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TASTYKAKEBaking up materials handling success Page 16
SPECIAL REPORT
Reader survey: ADC 22INCLUDING LIVE WEBCAST:
Jan. 26 at 2:00 p.m. ET Register: www.mmh.com/2011ADC
BEST PRACTICES
Prepare for the silver tsunami 28EQUIPMENT 101 SERIES
Totes and containers 34
Autumn Bayles, senior vice president of strategic operations, Tasty Baking Company
®
m m h . c o m
PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING
January 2011
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Learn how to get the most from your operation and enhance the performance of your equipment, labor, and software
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mmh.com Modern Materials Handling / J a n u a r y 2 0 1 1 3
LAIRD TECHNOLOGIES, a designer and supplier of components and systems for advanced electron-ics wireless products, announced its acquisition of
Cattron Group. Cattron designs and supplies high-reliability wireless remote control systems serving industrial markets. Laird (www.lairdtech.com) designs and manufactures customized, perfor-mance-critical products for wireless and other advanced electronics applications.
The purchase expands Laird’s wireless machine-to-machine prod-
uct. In addition to providing custom wireless remote control systems that enable the external operation of heavy equipment and vehicles as well as service for these systems, Cattron provides fully hosted net-worked applications software, enabling customers to monitor these assets in real time.
LIFT TRUCK MAKER Crown Equipment Corp. (www.crown.com) was recently recognized for its sustainability efforts by earning Ohio’s annual award for Outstanding Achievement in Environmental Stewardship.
Crown’s New Knoxville, Ohio, manufacturing facility received the award for accomplish-ing zero landfill waste output and achieving ISO 14001 Certificate of Registration. This is the third year Crown has received the award for its sustainability initiatives.
ENVISTA, AN ENTERPRISE AND SUPPLY CHAIN consulting services firm, announced that it has pub-lished a second edition of the book, “Supervising on the Line: A Self Help Guide for First Line Supervisors.” The book offers leadership skills and tools that first line supervisors can use to be successful.
Originally authored by labor management pioneer Gene Gagnon, the book has been a popular and respected resource for first line supervisors during the past 30 years. enVista’s president Jim Barnes updated and published the book at the Gagnon family’s request to ensure that first line supervisors continue to benefit and add value to their organizations. The softcover, 125-page book is available for $12.95 at enVista’s Web site at www.envistacorp.com.
Crown recognized by ohio ePa
76Percentage of respondents who intend to invest in ADC technology over the next 12 months. See story on page 22.
Source: Peerless Media Research Group
newly revised edition of classic warehouse management book
Prest joins MHia as chief operating officer
FAST FACT
UP FRONT B r e a k i n g n e w s y o u s h o u l d k n o w
laird technologies acquires Cattron group
LAST MONTH, the Board of Governors of the Material Handling Industry announced the appoint-ment of George W. Prest to the position of chief operating officer. Prest brings more than 30 years of experience to the Material Handling Industry of America (MHIA, www.mhia.org), both in managing and owning materials handling manufac-
turing companies. Over the years, Prest has been recognized for his volunteer leadership of industry manufacturers associations, dis-tributor associations and charitable foundations. In his new role, Prest will report to MHIA CEO John Nofsinger. His duties will include managing MHIA’s membership and trade event activities, among others.
george W. Prest
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mmh.com MODERN MATERIALS HANDLING / J A N U A R Y 2 0 1 1 5
PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING
VOL. 66, NO. 1
DEPARTMENTS & COLUMNS 3/ Upfront
7/ This month in Modern
14/ Lift Truck Tips: Electric trucks
40/ Supplement: Warehouse/Distribution
47/ Focus On: Automatic guided vehicles
50/ 60 Seconds with...
NEWS 9/ Pallet trends to watch in 2011
12/ Distribution Ergonomics Research Center created at Ohio State
13/ Blog@way
COVER STORYSYSTEM REPORT
16 Baking up materials handling successVoice recognition technology is speeding fresh-baked goods through Tastykake’s new state-of-the-art bakery in Philadelphia.
21 Sweet sound of successVoice takes a traditional warehouse to the next level.
FEATURESSPECIAL REPORT
22 Reader survey: ADC technologyFrom bar codes to voice to RFID, Modern’s readers tell us how they are using automatic data capture technology.
PRODUCTIVITY SOLUTION
26 Lift truck scales raise productivityFork-mounted scales make it possible to lift, weigh, move and record a load in one smooth operation.
27 On-demand packagingGlobal manufacturer of lightweight tables and chairs uses on-demand packaging system to deliver custom boxes and cost savings.
BEST PRACTICES
28 Ergonomics: Bracing for the silver tsunamiA look at our older workers and how ergonomic solutions are keeping them safe and productive.
EQUIPMENT 101 SERIES: TOTES AND CONTAINERS
34 Solving the puzzleDon’t take totes and containers for granted. These seemingly simple products are key components in the materials handling process ensuring a smooth flow of goods through the entire supply chain.
60 Seconds with... Sue Kutz
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 mailing offi ces. POSTMASTER: Send address changes to: Modern Materials Handling, PO Box 1496, Framingham MA 01701-1496. Re-production of this magazine in whole or part without written permission of the publisher is prohibited. All rights reserved. ©2011 Peerless Media, LLC.
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PHOTO: JEFF FUSCO
PHOTO: BARBARA BARKLEY
Terry Sabler, director of distribution (left) and Autumn Bayles, senior vice president of strategic operations for Tastykake
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MICHAEL LEVANSGROUP EDITORIAL
DIRECTOR
THIS MONTH IN MODERN
Having lived in New England the past 20 years, I applaud those who hold storied structures—like Fenway
Park—near and dear to their hearts. But, I also understand that there comes a time when organizations need to step away from traditional structures—when something iconic has simply outlived its usefulness.
All too often the future of an organization rests on such diffi cult decisions. And for the Tasty Baking Company, the makers of the popular Tastykake line of products based in Philadelphia, that time came three years ago.
The company was baking the bulk of its products at is fl agship facility that was built in 1920; however, over the past decade the beloved structure was beginning to bust at the seams. According to Autumn Bayles, the company’s senior vice president of stra-tegic operations, the multi-storied building was becoming too diffi cult to maintain. But of more concern to its logistics operation, they had outgrown the warehouse and shipping area and were being forced to use a building around the corner to handle the overfl ow.
This led to too much double handling and ultimately pushed the management team to the drawing board. The impressive result unfolds on page 16. Executive editor Bob Trebilcock takes us inside Tasty Baking’s new 345,0000-square-foot facility that in-cludes 100,000 square feet of state-of-the-art warehouse space that adjoins the bakery area—enough room to consolidate storage and picking under one roof.
What I fi nd most interesting is that the new facility allows Tasty Baking to real-ize benefi ts outside the four walls. Not only does the new, high-velocity picking environment lessen the strain on logistics operations and prepare the company for future growth, but the building itself works to solidify the company’s commitment to sustainability as well as its hometown.
Even though ample space opportunities existed outside the city limits, the company chose to set up shop in an abandoned industrial site in the Philadelphia Naval Yard to stay true to its city roots. According to Trebilcock, “Tasty Baking was able to repur-pose the original buildings as foundation material for the new bakery, which avoided clearing a forest and reduced construction waste.”
The company then set its sites on achieving LEED-Silver certifi cation in the renovation components, including a white, refl ective roof to minimize heat-absorbing surfaces; paints and carpet with low chemi-cal content; and environmentally friendly refrigerants, just to name a few.
“They’ve streamlined operations and ensured the customers receive the freshest product as fast as possible,” says Treblil-cock. “And when you factor in the technol-ogy advancements being put to use to improve employee productivity, coupled with their commitment to community and sustainable construction, this is a transfor-mation story that truly stands out amongst the rest.”
Committing to sustainable growth
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WHAT IS THE PALLET INDUSTRY WATCHING? To fi nd out, Moderntalked to Chaille Brindley, publisher of Pallet Enterprise, the leading trade publication covering the pal-let industry. Brindley also publishes www.palletprofi le.com and www.recyclerecord.com.
Brindley identifi ed three stories he’s going to be following next year.
A new pallet mandate from CostcoLast August, Costco released an ad-dendum to its structural packaging specifi cations. Starting in January 2011, the club store will no longer accept 48 x 40 inch GMA stringer or runner-style pallets at its distribution centers. Instead, suppliers are required to ship their products on 48 x 40 inch block
pallets. The club store will accept ship-ments on rental pallets from CHEP.
“Equivalent one-way block pallets that are a better value than renting from iGPS, PECO and CHEP,” says Costco, are also acceptable under the new specs. Those pallets must be the equivalent of a PECO or CHEP pallet based on a detailed report using the pallet design system from the National
mmh.com MODERN MATERIALS HANDLING / J A N U A R Y 2 0 1 1 9
Company Briefi ngs | Bob Trebilcock
A year in review | mmh.com/article/saying_goodbye_to_2010
Di@blogbest of Modern’s blogs
BY BOB TREBILCOCK, EXECUTIVE EDITOR
PACKAGING
Pallet trends to watch in 2011WHAT ARE THE MOST IMPORTANT ISSUES FACING THE PALLETINDUSTRY IN 2011 THAT MIGHT ALSO AFFECT PALLET USERS?
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10 J A N U A R Y 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com
Wooden Pallet & Container Associa-tion. Last, while Costco sorts rental pallets for the Big Three, if you ship on your own pallet don’t expect to get it back. Costco says it won’t return or exchange pallets that aren’t part of one of the recognized pallet pools.
Why this is an important story? Ac-cording to Brindley, it represents the fi rst time that a U.S. retailer has speci-fi ed a block pallet for its distribution center. “Retailers have advocated for rental pallets in the past, but they have accepted other pallets com-ing into their distribution centers,” he says. “This is the fi rst time I can remember a retailer trying to get rid of stringer pallets.”
Block rental pallets are generally a higher quality product than a GMA or other stringer-style pallet, but they are also more expensive to manu-facture. That probably explains why Costco doesn’t want to give them back. As Brindley explains, Costco has purchased a lot of new block pal-lets over the past year.
What’s the impact on pallet users? The mandate won’t have much of an impact on manufacturers already participating in a pallet pool. The fact that Costco will sort pooled pallets for return, but not alternative pal-lets, is a potential big deal to Costco suppliers who are shipping on their own pallets. “They’ll have to decide if they’re going to move some or all of their pallet business to CHEP, PECO or iGPS, or give up an expensive block pallet,” says Brindley.
