While my posts on inventory management systems were not always quite on schedule, I did learn a great deal during this activity. This topic is very relevant to my current role and I have been able to leverage findings here directly into my work. I also would not have reached my case study topic (which I had no background on) without research done for this blog.
I hope others found it a fraction as helpful as I did.
Eric
Sunday, December 19, 2010
Utilizing employee value
Why are innovative warehouse technologies important? Wasted movement is wasted money, and "order pickers spend about 60% of their time walking product or moving product around." http://www.joc.com/2010/10-ideas-more-efficient-warehouse-operation
Employees should be utilized as much as possible for tasks and activities that utilize their skills as people. If the movement of product can be removed from this list of tasks, workers can focus on more value added activity that will help their given business succeed.
Employees should be utilized as much as possible for tasks and activities that utilize their skills as people. If the movement of product can be removed from this list of tasks, workers can focus on more value added activity that will help their given business succeed.
Saturday, December 18, 2010
Denver International Airport
One very public use of automated material handling technologies has occured at Denver International Airport with their baggage handling.
They use technologies including:
They use technologies including:
- Destination-coded vehicles (DCVs), unmanned carts propelled by linear induction motors mounted to the tracks, can load and unload bags without stopping.
- Automatic scanners scan the labels on the luggage.
- Conveyors equipped with junctions and sorting machines automatically route the bags to the gate.
Cloud challenges
While this article is not directly related to the topic I used for my case study, it highlights some of the challenges faced by e-commerce and cloud commuting technologies.
"Just days earlier, Tesco had said that cloud services provider Akamai would be offloading 90 percent of the load—to make sure nothing would go wrong. That didn’t exactly work: When the Web site crashed, customers turned to the call center and clogged it, too."
"Just days earlier, Tesco had said that cloud services provider Akamai would be offloading 90 percent of the load—to make sure nothing would go wrong. That didn’t exactly work: When the Web site crashed, customers turned to the call center and clogged it, too."
Friday, December 17, 2010
Volkswagen Factory
An interesting video on the Volkswagen Phaeton factory in Germany. This state of the art factory uses many different types of automated machines, driverless vehicles, and and induction powered tools to build and store cars. By making their production facility state of the art and highly "transparent", they offer a competitive advantage over other car manufacturers where you must rely on trust of their quality craftsmanship, but may not be able to see it in action.
http://www.youtube.com/watch?v=nd5WGLWNllA
http://www.youtube.com/watch?v=nd5WGLWNllA
Another possible industry for Automated Material Handling
The attached video link is an advertisement for high end storage of cars, fine art, and other high theft items. The video offers a security combination including biometrics for entry and a fully automated and inpenetrable warrehouse for item storage. Another possible opportunity for the use of this technology with a twist on it's security attributes.
RoboVault
http://www.youtube.com/watch?v=cQLdOKklflI
RoboVault
http://www.youtube.com/watch?v=cQLdOKklflI
Low Margin e-commerce
Soap.com and diapers.com highlight the potential business opportunities provided by automated material handling technologies, where this was impossible previously. The thought behind businesses such as this is that customers already know which products they want to buy, and they don't need to physically touch them before purchase.
By allowing people to inexpensively purchase common items such as soap and diapers online in a convenient manner, customers can eliminate a chore from their daily routines. This is valuable for both the businesses who supply them, and the customers who purchase the products.
A video discussing the topic is linked below.
http://www.youtube.com/watch?v=6zXOW6v0c8s
By allowing people to inexpensively purchase common items such as soap and diapers online in a convenient manner, customers can eliminate a chore from their daily routines. This is valuable for both the businesses who supply them, and the customers who purchase the products.
A video discussing the topic is linked below.
http://www.youtube.com/watch?v=6zXOW6v0c8s
E-commerce creates new challenges
As I have mentioned in previous blogs, Automated Material Handling systems such as those by Kiva systems have been integral to the advance of E-commerce businesses. One of the biggest challenges faced by large e-commerce sites, such as Amazon.com, is that most orders are only one or two items. This requires different technology than a warehouse that may pick by pallet or at least by case.
By utilizing automated technology of several different varities, businesses such as Amazon.com have been able to become scalable and profitable by getting the most value out of every employee and every move. New technologies have also been able to reduce processing times, giving more customers the confidence to order over the internet even shortly before holidays.
By utilizing automated technology of several different varities, businesses such as Amazon.com have been able to become scalable and profitable by getting the most value out of every employee and every move. New technologies have also been able to reduce processing times, giving more customers the confidence to order over the internet even shortly before holidays.
Technical Details of Kiva Systems
The attached article highlights the challenges faced by Kiva Systems in getting customers to change from historical warehousing practices and provides details on the IT which allows their robots to work.
