Dan Gilmore and I are just getting back from two days covering MODEX 2016. As would be expected, there were lots of great ideas for shippers looking to improve the performance of their operations. While most of the exhibitors are promoting the adoption of new technologies, there were also ideas for improving existing equipment and systems. You can view our live on-the-spot reports here: MODEX 2016 Day 1 Video Review and MODEX 2016 Day 2 Video Review.
Holste Says... |
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| By retrofitting and modernizing your equipment, you boost its reliability, renew its service life, while cutting maintenance and operating expenses. |
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Overtime business changes with the addition of new customers, markets, products and services. These changes have a direct impact on existing material handling equipment, systems and operations. Given the high replacement cost associated with new equipment, along with the unavoidable disruptions, it’s smart to consider restoring existing equipment/systems as an alternative to re-placing them.
If the problem is frequent equipment breakdowns resulting in the loss of productivity, industry experts generally agree that with very little capital expenditure you can increase the performance of aging material handling systems by 10 to 20%. The following table shows the typical benefits:
Issue |
Action |
Typical Benefit |
- Increasing DC operating and maintenance costs
- Reduction in average per hour shipping volume
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- Compare current per-piece handling cost against industry averages
- Reduce production interruptions
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5% to 10% |
- High order picking error rate
- Poor system reliability
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- Adjust and update order picking methods
- Evaluate and upgrade software systems
- Institute preventative maintenance practices
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10% to 25% |
By taking the following steps, companies can keep their existing equipment and systems running at peak performance:
- Performance Audit: An effective way of keeping a material handling system operation current is by doing a performance audit every few years. A performance audit can help you zero in on productivity drains, evaluating such areas as picking, conveying, and sorting rates. Whether you utilize internal resources or hire an industry expert, a comprehensive audit will analyze systems from both an operational and functional standpoint, including a final report detailing recommended adjustments. Thus, you will be able to pinpoint and fix inefficiencies, realizing cost savings from improved productivity rates and system performance.
- Preventative Maintenance: A comprehensive PM program is an effective way to keep your system performing at peak capacity while extending its useful life expectancy. In particular, it can reveal if the various components and subsystems are functioning properly. Regularly scheduled preventative maintenance can help you determine when components will fail so they can be fixed or replaced before they breakdown. Thus, you can keep operations running at peak efficiency. Another benefit is that a properly tuned and maintained system consumes less energy.
- Retrofitting: Retrofitting can boost efficiency by 15-20% or more. By retrofitting the equipment, your system will be able to function beyond its initial capacity limits and be in better condition to satisfy increased production demands. This can involve upgrading components, increasing speed/capacity, or incorporating new technologies.
An example of retrofitting that is relevant in today’s economy where package sizes are becoming smaller is to change the spacing of conveyor load carrying rollers from the typical 3 inches to 2 inch spacing. Most conveyor side frames are pre-punched in the factory for 2 inch roller spacing. Another retrofit that has proven to be beneficial for handling light weight packages is to replace mechanical sensors with electronic sensors. Most conveyor manufacturers have kits available for this upgrade.
By reusing equipment instead of replacing it, a company can enjoy considerable savings. For one thing, the cost of retrofitting is often less than 60% of new equipment cost. Moreover, by retrofitting and modernizing your equipment, you boost its reliability, renew its service life, while cutting maintenance and operating expenses. Furthermore, by updating companies can ensure compliance with current federal and state safety regulations, thereby helping reduce work-related injuries and insurance premiums, including workers' compensation.
At the same time, companies seeking to upgrade their material handling system controls and software should consider adding a Warehouse Control System (WCS) to enhance flexibility, performance, and broaden access to real-time operational data. Follow this link to learn more https://www.scdigest.com/ontarget/13-02-05-2.php?cid=6694&ctype=content
Final Thoughts
While companies should understand that the above strategies can't push back new capital expenditures indefinitely, they do however represent effective ways to get the best performance and value out of existing equipment and systems.
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