If you’re not in a pallet pool—and many manufacturers are not—Brind-ley doesn’t think you should change all of your logistics to meet the Costco mandate. “There’s something to be said for not putting all of your pallet eggs into one rental model,” he says, adding that large shippers may want to divide their business among the three rental pools. He is also waiting to see if Costco blinks and agrees to sort non-rental pallets for pickup. “I know that the pallet
industry would like Costco to sort them out,” Brindley says. “I think if Costco is going to mandate the specifi cation, they’re going to have to be willing to return the pallets. But, we’ll see.”
One other related devel-opment Brindley is watching is a new pallet pool proposed by the industry known as the Pallet Industry Management System, or PIMS. You can learn more about this initia-tive at www.pimspallet.com. The concept behind PIMS, according to the organiza-tion, “is based on a col-laboration of pallet producers and recyclers, grocery and pharmaceutical customers working to ensure delivery of exceptional pallet quality, performance and durability on an industry-wide basis.” Costco has said it would ac-cept a PIMS design for the Costco standard provided the pallet has an offi cial PIMS marking. The next step is for the pallet industry to come together to get PIMS off the ground. “PIMS is the white wood answer to the pallet rental pools,” says Brindley. “It is currently in development, and I’m not sure if it will take off. But it is attracting interest from pallet users and pallet companies alike.”
Brambles acquires IFCOAs Modern reported in December, Brambles, the parent company of CHEP, has announced its intention to acquire IFCO, the pallet and return-able plastic container management company. Given their respective sizes, how the two companies come together once the regulatory approv-als are over is of potential interest to every pallet user since CHEP domi-nates the rental market and IFCO is a major player in the pallet manage-ment and recycled pallet markets.
What’s Brindley’s take? “I believe
Bramble’s real interest in IFCO was not for its recycled pallet and pallet management business, but for the returnable plastic container business and that they will merge that with CHEP,” says Brindley. When it comes to pallets, in his view, the two compa-nies will probably continue to operate as separate entities. “The cultures are very different,” he says. “CHEP works with some of the best pallet recyclers and logistics providers, most of whom are very automated. IFCO is known as a conventional pallet recycler that focuses on the high volume, commod-ity end of the pallet business.”
That said, Brindley would not be surprised to see CHEP try to convert IFCO customers to the rental model, and to use IFCO’s logistics expertise to get rental pallets back into the market faster. He also wouldn’t be surprised if IFCO pulls back on the ag-gressive pricing strategy it previously used in the market, which could ease price competition in the short term.
What’s the impact on end users? “If you’re an IFCO customer, when this
Brambles, the parent company of CHEP, announced its intention to acquire IFCO, the pallet and returnable plastic container management company.
MMH1101_News.indd 10 1/5/11 10:47 AM
mmh.com MODERN MATERIALS HANDLING / J A N U A R Y 2 0 1 1 11
all settles out, I wouldn’t be surprised if you get a call from CHEP down the road,” Brindley says. “And before next year is out, I wouldn’t be surprised if we see pallet prices go up and a short-age of cores in the used pallet market in some parts of the country. Actually, we are already starting to see tight core supplies in some markets.”
Food safety and drug recallsThe most visible pallet story of 2010 was the recalls by Johnson & John-son and Pfi zer of product alleged to have been contaminated by the chemical, 2,4,6-tribromoanisole (TBA), which can result from the breakdown of another chemical called 2,4,6-tribromophenol (TBP) when a treated pallet becomes wet and releases a moldy, musty smell. Although TBP is banned in the United States, it is used as a fungi-
cide to treat transport packaging materials, including pallets, in some South American and Caribbean coun-tries. In the case of J&J and Pfi zer, the allegedly contaminated product originated in Puerto Rico.
Why this is an important story? “I think it’s a made-up crisis chasing a real issue,” says Brindley. “It’s made up because whatever happened has nothing to do with pallets manufac-tured in the United States. Whether pallets are at fault or not, whatever happened with the recalls had to do with off-shore manufacturing and dif-ferent standards for treating wood in the Caribbean than the standards in the United States.”
At the same time, Brindley ac-knowledges that the issue has put a spotlight on pallets in the purchas-ing departments of pharmaceutical and consumer packaged goods companies, and not necessarily for
the better. “It’s good in that people have pallets on their radar screen,” he says. “Too many people look at a pallet as a pallet and now they realize that’s not always the case. But it has also caused a lot of worry in the mar-ketplace. End users need to realize this is a sanitation and storage issue and not a pallet issue.”
What is the impact on pallet users? “Pallets need a little bit of respect,” says Brindley. “Pallet users need to realize that a pallet can go anywhere. You have to think about climate and regulatory issues.”
Brindley advises pallet users to talk to their pallet suppliers about how they intend to use their pallets, and pallet suppliers need to be think-ing about how to treat their pallets if they’re going into an environment where wood pests, international regulations, mold or sanitation can be an issue.
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12 J A N U A R Y 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com
THE MATERIAL HANDLING INDUS-TRY OF AMERICA’s (MHIA, www.mhia.org) fi rst-ever direct funding of materials handling and logistics research has resulted in the develop-ment of a Distribution Ergonomics Research Center (DERC) at Ohio State University (OSU). The research grant is provided by MHIA through its College Industry Council on Mate-rial Handling Education (CICMHE).
Using the $50,000 grant, Carolyn Sommerich and Stephen Lavender of OSU established the DERC to develop and evaluate ergonomic interventions (methods, tools, equip-ment, processes, etc.) that will allow distribution center workers to work more effi ciently and safely. The long-term objective is to address common
ergonomic issues that exist across distribution center operations within three commodity sectors: grocery,
apparel and general merchandise.As part of this project, OSU con-
ducted focus groups with managers and safety personnel from distribu-tion organizations in the Midwest and Eastern portions of the country. Orga-nizations indicated which ergonomic issues were most important to them such as reaching, lifting and repeti-tive motions. Possible interventions (process changes and equipment) were then identifi ed by the study organizations as well as industry organizations providing ergonomic solutions.
Results of the research show that a number of intervention opportunities are available to distribution centers that can be used to address existing ergonomic issues that are common within and across distribution com-modity sectors. The intervention concepts developed by the study organizations can help reduce the biomechanical loads experienced by DC employees, thereby reduc-ing their risk of injury and potentially allowing DC employees to be more productive.
“MHIA is proud to support this important research which will con-tribute signifi cantly to the body of knowledge on ways to improve the safety and productivity of warehouses and distribution centers,” says Dan-iel Quinn, MHIA vice chairman of Education Planning and Professional Development.
ERGONOMICS
Distribution Ergonomics Research Center created at Ohio State
Students work with a tool designed to assess the risks associated with repetitive lifting tasks.
The concepts developed can help reduce the biomechanical loads experienced by DC employees.
MMH1101_News.indd 12 1/5/11 10:47 AM
Thinking beyond labor to justify automationOver the years, the reduction of head count has been the way companies justifi ed an investment in automa-tion. While getting rid of labor is still the most common metric used in the return on investment calculation, one of the emerging trends I came across reporting an upcoming story on materials handling automation is that some companies are thinking beyond labor to justify automation. Or, they’re thinking beyond simply reducing labor to justify their invest-ments...
Supply chain software and the innovation economyOne of the things we hear often in this recession is that small business is the engine for jobs and the source of innovation. Last week, I came across SG Software Group, a small supply chain software company in Sandwich, Mass., that is an example of both. Well, sort of.
First, the sort of—the jobs part. The company was founded by a group of guys—the SG stands for Some Guys—who have lots of experi-ence in logistics, distribution and supply chain software and who have either worked together as colleagues
or were clients of one another. For in-stance Jim Fox, the company’s CEO, has worked for Roadway, American Software and Voxware; Mark Lania, the vice president of sales, worked for Kewill; and Warren Engard, the vice president of product strategy, worked in operations at Dunkin’ Donuts. You see the connection...
RFID innovationIn November, I published an update on RFID in the supply chain. To me, the most important takeaway is that industry continues to fi nd new ways to get value from the technology, largely under the radar.
A couple of weeks ago, I talked to Alastair McArthur, the chief technology offi cer for Tagsys, about a new solution it created for Qantas Airlines.
In this case, Tagsys has devel-oped a rewritable passive tag that is part of a system to speed pas-sengers through the check-in and baggage-drop process. Instead of logging in at a kiosk and then standing in line to drop off a bag at security, a passenger will be issued a smart card that they can use to log in to the kiosk. Separately, each piece of luggage will get a perma-nent RFID tag that stays with a bag as long as it’s in use...
Innovative Warehouse
Solutions
www.interlakemecalux.com1-(877)-MECALUX
blog@wayExcerpts from executive editor Bob Trebilcock’s bloggo to... www.mmh.com for complete posts
ON-DEMAND
Featured Webcasts [email protected]
2010 Warehouse & DC Operations Benchmark StudyInventory turns have increased, more expansions are on the books, and incentive
programs are finally being dusted off. Things are finally looking up. In fact, the results of the Supply Chain Group’s 5th Annual Warehouse & Distribution Center
Operations Survey are showing clear signs of recovery.
Listen to the Webcast on-demand at: mmh.com/article/2010_warehouse_dc_benchmark_study
MMH1101_News.indd 13 1/5/11 10:47 AM
Fans of electric and internal combustion (IC) lift trucks often find themselves on opposite sides of a Red Sox/Yankees-
style rivalry, with outspoken champions and staunch critics residing in each camp. While this column is not likely to result in many converts either way, it should be noted that electric lift trucks have continued to gain sig-nificant market share over recent years. With this in mind, Modern recently spoke with representatives from the NAACO Materials Handling Group for their thoughts on what edge, if any, electric lift trucks might have.
David McNeill, manager of product strategy for Class I electric lift trucks for NMHG, says the number of electric lift trucks in service began surpassing its IC counterpart about 15 years ago. “At that time, it was about 50/50,” says McNeill. “Now 61% of lift trucks are electric.”
That growth is driven by the potential for multifaceted savings, says McNeill. Fewer emissions reduce the need for air turnover inside indoor facilities, creating energy savings. Fewer moving parts in electric lift trucks mean less maintenance costs over the life of the truck. And, at 10 cents per kilowatt-hour, electricity costs about $150 per month per truck, as opposed to as much as $600 per month for liquid propane, according to McNeill.
McNeill recommends a power study at the outset of any potential fleet reconfiguration. If it’s determined that electric is a good fit, Lou Micheletto, manager of ware-house product strategy for NMHG says there are a few ways to enhance the lifespan and efficiency of electric lift trucks. Tires with a low friction coefficient might increase efficiency, while modern quick-charge or opportunity-charge technology can sustain uptime and replace the need for multimillion-dollar battery rooms.
