a nearly perfect pick accuracy rate of 99.98%.
42 Voice solution manages workflow and cleans up inefficienciesGlobal supplier of professional hair care products uses a voice solution to streamline workflows and reduce labor.
Modern Materials Handling ® (ISSN 0026-8038) is published monthly by Peerless Media, LLC, a Division of EH Publishing, Inc., 111 Speen St, Suite 200, Framingham, MA 01701. Annual subscription rates for non-qualifi ed subscribers: USA $119, Canada $159, Other International $249. Single copies are available for $20.00. Send all subscription inquiries to Modern Materials Handling, 111 Speen Street, Suite 200, Framingham, MA 01701 USA. Periodicals postage paid at Framingham, MA and additional mail-ing offi ces. POSTMASTER: Send address changes to: ModernMaterials Handling, PO Box 1496 Framingham MA 01701-1496. Reproduction of this magazine in whole or part without written permis-sion of the publisher is prohibited. All rights reserved. © 2011 Peerless Media, LLC.
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PHOTO: BLAINE FISHER
60 seconds with...Tom Lagaly
Deon Wagner, director of warehouse operations, Oriental Trading Company
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THIS MONTH IN MODERN
One of the many satisfying benefi ts of covering a market over many years is watching trends evolve into
operating procedures that revolutionize how companies conduct business.
In fact, Modern’s executive editor Bob Trebilcock—who has had his eyes on the materials handling market for a few de-cades—has identifi ed another trend that’s just now making its way onto U.S. ware-house and distribution center fl oors. It’s one that not only stands to change the way two critical pieces of software are perceived, but how they may work together in the long term to improve order fulfi llment.
In the latest installment of his series The Big Picture: Where Business Meets Materials Handling (page 24), Trebilcock offers us an in-depth look at the evolution of warehouse control systems (WCS), the software that’s best known as the traffi c cop of warehouse and DC operations.
WCS has been traditionally responsible for interfacing with the warehouse manage-ment system (WMS) and providing direction to materials handling equipment to synchro-nize processes like full pallet and pick-to-pallet picking operations, or ensuring that all of the components of an order arrive at the dock at the right time.
But as Trebilcock has been noticing over the past year, more highly automated opera-tions are starting to rely on their WCS to handle tasks once reserved for their WMS. In fact, this month’s System Report (page 16) on Oriental Trading Company’s (OTC) highly automated, 750,000 square-foot distribution center falls perfectly into line with this trend and helped inspire this month’s Big Picture.
“To fi ll as many as 400,000 orders a day without wearing out its employees, OTC needed a highly automated, complex order fulfi llment engine,” says Trebilcock. “It pulled that off with a WCS that is handling many of the activities we normally associate with a WMS.”
For example, when OTC starts to break down a large order wave into packets of work, assign picking tasks through its voice recognition system, and direct packing sta-tions—chores usually tackled by a WMS—it lets its WCS take over. Why? According to John Niemeyer, the systems integrator who worked on the project, the WCS is closer to the action. In the OTC system, Niemeyer tells Trebilcock, that proximity to real-time events puts the WCS in a bet-ter position than its WMS to dynamically determine which parts to pick and release to the sorter.
“If the WCS is going to make decisions about what to pick and release, better that it speaks directly to the voice system, the sorter, the packing stations and the shipping sorters,” says Trebilcock. “It’s a new model for directing order fulfi llment, and I think it’s exciting for our industry.”
And while WCS is certainly stepping into WMS turf in these more highly automated systems, this does not mean that WMS will eventually be pushed to the sidelines—quite the contrary. In fact, analysts see WMS suppliers continuing to evolve and add functionality as they get more involved in shipment visibility, tracking inventory fl ow, keeping an eye on labor and getting deeper into the management of overall sup-ply chain processes.
WCS makes its move
MMH1109_Editorial.indd 7 9/8/11 11:05 AM
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Di@blogbest of Modern’s blogs
m m h . c o m MODERN MATERIALS HANDLING / S E P T E M B E R 2 0 1 1 9
BY JEFF BERMAN, GROUP NEWS EDITOR
SUPPLY CHAIN
Survey reveals concern over possible double-dip recessionSUPPLY CHAIN GROUP READERSHIP SURVEY REVEALS THAT LOGISTICS AND MATERIALS HANDLING PROFESSIONALS ARE LOOKING CAUTIOUSLY TOWARD PEAK SEASON.
DUE TO A SHAKY and unpredictable economic recovery, the downgrad-ing of the United States credit rating, and subsequent swings in the stock market, it’s fair to say that supply chain professionals are concerned about the possibility of a double-dip recession rearing its ugly head.
But while a double-dip is top of mind, this does not neces-sarily mean that readers will be quick to revamp supply chain operations or logistics planning processes to a large degree—or at all.
These were takeaways from a Peerless Media read-ership survey, which found that 78%—or 266 of the 339 respondents—are concerned that the economy is on the verge of a double-dip reces-sion. In a separate question, 37% said they plan on making changes to their supply chain operations or logistics plan-ning processes, with another 63% indicating they have no
such plans.Political gridlock, fl at demand
and growth, and a stalled employ-ment picture were among the reasons listed by respondents as to why a double-dip may be on the horizon. Other reasons included the U.S. housing market and consumer confi dence, both of which remain
sluggish, and the fi nancial condition of many European nations.
In terms of how readers would make changes to their supply chains, the reasons varied from things like reducing inventory, slowing down manufacturing or production opera-tions, to simply waiting it out until things get better and the recovery
shows more evidence of a sustained recovery.
“Changes we would consider include evaluating supplier capacity, improved delivery time frame, review-ing internal procedures, earlier adherence to S&OP calendar, and an evaluation of systems we are using,” said a sporting goods logis-tics manager who responded to the survey.
Other possibilities in-cluded things like downsizing the logistics efforts to match customer needs, cease logistics budget planning for any software upgrades or im-
MMH1109_News.indd 9 9/7/11 3:25 PM
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provements, and looking to cheaper Mexican carriers to replace higher cost United States-based carriers.
Another respondent observed that with lower inventory-carrying costs and higher transportation costs, there could be a proliferation
of regional warehouses rather than a centralized focus on premium trans-portation services.
“My clients are making sig-nifi cant changes,” said David K. Schneider, president of sup-ply chain consultancy DKS & Co.
“Some are moving more warehous-ing operations over to 3PLs to shed employees. Some are looking to major mode shift changes, but do not want to invest in the staff or skills to make and coordinate the needed changes. Those shippers are getting seduced by the trans-portation brokers for the 20% cost reduction where the real return could be 50% if done internally.”
While supply chain professionals are clearly thinking about next steps, there is not a clear sense of panic in the form of major volume declines or job losses as a direct effect of the uneven economy, explained Brooks Bentz, a partner in Accenture’s sup-ply chain practice.
In fact, Bentz said there are some indications that this year’s peak season could be better than it was a year ago, coupled with shippers taking a renewed focus in making improvements in the area of supply chain performance.
“That is an ongoing thing; no-body can convince me that all costs have been removed from the supply chain,” said Bentz. “This is especially true now, as shippers are dealing with fuel volatility, capacity, and de-mand fl uctuation.”
MANUFACTURING
ISM manufacturing report is down slightly in AugustWHILE MANUFACTURING may be experiencing a bit of a slowdown, the overall numbers in the August edition of the Institute for Supply Manage-ment’s Manufacturing (ISM) Report on Business still point to growth.
For August, the ISM reported that the index it uses to measure the manufacturing sector—known as the PMI—was 50.6, down 0.3% from July’s 50.9 and also down from June’s 55.3. As reported by Modern earlier
MMH1109_News.indd 10 9/7/11 3:25 PM
m m h . c o m MODERN MATERIALS HANDLING / S E P T E M B E R 2 0 1 1 11
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tion for the fi rst time in about 26 months,” he said. “We are fortunate that the PMI is in positive territory and being kind of held up by em-ployment and inventories.
Coming off of a three-month stretch from May to July, which saw
prices sink a cumulative 26.5%, prices in August fell another 3.5% to 55.5.
And with a 30% drop in prices going back to April, it is clear manu-facturers are seeing some relief. This could mean that good things are ahead for manufacturers, especially if
in the year, the PMI was routinely topping 60, but experts said it was not likely to remain at that level for a long period. From January through April, the cumulative PMI average was 61% for the best combined four-month stretch in this report in more than 20 years.
According to the ISM, any read-ing 50 or higher is a sign of economic growth. But even with sequential de-clines in three of the last four months, August marks the 25th consecutive month economic activity in the manu-facturing sector has expanded, with the overall economy showing growth for the 27th straight month.
Among the key metrics in the report, New Orders were up 0.4% at 49.6, and Production slipped 3.7% to 48.6. Employment inched down 1.7% to 51.8.
“We are still in the growth cate-gory,” said Bradley J. Holcomb, chair of the ISM Manufacturing Business Survey Committee, in an interview. “It is quite amazing for most people to see this; a lot of forecasters were predicting contraction, and we beat that estimate, which is a tribute to the broad manufacturing sector that has maintained its resolve during tough times.”
But even though growth is still oc-curring, Holcomb did admit that some weaknesses are starting to emerge.
Some of these signs of weakness include New Orders, which were up 0.4% to 49.6, and contracted for the second straight month, and Backlog of Orders, up 1.0% to 46 and con-tracting for the last three months.
“This [backlog of orders] shows that companies are using their pro-duction capacity to chew up backlog, but it is now also impacting produc-
With a 30% drop in prices
going back to April, it is
clear manufacturers are
seeing some relief.
MMH1109_News.indd 11 9/7/11 3:25 PM
12 S E P T E M B E R 2 0 1 1 / MODERN MATERIALS HANDLING m m h . c o m
the economy shows some real signs of a recovery.
“It is likely to be a few more months before buying trends head up again and continue the momentum we saw earlier in the year,” said Holcomb.
Inventories were up 3.0% at 52.3,
and Customers’ Inventories were up 2.5% at 46.5.
Manufacturers, said Holcomb, are doing a very good job of tuning inventories to the realities of new orders and production and keeping activity hovering around the 50%
mark, which shows good inventory control.
“Customer inventories, while slower growing, show that there is still some appetite and some pull potential for customers, but it could be the new normal to be under 50,” he said. “It is inching up in the wrong direction but still well under 50. For raw materials inventory at 52.3, it is still a little hard to tell what is going on for a one-month basis. When things are
going well sometimes manufac-turers will ensure they have more inventory so they don’t run out and are able to fi ll orders. But there can be situations where new orders and production slow down and they are holding inventories, which shows disciplined inventory control.”
While the United States remains in positive territory for manufacturing growth, various reports are showing that is not the case in other parts of the world, especially in European and Asia Pacifi c nations.
Holcomb said that what is happen-ing in the United States runs counter to many other global regions and is surprising many economists. What’s more, the situation in the United States shows that the nation is broad and deep at a time when some sec-tors are growing more than others.
“It is a tribute to U.S. manufacturing being long-standing and robust relative to world economies,” said Holcomb.
“Manufacturers are
doing a very good job of
tuning inventories to the
realities of new orders and
production and keeping
activity hovering around
the 50% mark, which shows
good inventory control.”
—Bradley J. Holcomb, chair of the ISM Manufacturing Business
Survey Committee
MMH1109_News.indd 12 9/7/11 3:25 PM
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location to the ISO certifi cation is signifi cant to the organization as it ensures the entire company is oper-ating under the same quality system.
“Earning ISO registration demon-strates our commitment to world-class quality in our design, fabrication,
installation and support of our engi-neering solutions,” said Jon Tobin, Han-Tek president. “This certifi cation provides independent evidence of our dedication to excellence in providing our customers with quality product and service solutions.”
The International Organization for Standards (ISO) is the world’s largest international standards organization. ISO 9001:2008 is the current recog-nized standard for business quality management systems. The standard provides the necessary framework to improve company effi ciency, minimize risk, and maximize opportunity. Certifi -cation to the standard is voluntary, and organizations must complete a rigor-ous auditing process by a third-party.
Advance Lifts Advance Lifts, St. Charles, Ill., re-cently announced that the company is now ISO 9001 certifi ed.
For more than 37 years, Advance Lifts has been manufacturing loading dock equipment, work positioners, lift tables, recycling equipment and packaging equipment.
Harrington Hoists Harrington Hoists announced that it has achieved the ISO 9001:2008 certifi cation last month.
“Harrington has always been cus-tomer focused and we strive to provide quality on every level,” said Bret Lus-sow, business development sales man-ager. “So this was a logical step and it reinforces our commitment to providing our customers with the highest quality product, service and support.”
