Intelligrated InSights
Intelligence, news and insight from Intelligrated

May 2012 Executive InSight

In his quarterly Executive InSight blog, Intelligrated CEO Chris Cole reflects on the growing demand for automation and the strength of the material handling industry in 2012. His video message also includes an update on how Intelligrated is responding to the increased need for solutions that drive productivity and accuracy. Click play to view Chris’ video blog.

Read a summary of Chris Cole’s May 2012 Executive InSight blog:

In his quarterly Executive InSight blog, Intelligrated CEO Chris Cole reflects on the growing demand for automation and the strength of the material handling industry in 2012.

“In April, the Material Handling Industry of America predicted that the industry would grow 8 to 9 percent this year,” says Chris. “This was echoed by the Conveyor Equipment Manufacturers Association, who has predicted double-digit growth in 2012. The industry is strong and getting even stronger as companies look to automation to increase productivity and improve their bottom lines.”

His video message also includes an update on how Intelligrated is responding to the increased demand for solutions that drive productivity and accuracy.

“We’re excited to help more and more companies in both the retail and manufacturing sectors become more competitive through increased productivity and accuracy in their shipments,” says Chris.

To support the increasing demand, Intelligrated continues to hire at a record pace and broke ground on a new headquarters building in Mason, OH to accommodate growing engineering, research and development and customer service teams. The company is also seeing strong growth internationally, with a new joint operation with SDI Group in Brazil and increased business in Canada.

Intelligrated Welcomes Students to Robotics Lab

In an effort to increase public awareness of the importance of robotics, Intelligrated continues to host student groups at the St. Louis-based Robotics Lab. We began this year’s tours in tandem with National Robotics Week April 7-15 to celebrate the United States as a leader in robotics’ technological development, highlight robotics’ growing significance in a wide variety of application areas, and emphasize robotics’ ability to inspire technology education.

This year’s tours began April 13 when Intelligrated welcomed mechanical, electrical, robotics and systems student groups from Washington University. Following tours of the Robotics Lab and manufacturing operations, our staff presented corporate information, showed videos, and hosted a Q&A session for the students. The visit ended up being just as enjoyable for our employees as it was for the students, thanks to all of their interesting questions.

Then, on Monday, we welcomed a group of high school students from the Netherlands to the Robotics Lab. The students are competing in the FIRST (For Inspiration and Recognition of Science and Technology) World Championship, a culmination of robotics competitions billed as “The Ultimate Sport of the Mind,” which is being held in St. Louis this week. The facility tour complimented what is referred to in the U.S. as the students’ STEM (science, technology, engineering and math) education, with most of the students on the electromechanic and industrial automation track. Students even promised to send links to the video blogs they have been working on throughout their visit to the United States–we can’t wait to see them!

Considering Robotics? Keys to Implementing a Successful Robotic Material Handling System (Part one of a four-part series)

Robotic material handling is much more commonplace in manufacturing and distribution environments than it was even just a decade ago. According to the Robotic Industries Association (RIA), robotic applications in the materials handling sector grew 30% in 2011.

Determining if robotic material handling makes sense for your operation can be a daunting task. When robots are a good fit, there are several key considerations that will help ensure a smooth and successful integration. In this four-part blog series, we will review the top four considerations to evaluate before proceeding with a robotic material handling project, as well as some real-world examples of companies who have integrated robotics into their operations.

Consideration #1: Is your application robot-friendly?
Evaluate the current process to determine if robot-based material handling makes sense:

• How will the new automation impact your existing processes (manual or automated)? For example, would robotic packing be supported by your existing fill rates? Would robotic pallet stripping improve receiving or order fulfillment operations? Are you looking at the right locations in your packaging line or distribution facility for robots?
• What is the business case for the project? This can often include more than assessing ROI. A robotic material handling implementation may impact your corporation’s competitive position, aid in process flexibility or serve as a good representation of your organization’s forward-thinking vision.
• Human or a machine? Robots provide excellent repeatability and flexibility, especially in risky, unsafe environments, where the job is better performed by a machine than a human. However, sometimes automation does not make sense for specialized product characteristics or lower rate requirements.

Case study example:

Intelligrated client Kelly-Moore Paint Company wanted to automate its palletizing operation and streamline production flow in its San Carlos, Calif. manufacturing facility. Hand palletizing products weighing up to 70 pounds and production flow inefficiencies pointed to some obvious areas needing improvement. Worker discomfort, production inefficiency, strict space limitations and rate requirements led to a solution using two robotic arms.