That said, there are still a few reasons why many choose not to pursue an electric lift truck fleet. “People have always recognized the benefits of electric,” says Mi-cheletto. “But the problem has always been the discipline
required to manage electric trucks. When an IC truck runs out of propane in the middle of a shift, I can go get another can, and I’m back up and running. But I can’t get a can of watts.”
While managers are considering the increased disci-pline required of an electric fleet, Micheletto suggests that electronic lift truck components might also lead to further efficiencies in warehouse management. Truck-mounted accelerometers can track and reduce shrinkage and equipment damage by increasing accountability, says Micheletto. “Trucks are designed not to run into things, but to lift things,” he says. “And whenever a truck does hit something, ‘I Don’t Know’ is the guy who did it.”
The same culprit is usually responsible when an electric lift truck overheats and powers down due to excessive strain. With truck-mounted monitoring equipment, unde-sirable incidents such as collisions or overworked trucks are tied to individual operators. The data can be used to educate against recurrences, allowing managers to prevent, monitor and remediate such events.
“If you teach operators how to avoid the negative and show them you are tracking the negative, then the nega-tive has a tendency to disappear,” says Micheletto.
Electric trucks: Managing the juiceA power study will tell if electric makes sense for your operation.
lift truck TIPS
14 J a n u a r y 2 0 1 1 / Modern Materials Handling m m h . c o m
lift truck TIPS
By Josh Bond, Contributing Editor
Josh Bond is a contributing editor to Modern and can be reached at [email protected].
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Baking up materials handling success
16 J A N U A R Y 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com
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Baking up materials handling success
Voice recognition technology is speeding fresh-baked goods through Tastykake’s new state-of-the-art bakery in Philadelphia.
By Bob Trebilcock, Executive Editor
For more than 80 years, the bulk of the apple pies, Butterscotch Krimpets and Peanut Butter Kandy Kakes that made Tastykake a
household name in Philadelphia were baked in a flagship bakery built in the 1920s by the Tasty Baking Company.
Like many iconic structures, it had outlived its usefulness. “It was a multi-story building that was hard to maneu-ver around and hard to maintain,” says Autumn Bayles, senior vice president of strategic operations. “We had also outgrown the warehousing and ship-ping area and had to use another build-ing around the corner. That led to a lot of double handling of product.”
The solution was a state-of-the-art,
Voice recognition speeds bakery-fresh treats to customers at Tasty Baking’s new state-of-the-art bakery. Terry Sabler, director of distribution (left) and Autumn Bayles, senior vice president of strategic operations (right) oversee distribution.
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345,000-square-foot bakery, includ-ing 100,000 square feet of warehouse space, which opened for business in the summer of 2010. The overall facil-ity was designed with sustainability in mind, including several features targeting LEED-Silver certification from the Leadership in Energy and Environmental Design initiative.
When it came to distribution, Tasty Baking Company implemented pro-cesses and technologies to accurately speed inventory through the facility. “We’re shipping fresh baked goods, which means we keep an average of one and a half days of inventory in the warehouse,” says Bayles. “Most of our customers get a shipment every day.”
The 100,000-square-foot facility has just 2,000 pallet positions in a four-level storage area plus a small freezer space. The system relies on voice-enabled putaway and picking processes (Lucas Systems, www.lucasware.com) to synchronize picking activities with delivery truck departure schedules.
The result is a high-velocity pick-ing environment that has stream-lined operations and ensures that customers receive the freshest prod-uct possible.
Designing for sustainable growthThe Tasty Baking Company was founded in 1914 when a baker from Pittsburgh and an egg salesman from Boston went into business in Philadelphia to produce baked goods using the best ingredients they could find delivered fresh daily to the bakery.
According to company history, the products were so good that the wife of one of the founders said they were “tasty,” hence the Tastykake phrase for the bakery’s products. At 10 cents a cake, the pair sold $222 worth of product the first week and $300,000 in gross sales by the end of the first year. Today, gross annual sales are in excess of $280 million.
The flagship bakery was built in the 1920s in Philadelphia. By the 1930s, the company had expanded its product line to include Butterscotch Krimpets and cupcakes, and individually pack-
Fresh-baked goods are palletized and stretchwrapped at the end of the bakery (top) before being picked up for delivery to the warehouse.
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aged lunchbox-sized pies, a revolution-ary concept at the time.
Over the years, the company expanded its operations, including a facility in Oxford, Pa. Still, it outgrew its capacity in Philadelphia. “In our old facility, we picked from a sea of pallets on the floor,” says Terry Salber, director of distribution. “Since we were using a paper-based picking system, it took a lot of time to train people to identify all the different stock keeping units (SKUs) and where they were located. We knew we needed a new method to simplify picking and training.”
In addition, relying on floor staging for picking meant the company had to lease another nearby space for tem-porary storage. “In our old system, we palletized product as it came off the line, but then shipped it to a nearby center and brought it back for pick-ing,” says Bayles. “That led to a lot of double handling.”
In May 2007, Tasty Baking announced plans to build a new 345,000-square-foot facility that included 100,000 square feet of ware-house space adjoining the bakery area—enough space to consolidate storage and picking under one roof.
In addition to efficient materials handling and order fulfillment, there were other priorities in both the site selection and design of the new facil-ity. For one, the company felt a com-mitment to keeping Philadelphia a great place to live and work, which was one of the deciding factors in choos-ing an abandoned industrial site in the Philadelphia Naval Yard. The bak-ery was able to repurpose the original buildings as foundation material for the new bakery, which avoided clearing a forest and reduced construction waste.
Second, the bakery was built with several features to target LEED-Silver certification including:•A white, reflective roof, which mini-
mizes heat-absorbing surfaces that contribute to global warming.
•No-mow, drought-resistant grass thatuses less water.
•All wood doors. And, half of thewood used in the building comes
from certified sustainable sources that work to conserve trees.
•Paints and carpeting with low chemi-cal content that reduce ear, nose and throat irritation.
•Refrigeration equipment that usesenvironmentally friendly refrigerants to minimize emissions that contrib-ute to global warming.
•Covered parking lot lights that reducelight pollution; bike racks and access
to public transportation that reduce vehicle usage and pollution.
• Solar panels on the roof to providepower to several of the building’s sys-tems. The company has also obtained a grant to install solar panels on the roof of the distribution center.
Optimized voice Putting in a new warehouse created an opportunity to rethink storage and
mmh.com Modern Materials Handling / J a n u a r y 2 0 1 1 19
Putaway in the rack system is voice directed. Pallets are stored on the top two levels of the rack system while floor-level positions are reserved for picking and order fulfillment.
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distribution processes by bringing both together under one roof. The over-rid-ing strategy was to create a flexible and simple system that emphasized speed.
“We use a demand-driven model here,” says Bayles. “Pies are almost a bake-to-order item: We’re putting them into the racks as our associates are picking them. The rest of our products are bake-to-inventory, but we maintain a very lean inventory.”
In addition to space limitations, operating a paper-based picking system had limitations. “We use the warehouse management modules in our enterprise resource planning system to manage the warehouse,” says Salber. “A large order could be five or six pages long. If a picker was not paying attention, he could easily skip a page.”
Several different technologies and picking methodologies were consid-ered. For instance, a pick-to-light solu-
tion would have been more accurate than paper-based picking, “but con-veyor and sortation did not work well based on the velocity at which our inventory turns,” Salber says.
A radio frequency-enabled bar code scanning solution was also ruled out because of the amount of time required for training. That led to voice technol-ogy. “When we were evaluating differ-ent technologies, I noticed that compa-nies using voice were able to bring on a new employee and have them out on the floor and productive in a couple of days at most,” says Salber. “It also made sense to have hands-free picking with voice.”
Ultimately, Tasty Baking installed a four-level pallet storage area. Pallets are built and shrinkwrapped in the bakery. The warehouse management system generates a bar code label that is used for inventory management, but also for
lot and batch traceabil-ity in the case of a recall. Pallets are then putaway on levels 2-4 in the pal-let storage area. The floor level is reserved for pick-ing.
Next, the system was optimized to build pallets based on the departure schedule for the bakery’s trucks. “When we send the work from SAP to the voice system, we know which trucks we want to load first and then we build and stage the pallets accord-ingly,” says Salber. “That required some program-ming logic and enhanced integration, but it’s been a great improvement.”
After just six months of running a voice-enabled facility, Salber says they are running a much faster warehouse. “We had a lot of overtime in the old facil-ity, in part because we had
to bring product over from around the corner,” she says. “We also have more accurate inventory with voice than in the past because our putaway and picking processes are more precise.”
In addition, the voice system includes metrics to measure how effi-ciently operations are working; in the past, that had to be done with spread-sheets.
The next step, she adds, will be to pick two orders at a time, since the facility is using double pallet han-dling jacks. And, instead of staging pallets for delivery, the next step is to load a completed pallet into a truck immediately.
“This was one of the last steps in the transformation of our company,” says Bayles. “We replaced a piece of the heart of the company with something that was modern and will take us to the next level.” M
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modern system report
to ensure freshness, product stays in the warehouse for a short period of time before it’s picked to a pallet and staged for delivery to customers by route trucks.
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Receiving and shipping3
Freezer storage and picking area
2
Pallet storage andpicking area
2
Stretchwrap area
4
Bakery 1
Staging area 5
Tasty Baking Company Philadelphia, Pa.size: 345,000 square feet, including 100,000 square feet of warehouse space
Products: Cakes, pies, donuts and cookies
tHrougHPut: 100,000 cases per week
sKus: 100
sHifts: 2 shifts; 5 days per week
eMPloyees: 48 in warehouse operations
System suppliersVoice recognition system: Lucas Systems, www.lucasware.comsystem design: OPSDesign Consulting, www.opsdesign.comPallet rack: Frazier Rack, www.frazier.comlift trucks: Crown, www.crown.comerP/WMs: SAP, www.sap.com Bar code scanning: Motorola, www.motorola.com Packaging system: Thiele Technologies, www.thieletech.comPalletizer: FleetwoodGoldcoWyard, www.fgwa.com
Sweet sound of success Voice takes a traditional warehouse to the next level.
Getting freshly baked product out the door is paramount for the Tasty Baking Company. For
that reason, the ability to accurately and quickly fill orders that are optimized for route delivery was a key priority in the design of its new warehouse.
receiving and putaway: At the end of the manufacturing line in the bakery, freshly baked products are packaged, palletized and shrinkwrapped . At that point, an associate prints and applies a bar code label onto the shrink wrap and scans the label to enter the finished product into Tasty Baking’s enterprise resource planning system (ERP). The warehouse management module in the ERP system determines a putaway loca-tion in the pallet or freezer storage area . The associate then delivers the pal-let by lift truck to the right location in the storage area and confirms the put-away by speaking a check digit into the voice system. Product is stored on levels two through four of the four-level stor-age area. The ground floor is used for picking. Once confirmed, the product is available for delivery in the system.