Harrington Hoists is a leading man-ufacturer and supplier of electric and air powered chain hoists, electric wire rope hoists, lever hoists, manual hand chain hoists, push and geared trolleys, overhead cranes, crane accessories and a full line of replacement parts.
PowerLab Control Technologies Han-Tek, a solutions provider of advanced automation technology has added its newly acquired division, PowerLab Control Technologies, to its ISO 9001:2008 registration. Located in Welcome, N.C., Power-Lab was acquired by Han-Tek in late 2010. The addition of the PowerLab
New ISO certifications
MMH1109_News.indd 13 9/7/11 3:25 PM
lift truck TIPS
GraphicCaption
The idea behind adding narrow aisles (8 or 9 feet wide) or very narrow aisles (6 or 7 feet wide) to a facility with conventional aisle width (10 to 12 feet)
is that a company can more efficiently store and retrieve fast-moving or slow-moving products. Although wider aisles remain open to two-way truck traffic, narrow aisles make better use of available space.
But during the transition to narrow-aisle setups, Susan Comfort, product manager of narrow aisle products for Raymond, warns that failing to successfully transition your equipment can negate efficiencies. A few simple adjust-ments can ensure facilities neither compromise safety nor decrease the life of equipment.
Because pedestrian traffic can become increasingly hazardous in narrow-aisle facilities, it’s a place where technology can help reduce the likelihood of an acci-dent. Truck speed can be limited or magnetic strips can be placed at the end of aisles to automatically reduce speeds. A truck could even be programmed to have a different top speed in an aisle or when traveling be-tween aisles.
While such modifications can make the operator’s job easier, Comfort is careful to emphasize the importance of training to overall safety.
“Safety is the marriage of the right truck, the right ap-plication setup and operator training,” she says.
Comfort offered a few tips to ensure the application setup—a commonly overlooked piece of the equa-tion—is ideal.
“The first tip is simple,” says Comfort. “Make sure the mast height is appropriate. Operators might try to simply work around new ceilings, but trucks can be con-figured with a maximum mast height that will prevent equipment collisions.”
Along the same lines, Comfort advises managers to verify that the weight and dimensions of a given load are appropriate for the truck.
“Things can change so quickly in business these days,” says Comfort, who adds many customers have pushed their equipment to a longer service life than usual. “Your average weight may have changed, too. If you take on a
new product line and try to cram everything in there, you have to continue to review the application.”
Without constant review, problems will make themselves known in the maintenance budget line, Comfort suggests.
“I don’t know how to say it politely, but I’m always surprised how few people track their maintenance costs,” she says.
Energy costs, on the other hand, get plenty of atten-tion. Customers are increasingly calling for universal bat-tery platforms across multiple truck styles.
“That is something we have kept a close ear to be-cause it makes a lot of sense,” says Comfort. M
14 S e p t e m b e r 2 0 1 1 / Modern Materials Handling m m h . c o m
Increase efficiency, not riskNarrow aisle new adopters and veterans alike should review technology, safety and equipment setup.
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MODERN system report
Oriental Trading Company gets
Deon Wagner, director of warehouse operations, Oriental Trading Company.
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Oriental Trading Company getsits warehouse under control
“We work hard to make the world a better place to live, work and play.” So goes the motto at the Oriental Trading Company (OTC). As the nation’s
largest direct-to-consumer retailer of value-priced party supplies, toys and nov-elties, OTC is best known for products associated with fun and games. Perennial bestsellers like whoopee cushions reflect the play. The company’s 750,000-square-foot distribution center in LaVista, Neb., reflects the hard work.
When the facility went live in 2007, OTC transitioned from a conventional, paper-driven DC to a highly automated facility that manages more than 30,000 stock keeping units (SKUs). In 2010, the facility picked and packed 78 million units a year. On its best day, the LaVista facility handled 404,000 items.
The large, direct-to-consumer retailer’s new warehouse relies on a sophisticated warehouse control system to pick up to 400,000 items a day.
By Bob Trebilcock, Executive Editor
mmh.com MODERN MATERIALS HANDLING / S E P T E M B E R 2 0 1 1 17
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modern system report
“We believe we’re in the top five in the United States for unit volume being shipped out of a single facility,” says Deon Wagner, director of warehouse operations.
To hit those numbers, OTC imple-mented:
• a 250,000-square-foot fulfillment area featuring a three-level mezzanine,
• voice recognition technology to automate picking,
• a sophisticated double-density tilt tray sorter and conveyor system that feeds 600 packout stations, and
• a secondary sortation system to deliver packages to carrier trailers.
The engine behind those improve-ments is a warehouse control system (W&H Systems, whsystems.com) that has taken on many of the functions more typically associated with a ware-house management system (WMS).
In addition to controlling conveyor and sortation systems, the warehouse control system (WCS) optimizes pick-ing and packing waves, sends pick infor-mation to voice picking, and directs the packout operations. The WMS, mean-while, is primarily in charge of inven-tory management and communication with the host system.
The result has been an impressive 45% increase in productivity and a 60% reduction in pick errors. Accuracy has improved from 99.25% to 99.9%.
What’s more, the system as designed can manage up to 50,000 SKUs. “Our strategy is to grow our business by increasing the number of products and product categories we offer our cus-tomers,” Wagner says. “This facility will let us continue that strategy.”
Party on Founded in Omaha in 1932, Oriental Trading was one of the nation’s first wholesalers of value-priced novelties and gifts. It became a major supplier to the U.S. carnival trade in the 1950s before expanding in the 1970s by using catalogs and direct marketing to target consumers, retailers and businesses.
In the 1980s, OTC launched its first
toll-free telephone number and seasonal catalogs brought con-tinued growth. As the Internet grew in popularity in the late 1990s, OTC began to reach out to customers on the Web.
Today, the company employs 3,000 associates and mails nearly 300 million catalogs a year. OTC has been recognized as a Top 50 Internet Retailer, a Top 50 Catalog Company, and has also won awards for corporate citizen-ship and social responsibility.
OTC continues to grow by adding new items to existing categories and by adding new products. That growth strategy led to the need for a new facil-ity. When planning began for LaVista, the existing 600,000-square-foot facil-ity in Omaha was maxed out.
“In our old facility, we had a capacity for about 24,000 SKUs,” says Wagner. “We simply didn’t have the room to add the new SKUs that our merchandising team wanted to bring in to continue to grow our business.”
There were other challenges as well. OTC’s growing Web presence resulted in more customer orders for out of sea-son products offered all year long on the Web compared to catalog custom-ers who typically ordered from what-ever items were offered in the book.
This led to a decrease in produc-tivity. A typical order consists of six to seven line items and 14 units that were being picked across 24,000 pos-sible SKUs. With those order profiles, the paper-driven, pick-to-cart fulfill-ment processes in the old facility were manual and physically taxing. “Our WMS was able to optimize pick paths,” says Wagner. “But given the breadth of SKUs, our pickers were walking 7 to 10 miles a day.” And, turnover was high.
The combination of physical con-straints and the physicality of the job led to the design of the new facility. “We wanted to support SKU prolifera-tion with a pick zone that could hold up to 50,000 SKUs,” Wagner says. “And we wanted to drive pick density in our picking processes to minimize travel distances and pick times.”
oriental trading’s WCs creates a wave of 100,000 items to fill 10,000 orders. once picked (bottom right), orders are assembled by a tilt tray sortation systems which routes the required items to a packing station (top left) where associates pack orders for delivery.
MMH1109_SysRptOrientalTrad_.indd 18 9/7/11 1:22 PM
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modern system report
Explode and assemble The solution was a highly integrated and flexible picking methodology that OTC refers to explode and assemble. The system brings together an order management system, WMS, WCS, conveyor and sortation system, and voice recognition technology to find the optimal way to pick and assemble a wave of 8,000 to 10,000 orders.
To understand the new system, it helps to look at how orders used to be processed. In the old system, the WMS created batches of 9 to 20 orders around a system-optimized path. Associates picked complete orders from a master pick ticket directly to shipping containers on a cart. Since pickers were completing an order, several associates might visit the same location to com-plete their batches.
When the batch was complete, the picker scanned a bar code on the mas-ter pick list. At that time, the inventory was updated. Given that a batch could take 40 minutes, any given location might be out of stock for a significant period of time before the system knew to replenish that location. “The system was very inefficient given our order characteristics,” Wagner says.
The explode and assemble method-ology takes a different approach. Orders still begin at the WMS. The system creates a wave that consists of 8,000 to 10,000 orders and 100,000 units to be picked. That wave is then passed to the WCS. Since the WCS has a more granular view of the workload in the facility, including what’s happening on the sortation system and at the packout stations, it determines the best way to execute the wave based on the profile of the orders, the location of items and the workload on the sorter.
It works like this: To explode the orders, the WCS creates four picking and packing subwaves from the original wave; picking assignments are assigned to an induction location on the double- density tilt tray sorter, and orders are assigned to a chute leading to one of 600 packout locations.
The WCS plans the work based on several criteria. First, it looks at which items will consume the entire contents of a case. Those tasks are sent to a case break area. The idea is that associates will pick by location rather than fill all
the items of an individual order. That way, a location is only visited once for each wave, cutting down travel time. By condensing items in a three-floor mez-zanine, travel time is further optimized.
While they are picking, associates are directed by the voice system to pick to up to 16 different totes until a case is consumed. Filled totes are held in a pick module until the sorter is ready for a subwave. At that point, the associate releases a tote to the takeaway conveyor, which sends it to an induction point.
That’s the explosion piece of the equation. For the assemble part of the orders, the tilt tray sorter identifies all of the items for a single order and sends them to a packout chute. After an order is packed into a shipping container, it is conveyed to an automatic tape and sealing sorter. There it is scanned again and the WCS determines whether the carton is 100% complete; if so, it is sorted to an automated tape-sealing machine and continues to the ship-ping sorter. If there are exceptions, it is conveyed back to a packout station to be completed. The WCS remains in control right up until the packages are sorted into the carrier trailers.
Smooth transition Wagner says the transition from manual processes to automation was relatively seamless. “Our associates have gone from walking 7 to 10 miles a day to less than a mile, which has been a huge win for our pickers,” Wagner says. “We’ve had a significant reduction in turnover.”
What’s more, associates are cross trained on a variety of jobs to ensure that the facility can execute to the wave plan. The implementation of a labor management system along with a pay for performance program has also led to worker acceptance.
But the most important benefit may be the ability to support 50,000 SKUs in the future. “We now have a facility that will support our future growth,” says Wagner.
“ Our associates have gone from walking 7 to 10 miles a day to less than a mile, which has been a huge win for our pickers. We’ve had a significant reduction in turnover.”
— Deon Wagner, director of warehouse operations,
Oriental Trading Company
items are picked to totes from a number of different picking zones and then conveyed to one of the sorter induction areas, where they are placed on the tilt tray sortation system.
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modern system report
To fill orders, associates send thousands of items to a unique tilt tray sorter that then assem-
bles the orders at the packout stations. Receiving: Inbound containers
are floor-loaded and typically contain 30 to 40 different items. At the receiv-ing dock (1), containers are unloaded and cases are sorted to pallets by item number. Once a pallet is full, a license plate bar code is applied to the pal-let and scanned to update inventory in the warehouse management sys-tem (WMS). Each product is then inspected in a quality assurance area, and weighed and measured at both the selling unit and case level. That information is used later in a packag-
ing algorithm that selects the right box for an order as well as for calculating the weight and cube for rate shipping.
Putaway: There are more than 100,000 pal-let locations in the reserve storage area (2). Pallets are staged in a putaway and drop (P&D) location at the end of each aisle, based on the final putaway location that was selected by the WMS. A turret truck operator is directed by an RF device to the P&D location to retrieve the pal-let and deliver it to a storage location. Inventory is tracked by the license plate tag and scans from location to location.
Both turret trucks and orderpickers operate on a wire guidance system in reserve storage.
Replenishment: After an alloca-tion is run, the WMS determines how many cases of each item need to be delivered to the active pick area (3). Cases can be put away in a case break area (4); flow rack area (5); and a static rack area (6) on a min/max system; and determines which cases need to be pulled for fulfillment of case lot orders from the rack picking area (2). These
picks are then placed into a replen-ishment pick queue. Drivers
are allocated work from the queue based on the pro-
Oriental Trading CompanyLaVista, Nebraskasize: 750,000 square feet, including 500,000 square feet of storage and 250,000 square feet of fulfill-ment; OTC operates a second 600,000-square-foot facility in Omaha
Products handled: Party supplies, arts and crafts, toys and novelties
stock keeping units: 30,000
Units handled: 78 million units handled in 2010 with up to 404,000 on peak days
employees: 750 to 1,100 depending on the season
shifts/days: 3 shifts/5 days with occasional sixth day during peak periods
Explosive order fulfillmentoriental trading’s unique picking solution handles up to 400,000 items per day.
