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Focus: Distribution/Materials Handling

Feature Article from Our Distribution and Materials Handling Subject Area - See All

From SCDigest's On-Target E-Magazine

Nov. 9, 2011

 
Logistics News: Logistics Companies Challenge System Automation Providers For More Comprehensive “Plug & Play” Capability?


Flexibility & Adaptability Are Keys To Adoption Of Automated Material Handling System Technologies

 

Cliff Holste, Materials Handling Editor


Although the material handling industry has implemented hundreds of successful systems that include various levels of automation, the adoption of fully automated systems, especially within distribution and order fulfillment processes, has been modest in percentage terms.

Supply Chain Digest, along with its sister publication Distribution Digest, has conducted several surveys and interviews with a broad range of logistics companies relative to the adoption of automated systems. While the interest is high, we found that many of these companies consider automated systems too complex and inflexible to adapt to rapidly changing business requirement, customer order profiles, peak volume periods, and value added services of today’s demand driven, quick response environment.

Recently, Kai Furmans and Frank Schönung of the Karlsruhe Institute of Technology, Germany, and Kevin Gue of Auburn University, produced an excellent report on the challenges of flexibility in materials handling automation ("Plug and Work Material Handling Systems"), which we will summarize below. The full report can be downloaded here.

In that report, the authors cite evidence that interest in automated materials handling system may be declining, due to some basic market forces (e.g., outsourcing), but also the result of (often accurate) user impressions that such system are too inflexible for today's dynamic environment.

User Concerns & Expectations for the Adoption of System Automation

There are many reasons automated materials handling system users often perceive these systems to be inflexible:

SCDigest Says:

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Because these new systems will not be centrally controlled, they will require new theoretical models and methods of analysis. The key to flexibility is decentralized control, which alone is able to deal with the complexity of changes in which functionality is distributed over several system layers.
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  • The economy, domestic and global, is struggling to recover from the Great Recession. Change and extreme volatility in the marketplace is expected to become the “new normal”. Given the high degree of uncertainty, future forecasts are of increasiingly little value. In this new environment, current approaches to automation are considered to be inflexible because they are time consuming and expensive to change in response to new and unforeseen requirements.

 

  • The report notes that current bolt-to-the-floor systems really are difficult to change and adapt because functionality is spread over several levels of information, electrical, and mechanical networks, all of which must be changed simultaneously to provide new functionality. This make even minor changes risky due to the domino effect.

Automated systems and processes must be able to quickly adjust or risk becoming prematurely obsolete - and today they are usually unable to do so.

Those perceptions of inflexibility aren't the only barriers to further adoption. say Gue, Furmans and Schönung.

Widespread use of distribution outsourcing to third party logistics providers (3PLs) may also be lowering demand for automated systems. These outsourcing contracts typically expire in 3 to 5 years, a time span too short to usuallly delivering a solid return on an investment in automation, especially at the shorter end of that range.

"Because the risk of a non-renewal of the contract is high and re-use of these systems is not guaranteed, buildings and equipment are often leased with short term back-to-back contracts," the report notes. "If the 3PL loses the contract, everything is returned to the lease provider."

Although in practice the 3PL often if not usually retains the contract for a longer period, they generally bear all of the risk of the investment in automation - though we have heard of examples where the client shares some of the risk.  As a result, the investment risk is often too high to justify the benefit. Plus, the 3PL has even more uncertainty about demand and volumes than the shipper itself does, because such internal forecasts usually lack some transparency to the 3PL.

In addition, 3PLs usually pride themselves on operational flexibility, and certainly also have some of the same fears about the perceived inflexibility of automated systems. They usuaully find it easier to throw manpower at the problem or take it away if demand changes, rather than being tied to a specific automation footprint and capacity.

In addition to growth in outsourcing, the report also notes that the gradual application of Lean principles to distribution is also a barrier to automation. Many practioners view Lean as incompatible with heavy automation, and automation can in fact serve as an obstable to continuous improvement/Kaizen processes that characterize Lean operations.

 

(Distribution/Materials Handling Story Continues Below )

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With what appears to be ever increasing demand and supply chain dynamics, and the perceived inflexibility, some might say the future for automated material handling systems in distribution is not bright.

The reality is, the authors says, is that the setup, adoption and usage of material handling automation must ultimately be so simple that new automated systems can compete in flexibility, adaptability, and reusability with non-automated systems.

In order to achieve this goal, the authors say, automated systems must have properties similar to those commonly found in the “Plug & Play” approach found today in most consumer electronics systems, in which components can be easily added, swapped out and reconfigured over time as technology evolves.

To achieve that level of flexibility, next generaton material handling systems must achieve the following attributes and capabilities, the authors say:

Plug & Play Design: Once the system is physically installed and commissioned, and everything is done, new components, which are equipped with quick disconnect devices, are added by simple insertion. In order to achieve high system reliability, failing components must be easily replaced, and must not require resetting the whole system. The system detects and/or predicts its own failures and then reconfigures itself after new components have been inserted.

We'll note that hile this capability has recently become available for applications involving Motor Driven Roller conveyor (MDR), it is not universally available for conventional powered belt and roller conveyors, which are in common use.