The bakery also receives prod-uct from other locations. In those instances, product information is manually entered into the ERP system, which receives the product against a purchase order. The system then gener-ates license plate bar code labels that are applied to the pallets and scanned. As with product received from the bak-ery, the system determines a putaway location in the pallet storage area , which the associate confirms by speak-ing a check digit into the voice system. Once, confirmed, the product is also available for delivery in the system.
Picking: To initiate the picking pro-cess, an order selector signs into the voice system and indicates that he is ready for work. Orders are created in the ERP system based on demand and delivery schedules. The strat-egy is to synchronize the work on the warehouse floor with truck departure times. If an order needs to be expe-dited, the system may divide up the work for that order among five or six order selectors who will build pallets for that delivery. In either event, the
selector is directed by the voice system to a picking location on the floor level of the pallet storage area . Once he reads a check digit to confirm he is at the right location, the system tells him how many cartons to pick to a pallet. Once he confirms the pick, inventory is automatically adjusted in real time.
shipping: When the order selector tells the system that picks are complete, he is directed to deliver the pallet to a stretch wrapping station and then to a staging area . When all of the pal-lets for an order have been staged, the truck is loaded and ready for departure from the shipping area . M
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22 J A N U A R Y 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com
By Bob Treblicock, Executive Editor
Reader survey:
ADC technologyFrom bar codes to
voice to RFID, Modern’s
readers tell us how
they’re using automatic
data capture technology
and what their plans are
for 2011.
MODERN special report
In today’s world, manufacturing, warehousing and distribution are increasingly real-time operations. Manufacturers not only need to know what’s happening on the assembly line, but also where the totes and pallets with work-in-process are located. Warehousers and distributors rely on real-time views of inventory and orders
to meet customer requirements. Real-time reports on shipments once products leave the door are increasingly the norm.
But it’s not just about real-time information. Companies today also want connectivity. That’s the ability to link together the different mov-ing parts of their operations for an integrated view of what’s happening across the supply chain.
Automatic data capture (ADC) technologies like bar code scan-ning, voice recognition and RFID are the essential tools to providing that real-time information and connectivity. That’s one of the reasons VDC Research Group (www.vdcresearch.com) predicted the differ-
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mmh.com Modern Materials Handling / J a n u a r y 2 0 1 1 23
ent industry segments will grow from 5.6% to 19.5% a year over the next five years in our annual look at the Top 20 automatic data capture suppliers in November 2010 (www.mmh.com/view/top20suppliers/mobile).
To find out how Modern readers are deploying ADC technologies, we sur-veyed email subscribers of Modern as well as a sample of recipients of our e-newsletters. We received responses from 362 qualified responders, defined as a reader who is employed at a loca-tion that uses ADC technologies. The respondents represented 12 different industries, from food manufacturing to wholesale distribution. They also skewed heavily toward manufacturing:
• 39% report that they work at ware-housing/distribution centers,
• 33% report that they work at man-ufacturing facilities, and
• 28% report that both manufactur-ing and warehousing take place at their facility.
What’s more, nearly 76% of respon-dents intend to invest in ADC technol-ogy over the next 12 months. While 64% of those said they will spend less than $100,000, 12% expect to spend more than $500,000, including 14 respondents who said they will spend more than $1 million.
Here’s what we learned across each of the major ADC categories.
Bar code scanning It’s been nearly 40 years since the first bar code scanning systems were installed in industrial operations, but the technology is now ubiquitous in manufacturing and distribution cen-ters, with 81% of respondents reporting that they use or plan to use bar code scanning systems in their facilities.
A majority are using both mobile handheld scanners (88%) and fixed scanners (51%). But, our readers are also adopting wearable comput-
ing devices for hands-free scanning, including wrist scanners (12%) and ring scanners (9%).
We also found that bar code scanning is enabling virtually every process in a facility, from putaway (63%) to full pallet (51%), case (49%) and piece (47%) pick-ing to value-added services (21%).
While the market for 2D bar codes that carry more information than tradi-tional bar codes grew by 20% in 2009, relatively few readers have adopted the technology. Only 20% of respondents are currently using 2D symbology and only 18% said they are considering 2D bar codes. Of those who are consider-ing the technology, 60% want the abil-ity to put more information on a label compared to a traditional bar code. The remainder said they want more accu-racy in high-speed processing operations (26%) or are looking to the tags to com-ply with regulatory requirements (21%).
In written comments, readers told us they were considering 2D bar codes to protect their products against coun-terfeiting or because they complement high-speed conveyor and sortation operations.
Voice recognitionBased on many of the stories featured on our cover, like this month’s feature on the Tasty Baking Company, voice has been giving bar code scanning a run for its money, particularly in case- and piece-picking operations.
Still, only a few of our respondents (12%) are currently using voice or con-sidering the technology in their opera-tions (14%). Seventy-four percent are not using voice or considering using voice. That may be a reflection of the number of manufacturers in our survey, since voice has primarily been adopted in distribution center processes.
Reader survey:
ADC technology
What processes are enabled by bar code scanning?
Source: Peerless Media Research Group
Putaway—manual process
Receiving—unloading at the dock
Receiving—staging
Picking—full pallet
Picking—case
Confirmation of truck loading/shipping
Picking—split-case or piece picking
Staging—shipping dock
Replenishment
Packing/palletizing
Route products via conveyor/sortation systems
Putaway—into automated storage systems
Recieving—gate/yard activities
Value-added services
63%
57%
52%
51%
49%
49%
47%
46%
44%
41%
29%
29%
28%
21%
W E B C A S T :
Wednesday, January 26 @ 2:00 p.m. ET • Register: www.mmh.com/2011ADC
Results of the 2011 Automatic Data Capture (ADC) User Survey
MMH1101_SpecialRptADC.indd 23 1/5/11 9:22 AM
24 J a n u a r y 2 0 1 1 / Modern Materials Handling mmh.com
More importantly, although voice has been on the market for more than a decade, it is just now gaining traction among readers. Only 41% of those using or considering voice are in the process of implementing voice recognition now and 29% said they have put in the technology in the last one to three years. At least based on this survey, voice remains an emerg-ing technology.
Like bar code scanning, voice is enabling processes throughout the facility, but is most heavily focused on operations where hands free/eyes free would provide the most benefit, includ-ing piece picking (53%), case picking (50%) and pallet picking (42%). Still, 34% of respondents are using voice to enable replenishment, 24% are using it in their value-added services area and 23% in packing and palletizing.
Readers are finding value from voice through improved productivity (72%) and improved accuracy (58%). In addi-tion, 37% of readers say they can get workers trained and working faster on voice and 36% say that it adapts to a multi-cultural workforce. Only 10% of readers tied the use of voice to an employee incentive program.
RFIDRFID is the fastest-growing segment of the ADC market, up 7% in 2009 and expected to grow 19.5% per year for the next five years, according to VDC. Our survey found readers evenly split on the technology: Fifty-one percent are not using RFID, while 26% are using it currently and 23% are considering the technology.
We also found a range of RFID tech-nologies in use: 38% are exclusively using passive RFID tags, 10% are exclu-sively using active RFID tags and 52% are using both. The No. 1 reason for using RFID among readers is real-time tracking and locating of assets (52%).
Of those considering the technol-ogy, 16% say they expect to implement RFID in the next 6 months, 20% in the next 12 months and 64% within the next two years.
Where is the value from RFID? Readers say RFID delivers improved accuracy (62%), better visibility into the location of inventory, work-in-process and critical parts, compo-nents and tools (61%), improved pro-ductivity (53%) and that it enables compliance with regulatory require-ments (25%).
Multi-modal and mobility More than any other industry, technol-ogy is all about the buzz, what’s hot and what’s not. In the ADC world, the two hot buzz words are multi-modal and mobile. The first refers to processes that are enabled by the combination of two ADC technologies, like the use of voice and bar code scanning in a pick-ing operation. The second is driven by iPhones, iPads and other smart devices.
At the moment, multi-modal has not caught on with Modern readers, where 76% say they are not using multi-modal technologies. Mobile is another story: while only 11% have implemented some type of smart phone or pad in their facilities, 25% say they are consid-ering the technology.
That’s still far fewer readers than are using bar code technology, but remember that smart phones are a much newer technology. The fact that 36% of readers indicate they are using or contemplating smart device technol-ogy suggests a faster adoption rate than technologies of the past. Or, maybe it’s all about the buzz. Modern will con-tinue to watch how our readers adopt and deploy mobile technology going forward. M
Do you currently use— or plan to use in the future—bar code scanning systems?Yes81%
No19%
Source: Peerless Media Research Group Source: Peerless Media Research Group
Do you currently use– or have you considered using–voice recognitionin your facility?
No, but considering
14%
No64%
Yes12%
Source: Peerless Media Research Group
Are you using–or considering using–RFID in your operations?
No, but considering
23%
No51%
Yes26%
W E B C A S T :
Wednesday, January 26 @ 2:00 p.m. ET • Register: www.mmh.com/2011ADC
Results of the 2011 Automatic Data Capture (ADC) User Survey
MMH1101_SpecialRptADC.indd 24 1/5/11 9:22 AM
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modern productivity solution
Fork-mounted scales make it possible to lift, weigh, move and record a load in one smooth operation.
By lorie King rogers, Associate Editor
serving the automotive industry for nearly 50 years, Quality Metalcraft in Livonia, Mich., is a
leading automotive production facility. The compa-ny delivers quick turnaround on high-quality com-ponents, ranging from small brackets and simple fabrications to large body-in-white components and assemblies.
Each process begins with a flat laser blank, which arrives at its manufacturing facility with an identification tag that is scanned upon arrival. To confirm material costs, each metallic component is weighed twice: once as it arrives and once after it’s been processed. Forklift operators were waiting in line for the scale and transactions were document-ed by hand, which was proving time-consuming and inaccurate.
“This process consumed a massive amount of extra time; plus, we couldn’t identify at which stage a work order was during processing. We also discov-ered our floor scale had been inaccurate—on some occasions, as much as 10% of the time,” says Ron Hassen, plant manager.
Managers implemented a forklift scale system (Avery Weigh-Tronix, www.wtxweb.com) that pro-vides legal-for-trade weighing of loads up to 10,000 pounds and uses electronic weight sensors for reli-able, repeatable weighing. Its built-in system allows operators to accurately weigh materials in motion, which means no more waiting in line. And, the fork-mounted scales feature no flexures, hydraulics or springs—allowing it to withstand frequent jolts and still deliver accurate results.
Lift truck scaLes raise productivity
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Global manufacturer of lightweight tables and chairs uses on-demand packaging system to deliver custom boxes and cost savings.