By Bob trebilcock, Executive Editor
1
Receiving
2
Reservestorage
4
Casebreak 5
Flowrack 6
Staticrack
7
Non-sortable
items
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Packingstation
10
Packingstation
8
8
Sorterinduction
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Shipping
12 Shippingsorter
3 Active pickarea
11 Taping
8 Sorterinduction
9 Tilt tray unitsorter
MMH1109_SysRptOrientalTrad_.indd 22 9/7/11 1:22 PM
file that they are set up in. Profiles can include specific aisles, equipment types and priorities. Drivers are then directed to a location and pick a specific number of cases for an item. They apply iden-tification labels to the cases and scan these labels to associate a case with a carton identifier.
Upon completing work in the queue or filling an order picker bed, the cases are taken to one of two takeaway con-veyors. The cases are then conveyed to the active pick area (3) where they will be sorted on a belt sorter with divert arms to staging destinations within the active pick area, or to a case lot meter area where the cases will be shipped. As cases arrive in the staging destina-tions, stockers use RF devices to move the cases to active pick locations.
Picking: Pickers within the active pick area (3) process picks to fill a 100,000 unit wave. Each wave is bro-ken down into four subwaves and a total of 16 sorts. Items can be picked from four areas: case break (4), flow rack picking (5), static rack picking (6) and non-sortable picking (not illustrated). Each of these pick methods is directed by the voice recognition system.
In the case break area (4), the entire contents of a full case will be consumed within a wave. The picker is directed to scan a case label on the case and then scan the UPC code from one item within the case. The voice system will then communicate to the picker which totes to place the items into. The case contents are placed into totes that are set up within a put module that has a location for each subwave and induc-tion platform (8).
As the picker places items and quan-tities into the tote, they validate the pick by speaking a check digit for the location within the put module that the tote is in.
In the flow rack area (5), a picker is directed to a pick location and then to place picked units into totes that are set up on put carts. The picker verifies that he is at the right location by commu-nicating the check digit that is associ-ated to the location. The picker is then
directed to pick a specific quantity of units and place them into the appro-priate totes within the module on their cart.
In the static rack area (6), pickers also pick to a cart. Each picker will make two passes per wave in the static area. As totes become full of product, the picker stages the totes on staging conveyor and replaces that tote with an empty tote on the put cart. In addition, the pickers will stage totes on the staging conveyor when they complete a wave. As work is needed on the sorter the pickers are directed by the voice system to release totes from the staging conveyor to the takeaway conveyor that will convey totes to the appropriate induct platform (8) on the unit sorter (9).
Products that can’t be placed on the unit sorter due to size or fragile nature are picked in a process similar to the static area process but are not staged on staging conveyor. Non-sortable prod-ucts are delivered to the pack area (10) at the appropriate time.
Induct and sort: Totes from the pick area are conveyed to a tote sorter where they are sorted to one of the four induction platforms (8) on the unit sorter (9). Each induction platform has eight induct stations. The induct operators will each have totes directed to their station. The induct operator will then scan the tote, scan an item in the tote and place the item on the next available tray on the sorter.
The system displays how many of an item should be left in the tote and will count down that quantity on the screen as items are placed on trays. The
inductor will continue inducting items until the tote is empty. As items are inducted, the unit sorter directs them to the appropriate pre-determined packout destination (10) for an order that requires that item.
Packing: The facility features 600 chutes, or packout destinations (10). Up to 12 orders can be assigned to each chute depending on the cube of the order. Once all of the orders assigned to a chute have been sorted, the packer scans the chute and is directed to set up a box for each order. The packer then scans each item and is directed to place the item into the appropriate box on the packout table. Once all the items in the chute are scanned, the packer will retrieve any non-sortable items that are needed for those orders and place them into the appropriate box. Finally, the packer will place the shipping label on the box, insert the packing slip and place the box on the takeaway conveyor. The takeaway con-veyor routes the package to the pillow tape area (11) where bio-degradable air pillows are inserted for dunnage and the package is sealed. The package is then sorted (12) to shipping (13).
Shipping: Packages are routed to the shipping conveyor where they pass through one of two inline scales and overhead scanners. Each package is weighed and the order number/package ID is scanned to close the order and create a carrier manifest. The shipping sorter (12) then diverts the package down the appropriate chute based on carrier/service level and destination of the package. M
mmh.com Modern Materials Handling / S e p t e m b e r 2 0 1 1 23
system supplierssysteM design, integration and wareHouse control systeM: w&H systems, www.
whsystems.com
wMs: interlink technologies, interlinktech.com
conveyor/tilt tray sortation: Beumer, www.beumer.com
conveyor/sortation: intelligrated, www.intelligrated.com
voice recognition tecHnology: lucas systems, www.lucasware.com
Picking rack and Mezzanine: unarco Material Handling, www.unarcorack.com
Pallet racking: interlake Mecalux, www.interlakemecalux.com/Home.do
lift trucks: crown equipment corp., www.crown.com
Bar code scanning: Motorola solutions, www.motorolasolutions.com
radio frequency systeM: Psion, www.psion.com
MMH1109_SysRptOrientalTrad_.indd 23 9/7/11 1:22 PM
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THE BIG PICTUREWhere Business Meets Materials Handling
The EVOLUTI ON
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mmh.com MODERN MATERIALS HANDLING / S E P T E M B E R 2 0 1 1 25
MODERN system report
of theWCSEVOLUTI ON
f you read this month’s cover story on Oriental Trading, you’ll notice something different going on: The order ful-fillment processes are being managed by a warehouse control system, or WCS, and not by a warehouse man-agement system (WMS).
That’s not to say that Oriental Trading doesn’t have a WMS. It does. The system manages receiving, putaway and inventory management; it replenishes pick faces and assigns shipping lanes; it is the communication link with the order management system; it even takes a first pass at grouping thousands of orders into a wave. Those are all standard operating procedure for a WMS.
But when it comes to breaking down that big wave into packets of work, assigning picking tasks through the facility’s voice recognition system and directing the packing stations—activities normally associated with a WMS—the WCS is firmly in control.
The reason, says John Niemeyer, an executive at W&H Systems, the systems integrator whose control
system drives the processes, is that the WCS is closer to the action. In this system, that proximity to real-time events puts it in a better position to dynamically deter-mine which parts to pick and release to the sorter than the WMS. And if a WCS is going to make decisions about what to pick and release, better that it speaks directly to the voice system, the sorter, the packing sta-tions and the shipping sorters than a WMS.
This is a new model for directing order fulfillment operations, one that is primarily showing up in highly automated DCs with complex order profiles, like direct-to-consumer distribution and mixed SKU pallets. While it is still an emerging trend, more large end users like Oriental Trading are implementing sophisticated mate-rials handling automation to optimize order fulfillment processes. As a result, the WCS is evolving from an equipment control system that turns conveyors and sort-ers on and off at the right time to a powerful order fulfill-ment engine.
Warehouse control systems are driving big productivity gains in highly automated facilities. Here’s a look at how these systems are evolving.
IBy Bob Trebilcock, Executive Editor
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the big picture Where Business Meets Materials Handling
Now, before we go any further, there are two sides to this story. The first is the perspective of the WCS providers, who see the increase in automation as an opportunity for them. Some will argue that in the right circumstances, you don’t even need a WMS. The other perspective, which we’ll see later, comes from WMS vendors who argue that they remain relevant and neces-sary, even in highly automated facilities. We’ll start with the WCS point of view.
Beyond equipment controlWhat’s driving the evolution of the WCS?
“Money,” says Jean Belanger, founder and CEO of Reddwerks. “More than half the variable cost in a typical DC is associ-ated with order processing.” Any efficien-cies or gains in productivity go right to the bottom line. Or, in the fierce competi-tion for direct-to-consumer and Internet e-commerce business, a gain in efficiency might deliver a competitive advantage. “The convenience that consumers enjoy from ordering online comes out of the hide of the retailer,” Belanger adds. “Direct-to-consumer retailers have to react very fast and minutes count where hours and days used to suffice.”
WCS vendors tout their ability to make dynamic order fulfillment deci-sions, such as the ability to reassign an order sitting at a packout station from one consumer with standard ship-ping to a consumer that just placed an order for next day delivery. “By monitor-ing events in real time, the system can automatically react to events that in the past probably required human interven-tion,” Belanger says.
Another trend at work is goods-to-person picking. This is a methodology that integrates an automated storage system, conveyors and voice, pick-to-light or a screen display to deliver the goods to be picked in the sequence required to fill the order.
“Goods-to-person has been used in Europe for a few years and is now taking off in North America on a wider basis,” says Kevin Tedford, vice presi-
dent of software engineering for TGW. “You’re seeing fewer new facilities that will have 600 associates picking and packing orders. Companies are asking questions about what they can do to reduce the labor component.”
That is leading to more sophisticated and technical order fulfillment systems that require a lot more real-time infor-mation. “A WMS doesn’t have enough information to manage all of the com-ponents of these systems effectively,” Tedford says.
Beyond equipment controlIt wasn’t always so. Today’s order fulfill-ment capabilities represent a progres-sive leap forward for WCS. In the early days, they were primarily equipment control systems that told a conveyor to convey, a sorter to sort, or an automated storage system to put product away. “The WCS traditionally focused on material flow,” says Jerry Koch, direc-tor of corporate marketing and product management for Intelligrated. “The shift we’re seeing is how you direct resources to get the most efficient oper-ations for that day.”
That shift from material flow through an island of automation to a fulfillment engine began a decade or so ago with the advent of programmable logic control-
lers, or PLCs, to carry out commands. PLCs allowed for more sophisticated automation control. Early PLCs, how-ever, had limited processing capabilities.
“The PLC didn’t have memory to hold a database, and it couldn’t make a real-time decision,” says Carlos Ysasi, vice president of engineering for Vargo Adaptive Software. “We needed a brain to hold a database and we needed some-thing that could analyze data and make a real-time decision in milliseconds because a high-speed sorter couldn’t wait while we accessed a host system.”
From material flow to resource managementIn the old material flow model, the WMS was still the supervisor that directed warehouse operations and executed order fulfillment tasks. “The WMS would tell us where to send the product that was on the equipment,” says Jerry List, vice president of QC Software. “It was up to the WCS to figure out the best route to get there, but the ultimate destination was deter-mined by the WMS.”
When it came to managing the resources of the warehouse, the WMS tended to handle labor intensive con-ventional processes, such as lift truck operators and manual pickers while the
WCs or WMs? in highly automated distribution centers, warehouse control systems are taking on more order fulfillment responsibilities.
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WCS focused on the equipment. In the emerging model of highly
automated warehouses, the WCS looks at resource management, which would include automation, but also labor and conventional processes. “You’re trying to orchestrate all of those components to get product out of the facility in the most optimal way,” says David Adams, global product management for soft-ware for Dematic. “To the WCS, it doesn’t matter whether you have people or equipment performing a task. The WCS is going to orchestrate the fulfill-ment operations to get the lowest cost per case out the door.”
The WCS does this, in part, by bal-ancing the workload across the equip-ment. Rather than peaks and valleys during the day, the idea is to maintain a steady flow of work from picking to the conveyor and sorter to packing sta-tions. WCS vendors refer to this as a pull system: Rather than pushing work out to associates on the floor, the WCS uses a piece of equipment to drive the processes.
“With the WCS, we can apply lean manufacturing methodologies to distri-bution,” says Vargo’s Ysasi. “In a piece-picking facility, we use the unit sorter to set the pace. As soon as packing sta-
tions become available, we drop more orders upstream and sort the work to the available resource. Instead of a pre-planned set of orders, we can wait until the last second to make a decision on what someone should do next.”
That type of approach allows the WCS to proactively react to events in real time. “If we look forward in the order queue and see a spike in demand for a particular SKU, we can also look to see if there’s enough stock at that pick location to fill demand,” says Reddwerks’ Belanger. “If not, we can send an order to replenish that location to eliminate a short or out of stock position.”
Wrap it upLike WMS systems of the past, WCS systems from providers like Reddwerks, QC Software, Vargo as well as system integrators like Dematic and Intelligrated, are moving from custom-coded projects to something closer to off-the-shelf products. Reddwerks, for instance, offers a suite of applications that includes a conveyor control system for equipment, warehouse control for order processing, and a WMS system for inventory management.
Likewise, QC Software has devel-oped a series of standard modules
Even in automated DCs, the WMS remains the system of record for inventory management, communicates with the ERP, and directs conventional processes.
