21 Automated Storage/ Retrieval Systems James K. Allred President, Eskey Corporation, Sait Lake City, Utah Introduction Automated Storage and Retrieval Systems (AS/RS) are an important technology for improving material flow and control in factories and warehouses. They enable highly accurate, real-time management of inventories because they keep precise records of all item counts by location in storage while ensuring virtually absolute physical security of materials. Because of their ability to densely pack inventories in often unused overhead space, AS/RS free-up large amounts of floor space, permitting major expansions in production volume without the need for new building construction. The high density of AS/RS storage buffers allows work stations or automatic processes to be located closer to their buffer stock, thus cutting work-in-process transportation distances and order filling eycle time. The great accuracy, security, and density of AS/RS often enable “j time” operations because they ensure reliable and rapid delivery of every item in inventory to its point of use. AS/RS are casily linked to manual work stations, cclls ‘or automatic processes by conveyors, lift trucks, automatic guided vehicles, or shuttle cars. AS/RS computer control systems are usually directly ~onnected to corporate computer systems which manage production, order fulfillment and distribution - improving the effectiveness of these systems by providing precise real-time knowledge of inventories on hand.494 Chapter Twenty-One Types of AS/RS Systems Automated storage/retrieval systems (AS/RS) consist of a large, rail-running, robot-like vehicle called a storage/retrieval (S/R) machine. The S/R machine operates in an aisle between two storage rack structures, storing and retrieving, loads (see Figure 21.1), S/R machines are controlled by an end-of-aisle controller which may be autonomous or linked to a system computer controlling one or more S/R machines while tracking all inventory items in the system. Figure 21.1: S/R machine operates between storage racks and receives commands from anend-of-aisle conrolier The most common terminology divides AS/RS into Unit Load and Mini Load systems. A Unit Load AS/RS handles a pallet or container (Figure 21.2) that typically weighs 1000 pounds or more, with heights ranging from 15 to 100 feet. Mini Load systems handle plastic or metal totes or individual cartons and ‘are normally installed in existing buildings, generally no more than 30-feet high or less. However, they may be as tall as 50 feet. Mini Load weight capacities for individual loads are typically 500 pounds or less. Mini Load $/R machines may have an extractor mechanism that engages a handle on the storage tote, pulling the tote from the rack structure onto the S/R ‘machine. Like Unit Load machines, they also frequently have shuttle mechanisms (Figure 21.3) which extend a lifting platform into the rack under the load and raise, picking up the load.‘Automated Storage/Retrieval Systems Figure 21.3: Mini Load S/R machine with extendable lift plaiform 49524 Automatic Guided Vehicle Systems Charles R. Rouse Vico President, Frog Navigation Systems, Inc. ‘Aubura Hills, Michigan Introduction Automatic Guided Vehicle Systems (AGVS) are the foremost integrator of material ‘movement in manufacturing, warehousing, and distribution. Even though the first system was installed in 1953, the technology continues to expand. Itis becoming more and more flexible with a wider range of applications using more diverse vehicle types, load transfer techniques, guide path arrangements, controls, and control interfaces. Multiple vehicle systems provide operational security as single-point failures can be eliminated or controlled. If one vehicle is out of service, the system continues to operate at a high level of performance. Unlike other types of material transport systems, throughput capacity is maintained cyen though it may be at a slightly decreased level; however, the movement of material does not stop. AGV systems can be phased into an operation, Begin with a starter system to perform a specific task in a segment of the operation. As the workers become ‘accustomed to the system and other opportunities present themselves, the system. can be easily expanded, generally, with the addition of vehicles and minor control adjustments. Many systems today operate in a “Windows"” environment, allowing the user casy access to the system and the ability to do many of the upgrades.33 Order Picking Systems Michael Halsey Tompkins Associates, Ine. Raleigh, North Carolina Introduction Order picking is the function that warchouse professionals consider to be the most critical in their distribution operations. It is at the center of the flow of products from suppliers to customers. In fact, it is where customer expectations are actually filled. This chapter will increase your understanding of order picking and be your guide to developing excellence in your order picking ‘operation. It defines the relevant issues, industry trends, principles, procedures, technologies, and sources of technology that distinguish the “best” operations from all the rest. The Order Picking Function In order to get off on the right foot, let’s begin by defining what we mean by order picking. The best way to begin to understand order picking is in the context of the key functions of warehousing. At the simplest level, all warehouses perform at least four functions: receive goods from others, store and protect the goods until they are needed, retrieve (pick) the goods according to customer requirements, and prepare the goods to be transported to the customer (ship). At the same time, there is a data processing function that supports and drives order picking called804 Chapter Thirty-Three order processing. It is here that customer requirements are defined, inventory is allocated, shipping is scheduled, and documents are prepared. The intersection of warehousing and order processing is the place where order picking takes place. Order picking is selecting the correct item in the correct quantity from storage to satisfy current customer requirements. Order Fulfillment Figure 33.1: Order Fuifiliment In the context of warehousing, the broad definition of order picking includes, any retrieval of goods from storage. There are five levels of order picking based ‘on the size of the unit that is being picked: Pallet Picking: Retrieval of full pallet quantities Layer Picking: Retrieval of full layers of cartons from pallets Case Picking: Retrieval of full cartons from storage SplitCase Picking: Retrieval of inner packs from cartons in storage Broken Case Picking: Retrieval of individual items from storageOrdor Picking Systoms 805 This chapter will focus on the picking of smaller units, as that is the most Jabor-intensive, complex, and capital-intensive end of the spectrum. In addition, it is where industry is headed. The reason why will be explained later. Relevant Industry Trends There are several industry trends that are underway that have had, and will continue to have, a significant impact on order picking operations in warehousing and distribution. Some may be considered cyclical, and some may be considered