Mity-Lite of Orem, Utah, takes the business of sitting down very seriously. That’s because it’s
a leading manufacturer of lightweight chairs and tables. So, when the company looked to improve efficiencies, every method and tool was evaluated against three key operational drivers: quality, deliv-ery and cost.
To help achieve its primary goal of providing accurate, complete and on-time shipments to cus-tomers, Mity-Lite installed an on-demand packag-ing system (Packsize, www.packsize.com) to stream-line the way tables are packaged for shipping.
Before installing the new system, Mity-Lite’s vast product offering forced the company to stock more than 45 box sizes. “Planning for packaging needs was difficult,” says chief operations officer Brian Bowers. “Our corrugated stock inventory took up significant warehouse space, and we often found ourselves with too much inventory of slow-moving boxes and frequent stockouts in other sizes.”
The new system builds exactly what’s needed when it’s needed. Selecting from three sizes of corrugate, an associate selects and enters the size and number of boxes needed into the machine’s keypad. The machine cuts the cardboard to size, complete with score lines and a glue tab. The flattened box is delivered onto an out-feed table. Another associate inserts the box into an auto-mated gluer. The tables are then inserted into the custom boxes, closed and staged for shipment.
“With the switch from purchasing and storing finished boxes to building boxes on-demand, we have enjoyed several layers of operational improve-
ment and cost reduction,” explains Bowers. Customized boxes have eliminated generic
boxes that sometimes required alterations, and the footprint for the company’s corrugated stock inventory has been reduced by 60%.
The implementation of the on-demand pack-aging system was an important component in the company’s overall operations strategy, and accord-ing to Bowers, continues to support Mity-Lite’s advancements toward a one-piece work flow. M
By lorie King rogers, Associate Editor
On-DemanD Packaging
The company has also implemented a wireless scanner that allows the forklift operator to scan the flat laser blank when it arrives, instantly assigning materials for each job number an initial weight. This job can now be tracked on the company’s com-puter system throughout processing: allowing man-agers to keep a running total of the materials used at all times.
This electronic documentation keeps employees up-to-date on each job—a significant advantage at
the company, where at any moment 250 production parts may be rolling out the door.
“This system allows us to know how much our materials weigh, instantly record the weight, and know in which processing stage each work order is at all times—so we know when the work order will be done,” Hassen adds. “Keeping track of these jobs throughout our three-building manufacturing facil-ity saves us significant time while helping us main-tain accurate records.”
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ERGONOMICS: Bracing for the silver tsunami
MODERN best practices
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mmh.com MODERN MATERIALS HANDLING / J A N U A R Y 2 0 1 1 29
There’s a storm warning on the horizon, known as the silver tsunami, that’s calling for lots of gray… gray hair, that is. That’s because the wave of Baby Boomers, about 75 million of us born between 1946 and 1964 who account for 29% of the U.S. population, are getting older. And while some are heading off to retirement, many are remaining in the workforce.
“Sixty-two is no longer the stepping off point,” says Brian McNamara, president of Southworth (www.southworthproducts.com). He’s right. According to the AARP, 69% of
Boomers plan to stay on the job beyond the age of 65.
Boomers are pushing off retirement for good reasons; we like our jobs, we’re still healthy, and we like the social networking. In some cases, however, finances are the reason for staying because investments aren’t worth what they were before the economic downturn.
Whatever the reason, this workforce trend is expected to continue. In fact, the Bureau of Labor Statistics predicts that the percent-age of workers between the ages of 65 to 74
There’s a silver tsunami about to wash over the aging U.S.
workforce, and the materials handling industry is directly
in its path. Here’s a look at our older workers and how
ergonomic solutions can keep them safe and productive.
By Lorie King Rogers, Associate Editor
MMH1101_BestPracticesErgo.indd 29 1/5/11 10:46 AM
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will increase by 83.4% between 2006 and 2016.
Currently, the median age of a warehouse or distribution center worker is between 47 and 50 years old. Ray Niemeyer, director of mem-bership for the Material Handling Industry of America (MHIA, www.mhia.org), and managing executive of MHIA’s Ergonomic Assist Systems and Equipment (EASE) Council, says he sees the materials handling workforce going from the 40- to 50-year-old range to the 50 to 60 range. As the work-force ages, Niemeyer says, we need to embrace, respect and set the tone that employees are valued.
Not only are older workers valued, they are in demand. Companies are facing competition to retain the work-ers they have, says Sean O’Farrell, busi-ness development manager at Witron (www.witron.com). “[Workers] will look beyond pay rates and benefits to see which companies will make the work
environment better for them physi-cally,” O’Farrell says.
Therefore, companies are investing in ergonomic solutions to keep older workers satisfied, safe and productive.
These investments in the silver tsunami can be worth their weight in gold, says Dan Boos, principal of Boos Consulting Services. He explains that it costs four times as much to bring in a younger worker than it does to retain a Baby Boomer. And, the intellectual capital Boomers possess, along with company loyalty and low turnover, is invaluable.
“There are costs involved with change,” agrees Ed Romaine, chief mar-keting officer at Sapient Automation (www.getsapient.com). “But replacingworkers with the next generation of employee is another level of invest-ment. Investing in ergonomic solutions is a better bargain. You can spend less and achieve more because the right ergonomic tools will yield a return on investment that makes it a win-win for everybody,” Romaine adds.
So where should a company invest? That depends. “There’s no such thing as a one size fits all workplace,” says Jeff Smagacz, managing partner with the Ergonomist Risk Management Group (www.riskgroup-llc.com). “What’s good for one portion of your population might not be a complete solution for your entire worker population. But generally, if you design ergonomic solutions for the broad spectrum—large males to small females—you will capture about 90% of the work-related issues faced by older workers.”
Plus, Smagacz adds, the cost differ-ential between a good ergonomic design and an excellent one is minimal.
AwarenessExcellent design begins with awareness. “Look at the overall operation and ask:
MODERN best practices
With flexible options, this workstation can be raised or lowered to provide a comfortable height while standing and an adjustable arm to position the computer screen at the optimum eye level.
The first thing to go…Here are a few of the most common physical conditions that change with age and some simple solutions to combat the effects in the workplace.
Eye sight: increase overall area lighting, install task lighting, provide magnifying devices, schedule fre-quent breaks, use bright high-con-trast materials for safety signage.
Hearing: reduce background noise, enclose loud machinery, incor-porate visual cues, provide protective ear equipment.
Strength/force generation/flexibility: reduce the weight of items handled, rotate worker respon-sibilities to avoid repetitive strain.
Mobility/balance: keep work areas free of clutter and tripping hazards.
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What are the stressors within the pro-cess?” recommends Sapient’s Romaine.
The answer depends on the task. Examine the challenges of the job and the ability of the worker. Make sure they are well matched. If there’s a dis-connect, then ergonomic solutions could bridge the gap.
When a company looks at lean practices throughout its organization, ergonomics has to be a big part of the overall plan, says MHIA’s Niemeyer. “Ergonomic equipment like robotics, overhead handling devices, positioning equipment and handheld devices for easier manipulation all play a role in a company’s success.”
Implementing this type of equipment and creating an ergonomically friendly working environment should enable a person to keep pace with expectations or actually increase production and throughput. Understanding physical changes that occur as employees age also plays a role in overall success.
Sight, sound and stepsSince older workers typically have less than 20/20 vision, paperless order pick-ing systems like pick-to-voice and pick-to-light are worth looking into, says
Witron’s O’Farrell. These solutions can reduce eye strain and prevent picking errors because it can be hard to see and read a paper list accurately.
Hearing loss is about as com-mon as diminished eyesight. Charlie Zebell, vice president of supply chain solutions for System Logistics (www.systemlogistics.com), says while paperless pick-ing solutions can be modified to use larger screens and bigger, brighter type for better viewing, the volume and tone can also be adjusted for each worker. What’s more, he says, the headset will kick out background noise and make it easier to hear and concentrate.
But there’s another benefit at play here, says Zebell, “The cost of technol-ogy is going down, and companies are able to retain experienced, skilled work-ers who have knowledge of the cus-tomer and knowledge of the products.”
Providing ergonomic solutions is key to employee retention and the creation of a worker-friendly environment.
Another important step in creat-ing an ergonomically friendly working environment is to reduce steps. This is especially important for seniors since
slips, trips and falls are the most common work-place injuries for people over 65.
“The goal is to avoid walking and searching for products,” explains Sapient’s Romaine. With automated solu-tions like horizontal carousels and vertical lift modules (VLMs), inventory is brought to the operator and delivered to them for processing at an ideal height, sometimes called the golden zone.
Romaine says some VLMs have features like tilt trays that make the rear of the tray
more accessible. This reduces the need to reach and stretch, which in turn reduces strain on the body.
Lift assist and positioning devicesWorking within the so-called golden zone can also be accomplished with lift assist and positioning devices that can raise a person to the product or prod-uct to the person. Either way, these solutions raise the level of safety in the workplace.
Lift assist devices are designed to eliminate bending to pick up parts, even if they only weigh 10 pounds. “That doesn’t sound heavy, but it’s the repetition that’s problematic,” says Southworth’s McNamara. “Any job that we would put under an area of concern is exacerbated by age. When we start to think about why a job would require a younger worker, it’s probably improved through an assist device.”
In addition to scissors lifts and dock levelers, pallet handlers are commonly used in pallet loading and off-loading and keep the work at a comfortable height. According to McNamara, “You should be able to do the whole job right at your belly button.”
Overhead handlingSometimes the job requires overhead han-dling, and that’s where workstation cranes come into play. Over the years there have been changes in standards, says Jeff McNeil, marketing manager at Gorbel
32 J A N U A R Y 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com
The Age Discrimination in Employment Act of 1967Here’s a good question: How old is considered old?
If you said 40, you’re elderly, according to the government. The Age Discrimination in Employment Act of 1967 (ADEA), makes it illegal to discriminate against people 40 or older. Under the heading Congressional Statement of Findings and Purpose, it says:
“The Congress hereby finds and declares that:(4) the existence in industries affecting commerce,
of arbitrary discrimination in employment because of age, burdens commerce and the free flow of goods in commerce.
(b) It is therefore the purpose of this chapter to promote employment of older persons based on their ability rather than age; to prohibit arbitrary age discrimination in employment; to help employers and workers find ways of meeting problems arising from the impact of age on employment.”
Go to www.eeoc.gov/laws/statutes/adea.cfm to read more of the ADEA.
MODERN best practices
Colorful, bold graphics displayed on a workstation monitor make it easy for workers to see the products to be selected and how to fill an order accurately.