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with hooks to business rules that can be configured according to the needs of the end user. “A WCS will never be shrink-wrapped because the opera-tional requirements of every system is a little different,” says Jerry List, a vice president at QC. “But as the package becomes more standard, we can make most changes through configuration changes rather than custom coding.”
What about the WMS? Now, even though the WCS is handling order fulfillment processes, the WMS still has an important role to play, even in highly automated facilities. “The WMS has been promoted from a task engine, concerned with how to get the work done, to a planning tool,” says QC Software’s List. “It is still managing inven-tory, and it is still allocating inventory as it drops orders down to the WCS. It is plan-ning the labor and in a multi-warehouse scenario, it is determining which ware-house to source an order from.”
In most of the facilities employing this new model, the WMS is still manag-ing replenishment—even if it directs the WCS to execute the replenishment—and it is often managing shipping opera-tions. “The WMS has a bigger view of the extended supply chain,” says Intelligrated’s Koch. “The WCS is only focused on the operations within the facility.”
Yet, to hear the WCS vendors tell it, that set-up may be changing. “In an automated facility, the lines of respon-sibility are getting blurry,” says Koch. “Cycle counting is something you would typically associate with a WMS, but when it comes to managing the storage in a carousel, the WCS can execute trig-gers to cycle count as work is being done and report back to the WMS.”
Indeed, WCS providers are moving into WMS turf. Through its acquisi-tion of HK Systems, Dematic inher-ited WMS functionality. “The WCS is increasing its footprint to do classic receiving and shipping and can inter-face all the way to the ERP,” argues Dematic’s Adams. Similarly, QC
Software and Reddwerks are expanding the reach of their systems.
“We see opportunities for the WCS to move into basic inventory manage-ment, crossdocking, and print and apply on outbound shipments, espe-cially in facilities where the warehouse is being controlled by an ERP system,” says List. “As a company grows, it may need a full-blown WMS, but until then the WCS can be a stepping stone.”
WMS strikes backIf it sounds as if a WMS is becoming irrelevant in highly automated facilities, WMS vendors would beg to differ.
“The WMS is moving up the stack and taking on more supply chain pro-cesses,” contends Chad Collins, vice president of marketing and strategy for HighJump Software. “We have visibility into inbound shipments, we manage the flow of inventory from the yard into the facility, and we’re going to plan and track labor. Those are tasks that a WCS just can’t perform.”
Other WMS vendors make similar arguments. “Mahattan Associates is in some very highly automated facilities with a WCS controlling some order ful-fillment activities,” says Eric Lamphier, Manhattan’s senior director of product management. “We’re still firing off as many messages as we are at any comparable conventional warehouse. What’s different is that the WCS is using our data to re-pri-oritize and re-sequence operations to drive productivity. But, they still use our data.”
While the WCS is running a lot of very fast what-if scenarios to determine the right movements to keep the trays full on the tilt tray sorter, “we’re doing inven-tory allocation, task creation and cartoni-zation along with tracking the availability of equipment and labor,” Lamphier adds.
In fact, both RedPrairie and SAP argue that their systems are capable of handling the decision making that is being taken on by a WCS. “More and more, we are being asked to talk directly to PLCs and eliminate the layer of com-munication handled by a WCS,” says
Tom Kozenski, RedPrairie’s vice presi-dent of product strategy. “I would argue that the whole idea of feeding out the work flow in a dynamic way, which is the primary selling point of the WCS ven-dors, is fully supportable by a WMS.”
Indeed, SAP has introduced a mate-rial flow system control, something it calls MFS, into its full-featured WMS product. “The module is able to model conveyor, sortation and automated stor-age segments and communicate directly with the PLCs to take out that layer of control software that would typically run automation,” says Richard Kirker, director of solutions management for SAP. According to Kirker, the solution is already running a number of highly automated facilities in Europe; two cus-tomers are preparing to implement it in North America. “In one facility we are operating, 89% of the response times are in less than 300 milliseconds,” he adds.
WCS or WMS? Which then is the best approach? There is little doubt that warehouse control systems are making inroads on WMS turf in highly automated facilities and have success stories to tell. At the same time, WMS systems continue to evolve and add functionality. “There’s no one answer,” says RedPrairie’s Kozenski. “You have to look at what you’re trying to accomplish and ask where is the best place to put the picking logic.” M
Companies mentioned in this articledematic, www.dematic.com
intelligrated, www.intelligrated.com
Manhattan associates, www.manh.com
QC software, www.qcsoftware.com
reddwerks, www.reddwerks.com
redPrairie, www.redprairie.com
saP, www.sap.com
tgW, www.tgw-group.com
Vargo adaptive software, www.vargocompanies.com/vas
W&H systems, www.whsystems.com
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30 S E P T E M B E R 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com
By Lorie King Rogers, Associate Editor
On the uptickProfessionals working in the materials handling
industry tell Modern that optimism is on the rise
and so are paychecks.
Over the years, Modern’s annual salary survey has been used to paint a picture of the overall compensation situation inside the four walls of our domestic warehouses and distribution centers and to gauge career satisfac-tion throughout the materials handling industry. When we surveyed Modern readers last year, we found positive upticks in outlook and income. This year, people are again reporting job sat-isfaction and, for the most part, salary and bonus increases. While the dollars didn’t spike skyward, a rise is a rise.
Last year we learned that 93% of respondents were happy in their jobs and 90% reported that their salaries either increased or remained steady. Confident that the worst was over, employers and employees alike were looking positively toward the light at the end of a long, dark economic tunnel.
So, what did our most recent survey reveal?
Base salaries are up According to this year’s results, 94% of respondents would recommend the materials handling profession to others. Maybe that’s because they’re earning a median base salary of $80,000, not including bonuses or commissions, com-pared to $74,500 in 2010. (The median is the midpoint used when extreme high and low numbers skew the average.) Of those responding, 60% said they received a bump up in pay, 35% said their paycheck remained the same and 4% felt the pinch of a decrease. Those numbers compare favorably to our last survey when we reported that only 38% received an increase, 52% stayed the same, and 10% experienced a decrease in pay.
The median increase was 3%, but the average increase was 4.4%. And while fewer respondents said they were suffering a cut back in pay, the median decrease was once again 10%.
Salaries in the materials handling sector are tracking other industries, according to Tom McMullen, who designs compensation programs for corporate clients at the consulting firm Hay Group. In a recent survey of 300 organizations, Hay Group’s research also found that 3% pay increases were being reported across industry sectors.
The big difference this year, says McMullen, is that the increases are happening at all levels. “The 3% increase is similar to last year and there’s not a big difference in base sal-ary adjustments all throughout the org chart. In years past, that would have been different,” he says. “Companies are managing costs all the way up and down the organization and no single population is being increased faster than another.”
Bonuses and commissionsBonuses are bouncing back and com-missions are making a comeback. Last year, a healthy 61% of respondents expected to receive a bonus. That wasn’t bad considering the weak economic state of the industry at the time. This year, that number has ticked up to 68%. Of the respondents expecting to earn a bonus or commission in 2011, 26% say
4TH ANNUAL SALARY SURVEY
Slow and steady wins the race. That was the strategy for the tortoise and it also appears to be a winning way for pro-fessionals in the materials handling industry. According to those who responded to Modern’s fourth-annual sal-
ary survey, having a position as a materials handling professional appears to be increasingly favorable and lucrative.
MODERN special report
MMH1109_SpRptSalarySurvey.indd 30 9/8/11 8:30 AM
mmh.com MODERN MATERIALS HANDLING / S E P T E M B E R 2 0 1 1 31
What is your current base annual salary and bonus for 2011?
2010 2011
Median Salary $74,500 $80,000
Median Bonus $3,500 $11,000
Experience pays, eventually
Years in the materialshandling industry Median salary
0 20 40 60 80 100
20 years or longer$87,000
$81,400
15 years to less than 20 years$80,000
$75,500
Less than 5 years
$55,000
$57,900
10 years to less than 15 years
$75,000
$75,000
5 years to less than 10 years
$72,745
$70,000
2010
2011
What’s your function?
Primary job function Median salary
2010
Company management(CEO, president, VP, GM, etc.)
Engineering(plant, materials, industrial, manufacturing, project, etc.)
Plant management(director, manager, supervisor)
Warehouse, distribution, logistics(director, manager, supervisor)
Purchasing
$100,000
$75,000
$75,000
$70,100
$64,000
$115,000
$87,700
$80,000
$76,000
$62,000
2011
0 20 40 60 80 100 120
0 20 40 60 80 100 120
Source: Peerless Media Research Group Source: Peerless Media Research Group
Source: Peerless Media Research Group
MMH1109_SpRptSalarySurvey.indd 31 9/8/11 8:30 AM
32 S E P T E M B E R 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com
it will increase, 60% say it will remain the same and 14% say it will decrease.
The other news isn’t just the size of the median bonus or commission, which has jumped from $3,500 to $11,000, it’s the factors on which the bonuses and commissions are based. Last time, survey respondents told us that the major factors in determin-ing bonuses and commissions were: achieving lower operating costs (44%), increased sales (43%) and better inven-tory management (22%).
Now, it’s a different story. An over-whelming 69% of respondents tell us that the top criterion for calculating bonuses is whether or not the company reaches its performance goals. At 44%, individual performance was the next most important criterion for measure-ment. Last year, individual performance barely registered at 5%, meaning that factor had little bearing on whether or not bonuses were given or received.
Individual recognition for a job well done, regardless of the form it takes, is a key motivator. “Differentiating rewards—ensuring that top performers receive compensation that is substan-tially greater than average performers—is a continued focus area for organiza-tions,” says McMullen.
Unfortunately, some companies had their purse strings in a knot when it came to financial recognition. Last year, Modern connected with Eric Golden, CEO of Equipois, a Los Angeles-based company that manufactures a mechani-cal arm that moves tools. At that time, Equipois was three years old and employed 20 people. In 2009, while Golden couldn’t afford to offer pay raises, he offered stock options in the ventured-funded start-up.
In 2010, Golden bit the bullet and offered raises in the 2% to 3% range and reinstated a company bonus pro-gram. Even though the economy had not fully recovered, he said it was time to look forward again.
So, one year later, Modern caught up Golden to see if his optimism had paid off. And, it did. While the first half of
2010 was slow for the industry, Golden reports that Equipois grew from 20 to 30 employees. “We expected the recovery to happen sooner, but it really happened for us in the second part of 2010. The company was able to give some bonuses last year, but they were less than planned. The last four quar-ters have seen tremendous growth, so the good news is we’ve been able to give raises in the 4% range,” Golden says.
In addition, Equipois’ bonus pro-gram, which encompasses a combina-tion of personal objectives and overall
company performance metrics, has also seen a positive bump. “We put a plan in place that enables employees to earn bonuses halfway through the year as well as at the end of the year,” he explains. “It’s the first time I’ve done that, but it’s been very successful. Frankly, it’s some-thing I’d recommend to other companies because it gives us something very tan-gible to work toward.”
As Golden and countless other com-panies have proven, reward and recog-nition programs are crucial.
“The current economic environment is causing organizations to balance the cost of reward programs and relatively low base salary increases with the need to attract, retain and engage the tal-ent they need to run their businesses,” explains Hay Group’s McMullen.
Can get some satisfactionProfessionals in the materials handling industry love the work. According to our survey, 97% of respondents are finding plenty of satisfaction in their jobs.
Wayne Peterson is one of the 97%. A sales rep since 1972, Peterson cur-rently works for Houston-based Adobe Equipment (formerly Action Handling), a full-service forklift dealer specializ-ing in sales, rentals, parts, service and warehousing products. So, if anyone knows about the cyclical ups and downs of the materials handling industry, it’s Peterson.
Having worked through two big mar-ket downturns, one in 1983 and the most recent in 2009, Peterson loves his work. He says, “I consider myself some-
How satisfied are you with your careerin materials handling?
Extremelysatisfied
Verysatisfied
Somewhatsatisfied
Not verysatisfied
Not at allsatisfied
0 20 40 60 80 100
2010
2011
12% 44% 37% 5% 2%
20% 54% 23% 3%0%3%
On what factors is your bonus determined?
0 10 20 30 40 50 60 70 80
Lower operational costs
2010
2011Increased sales
Better inventory management
Individual performance (KPOs, etc.)
Company reaches performance goals
26%
44%
28%
43%
15%
22%
69%
18%
44%
5%
MODERN special report
Source: Peerless Media Research Group
Source: Peerless Media Research Group
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one with good information who can help you make a good decision.”
Driving from customer to customer in a truck that sports a license plate that reads NO SLAK, he says, “If you work, you’re rewarded. The harder I work, the more money I can make.”
