Automated Kitting System with 1.05 Year ROI & Room to Expand 3X
Automated Kitting System - SI Systems

Just recently, SI Systems was approached by a company who needed an automated kitting system to pick kits (orders) for their manufacturing process. Their business was growing and they were concerned about their increasing operations costs and its impact on their bottom line performance. We realized quickly that an automated kitting system would meet their growth manufacturing needs.

The kitting operation overhead was directly in proportionate to their business growth. It was imperative to integrate an automated kitting systems to provide better methods and processes to improve efficiencies. Key criteria that needed to be addressed in a new system included:

  • Increasing labor costs: including direct labor, managing labor, seasonal recruiting issues, theft and damage, productivity, training requirements…
  • Accuracy levels and costs associated with mis-picks
  • Floor space constraints
  • Ability to achieve peak requirements
  • Meet future growth plans
  • Must provide a FAST return on investment (ROI)

Mobile-Matic Automatic Kitting SystemSmall Boxed Product Kitting Application

  • Total SKUs: 613
  • Total Monthly units picked: 189,983
  • Total average daily units picked: 90,46.81 (based on 21 working days/month)
  • Inventory: boxed items (2.5” x 2.5” x .75”)

Order Profile:

  • 2 lines per order (1 item per line)
  • Order tote size: …………….. (8” W x 10” L x 2” H)
  • Average Throughput: …….. 5 orders per minute (300 per hour) requirement
  • Maximum Throughput:…… 13 orders per minute (780 per hour) requirement  (Mobile-Matic system can run 3 times this rate requirement to hit future growth and peak demand)
  • Current manual pick rate:… 650 to 700 jobs/person/day

Manual Labor Profile:

  • 2 shift per day
  • 5 hours picking per shift
  • 14 total people:
    • 11 people processing picks and put aways
    • 5 people processing put aways
    • 4 to 5 hours per day to do all put away

Data Analysis Summary:

Top 100 SKUs = 88.68% of all units picked.

Top 109 SKUs = 89.62% of all units picked.

Top 113 SKUs = 90% of all units picked.

Automated Kitting System Solution:

The movement for top 100 SKUs represent 89.62% of all picks. The bottom 500 SKUs combined represent 10.38% of all units picked.

  • 8 – Pick-to-Tote Mobile-Matic units (each unit would have 14 channels).
  • 105 top SKUs in Mobile-Matic system with 112 total channels.
  • System will pick 89.2% of total units per day.

Automated Kitting System Mobile-Matic Portable A-Frame System:

  • 89.2% boxes picked out of the Mobile-Matic system
  • Mobile-Matic replenishment rate: 1500 boxes per hour per person (1 operator/shift can replenish the Mobile-Matic system)
  • Operator reduction: 5 operators (zero order pickers)
  • Peak and future business capacity can grow 3X without adding any additional picking labor or floor space

Automated Kitting System provides a 1.05 year ROI

Mobile-Matic A-Frame
Ed Romaine
Ed Romaine
Romaine has spent over 30 years involved with organizations looking to optimize their distribution, manufacturing, and warehousing operations. Focusing on customer’s processes, systems and business model, Romaine has helped dozens of organizations improve profitability by reducing labor, floor space, errors and inventory while improving accuracy, inventory turns and cut-off times.Within the industry trade association, MHI, Romaine has taken numerous leadership positions over his 18 year membership including: Chairman of the Automated Storage & Retrieval (AS/RS) Group, Chairman of the Order Fulfillment Council of America, Chairman of the Warehouse Execution Systems Group and was one of the originators of the Carousel and VLM Product Section Group.Romaine is a frequent editorial and information contributor to hundreds of publications, blogs and online publications and has been a speaker at dozens of Supply Chain, Logistics, Lean and Facility organizations and functions.

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