It is understood that this capability may not apply to all devices, especially those that operate on high voltage and/or draw high amperage. However, they represent a very small percentage of the 1000s of replaceable devices, components, and modules included in the typical system.

Scalability: The scope and/or physical size of the system can be easily adjusted up or down in order to adapt to changing performance requirements. The ability to start small and easily insert additional capacity as needed, and/or remove pieces of automation that are no longer needed.

Re-Configurability: The user/operators must be able to change the physical arrangement of equipment themselves, without the help of electricians or programmers. Changing the systems configuration must be possible within minutes, or at most a few hours. This would be similar to a LEGO-like building approach - long a user vision for material handling systems.

Self-Adaptability: The system should be able to adapt to changes in the patterns and quantities of the material flow. Ideally, the system would detect these changes in flow and be able to adapt itself accordingly.

We'll note here that Dematic (supplier of logistics systems for the factory, warehouse and distribution center), has recently introduced has introduced what it calls "Automatic Speed Control," a new control solution that automatically adjusts the speed of the entire sortation system from merge through the sorter take-away conveyors to accommodate actual throughput volume going through the system. Many other providers offer manually adjustable speed controls.

Modularity: The system should consist of highly independent modules and sub-systems, which supplement each other in order to perform the material handling tasks. The modules can be combined easily in order to create an integrated system. Once installed the links between the modules are established by the modules themselves.

Function Integration: Each module and/or sub-system contains all intelligence necessary to perform its task. This usually includes, but is not limited to, identifying loads to be moved and/or sorted, accumulate and/or release loads as required, recognizing the conditions of surrounding modules, and pass appropriate real-time information to surrounding modules and/or sub-systems.

Decentralized Control: The actions of the modules are controlled by their own controllers. Adjacent modules freely exchange information in real-time relative to the movement of goods. With the exception of the WMS/WCS, there is no central or master module(s) that all information must flow through.

Standardized Physical and Information Interfaces: A major obstacle for reconfiguring automated systems is the need to synchronize functionality of sensors, drives, controllers and mechanical components. Automated systems should be able to exchange information on a function-based level, thus avoiding the problem of synchronizing parts of the system. This capability is made easier today due to the existence of network communications standards such as EtherNet, Profibus, and DeviceNet networks.

Inherent Safety: Automated system functions like storage, transportation, picking and sorting must never damage goods or endanger the people around it.

Resource Efficient: Reduced energy consumption by only activating those modules that are required at any particular time.


Cost Verses Benefit

 

Such a flexible automation world sounds great, doesn't it?  But can such a flexible solution really be delivered at a reasonable costs?

"No doubt a modular/component-based, Plug & Play system is likely to be more expensive than current material handling systems because more technology is used in each module," say Gue, Furmans and Schönung. "But to dismiss the concept on the basis of cost is to miss the point that a major objection to adopting automated material handling systems is inflexibility, not high cost. Plug & Play systems offer a way to overcome this objection."

They add that there are several reasons to be optimistics that this level of system flexibility can be affordably in the near future. Those reasons include:

 

Progress in the technology of sensors, drives and controllers has made them increasingly less expensive. It is possible that economies of scale could drive the cost down enough to partially compensate for the larger number of components required for high flexibility.

Reusability of the modules and the capability to vary the number of modules used according to system demand could largely eliminate the need to oversize a system at the initial stage of deployment, as so often is the case today.

Standardization of module design and their ease of connection and activation offers real hope that the cost for the design, installation, and commissioning of these systems will drop substantially versus throughout capabilities compared to today's systems.

The cost for changes to the system in the future will decline (that's the whole point), because users no longer need suppliers to make changes, unless purchasing more or different modules is required.

Customer interface with the system will be through a combination of voice and touch screen technology. This should limit training costs up front and support costs down the road.

We'll note here that SCDigest has tackled this subect from a slightly different angle, relative to specific progress many conveyor manufacturers have made recently in improving system flexibility, in one of our Material Handling Tech Notes. See Advances in Conveyor Technology Increases System Flexibility.

Final Thoughts

The authors conclude that the "material handling industry is at the edge of potentially dramatic change in the way it designs and builds automated systems. If prices for core components of automated systems continue to fall, and if the capabilities of those components continue to increase, a new breed of highly flexible, decentralized material handling systems is possible."

Of course, there are many technical and cultural obstacles that would need to be overcome to make it a reality.

One is a very practical one that many logistics companies actively seek differentiation and advantage in their distribution operations. This makes it more difficult for providers of automated systems to develop a set of universal standards, like the consumer electronics industry was able to do, in order to provide industry wide Plug & Play capability.

The authors also say that this potential will take new thinking and research to ultimate be successful.

"Because these new systems will not be centrally controlled, they will require new theoretical models and methods of analysis. The key to flexibility is decentralized control, which alone is able to deal with the complexity of changes in which functionality is distributed over several system layers," they say.

So as long as logistics companies want their fulfillment centers to be unique, and high market volatility is the norm, material handling automation providers will be forced to continue developing more flexible and adaptable technologies that compete with non-automated solutions.

What's your take on this story on "Plug and Play" Capability? Let us know your thoughts at the Feedback button below.


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