Rewarding team effortPeterson takes control of his own des-tiny, but for others it’s a team effort that includes the candidate, the company and a recruiter. Mike Flamer, vice president of The Dorfman Group, which special-izes in the executive search and nation-
wide recruitment of professionals in the materials handling, logistics and packag-ing industries, says 2010 was a very slow year, but 2011 is picking up. He
has already placed a number of applicants and says that if he fills three or four more assignments, this will be a good year.
Interestingly, Flamer says the current national unemployment rate (9.2% at the time of reporting) is not reflective of the materials handling equipment sales sec-tor, which is currently running at about 4%. One reason is that selling large, com-plex materials handling systems requires a solid education and background, technical knowledge and expertise. The number of highly qualified people isn’t as plentiful as companies think, says Flamer. So, if an employer drags its feet, a candidate will hit
the pavement and go else-where.
However, compa-nies are willing to pay top dollar for top talent. According to Flamer, the base salary for a good systems sales representa-tive has gone from about $85,000 to between $100,000 and $125,000. Add in commission, and a successful sales rep could earn between $200,000 and $300,000 a year. As Flamer puts it: High risk equals high reward. �
In July, Modern’s research team e-mailed our fourth annual salary survey to a
sampling of our subscribers asking for their participation in this study. The e-mail included a dedicated URL linked to a Web site that hosted the questionnaire.
In the interest of accurate compari-sons, key salary and job satisfaction questions were the same as in previous surveys. This year, we had 581 qualified respondents; the margin of error is plus or minus 4.2%, meaning if the entire population responded, results may vary by plus or minus 4.2%.
Our survey respondent is a 51-year-old male with a college education. Of the 40% who hold undergraduate college degrees, 17% have earned advanced degrees beyond the under-
graduate level. Another 6% have earned degrees from community col-lege and another 21% have some col-lege under their belts.
While 88% of our respondents are male, the percentage of female respondents has gone from 7% in 2008 to 9% in 2009 to 10% in 2010 and was 12% this year.
Overall, our readers work for com-panies that employ an average of 2,945 people and have median rev-enues of $120 million in 2011. And, 77% have supervisory responsibilities, overseeing an average of 33 employ-ees. In terms of primary job function, survey respondents’ responsibilities run the gamut from presidents and CEOs, engineering and plant opera-
tions, to those running the front lines of the nation’s supply chain in the warehouses and distribution centers.
While the typical worker has been employed in the materials handling industry for an average of 19.5 years, 47% have less than 20 years of service, 32% have more than 20 years of ser-vice, and 21% have dedicated more than 30 years to their careers in the materials handling industry.
Readers have worked for an aver-age of two companies, and have been with their present employer for an average of 12 years. But do they see themselves finishing their careers with their current employers? We found that 53% say yes, 36% aren’t sure, and 19% will likely move on.
A snapshot of survey respondents
Higher education = higher than average pay
MBALevel of education Median salary
$100,000
Other graduate degree
$100,000
$68,000
$78,000
Other
$90,000
$83,250
$85,000
$65,000
$62,000
Undergraduate degree
High school/some college
2010
2011
0 20 40 60 80 100
$61,200
Does your company have a reimbursement policy
for any job-related continuing education
classes you might take?
No27%
Yes73%
MODERN special report
Source: Peerless Media Research Group Source: Peerless Media Research Group
MMH1109_SpRptSalarySurvey.indd 34 9/8/11 8:30 AM
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of all of the materials han-dling equipment types in warehouses and dis-tribution centers today, automatic guided vehi-cles (AGVs) are arguably
among the most dynamic. Over the last few years, the equipment has been evolving and advancing quickly.
“AGVs are moving forward faster than other areas of materials handling,” says Mark Longacre, marketing man-ager for JBT Corp. and chair of the automatic guided vehicle product sec-tion at the Material Handling Industry of America (MHIA).
Automatic guided vehicles were once an equipment type that served the manufacturing sector, and the auto-motive industry was king, Longacre explains. Since then, the food and bev-erage and consumer goods sectors have been stepping up the use of AGVs with vehicle types at both ends of the spec-trum, from simple and inexpensive to complex and sophisticated.
So, while conveyors and lift trucks are still the most common materi-als handling solutions, AGVs are an
increasingly viable alternative to both. “AGVs were originally a simple con-
cept of horizontal transport that was a replacement for conveyor, but they have evolved into a solution,” says John Hayes, Dematic’s manager of AGV sys-tems. “People are more accepting of the technology and end users want us to push the envelope. We have automatic truck loading and now people want automatic truck unloading. Another application being driven by customers is the freezer application, where busi-nesses want to save cost and don’t want to put people in harm’s way.”
Whether you’re working in a manu-facturing plant, DC or warehouse, how you move product from point A to point B will impact your operation’s through-put, efficiency and bottom line. In the right application, AGVs can redistrib-ute workers to value-added positions, improve safety and material tracking, and reduce product damage and labor costs. AGVs can also be introduced without the need for plant modifica-tions and are flexible enough to adapt to an operation’s changing business needs.
That’s what AGVs can do, but what are they, exactly? It’s a simple question with a complex answer. MHIA defines AGVs as “battery-powered, computer-controlled wheel-based load carriers that run on the plant floor without the need for an onboard operator or driver. AGVs have defined paths or areas within which or over which they can navigate.”
While this definition has remained accurate for the last decade and new vehicles can fit within the parameters of the definition, the application of AGVs is expanding. Today’s AGV sys-tems are being used in more sectors and are being applied to more diverse, strategic applications.
When considering the right type of AGV system for a specific application, a number of issues come into play, including the type of vehicle, the type of guidance system, the product being moved and the rate of throughput. Here’s a look at the basic categories and components that create AGV systems.
AGV CATEGORIESAGVs can be organized into a few basic categories.
By lorie King rogers, Associate Editor
Automatic Guided Vehicles
Built with a number of variable components,
automatic guided vehicles are flexible, versatile
unmanned solutions that can safely and efficiently
move product around your facility.
modern Equipment 101: AGVsA primer for warehouse/DC managers
MMH1109_EquipReport_AGVs.indd 36 9/7/11 10:39 AM
Tow vehicles, also called tuggers, are the simplest and least expensive type of AGVs. Like a locomotive pulling a train of rail cars, a tugger pulls trailers or carts. Add multiple trailers and a tow-ing capacity of up to 60,000 pounds, and you can move more loads at one time than with a single lift truck. Tow vehicles are used when there is a set, predictable and repeatable path with distinct pick-up and deposit destinations.
Tuggers follow the designated route, stop at a station where workers load or unload material, and then move on to the next station. Since workers are needed to transfer materials, labor is not totally removed from an operation’s process. However, the end user can automate the movement of materials between workstations, reducing non-value-added steps and increasing effi-ciency and productivity.
Unit load vehicles carry pallets, slipsheets, cartons or subassemblies on their decks. The decks can be equipped with:
• lifts that can raise or lower the deck;
• powered or non-powered conveyor to interface with other equipment; or
• multiple compartments to carry two, three or four pallets at a time.
Typically, unit load vehicles are used in a totally automated process. A unit load vehicle with a section of roller con-veyor can integrate with a conveyor line, a production area or an automated stor-age and retrieval system.
Automatic guided carts, or AGCs, also fall under the heading of unit load
vehicles. AGCs were originally con-sidered more light duty than AGVs. However, according to Sarah Carlson, marketing director for Daifuku Webb Holding Co. and vice chair of the MHIA’s automatic guided vehicle prod-uct section, AGCs are now capable of moving loads of up to 6,000 pounds. Additionally, Carlson adds, AGCs are typically less expensive than AGVs, which is one reason they have become so popular. They are easy to install and scalable, enabling users to simply add more carts to increase throughput.
In one example, a unit drives under a cart, raises a pin into a receptacle, pulls the cart to its destination, retracts the pin, then moves to the next deliv-ery. While this type of vehicle has most successfully been applied in manufac-turing operations, Keith Soderlund, vice president of sales for Creform, says not to overlook the DCs. A distribution cen-ter that’s performing kitting operations
mmh.com Modern Materials Handling / S e p t e m b e r 2 0 1 1 37
Mobile fulfillment systems (top)bring the product to the worker, saving time and non-value-added steps. in warehouse operations (middle), employees and automated forklifts work in tandem to fill orders. When a worker picks an item, the agV is ready and waiting for the product, then it moves along to the next destination to continue the process. incorporating agVs into a manufacturing environment (bottom) can help operations increase productivity and decrease costs.
modern Equipment 101: AGVsA primer for warehouse/DC managers
basics
MMH1109_EquipReport_AGVs.indd 37 9/7/11 10:39 AM
38 S e p t e m b e r 2 0 1 1 / Modern Materials Handling mmh.com
modern Equipment 101: AGVsA primer for warehouse/DC managers
could employ an AGC. They’re easy to control and have smaller on-board control systems can manage up to 50 pathways, with 128 commands in each pathway. The advantage, Soderlund says, is that an operation could have 50 carts in a fleet working off of one drive unit.
Available in a number of different models, including counterbalanced fork and roller conveyor vehicles, AGCs can move up to 160 feet per minute and are also a good option for moving loads to and from stretch wrappers and from conveyors to the warehouse.
Fork truck vehicles operate just like lift trucks, but without drivers.
Fork vehicles are popular AGV solu-tions because they are extremely flex-ible. Like unit load vehicles, fork truck vehicles can interface with automated systems but also pick up or drop off a load onto the floor.
Forked, or masted, these vehicles can move at a maximum rate of 1.5 meters per second, about 3 mph, or half the speed of a manually operated forklift. According to Longacre, the speed is a function of how quickly the vehicle can stop while maintaining the stability of the load.
Custom vehicles are built around the load and can be engineered to han-dle very heavy loads like a 120-ton vehi-
cle; long loads like rolls of newsprint paper; or specialized loads like a vehicle designed to handle two different types of pallets or two different sizes of totes.
The key components that define a custom AGV are the gripper devices or attachments that interface with the load. Otherwise, they use the same types of software and guidance systems.
Mobile robotic solutions are a relatively new class of AGVs that also fits in the unit load category. Mobile robots, also referred to as mobile fulfill-ment systems, are picking up traction in distribution centers and being used for goods-to-person picking, mean-ing the robots bring the product to the
Automatic guided vehicles: Who makes what
Company Web siteUnit load
Fork truck tugger
Mobile robots agC Custom guidance
amerden amerden.com x x x x
JBt Corp. jbtc-agv.com x x x x x x
Creform Materials Handling systems
creform.com x x x x x
Crown crown.com x
daifuku Webb Holding Co. daifukuwebb.com x x x x x x x
dematic dematic.com x x x x x x x
lM efacec Usa efacecusa.com x x x
egemin automation egeminautomation.com/en x x x x x x
electtric 80 electtric80.com x x x x x
Frog navigation systems frog.nl x x x x
Kiva systems kivasystems.com x x
Kollmorgen pick-n-go.com x
Mitsubishi Caterpillar Forklift america
mcfa.com x
Murata Machinery Usa muratec-usa.com x x x x x
the raymond Corp. raymondcorp.com x
rMt robotics adamrobot.com x
savant automation agvsystems.com x x x x x x
seegrid seegrid.com x x x x x
siCK sick.com x
si systems sihs.com x x x x
toyota Material Handling Usa toyotaforklift.com x
transbotics transbotics.com x x x x x
This table represents a sampling of leading AGV and guidance suppliers.
MMH1109_EquipReport_AGVs.indd 38 9/7/11 10:40 AM
mmh.com Modern Materials Handling / S e p t e m b e r 2 0 1 1 39
worker, saving time and steps.“Mobile robotics and automation are
creeping into all different parts of mate-rials handling,” says Rob Stevens, vice president of strategy for Kiva Systems. “They’re all filling different roles even though the technology has similarities,” he adds.
Some mobile robots are guided by small stickers on the floor, laid out in a grid pattern. Each unit is equipped with a camera that reads the stickers then marries the movement with the facility map that is stored in the memory of the system server.
When the mobile robot reaches its intended destination, it picks up the storage rack by driving underneath, lift-ing the entire rack off the floor, swivel-ing to redirect itself, and then moving to its next destination. It raises the rack up about an inch off the floor while it travels, which is enough to clear small obstacles but not enough to make the load unstable.
Some robotic AGVs are capable of handling loads up to 3,000 pounds. The vehicles travel at varying speeds depend-ing on the load being moved. Stevens describes the speed as a brisk walking pace that’s maintained for the duration of the task, unlike a worker’s pace that’s less brisk by the end of a shift.