Only one year after implementing the robotic palletizing solution, Kelly-Moore realized a 76 percent return on investment in labor time and a drastic decrease in lost-time accidents due to an improvement in worker comfort and safety. The automated end-of-line system enables the line to run at an even pace throughout the day, as the breaks required by heavy lifting from the former manual palletizing system were eliminated. Line changeovers, which took 45 minutes of downtime with the old system, today take only nine minutes. This represents an 80 percent reduction in line changeover time.

Packaging Machinery Trends for Palletizing Systems

Last week, I came across an article by PMMI President Ben Miyares on www.foodandbeveragepackaging.com listing the packaging machinery trends to watch in 2012. His perspective got me thinking a little bit about Intelligrated’s customers and how these trends apply to their palletizing system projects. A few of the trends he discussed really hit home with what Intelligrated is seeing in the market today.

User-friendly interfaces and controls
In his article, Miyares discussed that packaging machinery is becoming more user-friendly with the inclusion of more dashboards, graphical interfaces, touch-screens and nonproprietary robotic controls. We are certainly seeing greater demand for simplified operator interfaces and the use of common control platforms in the packaging systems arena. While the additional capabilities being built into automated palletizing equipment create greater underlying complexity, the advances in human interfaces and controls empower users to do things with advanced machinery that they couldn’t necessarily do before. As a palletizing systems supplier, our goal is to provide a user friendly, highly intuitive interface to keep the complex as uncomplicated as possible

No more islands of automation
Miyares also discussed the growing trend away from isolated machinery and enhanced “machine-to-machine” communication. It is true that more information is being passed upstream and downstream between the complex machinery that makes up today’s packaging lines. As more data is shared, line monitoring and visibility is enhanced. Better data collection and sharing gives operations and maintenance the ability to zero in on problem spots and take effective, corrective action to improve line efficiency.

More remote support
Another trend Miyares highlighted in his article is a decrease in the need for on-site service calls. A growing number of Intelligrated clients are employing remote diagnostics and dashboards to reduce system downtime. Intelligrated’s “machine doctors” (as Miyares calls them) are capable of monitoring operations, diagnosing problems and often effecting repairs from a remote location at any time of day or night. That capability is further enhanced through the use of portable mobile devices and low-cost webcams that give remote support personnel visual access to the equipment.

The Rise of the WCS (It's All About Speed & Accuracy) - Part Three

This is the third and final post of my blog series about the rise of the warehouse control system (WCS), the new role of the warehouse management system (WMS) and the overall impact of automation on today’s supply chain software. In this post, I will discuss the growing importance of WCS, as well as the key attributes that make a great WCS.

As discussed in part two of this series, WMS were developed to work best in manual, labor-intensive environments and have evolved into massive systems using more and more non-real time data. This has increased overhead and delays in the real-time responsiveness and interactions required to manage today’s highly automated distribution and fulfillment centers.

In part one of this series, I discussed the continual expansion of automation to augment labor, and handle complex each picking requirements and growing consumer demands for speed and accuracy. The right blend of automation and a great WCS can create a winning combination, both operationally and financially, and help strike a successful balance between man and machine.

What makes a great WCS?

To better enhance high-speed automation, a great WCS should have the following characteristics:

• Architected and constructed from the ground up (from machine controls out) to effectively diagnose, control and maximize the material handling equipment
• Modular and configurable to accommodate growth, process/work flow changes, added functionality, new and/or adjusted automation
• Enable real-time directives to efficiently coordinate routing instructions for both automation and labor
• Provide visibility, system alarms and alerts for instant updates and operator interactions to facilitate on-the-fly work balancing on the warehouse floor
• Efficiently manage a network of subsystems including machine control, voice, labor planning and scheduling, slotting, valued added services (VAS), etc.

Enhancing the value of the WMS

A WCS expands and enhances the value of a WMS or enterprise resource planning (ERP) by exchanging information required to efficiently manage the daily operations of the facility. Moving at the speed of automation, the WCS algorithms incorporate a number of decision points within the physical flow to efficiently balance the work throughput and instantly report conditions back to the WMS/ERP. This real-time data exchange coordinates and optimizes workflows and equipment usage for greater productivity.

The Rise of the WCS (It's All About Speed & Accuracy) - Part Two

This is my second post of a three-part blog series discussing the rise of the WCS, the new role of the WMS, and the impact of automation on today’s supply chain software requirements.