MMH1101_BestPracticesErgo.indd 32 1/5/11 10:46 AM
MODERN system report
(www.gorbel.com). “Standards are revised based on injury cost, which doesn’t directly link to age, but it could be related. We ask: Can the entire workforce per-form the task safely, quickly and accurately? Then we make sure the equipment accommodates a range of ages and sizes across the board.”
“We look at general trends and design accordingly,” says McNeil. As people age they lose strength so work-station cranes have to be easy to move by hand, with minimal force so it’s possible for a 60-year-old woman to do a job just as easily as a young man.
“There’s a lot of technology at work here, but the interface between human and machine is simple,” says McNeil. “Customers are not interested in any-thing complex.”
Packaging Customer feedback is often the driver behind change. “As a direct response to end user feedback, the industry is see-ing smaller boxes made of corrugated plastic that are lighter and easier to carry with built-in handles and grips,” says Norm Kukuk, vice president of marketing for Orbis (www.orbiscorpo-ration.com).
“As an important component in the design process, ergonomics is a key consideration to ‘design in’ any viable reusable packaging solution. Materials handling workers often have the final say as to whether or not a solution will work in a given supply chain. This is even more evident today in business as companies move toward greater employee empowerment,” Kukuk adds.
Lift trucksIn warehouses and DCs, more care and consideration is going into the comfort of employees who drive lift trucks for many hours each shift.
“Ergonomics has always played an important role in the lift truck industry,” says Keith Allmandinger, senior man-ager of marketing for Komatsu Forklift
Overhead lifting and positioning devices make it possible for a single worker to easily maneuver heavy parts.
mmh.com MODERN MATERIALS HANDLING / J A N U A R Y 2 0 1 1 33
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(www.komatsu.com).“For example, full sus-
pension seats were once an expensive option, but now they’re standard on most lift truck models. These seats are more com-fortable, provide a better ride and create less shock to the driver’s body.”
Some companies are trying to increase visibil-ity and provide a greater field of view by reorga-nizing vehicle controls. Others have added speed limiters, lowered the step height, and added an aux-iliary handrails. These changes improve ergo-nomics for all ages, but older workers are sharing the benefits. �
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modern Equipment 101: Totes and containersA primer for warehouse/DC managers
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mmh.com Modern Materials Handling / J a n u a r y 2 0 1 1 35
WBy lorie King rogers, Associate Editor
Solving the puz le
don’t take totes and containers for granted. these
seemingly simple products are key components in the
materials handling process, ensuring a smooth, efficient
and safe flow of goods through the entire supply chain.
hat’s made of plastic, has six sides and is brightly colored? If you said a Rubik’s Cube, you’re both right and wrong. If you said reusable plastic bins, totes and containers, you’re right. Unlike the puzzling toy, bins, totes and containers offer clear solutions.
Available in hundreds of sizes and configurations—and found throughout the supply chain—reusable plastic bins, totes and containers bring many benefits to the materials handling table. From reducing packaging waste, to maximizing product protection, to optimizing inventory management through standardization, returnable boxes generate dramatic cost and efficiency returns. But with so many choices, how do you choose?
Before you answer that question, Joe Borer, marketing manager for Buckhorn (www.buckhorn-inc.com) says you will need to ensure a good closed loop system. “First and foremost, you have to make sure you can get the containers back. If you can’t, you won’t realize the cost savings.”
With your closed loop system in place, you carefully consider which returnable you need. “Ask yourself the proper questions for the proper container recommendation,” says Nathan Franck, new
z
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product development manager for Rehrig Pacific (www.rehrigpacific.com). For example: What’s the use temperature range? Is a lid needed? Will the container interact with automation? How long do you need the container to last?
“Study all of your handling needs, and get input from someone experi-enced in the field,” Borer says. “They can point out contributing factors that will help you make the right decision.”
Figuring out what’s right starts
with product protection, says Norm Kukuk, vice president of marketing at Orbis (www.orbiscorporation.com). To get product safely from one point to another, you have to understand what’s required of the product from the time it’s manufactured to when it reaches its ultimate destination. “Considerations include product protection, parts per container, trip distance, supply chain velocity and proximity to destination, ergonomics, airflow, materials handling
interfaces, and other special require-ments for specific applications like food safety, cleanliness and identifica-tion needs,” Kukuk says.
Manufacturing and assemblyTotes, bins and containers are all incor-porated in manufacturing and assembly operations. Small parts for assembly are organized in bins captive to the facility. Totes storing work-in-process are also captive as they travel through different workstations.
Internal totes tend to stack and nest. Efficiency comes from being able to stack them when full or condense them when empty. These totes, often with footprints of 24 x 16 inches or 20 x 12 inches in a variety of heights, are sized to product shape and weight considerations.
Non-captive totes and containers make the rounds in a closed loop sys-tem—trucked from a supplier’s facility full of components and arriving just-in-time to the assembly line.
The majority of totes are straight wall style and modularly designed so that when they are fitted together, the smaller footprints combine to form a unit load equivalent to the standard pallet foot-print. The load is typically topped with a cap and secured to prevent shifting.
Similarly, larger containers carry larger parts and stack together for trans-port. Because the standard footprints are so established, users generally have a choice of off-the-shelf totes and con-tainers from a variety of suppliers.
Customized dunnage is often used to protect the contents. When emptied, the dunnage stays inside the container, also eliminating the need to collapse. “Reusable packaging supports many ISO-certified and six sigma operations by protecting incoming parts and out-going products from damage,” says Orbis’ Kukuk. “Expensive components and finished products are safe in heavy-duty, durable plastic containers with customized interiors that protect deli-cate assemblies from damage.”
For closed loop systems between manufacturing operations, maximiz-
modern Equipment 101: Totes and containers
Tote and container suppliersCompany Web site Phone number
Akro-Mils www.akro-mils.com 800-253-2467
Amatech www.amatechinc.com 614-252-2506
Atlas Material Handling www.atlasmh.com 847-678-3450
Buckhorn www.buckhorninc.com 800-543-4454
Carico Cowin www.caricocowin.com 800-466-6738
C.R. Daniels www.dandux.com 800-933-2638
Decade Products www.decadeproducts.com 877-999-6229
Diversi-Plast Products www.diversi-plast.com 800-828-6114
Endural www.endural.com 800-854-0553
Flexcon Container www.flexcontainer.com 908-871-7000
Georg Utz www.georgutz.com 812-526-2240
InterMetro Industries www.metro.com 800-992-1776
IPL www.ipl-plastics.com 800-463-0270
LewisBins+ www.lewisbins.com 877-975-3947
Meese Orbitron Dunne Co. www.shipshapecontainers.com 800-772-7659
Molded Fiber Glass Tray www.mfgtray.com 800-458-6050
Monoflo International www.miworldwide.com 800-446-6693
Nexel Industries www.nexelwire.com 800-245-6682
Norseman Plastics www.norsemanplastics.com 416-745-6980
Orbis www.orbiscorporation.com 800-890-7292
Quantum Storage Systems www.quantumstorage.com 800-685-4665
Rehrig Pacific Company www.rehrigpacific.com 800-421-6244
Remcon Plastics www.remcon.com 800-360-3636
Rotonics Manufacturing www.rotonics.com 310-538-4932
RPP Containers www.rppcontainers.com 800-945-8304
Tegrant www.tegrant.com 800-756-7639
Schaefer Systems International www.ssi.schaefer-us.com 704-944-4500
Thermodynamics www.okpallets.com 800-627-9037
Trienda www.trienda.com 800-356-8150
Unifuse www.unifuse.com 845-889-4000
Universal Package Systems www.universalpackage.com 812-937-3605
MMH1101_EquipRptTotesContnrs.indd 36 1/5/11 10:45 AM
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ing trucking efficiencies is important. Manufacturers shipping product to DCs want to cube out trailerloads, then bring the maximum number of empty, collapsed containers back to be refilled.
Automated systems/storageFacilities with automation—particu-larly those with mini-load automated storage and retrieval systems (AS/RS)—incorporate reusable plastic totes as the standard unit load to maximize their investment, especially for moving and storing product from the receiving dock to the primary pick location.
There are two different philosophies about which style works best: Stackable and nestable. Stack-only totes optimize cube in the system, yielding 10% to 20%
more volumetric efficiency than a nestable tote, depend-ing on the height. Alternately, when the tote completes its circuit and comes to the end of the line empty, nestables are more compact and can be handled more easily.
The most common foot-print is a 24 x 16 inch tote. Although there are many stan-dard, off-the-shelf totes in this size avail-able, custom totes are frequently created for these applications. But customization can be expensive.
Buckhorn’s Borer points out that creat-ing a new mold could cost several hundred thousand dollars. Additionally, testing and production times for a custom unit aver-
age 12 months, so time and expense will be saved if your automation system is built around a standard sized tote.
“Don’t overlook the importance of a proper container design before an auto-mated system is installed,” says Rehrig Pacific’s Franck. “Custom container designs may be cost prohibitive in cer-
You say pop, I say soda. Milk shake vs. frappe. No mat-ter what you call it, it’s
all good. Here are definitions to make sure we’re all speaking the same language.
Bin: A box used for storage and organization of small parts prior to use in manufacturing and assembly, fre-quently with a hopper (or open) front. Bins are generally stackable and may feature an integrated tab in the back that permits them to be hung from a louvered storage unit. They may be constructed of solid or corrugated plastic. Often found in workcells, bins rarely leave one area. Lids are incorporated in clean environments. Dimensions range from 3 x 3 inches to 24 x12 inches.
Tote (also called a crate, hand-held, handheld container, reus-able security container or work-in-process tote): A box transported by hand, with molded-in ergonomic handles. Totes are primarily offered in two designs: nestable and stack-able. Nestable totes feature drafted, or sloped, sidewalls created from a
base footprint smaller than the top opening. This allows the units to be nested inside each other when empty. Stackable totes have an identical foot-print top and bottom, and feature an integrated lip that prevents shifting when stacked.
Flap lids may be attached to the top of the tote, hinged on either long side and meeting in the middle when closed (commonly found on nestable totes), or they may be separate from the totes. Dimensions vary based on industry and application. Maximum capacities range from 40 pounds for totes handled by humans to 80 pounds for totes handled by auto-mated systems.
Container (also called a bulk container, bulk box, bulk bin, shipping container, gaylord or by any one of a number of brand names): The largest of the reus-able boxes, containers include four straight walls built on pallet-sized footprints with fork openings on two or four sides. Generally used for discrete component parts delivered to assembly lines, these heavy-duty
units can only be moved by pallet jack or fork truck. Sidewalls can col-lapse down into the container when empty, or they may not, depending on the design.
The walls may be designed with openings or drop doors to permit easier access to contents, and unat-tached lids or covers are sometimes used. Containers stack when full or empty, with capacities ranging from 1,000 to 2,000 pounds.