GUIDANCE SYSTEMSIn addition to choosing the right vehicle for the right job, there are also choices to be made when it comes to AGV guid-ance, also referred to as navigation sys-tems. Navigation systems can be closed path or open path.
Closed path systems use a predeter-mined set of rules that define the path plan, explains Bill Torrens, director of
sales and marketing at RMT Robotics. But in an open path, the AGV finds the best
path. Autonomously, robots adapt to the conditions they see in real time and are able to create a new path if necessary. And, according to Torrens, technology is enabling a higher level of autonomy. The units are capable of making their own decisions because the intelligence is moving from the control platform to the vehicle platform.
Wire-guidance is the simplest form of navigation, designed for a set, pre-dictable path. Torrens likens wire-guid-ance to a hound dog following a scent trail that has verifications along the way. An RF signal is transmitted from the wire that’s buried in a slot below the floor to a sensor under the vehicle. The sensor detects the signal and adjusts the position of the vehicle to keep it on the path. Because the slot must be cut into the floor, wire-guided systems are most commonly used in applications that require a high degree of accuracy on the path, like an AGV traveling back and forth between two workstations in a congested area.
Magnetic tape and magnetic paint are used to guide vehicles in applications that are relatively simple and where flexibility is paramount. “Magnetic tape allows customers to easily change their guide paths by sim-ply pulling up and reapplying the tape,” says Daifuku Webb’s Carlson.
Customers who change the layout of their processes frequently can quickly and easily reconfigure routes because tape and paint are not permanent. They are also less expensive than other guid-ance systems.
Laser-guidance is a non-wire-guided navigation system that uses tar-gets in predictable locations. With more than half of the AGVs using laser-guid-
ance, it’s the most popular navigation system in North America and Western Europe. An on-board laser reflects off targets mounted above the floor on columns, walls, machines or posts that are positioned about 25 feet apart. The system automatically measures the dis-tance and angle of the reflected light to calculate and adjust the AGV’s position on the preplanned guide paths. While the combination of accuracy and flex-ibility make laser-guidance systems very popular, they can pose challenges for environments with obstacles that can obstruct the laser signal.
Inertial, or gyro, navigation sys-tems are often used in facilities with a significant amount of random floor storage that might interrupt a laser sig-nal. An on-board gyroscope senses very small deviations in the AGV direction or travel, while small magnets or pas-sive RF tags are installed in the floor approximately every 25 feet to serve as position points.
Camera-based imaging is the new-est guidance technology, and according to JBT’s Longacre, is becoming increas-ingly popular. The main reason for its growing popularity isn’t so much for obstacle detection, as for load recogni-tion. For example, a pallet stored by a manual lift truck might not be perfectly aligned in its position, but the AGV’s camera can see the pallet fork pockets and adjust accordingly.
Camera-based imaging is used in several mobile robotic applications. While camera-based imaging requires a lot of processing power for its dynamic route planning, there are no rules. “A mobile robot sees what it sees and can evaluate its environment in real time,” explains Torrens. “It looks for the ability to go around obstacles and can change its mind in a moment’s notice.” M
To read the industrial standards for AGVs, ANSI B56.5 Safety Standard for Guided Industrial Vehicles and Automated Functions of Manned Industrial Vehicles, go to: www.itsdf.org/pB56.asp.
at shipping and receiving dock doors, agVs are capable of automatically loading and unloading product from the trucks.
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modern productivity solution
UK publisher uses voice technology to increase productivity and achieve a nearly perfect pick accuracy rate of 99.98%.
Pick up a book in the United Kingdom and there’s a good chance it came from the shelves
of HarperCollins. HarperCollins’ UK supply chain strategy is not only leading edge, but also a source of additional business income. HarperCollins oper-ates a 750,000-square-foot facility near Glasgow, Scotland. From there, the company distributes its own titles to hundreds of outlets in the UK and worldwide and also acts as a distributor for 14 other publishing houses.
Although already very productive, HarperCollins’ supply chain director Mike Levaggi and his team wanted to take service levels even higher. “We can ship as many as three million books in a single week,” says Levaggi. “A major part of our work involves batch picking thousands of books, which are then introduced into a sortation system. We used to rely on paper pick sheets, and although our output stan-
dards were high, we spent too much time resolving batch picking errors before we could be confident that we had assembled the correct titles.”
So, the team at HarperCollins went paperless and introduced a new voice picking software solu-tion, (Voxware, voxware.com) to the operation. Workers interact with the system through hands-free devices, which are voice-enabled and can achieve nearly flawless speech recognition. Order picking instructions and confirmation messages are transmitted through the hands-free devices, eliminating the paper lists and adding to operator efficiency and accuracy. The packaged software solution, which is adaptable, portable and scalable, allows for a high level of flexibility and control.
With the new voice solution, HarperCollins was able to increase productivity by 8% and achieve a pick accuracy rate of 99.98%. The company
GettinG a read on accurate pickinG
By lorie King rogers, associate editor
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42 S e p t e m b e r 2 0 1 1 / Modern Materials Handling mmh.com
modern productivity solution
also realized benefits in employee training by reduc-ing the training time to standard proficiency by 60%. Additionally, Levaggi and his team were able to extend the use of voice to support replenishment and bulk moving operations.
“We saw an opportunity to extend voice into other
areas, and thereby achieve a greater benefit,” adds Anne Steel, HarperCollins’ supply chain development man-ager. “We are very pleased with the adaptability of the solution and the flexibility it gives us in tailoring the voice technology to our operation. We were able to make adjustments quickly and with little disruption.”
With a number of warehouses, a professional hair care product manufacturer needed
to standardize and streamline workflows across many distribution sites to increase efficiency.
The Goldwell brand of hair care products is supplied by KPSS and is based in Linthicum Heights, Md. KPSS is one of 21 subsidiaries owned by Germany-based KPSS GmbH, a global supplier of professional hair care products, including Goldwell and other brands such as Curel, Biore and Ban.
KPSS had been working with a paper-based picking system that was manually intensive, so the core objec-tives in upgrading were to eliminate labor inefficien-cies while reducing costs. It also needed a solution that could handle a variety of cultures and languages, as the company has warehouses in the United States, Canada, Australia, Finland, New Zealand and the United Kingdom.
Managers determined that a voice system could be easily integrated into its case- and piece-pick operations to standardize the workflows for replenishment, picking and packing. A voice solution could also provide maxi-mum flexibility with changing business strategies, espe-cially with the company’s distribution partners.
KPSS refashioned operations with a voice solution (Vocollect, vocollect.com) that has made a significant difference. “We still print the paper ticket to view the size of the order for packing purposes, but then voice
takes over during the picking process,” explains Brian Hatfield, KPSS vice president of supply chain for North America. “It converts the information into voice and states instructions over a headset to the picker.”
“The system is smart,” adds Hatfield. “When a pick-er signs in on their equipment, the system recognizes the worker’s unique voice patterns and understands their accents and speech idiosyncrasies.”
Flawless communications between the worker and the system have resulted in a number of improve-ment gains. Picking and replenishment labor has been reduced by more than 20%, new employee training can be done in less than an hour, accuracy is up over 99%, and there have been no lost time accidents since the voice solution implementation.
In less than one year, KPSS completed its deploy-ment in Fresno, Calif., and Toronto, and expanded deployments in the United Kingdom. Looking into the future, Hatfield says, “The voice solution is scalable, so you can start small and take it across other functions of the warehouse.” M
Voice solution manages workflow and cleans up inefficiencies
Global supplier of professional hair care products uses a voice solution to streamline workflows and reduce labor.
MMH1109_ProdSolutions.indd 42 9/7/11 10:40 AM
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Mezzanine lift safetyProper configuration,
regular inspections keep
mezzanine scissor lifts in tip-top
shape for safest operation.
By sara Pearson specter, Editor at Large
To maximize the use of overhead space, facilities often install a second-level mezzanine platform
for a more efficient cube. Mezzanine scissor lifts offer a mechanical means to transport goods and personnel up to that second level. Like all equipment, it’s critical to follow guidelines both for configuration and for regular inspec-tions of the lifts to ensure safe opera-tion and protection of workers.
The safest mezzanine scissor lifts include the following elements:
Platform guarding: The platform should be equipped with bevel toe guards and 42-inch high guardrails with mid rails and 4-inch toe plates. Electrically interlocked gates should prevent platform movement unless
the gates are closed. Operation switches: Proximity
or limit switches should function for each level. For lifts that transport rid-ers (as well as materials), movement control must be a constant pressure pushbutton. An emergency down valve on the power unit lowers the lift if a power failure occurs.
Smooth fascia: To eliminate shear points, the entire surface of the mezzanine—adjacent to the lift from ground level to the top of the guard-rail on the upper level—must be equipped with a smooth face (such as wallboard, polycarbonate sheets, fine mesh, or interlocked doors and windows).
Enclosure system: Sides not
adjacent to the mezzanine must be enclosed from the ground to the height of the topmost guardrail when the lift is fully raised. The mezzanine guardrail and the enclosure access gates must be electrically interlocked to prevent movement when gates or doors are opened, and mechanically locked so as to not open unless the lift platform is present. Maximum gap between the platform and the mezzanine should be 1 inch, and the gap between the plat-form and other three enclosure sides should be 3 to 4 inches.
ANSI MH29.1 is the governing code for industrial scissor lifts. A checklist of inspection items devel-oped in alignment with these stan-dards is on the following pages.
A speciAl supplement to:
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For use with inspection of both:• Rider mezzanine lifts• Non-rider (material only) mezzanine
liftsPrior to beginning inspection, refer to the American National Standard ANSI MH29.1 Safety Requirements for Industrial Scissor Lifts; items on this checklist meet or exceed this standard.Areas for inspection:1. general a. The entire base frame of the scissor lift is sitting on a flat and level surface, shimmed and grouted if necessary for continuous support2. Controls a. Shall be clearly marked as to direction and function B. Shall be protected from inadvertent operation C. If pushbutton is momentary contact type (touch and release to start), then the lift shall be clearly marked “No riders allowed” d. If momentary contact pushbut-
ton, then it shall have an emer- gency stop button e. Controls shall prevent lift move- ment when any gate is open F. For rider lifts, the control must be constant pressure style and located on lift platform3. System protection a. Hydraulic systems shall be equipped with flow controls or velocity fuses for hose failure protection B. If electromechanically actuated, the design shall prevent move- ment if there is a power failure4. Platform guarding (shear point
protection) a. Automatic operations with momentary contact controls shall be guarded with skirts, enclosures or other means of personnel protection B. Pit-mounted installations shall have one or more of the following: a) 8-inch bevel toe guards b) Solid skirts c) Suspended indicator bar
d) Electronic toe sensor e) Solid or mesh enclosure 8 feet high, or full height of platform rise plus top of guardrail, whichever is less C. Above floor installations must have one of the following: a) 4-inch bevel toe guards b) 3-inch vertical toe clearance c) Electronic toe sensor d. For all installations with more than 5.5 feet between the land- ing and the bottom edge of the fully raised platform, the following items are required: a) Upper landings shall be equipped with enclosures and an automatic landing gate or a landing gate with interlock that prevents opening the gate unless the lift is present b) The entire surface of the mez- zanine adjacent to the lift from ground level to top of the mezza- nine guardrail shall be equipped with a smooth surface to eliminate shear points c) Sides used for loading at lower
Inspection checklist for industrial scissor lifts for mezzanines
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Color: 4C/Process Trim: 7" × 4.625" Bleed: 0 Safety: 6.75"× 4.375" Fold: n/a
Publication(s): Modern Material Handling Run Date(s): September 2011
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A speciAl supplement to modern mAteriAls HAndling
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mmh.com MODERN MATERIALS HANDLING / S E P T E M B E R 2 0 1 1 47S
C
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CM
MY
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CMY
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landings shall be equipped with an automatic landing gate or a landing gate with interlock. These gates shall be 84 inches, or the full height of the lift, whichever is less d) Sides at lower landings not used for loading shall be provided with solid or mesh enclosures 8 feet high, or to the full height of the lift rise plus guardrail, whichever is less e) Gates and enclosures will be posi- tioned no more than 6 inches from the lift platform f) Mesh for enclosures shall reject a 2-inch ball and a smooth surface shall be a solid surface or a flattened mesh that will reject a 0.325-inch ball5. Hinged bridges shall conform to
the following: A. At raised position, slant bridge back toward platform approximately 20 degrees or lie back flat on the platform or provide chain, latch or other means of security B. At lowered position, bridge angle can not hang more than 45 degrees below horizontal unless shear risk is
eliminated C. Bridge purchase on truck beds shall be at least 4 inches D. Split bridge sections shall have 0.75 to 1-inch clearance between sections6. Guardrail system A. All rider lifts must have guardrails on all sides with interlocked access gates that prevent lift movement when a gate is open B. Non-rider lifts shall have guard rails and chains or gates across load access sides C. Guardrails shall be 42 inches high ±3 inches with mid-rail and 4-inch toe board7. Maintenance device A. A securely attached maintenance device to hold the empty lift open for maintenance is present8. Markings A. Manufacturer’s nameplate with name of manufacturer, model num- ber serial number, lifting capacity and edge or axle load ratings is present B. Warning labels in compliance with ANSI Z535.4
9. There shall be an operating/main-tenance manual that contains:
A. Special warnings, cautions or restrictions for safe operations B. Manufacturer’s name and contact information C. Installation and start up information D. Operating instructions E. Maintenance recommendations and instructions F. Replacement parts information G. Owner’s/user’s responsibilities clearly defined10. Capacity verification A. The lift capacity shall be clearly visible to operators B. Maximum system pressure with lift fully raised and cylinders fully extended against internal cylinder stops (may require overriding elec- trical limits) is ±150 psi of pressure labeled on the hydraulic pump and/ or listed in owner’s manual -OR- C. From fully lowered position, lift is demonstrated to lift rated capacity
SOURCE: Advance Lifts Inc. (800-843-3625, www.advancelifts.com). A copy of this checklist “AL-1020 REV1: Inspection Checklist for Industrial Scissors Lifts At Mezzanines” may be obtained at: advancelifts.com/SiteFiles/PDFs/WhitePaper/MezzChecklist.pdf
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PLC-controlled robotic case packing, unpackingShowcasing robotic case packing, unpacking and palletizing of bottles, two Alvey robotic arms operate on a single PLC-based control system. Ideal for seamless inte-gration of robotics into existing fill lines at wineries, distilleries and breweries, the system facilitates quick line changeovers by automating processes to eliminate down-time. By operating on a familiar, industry-standard PLC control platform, plant floor personnel can support installations without being robotic experts. Other capabilities offered include end-of-arm tooling, case unscramblers, automated pallet or sheet dispensers, infeed conveyors for single or multiple lines, full-load pallet discharge conveyors, sortation solutions, vision systems, and stretchwrapper integration. Intelligrated, 513-881-5239, www.intelligrated.com, Booth 3611.