evolutionary. Consolidation Only the strong survive! The old song rings true. The law of the jungle prevails in all situations, including warehousing and distribution. Some firms invest in themselves; others take profits, Some firms take their customers for granted; others, Jook for ways fo increase service and add value, ‘The "bUs were characterized by mergers and acquisitions. Customers realized that it was to their competitive advantage to reduce their supplier base. A very efficient deregulated ‘transportation infrastructure has enabled higher and more reliable levels of customer service from fewer distribution points. The result has been, and will ‘continue to be, fewer distribution centers with greater individual mass. Continuous Flow ‘The World Class Manufacturing practices that were developed in the late “80s and carly *90s have had a spillover effect in physical distribution. Manufacturers understood that once partnering with suppliers was established, it simplified operations so that operations and inventory moved upstream. Store-direct shipments and supplier-maintained inventory are becoming increasingly common in the retail trade. Orders packed by store and shipped through distribution centers “flow-through” the facilities with only temporary storage. Some are drop- shipped from a secondary supplier to the customer. What used to be picked and shipped monthly, or even quarterly, is now processed weekly and even biweekly. Will we move to daily order processing? Only time will tell. Customer Focus ‘The most successful, fastest growing, most profitable firms have talked to their customers and listened intently. They know that the customer wants value at low cost with high functionality. They understand that quality must be a “given.”Order Picking Systems 807 Apply Pareto's Law Vilfredo Pareto was an Italian sociologist and economist who discovered an interesting relationship between wealth and individuals. He found that a very small percent of his community's population held a very large percent of the wealth. In modern times, we have applied this law in many useful ways. In a warehouse operation, a small number of SKUs constitute a large portion of the inventory. This may be measured in value or cube. Similarly, a small number of SKUs will represent a large portion of the throughput in a warehouse. This may be measured in cubic volume shipped or times sold. If we group items that are popular together then we can reduce travel time in the warehouse during picking. This is a very powerful law. Use a Clear, Easy to Read Picking Document A picking document should provide specific instructions to the order picker, making the job easier than it would be other wise. A common pitfall isto leverage the shipping paperwork as picking paperwork. The problem is that it includes extrancous information and is not designed to aid the picker, but rather the ‘customer’s receiving function. Information should be presented in the order that it is required: location, stock number, description, unit of material, and quantity required. Additionally, any special labeling or packaging may be noted. The font should be easy to read. This implies that it is large enough and that the printer ribbon is changed regularly. If it is part of a multi-page form, the picker should use the top copy. Double spacing of lines and using horizontal rulers are advisable. Use a Pre-Routed, Pre-Posted Picking Document A picking document will control the order picking process. It will cause the ‘operator to travel throughout the warchouse in a random manner if the order is not pre-routed (sorted according to stock location to minimize travel time). It will also allow the order picker to travel to locations with insufficient stock to satisfy the order quantity if no consideration is given to other orders that have requirements for the available inventory. Maintain an Effective Stock Location System It is not possible to have an efficient order picking system without an effective stock location system. In order to pick an item, you have to first find it. If you don’t have a specific location, then time must be spent searching for the produ This is neither value-added nor productive, Without an address, itis impossible to take advantage of Pareto's Law. Without a stock location system, itis not possible to have a pre-routed picking document.810 Chapter Thiety-Throo Zone Picking The total pick area is organized into distinct sections (zones) with one person assigned to each zone. The picker that is assigned to each zone picks all the lines for cach order that are located within that zone. The lines from each zone are brought to an order consolidation area where they are combined into the complete order before shipment. If the required lines are spread out across three zones, then three pickers work on that order, Each picker only works on one order at a time and there is only one scheduling period per shin. here are two variations of zone picking. Sequential zone picking is zone picking one zone ata time. The order is passed to the next zone for which it may (or in some cases, may not) have lines to be picked. This is sometimes referred to as a “pick and pass” method. Simulianeous zone picking is zone picking from all applicable zones independently and then consolidating the order in a designated location as it is completed. Zone picking is often used because of different skills or equipment associated with the equipment used in a hybrid warehouse. Pallet picking with narrow aisle equipment, case picking from selective rack, broken case picking from static hi-rise shelving, and broken case picking from horizontal carousels lend themselves to zones. In order to reduce travel time, a large equipment zone may be subdivided into several separate zones. A highly active storage equipment zone may be further subdivided into picking zones to reduce congestion and associated delays. In fact, it is often a good idea to size zones to balance the workload between zones. Batch Picking One picker picks a group of orders (batch) at the same time, one line at a time. When a product appears on more than one order, the total quantity required for all the orders combined is picked at one time, and then segregated by order. The segregation may take place while picking into totes (small items in small quantities) or transported to a designated area where they are sorted and grouped by individual order. There is only one order scheduling window per shift. Picking more than one order at a time has a significant effect on picking productivity for case and broken case picking, In fact, the more orders a picker can effectively manage at once, the greater the productivity gain. Of course, there is a point of diminishing returns. The best candidates for batch picking are orders with few (one (0 four) lines and small cube. Once again, the reason for productivity improvement is the reduction in travel time. Instead of traveling throughout the warehouse to pick a single order, the picker completes several orders with a single trip. Itis critical, however, that measures be taken to minimize the risk of picking and sorting errors. Computer control systems and automatic sortation are very effective.