Less common are nestable bulk containers, typically used for bulk ingredients, and bulk packs with a collapsible corrugated plastic side-wall unit sandwiched between a pallet base and top cap.
Dimensions vary by industry and application, but the two most com-mon sizes are 40 x 48 inches for general product handling (a stan-dard established by the Grocery Manufacturer’s Association [GMA] and used for most general product handling), and 45 x 48 inches for the automotive industry (a standard set by the Automotive Industry Action Group (AIAG).
A tote by any other name…
reusable plastic totes and containers in a closed loop systems can provide cost savings as well as environmental benefits.
modern Equipment 101: Totes and containers
MMH1101_EquipRptTotesContnrs.indd 38 1/5/11 10:45 AM
tain systems so it is important to first look at available products when design-ing automated systems.”
DistributionMaximizing truckload efficiencies was a key consideration in distribution from warehouse to retailer, but many com-panies are now taking a broader view in total supply chain optimization, picking to store aisles to reduce overall costs.
Custom interior dunnage in right-sized reusable containers standardizes the number of parts per container and ultimately per truckload, enabling bet-ter ordering capabilities, cost estimat-ing, logistics and transportation plan-ning, says Kukuk.
Typically defined by less-than-case-load picking, nestable totes with secur-able attached flap lids to prevent pilfer-age are the reusable box of choice for this application. Being nestable allows the totes to stack compactly when empty and waiting for their return trip from the retailer to the DC, which minimizes transportation costs.
Returnable totes are replacing cor-rugated paper boxes. Security is the primary benefit, but reduced product damage is a close second. Plastic totes,
which can endure about 300 round trips, don’t get crushed when stacked and the molded-in handle makes them easier to handle.
Footprints and heights of these prod-ucts vary depending on contents. For handling general merchandise, totes typi-cally have a 21 x 15 inch footprint and 9 or 12 inch height. Hardware and automo-tive aftermarket products tend to ship in a slightly larger footprint of 27 x 17 inches and heights of 9 or 12 inches. A 28 x 21 x 15 inch container typically ships to retail-ers, as that size was built to accommodate a man’s suit on a hanger, folded in half.
Green benefitsSustainability is increasingly playing a major role with bins, totes and contain-ers. “Sustainability and reuseables go hand in hand,” says Allan Howie, direc-tor of continuing education and profes-sional development for the Material Handling Industry of America (MHIA, www.mhia.org) and managing direc-tor of the Reusable Container & Pallet Association (RCPA, www.mhia.org). “Sustainability is a common thread throughout the industry and an issue that’s increasingly important.”
Green initiatives have increased inter-est and need for reusable/sustainable products, and containers play a big part, explains Ken Beckerman, president of Flexcon Container (www.flexcon-tainer.com). “Customers are looking for containers that are reusable and are made of recycled material to show they are partici-pating in the overall global movement.” M
Choosing the right bin, tote or container for the right application will move your product moving smoothly and keep your operation running efficiently.
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By Josh Bond, Contributing Editor
New lift truck fl eet management offerings aim to improve fl exibility and effi ciency in a dynamic business climate, creating effi ciencies in the most unlikely places.
LIFT TRUCKS: A closer look at fleet management practices
hen times were good, lift trucks and their associated costs didn’t inspire much scrutiny. � ese warehouse work-
horses chugged along, dropped in and out of the maintenance bay, and were replaced every so often by newer, shinier models.
Lately, as many savvy warehouse/DC mangers have keenly noticed, current business
conditions tend to reward those who apply a magnifying glass to each and every nook of their operation. According to Scott McLeod, president of Fleetman Consulting, an indepen-dent forklift � eet management company, � eet management practices are about due for their moment in the spotlight.
If McLeod is right, and if the assortment
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of third-party offer-ings is any indication,
site managers and corporate number crunchers will find
their warehouse workhorses could stand to slim down. Old habits die
hard, but McLeod says he’s confident that a thoughtful examination of fleets of all sizes will yield dividends for most organizations.
Down to basicsAt its most basic, lift truck fleet man-agement is the practice of using data to modify operational and purchasing practices to achieve flexibility, efficiency and cost savings. By partnering with an equipment manufacturer for partial asset ownership, companies can achieve the flexibility to right-size their fleets on an as-needed basis.
By integrating with warehouse man-agement systems (WMS) software and truck-mounted computers, fleet man-agement offerings can track equipment usage, energy usage, accidental collisions, maintenance records and certifications, creating efficiencies in resource consump-tion and administration. Implementation can be rapid and returns can be immedi-ate, says McLeod, but buy-in is critical to successful fleet management.
Just as with any rehabilitation pro-gram, the first step is admitting there’s a problem. “A lot of companies I talk to don’t have a handle on where their lift trucks are located, how many they have, or what kind they have,” says McLeod.
“Problem No. 1: We have to figure out what they have and what it costs. Lift trucks are assets, and every business cares about return on assets.”
Except, for a long time, most companies didn’t care. Historically, a procurement officer at the corporate level would purchase lift trucks, arrange for them to be dropped off at indi-vidual sites and then promptly forget about them. It became the warehouse manager’s problem to coordinate usage and maintenance, or to request replace-ments in intervals dictated by an indif-ferent capital plan.
“A lot of companies didn’t even have lift trucks on their radar because they figure they had bigger fish to fry,” says McLeod. “In those situations, fleet decisions were largely reactionary. But they now need to make it a corporate priority to implement a strategic lift truck fleet management plan and have somebody responsible for the success of that program.”
Although a manager or corporate leader might identify the need in many situations, optimal fleet management calls for nothing less than a company-wide commitment. By monitoring an operator’s every pick, by squeezing every drop from a battery or LP tank, and by ensuring that only the precise amount of hardware is available, fleet management can boost transparency and accountabil-ity, often leading to drastic changes in day-to-day operations.
According to McLeod, a good fleet
management program should strive to make continual improvements every year in utilization and cost. Every warehouse and DC is different, he says, but every site can improve: “It’s a living thing. You have to stop and say, how can we do it better?”
Flexible fleetDoing something better and doing it cheaper are rarely one and the same. With fleet management offerings, how-ever, that is precisely the point. Accord-ing to Nick Adams, business develop-ment manager for Mitsubishi Caterpillar Forklift America, financial turmoil in the past 18 months to 24 months has prompted companies to turn over every last stone in search of efficiencies. Still, he says, fleet management has a tendency to be overlooked.
“Companies have been forced to get skinny,” says Adams. “People in charge of fleet maintenance now have three or four other responsibilities. Some folks are saying that there just isn’t the focus at the plant levels.”
For some, the solution lies in transfer-ring responsibility to a third party. One of the best ways to right-size a fleet while managing costs, Adams suggests, is to explore partial equipment ownership or long-term leasing. “In this economy, companies are very cognizant of the risks of asset ownership,” says Adams. By contracting with a third party, those risks can be avoided for a flat monthly rate. “In exchange for that premium, you’ve
New tools allow managers to track lift truck activity in real time from anywhere in the facility.
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got that � exibility.”� ird-party relationships can include long-term leases of
equipment as well as long-term agreements for their mainte-nance, resulting in consistent costs. As a business expands or contracts, so can its � eet—without the usual fear of massive outlays for potentially underused equipment. Even those initial lift truck costs are only 20% of the total lifetime cost of ownership, says Adams, with the other 80% consisting of fuel, maintenance and labor.
Patrick DeSutter, director of the � eet management pro-gram for NACCO Materials Handling Group, agrees, saying people are tuned in to the total cost of ownership more than ever before. � e ability to turn unforeseen costs and long-term commitments into predictable and adaptable fees prompts companies to consider what once may have been out of the question.
Over the last 20 years, DeSutter says the industry’s perspec-tive on � eet management—and outside service contracting in general—has evolved. “It’s gone from people being very hesitant to sign an agreement or hand over those responsibili-ties, to people turning over every stone,” says DeSutter.
However, some managers who dabble in � exible ownership go about it the wrong way. Joseph LaFergola, marketing man-ager of business and information solutions for � e Raymond Corp., says that he often hears of customers who have, say, a 20-truck � eet and add four each year before Christmas to handle increases in order volume.
“Do you really need those trucks, or are you just doing it out of tradition?” asks LaFergola. “Once you start thinking outside the box, you could ask: What if I had only 10 trucks and rented � ve more during peak times?”
When asked why a manufacturer of lift trucks might want to help customers shed half their � eet, LaFergola says that it does sound a bit counterintuitive. “But we’re not looking to sell you a bunch of steel, drop it o� and run,” says LaFergola. “We want to help you make your warehouse as e� cient as possible.”
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for life, LaFergola adds, and a regular upgrade schedule will ensure that clients have access to trucks with the newest technology that offer the best efficiency.
The technology As lift truck technology has improved along with warehouse management tools and wireless hardware, lift truck metrics are now far more comprehensive than simply hours of use. For a fleet manage-ment program to work properly, an orga-nization must first have a clear picture of equipment use.
Adams asks: “Are you collecting the data? And once you have it, are you using it to make fleet management decisions? Making decisions without data is not good; but having data and not using it is also not good.”
Data collection in modern fleet management offerings ranges from ultra-detailed telemetry with assorted hardware retrofits to simple monitoring tools. Maria Schwieterman, marketing product manager for Crown Equipment, says that
even the most advanced technology is designed with ease of use in mind.
“Customers are looking for tools that will help them improve things and find cost savings,” says Schwieterman. “And they’re looking for easy implementa-tion. They’re not looking for some huge project to undertake.”
Fleet management hardware can include on-board units or software that syncs with existing dash-mounted devices. Browser-based services can even enable staff and managers to monitor data through an iPhone or iPad, further reinforcing the notion that, indeed, there is an app for that.
Depending on the equipment involved, a fleet management program will enable more efficiencies than simply right-sizing a fleet. Accompanying software might keep track of propane use in LP trucks, maximizing each tank and monitoring overall use. Fleet management software can also track compliance items, enabling a company to provide solid documentation about operator certifications and lift truck
maintenance records.The simple process of wirelessly trans-
mitting a pre-shift inspection checklist can save the 5 or 15 minutes needed to fill out the form by hand and manually deliver it to the proper office. “That can translate to several hundred thousand dollars annually on time; plus that time can be turned into productivity,” says LaFergola.
By tracking individual trucks, the software offers accountability for opera-tors. Managers might ask why a truck is idle for much of the day, or why it’s doing more traveling than lifting. Some offerings even include truck-mounted accelerometers that register impacts and can be calibrated based on the work environment.