As discussed in part one of this series, automation has become the core ingredient of today’s successful distribution operations, enabling the volume and accuracy levels required to stay competitive. Distribution systems must be able to react and adapt quickly to automation and human operator performance to drive physical flow and work balance throughout the entire operation. A rapid increase in the use of automation, combined with increasing pressure to achieve a faster return on this investment, has resulted in an increasing need for advanced WCS and a new role for WMS.

As a WMS old timer, I have some misgivings about assessing the current state of this software and the value it provides in today’s more highly automated distribution and fulfillment centers. I may not have been the father of WMS, but I have a long history of nurturing this software as if it were my baby. However, I see the reality that today’s fast-paced, automated distribution environment has bypassed WMS capabilities.

Where does this leave the WMS? The best way to explain the current state of the WMS is to review its history and evolution.

• In the beginning… In the beginning, warehouse systems were the back-end of an inventory, purchase and/or outbound order management system operating on a mainframe computer. This included paper-based, manual record keeping; key entering of information data; overnight report generation; and batch processing. Product moved faster through the warehouse than paper-based information, so batch generated reports were inaccurate and already outdated when reviewed by management.




• Real-time processes enabled efficiency and accuracy In the mid-80s, the new emerging mantra became “the right product at the right location with the right operator.” Real-time processes enabled the WMS to keep an instant record of the product’s physical position, the order being processed, and the location of the operator in the warehouse. This allowed the WMS to direct workers to the most efficient path, significantly increasing both efficiency and accuracy. Real-time WMS became a must-have for high-volume distribution centers. However, WMSs were leaner and faster back then (and so was I).

From the MODEX 2012 Show Floor

In a video blog from the MODEX 2012 show floor, Greg Cronin discusses trends driving an increased need for automation.

Building on Success

Monday, January 30, 2012 was an exciting day here at Intelligrated. We officially broke ground on the new 108,000-square-foot office building to expand our Mason, OH headquarters. View the video below to hear remarks from our CEO Chris Cole and City of Mason Mayor David Nichols, as well as a proclamation from Ohio Governor John R. Kasich delivered by Sherri Carbo, Southwest Ohio Regional Liaison for the Governor’s office. You’ll also see some great footage of our executive team making the first ceremonial dig.

Gearing Up for MODEX 2012

Two weeks from today, Intelligrated will exhibit at MODEX 2012, the Material Handling Industry of America’s newest expo for the manufacturing, distribution and supply chain industries held February 6-9, 2012 at Atlanta's Georgia World Congress Center.

We’re excited to participate in the event’s inaugural year and are gearing up for what is promising to be a very busy week in Atlanta.

(If you haven’t registered yet – click here to sign up!)

Intelligrated’s exhibit at MODEX 2012 (booth #2900) is focused on solutions to “keep your business moving.” As distribution, fulfillment and manufacturing operations are required to move at the speed of today’s consumer, Intelligrated focuses on solutions to help companies stay competitive. Our exhibit will feature:

• InControlWare Software Solutions: Engineered from the machine-control level up to manage both equipment and operational resources, and make decisions at the speed of automation
• Vision-guided Alvey® robotic depalletizing systems: Alternative to manually depalletizing loads containing multiple SKU sizes, and ideal for applications that present ergonomic concerns for manual handling
• IntelliSort® HS high-speed sliding shoe sorter: For high-capacity operations that demand gentle handling of a wide variety of products and throughput rates of up to 400 cartons per minute
• Real Time Solutions® Pick-to-Light Systems, including Trak3 xD™ extended display: Offers a dynamic pick face for maximum SKU density, decreased storage cost per SKU and increased picking productivity

In addition to our in-booth demos, Intelligrated will participate in five educational seminars at MODEX 2012:

January 2012 Executive InSight

In his first video blog for 2012, Intelligrated CEO Chris Cole speaks to clients and the material handling industry. His message includes reflection on 2011, an outlook for 2012 and discussion of key trends that Intelligrated foresees impacting customers and the industry. Click play to view Chris’ video blog.

Below is a summary of Chris Cole’s January 2012 Executive InSight video blog:

In his quarterly Executive InSight blog post, Intelligrated CEO Chris Cole provided an outlook for the upcoming year.

“2011 came to a close with a fairly strong holiday shopping season, and it appears that the economy is continuing to gather steam, and will stabilize and grow,” said Chris. “Growth in material handling automation demand is still very high. And companies are continuing to look for ways to increase productivity through automation. However, there is still economic concern impacting our clients and the material handling industry.”