Materials handling logistic processes are inherently complex and are becoming more so all the time. About a year ago we released a new tool to assess a distribution centers complexity – see “Supply Chain Digest DC Complexity Calculator™”. Free to our readers, this easy to use tool provides a numerical value for comparison purposes. We will be revisiting this later this year and are planning to make a few minor changes based on input from readers and industry experts.

Highly automated systems are generally considered to be more complex than semi-automated or manual operations. As the trend towards DC automation continues, understanding operational complexity is becoming more critical. Companies should proceed with caution when applying complex solutions to an already complex process – could wind up with “complexity squared”.

Before going down that path, a company should examine all of its operational areas such as, receiving, put-away, picking, value-added services, order consolidation and shipping to determine how they can be simplified and streamlined. In addition, look for functional improvements in slotting, order batching, pick path routing, and work flow simplification.

Once all practical upgrades have been made, what remains should be stable and consistent enough to automate without the risk of overstating the associated ROI. This approach is sometimes referred to as incremental justification.

Understanding Automations Effect on Overall Operations

Automating operational processes like picking or shipping does not necessarily provide higher productivity or throughput. In fact, standalone automation may yield just the opposite effect. How does that happen?

• excessive equipment controls and/or software complexity;
• inadequate operator training;
•  ill-advised experimentation with new methods and/or technologies;
• subjective decision making based on assumptions;
• improper or overstated justification, and;
• operational inflexibility are a few of the issues that come to mind.

Simply deploying automating in the DC as a tool for productivity is not enough. This tool must be properly integrated. Operators must be instructed on its proper use. They must be taught to have faith in its ability - not to fear or suspect it. It must be properly managed and continuously maintained.

If you’re going to consider newly developed technology, then you must have a well thought out backup plan, or temporary work around that will keep your operation running while faults are being corrected. This is especially true if an experimental or prototype piece of automation is deployed in the mainline system.

Simulation & Emulation Software Helps Lower Automation Complexity and Risk

At ProMat 2011, Demo3D (www.demo3d.com) offered a set of tools to simulate materials handling systems and allow companies (usually system providers) to emulate the performance of actual control systems in a virtual automation environment.

We were impressed with the graphics as many of the visual and functional modeling properties in the last few years have come from leveraging advances in computer gaming technology. As a result there has been dramatic improvement in the realistic behavior of material handling elements within the model. According to Matt Hobson-Rohrer, a Demo3D representative, a simulation model can be quickly developed from AutoCAD layouts for most DC systems making it integral and affordable to the planning and system design process.

It is important to understand that highly automated systems are bound to be operationally disruptive to reconfigure once installed. Simulation and emulation tools make it easy for system planners to test and experiment before committing to the final design.

If your business is in anyway fashion orientated, then you know that year-to-year changes in products, customer order profiles, and value added services are normal and to be expected. In addition, many DCs have at least one or two huge peak seasons per year when they may require a large pool of temporary labor. The emulation tool can easily allow the user to see what affect these changes will have on system performance and what management and/or operational adjustments are most beneficial.

We believe that buyers of materials handling systems, especially those that are considering automation, need to factor in how different vendors are going to handle simulation and emulation. Given the advances in modeling technology that produces accurate and realistic behavioral characteristics along with reduced modeling time, cost, and ease of “what if” experimentation - modeling is a critically important tool in understanding and managing a systems operational complexity and risk.

Final Thoughts

Automating DC material handling operations is complex. Modeling tools are available that make it practical for system planners and designers to test automation designs and alternatives to insure that they “get it right the first time” thereby lowering project risk. It simply makes more sense to do this in “virtual space” instead of in the DC after the equipment has been bolted to the floor.

Agree or disagree with Holste's perspective? What would you add? Let us know your thoughts for publication in the SCDigest newsletter Feedback section, and on the website. Upon request, comments will be posted with the respondent's name or company withheld.

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