PROJECT SCOPE  

System Design & Integration, Consultation & Analysis, Electrical & Mechanical Engineering, Warehouse Execution system, Warehouse Controls System, Mechanical & Electrical Installation

INDUSTRY

Healthcare, Medical Devices

In this article

The SilMan System Integration Team designed a fully automated order fulfillment system for the spare parts operation of a leading medical equipment supplier and service provider. The new pick-and-pack system provides increased capacity, improved speed and accuracy, ergonomic work areas, and system-wide data collection. An updated WES system drives data management, with a seamless interface with warehouse equipment controls and the client’s ERP.

Automated Warehouse Picking Systems

This medical device producer is in a vibrant market sector and is experiencing continued growth. In response to these conditions, the client turned to the SilMan Engineering group to help upgrade their existing fulfillment process.

The client sought to improve service levels in their distribution facility in two areas:

• Internal: Call Center and Service Group
• External: Service Partners / Spare Parts Fulfillment

The client’s objectives for their new order fulfillment system were twofold.

First, update infrastructure to refine and expedite outbound orders and manage spare parts inventory. Specifically, to process daily orders faster, with greater accuracy, at a lower processing cost per order.

And secondly, provide their internal service teams “real-time” order information to better serve their customers. The new system would produce timely and accurate order information so that external clients could automatically receive order information and data when the order shipped.

Warehouse Picking Systems Analysis

System Design Consultation Services

The SilMan Engineering team engaged in an extensive study and analysis of the client’s overall business and existing processes to establish baseline metrics for the existing system. This undertaking produced a clear understanding of the client’s Enterprise Resource Planning (ERP) system and the exchange of information – or lack of – that occurred between the spare parts warehouse and fulfillment systems.

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The process began with one-on-one meetings with key stakeholders involved with inventory control, order processing, and the service team. These discussions focused on deficiencies of the current process and their wish list for enhancements.

We uncovered several areas for desired improvements: order processing, inventory control, and real-time data collection of order information, inventory levels, and shipping.

In the next phase of the study, the SilMan team turned their attention to the collection of current and prior years’ inventory and order data:

• How many orders could be shipped in one day?
• Profiles of orders (multi-line orders vs. single-line orders).
• What are staffing levels required to meet current demand and future demand?
• How quickly is information reaching the service group so customers could track orders once shipped?

The study was a success. The data derived from the exercise enabled SilMan to present prospective design solutions in the context of specific client objectives. Internal and external.

• New vs. existing analysis
• Design for desired through-put rates
• Increase storage and order picking efficiencies (fulfilment systems)
• Increase customer satisfaction (accelerate data / information between fulfillment systems and clients service group)
• Introduce simple automation for expediting order processing
• Provide new packaging methods (i.e. envelopes for single item orders vs. small cartons) and technology
• Automated Vertical Storage for small parts (take advantage of 30’ clear building height)

With this knowledge, SilMan Industries designed a system to improve the order fulfillment process and the flow of information needed to enhance the service levels associated with these processed orders.

Spare Parts Fulfillment System

Conveyor System Design and Warehouse Controls

The solution accepted by the client included a variety of equipment and controls solutions.

Vertical lift modules (VLM) increase the “on-hand” inventory capacity.

The conveyor system design expedites orders through a multi-zone picking process.

Pick to Light systems provide improved speed and accuracy of the order picking process. Moreover, the new packaging system handles smaller orders, reducing package costs.

Lastly, but most importantly, SilMan recommended a new Warehouse Execution System (WES). This system manages inventory, picking, and order processing. Furthermore, the WES solution delivers real-time order and inventory information to the operations and service groups and directly integrates with the client’s ERP.

The capacity, features, and production levels sought by the client demand a robust system management and control platform.

To accomplish this, SilMan deployed Minerva’s AWLview Warehouse Management which controls the MHE and directs all operations within the four walls of the Spare Parts Warehouse: put-away, picking, packing, shipping, and inventory management.

Additionally, the WMS directs personnel through these processes with RF mobile devices and manages all automation assets deployed in the picking and packing operations.

The transactions to be handled by WMS include:

• Receiving
• Directed put-away (slotting)
• Pick and pack
• Priority picks
• Replenishment based on min/max
• Interface to SAP via shared database tables
• Cycle counts and manual transfers
• Track serialized and lot-controlled product
• Track inventory at the discrete location level
• Maintain accurate inventory information through paperless transactions on wireless RF mobile handheld terminals.

And finally, WES/WCS provides the interface between all material handling equipment such as vertical lift modules, conveyance, and the Pick and Put to Light systems.

Let’s take a closer look into each stage of the order fulfillment system devised for this spare parts warehouse operation.

Item Induction: Put Away

Incoming components destined for the Spare Parts Warehouse are inducted into the WMS/WES and directed for Put-Away into four (4) distinct primary pick zones or other selected locations within the warehouse.

The WMS/WES transmits inventory location to SAP to confirm the location of each part.

This Put-Away operation occurs during second shift operations or when all the primary order picking is complete for the day.

Automated Order Processing: Pick to Light, Put to Light

SAP provides order information.

There are three distinct order types:

1. Single line, single item: multiple orders in a single tote
2. Multi-line, multi-item: single order in a single tote
3. Large orders/pallet picks: multiple totes for a single order

All orders will be processed, picked, and placed into totes as they travel through four pick zones.

All orders move through four pick zones where users utilize RF devices to scan totes (LPNs) to “marry” each tote, or groups of totes, to a specific order.

Users pick items from the Hänel Vertical Lift Modules for placement in a specific order tote. “Pick to Light” functionality allows users to expedite the picking process while maintaining accuracy. “Put Lights” located directly above each order tote directs where to place picked items and the quantity required.

The conveyor system logic maintains the integrity of each tote batch as they pass through the four pick zones. This “Zone Routing” solution keeps each group of totes in one distinct “train” through to its final destination in either a Pack Out Station or transfer to the PacJacket station.