Complete weighing, bagging systemA fully integrated weighing and bag-ging system is comprised of a Boxxer T-12 case erector, V-25 bulk weigher and Z.ZAG palletizer. The case erector constructs 12 slotted and half-slotted boxes per minute. Boxes are then filled with by the bulk weigher, which can produce 2 to 100 pounds in a single discharge at speeds up to 20 cycles per minute. Constructed completely of stainless steel in an open frame configuration (for quick, easy cleaning), each weigh bucket comes with two load cells for enhanced accuracy and repeatability. Finished boxes are conveyed to the palletizer, which automatically picks and places one or two completed cases on a pallet at the same time. The palletizer accommodates multiple pack patterns—column-stacked and interlocked—and features PLC controls, color touch-screen, and storage of 100 recipes. WeighPack Systems, 888-934-4472, www.weighpack.com, Booth 4016.
September 26-28, 2011Las Vegas Convention CenterLas Vegas, Nevada USA
Low-cost palletizer handles nestable totes, cases and traysEngineered with economy in mind, the Val-U-Pal tote palletizer is a fully automated system that pro-vides pallet handling and automatic pallet dispens-ing in a simplified modular format. Its small footprint and low cost of ownership makes it ideal for small production lines. The system can manage several package styles—including nesting returnable totes, cases, trays and pails—and is preprogrammed with a variety of pattern configurations. Capable of pal-letizing at speeds up to 16 cases per minute, it may be equipped with an optional sheet dispenser. To reduce maintenance and optimize reliability, the system contains fewer moving parts and heavy-duty con-struction. vonGAL, 334-261-2807, www.vongal.com, Booth 5301.
Printer applicator applies labels to three sides of a pallet For production lines requiring the application of multiple labels to boxes or pallets at the same point in the line, a new three-panel printer applicator is offered. The single machine does the work of three. As a pallet approaches, a tamp assembly (with a label on the tamp pad) is extended and rotates to apply the label to the front panel. The tamp assembly then retracts to home position. As the pal-let passes by the unit, the tamp module extends to apply a second label to the side. Once the pallet has passed, the assembly extends again, rotates toward the back panel and applies the third label. ID Technology, 888-438-3242, www.idtechnology.com, Booth 1419.
MMH1109_PackExpo_Prods.indd 48 9/8/11 8:29 AM
High-speed robotic picking, palletizing systems Three robotic packaging systems are offered. The first system showcases high-speed pick and place capabilities and uses IRB 360 FlexPicker and PickMaster 3 software. Using vision, the system picks randomly placed objects, orients them and
places them on a conveyor where they are shuttled to an IRB 4600 robot for packaging. The second demonstrates the Talon packaging system for integration into existing packaging lines to eliminate manual handling, thanks to an IRB 360 FlexPicker robot equipped with the Impulse Multipick end of arm tool. Highlighting super-fast palletizing, the four-axis IRB 460 robot is capable of up to 2,190 cycles per hour, making it ideal for high-speed end-of-line palletizing and bag palletizing of products weighing up to 110 pounds. ABB, 800-435-7365, www.abb.com/robotics, Booth 4221.
Rotary tower stretch wrapper requires no pneumatic hookup The Electro-Wrap automatic rotary tower stretch wrap-per requires no pneumatic hookup, reducing the total energy costs to operate the machine. Its construction also reduces installation cost, as no special pneumatic plumbing or air compressor is required. Ideal for stretch wrapping unstable pallet loads that are either too light or too heavy to rotate on a turntable wrapper, the machine combines automation and floor space optimization. After the wrap zone is loaded, by either a fork truck or pallet jack, wrapping cycles are activated by a remote lanyard. To secure the load, the film carriage revolves around the stationary pallet load, automatically clamping, cutting and wiping the film to the pallet upon cycle completion. For safety, a sensor is included for instant stopping of the film carriage. ARPAC Group, 847-678-9034, www.arpac.com, Booth 1000.
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Protect load edges with recyclable, perforated legsTo protect the edges of stacked pallet loads, partial ship-ments and irregularly sized loads, PerfBoard edge-protection features pre-perforated legs that can be quickly and easily sectioned to match any size or height requirement. The perfo-rations allow the legs to be snapped off by hand or machine at intervals before application to load corners. When layers of stacked product are separated, the product can be snapped off by clamp trucks. Offered in calipers up to 0.160 inches, standard perforation lengths measure up to 4 x 4 inches, or custom lengths may be specified. Supplied lengths extend to 300 inches, or longer as needed. The packaging works with automated pallet assembly systems, can be custom-printed with logos or instructions, and is completely recyclable.
Laminations, 800-925-2626, www.lamination-sonline.com, Booth 6748.
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Reduce corrugated consumption, increase productivity with servo-operated packerTo meet sustainable production goals, the Model 206 packer uses 50% less corrugated than standard or wraparound cases while ensuring maximum product protection. The system packs cartons or bottles in singles or multipacks into full height, half height or end-panel display trays at rates up to 30 trays per minute. Using servo operation for high precision and to accommodate product variations, the low maintenance system features a rugged tubular steel frame, heavy gauge chain drive and sealed bearings. Clear, interlocked panels offer high vis-ibility and easy access while providing total machine guarding. To ensure a continuous supply of materials, a servo-operated, high-capacity magazine with auxiliary blank magazine is includ-ed—as one tray/case stack is used, another stack is automati-cally indexed into position. A-B-C Packaging Machine, 800-237-5975, www.abcpackaging.com, Booth 600.
MMH1109_PackExpo_Prods.indd 50 9/8/11 8:28 AM
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REG. #5150
NEW!Full Line Selection Guide
Manually unload big rolls safely with perforated fiber cradleFor safe, manual unloading of heavy rolls from cradles— without the aid of overhead cranes or slings—a new perfo-rated fiber roll cradle prevents back strain and other injuries. The cradle handles rolls with outer diameters of 40 and 50 inches. The perforations on the edges of the cradle’s saddle allow a worker to kick down one or both sides of the cradle, enabling the roll to be pushed manually onto an adjacent pallet or directly onto a forklift for further movement. The
supplier also offers a complete line of recy-cled fiber, foam and plastic roll cradles, including a long-life reusable foam cradle that can be custom-ized to meet unique application needs. Rollguard, 800-925-2626, www.rollguard.com, Booth 6748.
Diode-pumped laser system marks foil, HDPE packagingWith foils and high-density polyethylene plastics more common in packaging, the small footprint EVC laser mark-ing system marks these products on the fly, at high speeds. Calibrated to avoid burn-through on delicate foils and with contrast on various plastics, the system can also mark chip boards, plastic bottles and other materials. The system fea-tures a diode that lasts more than 25,000 working hours and is low cost to replace. Robust mechanical and optical construc-tion enables the laser to operate in industrial environments where shock, vibration and dust are a concern. Other key highlights include deep focal tolerance, high quality small beam diameter, air cooling (no chiller) and stable output power. Telesis Technologies, 724-733-0522, www.telesis.com, Booth 6941.
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Food-friendly case packer The durable, side-loading WCP-35 wrap around case packer offers a 90-degree discharge and is con-structed of stainless steel for wash down food or pharmaceuti-cal applications. All major motions are driven by a servo motor for enhanced throughput and simple changeovers while reducing air consumption. The machine loads the product onto the blanks, then forms and seals the flaps around the product before the case enters the flap detection system to ensure a complete seal. By using die cut blanks, the system eliminates the need for standard cases that must be folded and glued by the corrugate supplier. Options include perforated stainless steel guarding and separate high and low voltage electrical panels. schneider Packaging equipment, 315-676-3035, www.schneiderequip.com, Booth 2018.
roller belt conveyor Providing maximum flexibility, activated roller belt equipment simplifies challenging palletizer infeed applications. Ideal for new and retrofit applications, the conveyor features an elec-trically actuated switch that can handle up to 500 packs per minute in any orientation. The conveyor simultaneously diverts packages to an infinite number of discharge points—all from a single input—and handles packs as small as 2 x 2 inches. intralox, 504-733-0463, www.intralox.com, Booth 2424.
Cushion and protect large, odd-shaped productsFor product cushioning and protection, the AirBag Superi-Air line of protective packaging surrounds large and irregularly shaped items with a protective wall of air. Integrated, non-catastrophic chambers resist failure. The material is offered in lengths of 12, 24, 36 and 48 inches, supplied on continuous rolls approximately 830 feet long. This allows the cushioning to be filled and cut to any desired width by pinching off the air supply with a paper or binder clip. Made of clear film, the packaging is transparent for quick visual inspections and is recyclable. inflatable Packaging, 800-520-3383, www.airpackaging.com, Booth 5725.
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Move up to
800 lbswith this!with this!with this!
One person can safely and easily lift and move 55-gallon drums.
www.powerpusher.com | 800-800-9274
client: NuStar | designer: [email protected] | project: 1/4-pg ad for MMH | size: 3.375 x 4.625NUS_MMH-Qtr-pg_Bv1.indd 1 8/24/11 15:55:13
System combines case erecting, loading, sealing and palletizingOffered as a flexible alternative to manual, low-speed hand packing and palletizing, the BantamPro ELSP combination sys-tem accommodates cases and automatically performs multiple packaging operations. Within a compact footprint, the system includes case erecting, loading, sealing and palletizing. Features include a gantry palletizer vacuum that picks single cases and operates with a four-axis servo placement (X, Y, Z and rotation). All sections are operated through one controller and one human-machine interface. A robotic loading pick-and-place module sports interchangeable robot modules depending on desired cycle rates and payload capacities. Brenton Engineering, 800-535-2730, www.brentonengineering.com, Booth 1611.
Compact solution for vertical, multi-floor sorting operationsThe Prorunner mk5 vertical sorter transports products to any required level (depending on content) in a small footprint. Extremely compact, the system vertically sorts between different floors of a facility. Configured with a versatile and flexible product elevator combined with an intelligent control system, the system scans the bar code or RFID tag on the product prior to the sorter picking up the container or box. The control software assigns the product to an empty prod-uct carrier and chooses the appropriate infeed point. The software also ensures that the product is transported to the correct level by manipulating the rollers or string belts of the corresponding outfeed carrier between the forks of the prod-uct carrier at the right moment. Nedpack, +31-0-341-43-67-10, www.nedpack.com, Booth 5182.