"Today's most automated distribution centers rely on vast mazes of conveyor belts, chutes, and carousels. Human operators stand along the conveyors, near inventory shelves, grabbing products and putting them into boxes or totes rolling past them. It's the assembly-line approach that most warehouse managers are used to, and it hasn't changed much in the past 100 years. In fact, for many of them the idea of handing over their inventories to robots is a big departure, if not a crazy proposition."
http://spectrum.ieee.org/robotics/robotics-software/three-engineers-hundreds-of-robots-one-warehouse
"Today's most automated distribution centers rely on vast mazes of conveyor belts, chutes, and carousels. Human operators stand along the conveyors, near inventory shelves, grabbing products and putting them into boxes or totes rolling past them. It's the assembly-line approach that most warehouse managers are used to, and it hasn't changed much in the past 100 years. In fact, for many of them the idea of handing over their inventories to robots is a big departure, if not a crazy proposition."
http://spectrum.ieee.org/robotics/robotics-software/three-engineers-hundreds-of-robots-one-warehouse
Importance of an Accurate Inventory
The attached article shows how important accurate management of inventory is to a business. The phenomon of negative inventory can be detrimental to ordering and stocking practices. This is one thing that I didn't realize the regularity and importance of until I began the project I am currently involved in.
http://www.inventoryops.com/NegativeInventory.htm
http://www.inventoryops.com/NegativeInventory.htm
Thursday, December 16, 2010
Automatic Guided Vehicles
This video highlights the need for flexability, agility, and dependability for success in 21st century businesses.
This is one technology which has been proven in warehouses over the past few decades, essentially removing human intervention from forklift and other product transport. Some allow narrower aisles within warehouses, allowing more space to be used for storage rather than navigation.
http://www.youtube.com/watch?v=jXodd32NrJQ&feature=related
This is one technology which has been proven in warehouses over the past few decades, essentially removing human intervention from forklift and other product transport. Some allow narrower aisles within warehouses, allowing more space to be used for storage rather than navigation.
http://www.youtube.com/watch?v=jXodd32NrJQ&feature=related
Tuesday, December 14, 2010
Automated Material Handling
My final paper will discuss the topic of Automated Material Handling (AMH) and it's impacts on inventory control and inventory management systems.
It will focus on the technology provided by Kiva Systems, as highlighted in my prior post. I have been focusing on the paper over the past few weeks and will concentrate my final blog posts to provide additional detail on Kiva's use of this technology as well as other types of AMH and impacts they are having on distribution centers, warehouses, and other storage facilities. My case study considers how AMH could impact a retail stock room.
A link to additional detail on Kiva Systems:
http://www.businessweek.com/magazine/content/10_47/b4204047877696.htm
It will focus on the technology provided by Kiva Systems, as highlighted in my prior post. I have been focusing on the paper over the past few weeks and will concentrate my final blog posts to provide additional detail on Kiva's use of this technology as well as other types of AMH and impacts they are having on distribution centers, warehouses, and other storage facilities. My case study considers how AMH could impact a retail stock room.
A link to additional detail on Kiva Systems:
http://www.businessweek.com/magazine/content/10_47/b4204047877696.htm
Friday, December 3, 2010
Kiva Systems
One major challenge with inventory management systems is controlling the use of space in a warehouse or stock room to allow for product to be found most easily and efficiently. One very interesting new technology is Automated Material Handling. Essentially this means that the shelf moves to the operators who need product via motorized robots on electronic tracks. Kiva Mobile Fulfillment Systems (MFS) is one major player in this area and has seen excellent results and growth.
A video explaining how the technology works is attached.
http://www.youtube.com/watch?v=biURjfUxaJM&feature=related
This technology better utilizes warehouse space, because forklifts or pallet jacks are not necessary. It also reduces product shrink (theft and loss) because employees are not allowed into the warehouse other than at the picking locations. Finally it takes product movement away from the job of employees, therefore reducing effort and ergonomic challenges, and allows greater accuracy. While primarily desgined for warehouses currently, I believe the stock room at retailers would also benefit from this technology for the same reasons.
A video explaining how the technology works is attached.
http://www.youtube.com/watch?v=biURjfUxaJM&feature=related
This technology better utilizes warehouse space, because forklifts or pallet jacks are not necessary. It also reduces product shrink (theft and loss) because employees are not allowed into the warehouse other than at the picking locations. Finally it takes product movement away from the job of employees, therefore reducing effort and ergonomic challenges, and allows greater accuracy. While primarily desgined for warehouses currently, I believe the stock room at retailers would also benefit from this technology for the same reasons.
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