The Importance of Warehouse Control Systems
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1 The Importance of Warehouse Control Systems The Supply Chain Leadership Forum 2010 Dallas, Texas Track C-2 Facilitated by Paul Faber Principal, Tompkins Associates
2 Session Scope This Session Will Focus On: Order picking methodology choices Operations considerations for material handling equipment (MHE) PLC system data MHE controls: PLC technology History of warehouse control systems (WCS) WCS architecture and integration WCS best practices 2
3 Chaos Defined Common scenario: A company has a six-to-one merge induct into pneumatic accumulation, a singulator, scanner, and shipping sorter. But what happens when a tech decides to improve throughput by speeding up the merge without accounting for wear on the accumulation conveyor? 3
4 Control or Chaos? Current Statistics from Supply Chain Consortium 43% of respondents have a warehouse management system (WMS) integrated to material handling equipment (MHE) for picking and shipping. Of this 43% of integrated MHE systems, slightly less than half have problem alerts sent from their MHE control systems to a management console. Only 36% of integrated MHE systems provided real-time throughput statistics sent to a management console. Conclusion: The maintenance manager is getting better and more timely data than the operations manager. Planning for a Warehouse Control System (WCS) as part of your MHE controls can unlock the performance data within your system and mean the difference between operational chaos and control. 4
5 WCS Application to Warehouse Environment
6 WCS Business Application Order Picking Methodology Choices High Technology Required Low Discrete (Order) Picking Zone Picking Bucket Brigade Batch Picking Wave Picking Zone Batch Picking Zone Wave Picking Zone Batch Wave Picking 6
7 WCS Business Application (continued) Order Picking Methodology Choices: Definitions Discrete (Order) Picking: One person picks one order, one line (product) at a time. Travel distances are the enemy. Zone Picking: One person picks part of a single order within a designated area of the overall pick area. Zone balancing and order consolidation are critical. Bucket Brigade: Zone picking with floating zones, most often applied in pick and pass set-ups. Experienced and well-trained staff a must. Batch Picking: One picker picks a group of orders (batch) at one time, one line at a time. Sortation and segregation during picking must be managed to obtain labor savings. Wave Picking: Consists of multiple pickers in zones throughout the warehouse, picking items in those zones only for a wave of orders. Automation sortation equipment makes this viable for high-speed operations. 7
8 WCS Business Application (continued) Order Picking Methodology Choices: Definitions Zone Batch Picking: Batch picking within a zone, prior to sending to a consolidation area. Manual sortation with full order routing to minimize order consolidation. Zone Wave Picking: Staggered zone wave picking to balance the operational labor. Sophisticated sortation, significant order accumulation capacity and planning tools required to manage effectively. Zone Batch Wave Picking: A very highly sophisticated and complex picking strategy that batches within certain zones to create cases or inner packs, within a larger wave that may or may not be balanced across zones. Much like zone wave picking, generally requires both sophisticated sortation and significant order accumulation capacity to manage effectively. 8
9 WCS Business Application WCS Application Space 9
10 Operations Considerations for MHE Design For Expansion! The MHE system encompasses hardware, people and processes. Your DC will grow over time. SKU proliferation Business growth A WCS is the tool that connects the cement floor of your DC to the glass house of your IT infrastructure. Provides the right information, to the right users, in time to make meaningful decisions. Client Quote: I ve got plenty of data. What I need is information! 10
11 Controls Hardware Considerations
12 PLC System: Minimal Data 12
13 PLC System: Traditional Data Collection Serial Put Sort Scanner PC1 Serial Put Sort Encoder A New Pack Sort Scanner Pack Sort Encoder A DC Input DC Input SLC 5/05 PLC 54 Motors Put Sorter Put Sort Feed Recirc Loop Carousel Take-A-Way Pack Sorter Pack Take-A-Way Replen Merge Remote I/O No PLC 22 Motors PTL Take-A-Way Data Server Ethernet Ethernet SLC 5/05 PLC 73 Motors Receiving Ticketing Trash Empty Box/Tote Merge to Put Sort Feed SLC 5/05 PLC 24 Motors Shipping Sorter Shipping Conveyors Tapers Supplies Merge Internet Merge Back-Stock Merge DC Input Ship Sort Scanner Ship Sort Encoder A Serial Serial Future Manifest Station PC2 13
14 MHE Controls: PLC Technology Summary Good data-handling options exist for PLC use. Useable for moderate data collection Fieldbus designs add flexibility to MHE layout. Ethernet I/O modules allow direct data exchange with IT infrastructure. PC / server still needed for data storage and in-depth analysis. 14
15 MHE Controls: PC Technology The power and flexibility of the personal computer continues to provide better data collection and analysis capabilities. Soft-PLC products assure stability: Control the hardware level Windows platform now dominates the market: Unix-based controls presence diminishing Advantage of PC-based controls are best expressed in partnership with WCS software. 15
16 History of WCS WCS market developed over the past 15 years from two sources: MHE controls vendors Pick-to-light and RF-picking vendors MHE controls vendors added features to: Control equipment that requires faster response time than typical WMS can provide (sorters, for example) Enhance wave-management and productivity features, similar to WMS and PTL software PTL and RF-picking vendors: Added features to pursue markets where WMS was weak or non-existent Many added inventory management to their pick-productivity functionality Vendor base: vendors on NA 2010 exhibitors list Many others developing and marketing 16
17 Warehouse Control System Traditional Control Architecture Control Architecture with WCS 17
18 Warehouse Control System MHE Integration Approach Comparison Traditional Islands of automation WMS has no (or multiple) interfaces to automation Multiple architectures and user interfaces No system overview stovepipe approach No reports or disparate reports Warehouse Control System Automation is integrated WMS (via WCS) has single interface to all automation Intuitive, data-rich, unified user interface for all systems Comprehensive system information displayed via GUI and operational alerts Integrated operations management tools 18
19 WCS Best Practices Security Modularity Timely Supportability WCS Modern Machine Control Operability Msg Logging Robust Interface Logic 19
20 WCS Best Practices Timely presentation of information to operations managers Host interface flexibility Single focal point for interfaces with host and other legacy systems Open, expandable architecture Built-in diagnostic capability Critical event notification capability Flexible report generation features Robust message logging and delivery assurance (similar to Enterprise Application Integration philosophy) is a must! The key success factor for troubleshooting integrated software systems Who did what to whom, and when? 20
21 Key WCS Take-Aways: Planning for a WCS as part of your MHE controls can unlock the performance data within your system and mean the difference between operational chaos and control. A WCS is the tool that connects the cement floor of your DC to the glass house of your IT infrastructure. WCS feature mix is driven by your IT and operational needs, and by your existing MHE controls investment. Whenever possible, plan for a WCS as part of up-front system design. Think information instead of data. The right information, to the right users, in time to make meaningful decisions. 21
22 Discussion Topics 22
23 Discussion Points: What are your two biggest inhibitors to faster throughput in your DC? Warehouse control systems have been around for awhile now. Are there any success stories anyone would care to share with the rest of the group? The average payback time for a new WCS installation is typically one year. Has anyone had an experience that is dramatically different? Is it important to you to have inventory data in a WCS? Has anyone experienced a situation where the WCS failed to live up to its billing? 23
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