For all the fancy details, Schwieter-man says the emphasis is on making the data relevant. Software focuses on getting information to end users and present-ing them with key areas as opposed to forcing them to root through data. This allows managers to manage by exception.
“They know there are opportunities, but they don’t know where to find them,” says Schwieterman. “You want a tool that is going to be able to capture as much data as possible, from safety to utiliza-tion, to service and personnel. Then you need to streamline the information and adopt processes among the management and staff.”
Fleet management monitoring software can increase operator accountability and improve maintenance records.
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Ready to take the plunge?A fleet management overhaul calls for a full-company commit-ment, which can often be the biggest hurdle of all. McLeod and supplier representatives agree that a fleet management program works best with a corporate champion, not simply a procurement officer.
“If management is not engaged in making a change, then you’re not going to find the support to make a fleet manage-ment program successful,” says Schwieterman.
However, there is no shortage of benefits that most manag-ers will gladly welcome, such as the opportunity to replace antiquated administrative systems with user-friendly technol-ogy. Each organization is different, but DeSutter estimated a fleet management program could be rolled out in 30 days to 60 days, provided there was good employee buy-in, and good asset data at the outset.
DeSutter also recommends at least a preliminary asset survey before presenting a fleet management provider with the equivalent of a shoebox full of receipts.
“It took time to monitor these things,” says Schwieterman. “It was paper-based and things got lost. This tool can let them know what the pulse of their warehouse is.”
LaFergola adds that any opportunity to reduce the unknowns is key. “Without fleet management, I’m really taking a guess at the amount of equipment I need,” says LaFergola. “I’m estimating how many pallets I need to move. I’m estimating the number of work hours. I’m doing a lot of estimating. But I need to know exactly how much equipment I need.”
“We hear some amazing stories, but one of the most common reactions is a manager saying, ‘I had a gut feeling I had too many trucks,’” adds Schwieterman. “They’re making decisions based on gut feelings, and that’s hard to get by upper management these days.” M
Truck-mounted hardware tracks data about whether a truck is idle or in motion, how much energy it uses, and can even produce collision reports including who, when and where.
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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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.
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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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Modern Materials Logistics Management Supply Chain Management
• Automation
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• Inventory & Picking
• Loading Dock Equipment
• Mobile & Wireless
• Shipping Pallets
• Storage Systems
• Containers & Totes
• Energy & Sustainability
• Lift Truck & Fork Lift
• Handling & Warehouse Ergonomics
• Packaging
• Software & Technology
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laser-range finding system guides agVFor use in lean manufacturing operations, the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics, automotive, plastics and other non-linear production applications. Features include a laser-range finding system for vehicle location and obstacle avoid-ance—instead of guide wires, reflectors or transponders—on-vehicle keypad, wireless call buttons, and lithium ion battery that accepts opportunity charging. A user-friendly, on-board PC is included for mapping, navigation and drive control. rMt robotics, 905-643-9700, www.rmtrobotics.com.
FOCUS ON automatic guided vehicles
tugger enhanced for easier operationNew features for the BST AGV tugger include an easily accessible lever for manual engage/disengage of the drive wheel; a drive chain cover for added safety; a battery tray for faster battery changeouts; low-rolling resistance casters; obstacle sensor with a 180-degree sensing angle; and an up-front accessible sound volume control. The units automatically connect to and disconnect from stationary carts equipped with a compatible hitch. The vehicles follow a magnetic tape guidepath. Creform, 800-839-8823, www.creform.com.
laser-guided vehicles come in five configurationsOffered in five standard configurations for manufacturing and warehouse use, the fourth-generation laser-guided vehicle is ideal for finished pallet trans-port and interfacing with automated warehouse systems. Features include AC drives and motors, advanced torque control, Windows-based control system, one-piece frame construction, standard electrical components, and advanced remote support for controls system and components. Because each vehicle is based on the same standard platform that is easily configured to meet applica-tion needs, manufacturing and delivery of the units is faster. elettric 80, 847-329-7717, www.elettric80.com.
Vehicles, carts come with path modeling softwareGuided by target-free navigation systems that are impervious to dust, humidity, rain, heat, light and vibra-tion, a line of automatic guided vehicles and carts are offered. Tow, unit load and fork AGVs may be specified in capacities from 2,000 to 50,000 pounds. Tow, carrier and fork carts range in capacities from 1,500 to 6,000 pounds. The scalable sys-tems can be expanded in path range and in number of vehicles without additional system controls. For path modeling, software is included to help determine routing, stations and action locations, operational rules, vehicle type and number. savant automation, 616-791-8540, www.agvsystems.com.
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agV for freezer handlingRated for use in freezers, a counterbalanced automatic guid-ed vehicle performs all the functions of a conventional forklift without exposing an operator to low temperatures. The fork-style vehicle reduces product damage, contains labor costs and improves operational efficiency by running in tem-peratures down to 20 degrees Fahrenheit. Features include 3,500-pound capaci-ties, lift heights to 21 feet, and the incorpo-ration of a bar code or RFID reader for product identification and real-time load tracking. dematic, 877-725-7500, www.dematic.com.
FOCUS ON automatic guided vehicles
low-cost agVs handle up to 4,000 poundsLow-cost automatic guided vehicles reduce operating costs and increase efficiency by automatically maneuvering and tow-ing loads throughout a production space. Controlled by traffic control navigation software, the units’ capacities range from 500 to 4,000 pounds. Features include multiple path programming, retractable towing pin, remote communication, and optical sen-sors for safe operation near pedestrians and in confined spaces. The vehicles follow a self-adhesive magnetic tape for simple setup without floor modifications. toyota Material Handling U.s.a., 800-226-0009, www.toyotaforklift.com.
laser scanner prevents agV collisionsFor collision avoidance, the compact, type 3 OS32C safety laser scanner for use with automatic guided vehi-cles remembers up to 70 zone set combinations to sup-port complex AGV maneuvers. Each combination pro-vides two warning zones of up to 33 feet that make a warning sound or reduce speed; a 10-foot zone triggers an emergency stop when breached. Measuring 4 inches tall and weighing 2.9 pounds, the scanner draws only 5 watts of power. A single unit provides 270-degree monitoring; two units can be installed for front/rear and 360-degree monitoring. omron scientific, 800-479-3658, www.sti.com.
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AGVs automate pallet handling, transportFor safe, economical automation of tasks including empty pallet delivery, movement of mixed pallets during buildup, and shipment of mixed pallets, a new line of automatic guided vehicle systems is offered. Flexible and scal-able, the systems can also be used for trailer loading/unloading and replenish-ment. The vehicles interface with all storage racking, including standard, push back, flow through and drive in. To aid in continuous monitoring and optimization of the system and its rout-ing pattern, Web-based, 3D graphical interface software is included. JBT, 888-362-3628, www.jbtc-agv.com.
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Affordable automatic guided carts enhanced with new softwareFlexible, low-cost SmartCart automatic guided carts are ideal for use in assembly lines, to deliver pallets to and from stretch wrappers, roller con-veyors and palletizers, and move loads around a facility. New software upgrades make the carts easier to use by allowing facility-level system changes and troubleshooting without supplier assistance. Features include broadband communication, Microsoft Windows-based function definition screens, and external system interfacing with a PLC or TCP/IP. The carts also run in full reverse and can intentionally leave the magnetic tape guidepath to perform programmed functions. Jervis B. Webb, a subsidiary of Daifuku, 800-526-9322, www.jervisbwebb.com.
System converts lift trucks into AGVsTo streamline order fulfillment, the Pick-n-Go flexible order pick-ing system enables the automa-tion of a forklift, converting it into an automatic guided vehicle. Capable of integrating with exist-ing warehouse management sys-tems, the system interfaces with a voice-directed picking system. The picker follows the forklift step-by-step, eliminating all non-
productive activities such as jumping on and off forklifts, or fetching empty pallets to increase picking productivity while reducing errors and injuries. The system optimizes driving speed and prevents collisions with personnel or other forklifts. Kollmorgen, 540-467-3086, www.pick-n-go.com, www.kollmorgen.com.
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modern 60 Seconds with...
Sue KutzTiTle: Community volunteer/advocate for helping hungry children. Kutz is also a finalist in the Woman of Worth competition sponsored by L’Oreal.
locaTion: Rock Hill, S.C.
experience: Distributing bags of food to underserved children since 2008.
primary Focus: The Back The Pack program identifies undernourished students in the Rock Hill, S.C., school district and discretely provides them with nutritious food on weekends to alleviate the symptoms of chronic hunger. Distribution is done using high school students enrolled at the Don Frazier Supply Chain Training Center at the Applied Technology Center, a technical high school in Rock Hill.
Modern: What interested you in this program? Kutz: It started with a conversation with the school superintendent. I learned that 53% of our students are using the free or reduced-price lunch program. More importantly, I learned that more than 1,000 children in our district go home on the weekends with little or no food. My daughter and I talked to the superintendent to see what we could do to help and that led to the Back The Pack pro-gram. Each weekend, we’re sending home packages of food that are dis-cretely put in the book bags of about 650 elementary and middle school students during the school year. We’re hoping to include high school stu-dents in the future.
Modern: How does the program work? Kutz: Undernourished students are
identified by a nurse, counselor, teacher or school administrator in their school. The district office con-tacts their parents to let them know about the program. The most com-mon way to distribute the bags of food is to put them in their book bags while they’re out at recess or at lunch so that they’re not stigmatized by the other kids. Modern: What role does the applied Tech center play? Kutz: The warehouse and distribu-tion class fills the orders as part of their curriculum. They receive food items at the warehouse from a food wholesaler or from civic groups in town. Once they get the items, they check everything for an expiration
date and then put them away in a carousel system. To fill the orders, the students kit the bags by picking eight food items and two juice boxes to a plastic zip lock bag that goes back in the carousel. They’re then picked to a bin. The bins are then delivered to the schools. Modern: now that you’ve worked in a warehouse, how do you feel about a career in distribution? Kutz: I have a new insight and deep respect for the importance that distri-bution plays in delivering the product to the end user, and in this case, it’s a hungry child. At the Frazier Center, the kids are learning about commu-nity service along with materials han-dling standards.
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Wednesday, January 26 @ 2:00 p.m. ET Register: www.mmh.com/2011ADC
Results of the 2011 Automatic Data Capture (ADC) User Survey
The ADC User Survey offers the most compre-hensive examination available of how Modern readers are currently applying handheld and sta-tionary bar code scanning and imaging devices; bar code printers and labels; RFID solutions and tags; as well as ruggedized mobile comput-ing solutions for warehouse/DC operations. Our analysis of the findings will help users benchmark their current ADC applications against many of the top warehouse/DC operations in the country, help users prepare for new advancements and examine the growth of multi-modal applications.
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