Small footprint, top-load case packerThe fully automatic TriVex top-load case packer erects, loads and seals cases in a compact footprint. It incorporates an opposing vacuum cup configuration for case erecting to ensure that cases will erect the first time. The system also eliminates poorly squared cases and reduces waste by maintaining complete control of the case through the entire process. Operating at rates of 15 cases per minute (depend-ing on case size), the machine may be customized with application-specific loader, end effector and infeed options to accommodate an array of products including flexible bags and pouches, semi-rigid and/or rigid trays, tubs, cups, cartons and over-wrapped products. Douglas Machine,320-763-6587, www.douglas-machine.com, Booth 517.
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Electric/hydraulic drum transporterPush-button activated without foot pumps or hand cranks, the Ergomatic 1000-PLEH-BC drum transporter electric/hydraulic lifting system is a manually propelled unit. It safely transports steel, plastic and fiber drums weighing up to 1,000 pounds. Featuring a smooth, quiet power lift sys-tem, the system comes in 20- and 36-inch lift heights. Options include non-sparking packages, alternate coatings and a double parrot-beak clamping system for addi-tional safety. Liftomatic Material Handling, 800-837-6540, www.liftomatic.com.
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Manipulate, position loads with motorized work positionerThe Ergo Force motorized work positioner handles loads up to 600-pounds. Smooth three-axis work manipulation and positioning is controlled from a hand pendant, while rotational speeds are adjusted at the control panel. The mounting plate features multiple bolt patterns to accept any applied tooling or parts. With the device the user is always provided a correct, optimized work posi-tion for safe, undemanding product han-dling. Ergotech, 203-790-4100, www.ergotechinc.com.
FOCUS ON Ergonomics
safely transport personnel, materials from ground to mezzanineA line of rider mezzanine lifts moves large loads, multiple pallets and the operator between floors or up to mez-zanines. The lifts travel from heights of 8 to 18 feet and have platform sizes ranging from 6 x 8 to 8 x 12 feet. A guide for proper maintenance and inspection of these lifts is offered by the supplier. advance Lifts, 800-843-3625, www.advancelifts.com.
scissor lift raises pallet to proper working heightTransporting and lifting a pal-let to the right working height, the Thork-Lift incorporates reliable cylinder construction, low overall height, and a fork length of 47 inches. Featuring tandem wheels on scissor legs, the lift includes all control buttons centrally located on the handle for easy reach and an ergonomic handle for relaxed hold. Rounded corners pre-vent damage to surroundings, pallets or goods. The device is offered in manual, electric and stainless versions and lifts a maximum of 3,300 pounds. interthor, 708-345-1270, www.interthor.com.
Electric chain hoists with infinitely variable speed controlThe DCS-Pro electric chain hoist line allows operators to handle and position critically sensitive loads with ease and precision. Features include an infinitely variable speed
control with soft starting speeds of 3.15 inches/minute; a 1:200 control ratio that produces gentle positioning and high speed travel; and automatic switchover to low speed prior to reaching the upper/lower stop. To prevent load sway, accel-eration and braking ramps are included. The system offers standard 24V control voltage and operating limit switches for safety and reliability, a brake-coupling system to ensure loads are held securely, and a speed monitored slipping clutch for effective cut-off on overload. demag Cranes & Components, 440-248-2400, www.demag-us.com.
Hydraulic lift table equipped with conveyor topFor lifting and off-loading palletized product in a size-restricted area, the Pro Series hydraulic lift table can be equipped with a roller conveyor top. Ideal for use in automotive component manufacturing, the system provides both vertical travel and off-loading over the sides of the platform. The lift table accommodates the roller conveyor installed at 90 degrees to the typical orientation. Features include a 460/3/60 3-horsepower power unit assembly, NEMA4 push button control and accor-dion bellows to minimize debris entry under the lift table platform. Pentalift Equipment, 519-763-3625, www.penta-lift.com.
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www.globalencoder.ca
22 Commerce Place St. CatharinesON, Canada L2R 6P7Toll free 1-888-277-6205Fax [email protected]
Industrial Encoder CorporationMember of the GESgroup of companies
Demand more... We always deliverDemand more... We always deliverOur only products are encoders. Whatever your industry, we’ll satisfy your expectations forexceptional quality and value supported by superior service.Our proven reliability allows us to offer the industry’s onlyFIVE-YEAR WARRANTY.Expect more... and get it.
Our only products are encoders. Whatever your industry, we’ll satisfy your expectations forexceptional quality and value supported by superior service.Our proven reliability allows us to offer the industry’s onlyFIVE-YEAR WARRANTY.Expect more... and get it.
Our newest model has a highly sophisticated control system for up to 50 courses, 128 commands, each programmed by PC or onboard touch screen. It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control. Like other Creform BST AGVs, it raises and lowers a tow pin to pick up and deliver carts. Other features include a non-contact laser bumper for safety and optional opportunity charging. Best of all, it can lower your material handling costs.
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Platforms lift worker to workA line of platforms bring the worker to the work, making them ideal for assembly or maintenance operations where large struc-tures—such as aircraft or heavy equip-ment—must be accessed at elevated or varying heights. These custom-configured scissor lifts offer more flexibility and safety than scaffolding or ladders, and come in stationary or movable configurations. Options include custom controls; soft start/stop; indexed lifting and lowering; slide-out sections to increase platform size; fold-down safety gates and handrails; custom deck treatments (including non-skid and anti-static); and bellows skirting to keep dust, debris and moisture out of the lift mechanism. southworth Products, 207-878-0700, www.southworthprod-ucts.com.
Cord organization panel cleans up workstationsA wire-management panel secures and contains power cords connected to the supplier’s line of ergonomic worktables for use in assembly and fulfill-ment facilities. The panel sits flush with the work surface and keeps wires out of the way and hidden from sight. Sized to store a power strip, the unit works with single and double upright workstations, eliminates clutter and ensures worker safety by preventing contact with the cords. Bostontec, 989-498-0773, www.bostontec.com.
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Cabinet for lean manufacturingFor better workspace organization and management, the 5S cabinet offers clear acrylic doors for instant visibility and at-a-glance accounting of tools and parts at point of use to support lean manufacturing philosophies. The durable cabinet case fea-tures metal pegboard inserts. Alternately, solid hinged doors with additional peg-board storage may be specified. Stanley Vidmar, 800-523-9462, www.stanleyvidmar.com, Booth 2532.
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Abuse Resistant Belts work where others fail.Super Strong Joints are virtually unbreakable.High Tension Belts move heavier loads.Super Red Belts double conveyor capacity.
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Software directs, analyzes paperless picking activityExecutives, managers and supervisors can easily view pick rate productivity, accuracy and throughput with the version 6.0 release of LP dash-board. The software displays real-time, updated key performance indicators with drill-down granularity for facility, area, zone and employee-level views. Featuring a rich graphi-cal interface with drag-and-drop widgets for custom template views of performance data, the system offers an automatic slide-show style display of multiple, user-configured templates. Lightning Pick Technologies, 262-250-2143, www.lightningpick.com, Booth 1543.
NA 2010 Cleveland
Vertical storage systemFeaturing a stabilized shelf system with high storage density at an afford-able price, the motorized vertical pan carousel offers storage and retrieval of inventory with push-button control. The system delivers inventory to the opera-tor, yielding retrieval time savings up to 90%. Included standard are lifetime sealed bearings, shielded motors, secu-rity keypad, one-touch forward/reverse, wire mesh guarding and obstruction detectors. Vidir Machine, 800-210-0141, www.vidir.com, Booth 3018.
Treatment prevents mold growth on palletsE-fusion mold and mildew resistant coating and treat-ment system for wood pallets inhibits the growth of mold, preventing product recalls and refused ship-ments. The treatment bonds with wood during an elec-trostatic application process, making it ideal for pallets used in food and beverage handling, consumer prod-ucts, pharmaceuticals and paper products. X-Mold, 866-581-6653, www.xmold.net, Booth 625.
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FOCUS ON ergonomics
Maneuver, manipulate 275-poundsFor maneuvering payloads up to 275 pounds, the pneumatic LodeArm lightweight manipulator increases workers’ capacity to per-form physically stressful, repetitive lifting tasks. Easily adjustable to fit almost any work cell, the LodeArm lift is ideal for low-headroom appli-cations, and provides rigid support and reach-in capability. Features include a pilot-operated lock valve on lift cylinder, gripper cylinders that prevent downward arm move-ment and loss of payload if supply pressure is interrupted, and gripper safety circuitry to prevent accidental release of unsupported payloads. Offered in four model configurations, the device provides up to 54 inches of vertical lift and flexible mounting options, including overhead, trolley, pedestal, wall mount, column, machine or mobile/portable base. Positech, 712-841-4548, www.positech.com.
intuitive lifting device positions without buttons, setting changesFor fast, precise, ergonomic handling, the Liftronic Easy intel-ligent assist device system includes intuitive, responsive controls without actuation by push-button control to keep production rates consistent. The technology maximizes natural human abil-ity to coordinate and control motions, eliminating over-travel, bounce and corrective movements that can cause strains. The system enables very precise positioning of the load and very smooth, quick handling movements, including handling of loads with different weights or that change their weight while being handled (such as filling and emptying cases) without setting adjustments. sit indeva, 704-357-8811, www.sit-indeva.com.
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lift 55-gallon, closed-head steel drums verticallyFor easy vertical lifting of 55-gal-lon, closed-head steel drums, the HDDL-55 heavy-duty drum lifter clamps the unit to the top of the drum with an industrial ratchet load-binder. The device weighs 43 pounds and lifts up to 1,500 pounds. Its integral pockets enable use with fork truck forks or tines, connecting to the truck carriage with a safety restraint. For connections to slings or chains, the unit includes lifting points. Vestil Manufacturing, 800-348-0868, www.vestil.com.
Chock stabilizers enhance steel roll handling tongsTo handle work rolls in a steel mill, a line of gripping tongs includes chock stabilizers that keep the top-heavy chocks on
the ends of the roll from flipping over. Capable of lifting 30,000 pounds, the stabilizer’s operation is completely mechanical and uses an automatic latching device for secure hold. Bushman avontec, 800-338-7810, www.Bushmanavontec.com.
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58 S e p t e m b e r 2 0 1 1 / Modern Materials Handling mmh.com
modern 60 Seconds with...
Tom Lagaly
Productivity Alliancetitle: Managing principal
location: Myrtle Beach, S.C.
experience: 43 years in materials handling and materials handling automation
priMary Focus: Implementation of integrated systems that generate productivity gains by leveraging real-time software functionality.
Modern: tom, you have been around the materials handling industry for a long time. How are today’s warehouse control systems (Wcs) different from systems in the past?
lagaly: The first system I ever worked on was for Kroger in 1969, where we installed the first bar code reader in a warehouse in this country. We wanted to track specific cartons from the sorter to a dock door. Our WCS back then was mechanical. We had this big box with eight wheels, one for each sorter divert. A steel ball would be released to a sorter divert and a wheel would turn at a speed that was synchronized with the movement of the carton on the conveyor. At some point, it would trip a switch that would fire the divert. The amazing thing is, that system worked for 15 years. Since then, we had the introduction of microprocessors in the 1970s and then programmable logic controllers (PLCs). We are now seeing systems with increasing levels of real-time responsibility, millisecond control, flexibility and the ability to generate real-time workload plans based on what is happening in the building.
Modern: How are today’s Wcs systems enhancing automated materials handling?
lagaly: You get a certain level of productivity from any mechanical device that moves a product from point A to point B. The productivity gains you generate from then on can only be done through intelligence. That’s what a WCS adds.
Modern: What type of operations or order profiles are candidates for a Wcs system?
lagaly: First, you need to have some level of automation. After that, it’s any system with split-case or piece-picking requirements. Piece picking uses the greatest amount of labor and generates the most mistakes. The second candidate is a retailer or wholesaler with an Internet presence. The last is any system that is doing a lot of crossdocking. You really want millisecond-level control and you get that from a warehouse management system (WMS).
Modern: there are Wcs suppliers who argue that in an automated facility they can do everything a WMs does. it’s controversial. But, do you think companies still need a WMs?
lagaly: If a company has a really good ERP system, it will have modules that can handle inventory control, the allocation of inventory to orders, yard management and transportation management. In that case, I would say you just need a WCS on steroids to do the order fulfillment. If you don’t have a good ERP, a WMS needs to be in the mix. But, I would keep it vanilla with few modifications. If you do that, you’ll have a good, cost-effective order fulfillment engine that will optimize your automated systems. M
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Covered by one or more of the following U.S. Patents: 6,244,821; 6,589,016; 6,817,835; 6,939,108; 7,252,478; 7,284,960; D587,799; D607,988; 7,654,798 and other patents pending. ©2011 Delta T Corporation dba the Big Ass Fan Company. All rights reserved.
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