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)
- 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”)
- 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