MAKE THE DIGITAL TRANSFORMATION TO GREATER DC CONNECTIVITY€¦ · Maximum throughput Intelligent,...

T H E C O N N E C T E D

D I S T R I B U T I O N C E N T E R :

O P E R AT I O N A L A N D

B U S I N E S S E X C E L L E N C E

A C R O S S T H E E N T E R P R I S E

November 2018

MAKE THE DIGITAL TRANSFORMATION

TO GREATER DC CONNECTIVITY

Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.

1

Presenter

Eric Rice

Principal Product Marketing Manager

Honeywell Intelligrated

Eric is responsible for leading IIoT application and commercialization

at Honeywell Intelligrated, including developing pilots and growing

necessary teams for support and development. He leverages more

than 20 years of technical and management experience in the

material handling industry, with special expertise in controls, IIoT,

remote connectivity and sales enablement.

Eric earned a bachelor’s degree in electronics engineering technology

and software development from DeVry Institute of Technology.


2

E-commerce

and e-retail

DISTRIBUTION

VOLUME

ACCELERATING

at a rate of

MANUAL

OPERATION

is today’s norm for

Industry growth

OUTPACES THE

LABOR POOL

by a ratio of

A positive delivery

experience means

REPEAT BUSINESS

for80% OF D C s

S IX TO ONE

25%

A NNUA LLY

73% OF

C ONSUM ER S

THE MARKETPLACE

FOR CONNECTED DISTRIBUTION CENTER


Pace of Change in Today’s Commerce Environment Is Relentless

3

BUSINESS PRESSURESENDLESS COMPLEXITYEVER-INCREASING SPEED

• Continued acceleration of e-commerce

and e-retail order volumes

• Massive increases in mobile device

orders

• Heightened consumer expectations

for delivery and accuracy

• Increased product and package

variability

• Workforce scarcity and skill set

mismatches

• Hardware-software-sensor integrations

from component to system to operation

• Margin reduction

• Service level commitments

• Capacity constraints within existing DCs

• Geographic expansion to meet

customer demands

Maximum throughput Intelligent, data-driven, high-speed execution

Complete flexibility

Future-proof scalability

Actionable intelligence

Automated, adaptable processes for machines and workers

Optimized utilization with the ability to seamlessly adapt and expand

Insights and predictive analytics, from sensors to the cloud

Situation

Customers’

Accelerating

Requirements

Connected

Distribution

Center


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An accessible, end-to-end capability designed to drive efficiency and optimized decision

making with unparalleled visibility and agility, from a single asset to the entire enterprise

Assets

Systems

Robots

Freight

Workers

Enterprise

Third-PartyProviders

Other Distribution

Centers

WHAT IS

THE CONNECTED DISTRIBUTION CENTER?


Achieve Operational and Business Excellence via Digital Transformation

Distribution Center Overview

Pace of Change

in Today’s

Commerce

Environment Is

Relentless

• Ever-increasing Speed

• Endless Complexity

• Business Pressures

Workers

Assets Systems

• Predictive asset health and performance

• Improved information visibility and data analytics

• Productivity, safety and reduced attrition

• Scalable, configurable, extensible software

• End-to-end solutions/ improved visibility

Improve utilization;

Reduce CAPEX

spend

Increase reliability;

Reduce OPEX spend

Maximize

productivity,

consistency and

attrition

Logistics

• Package location and condition tracking

Reduce product loss

and waste

Robots

Intelligence/Analytics With Honeywell Sentience

5


Polling Question

• What main challenge are you facing in your facilities?

• Asset reliability

• System utilization

• Labor availability/productivity

6


Asset Reliability — Use Case

5

Transition to predictive maintenance model, minimizing unplanned downtime and reducing total annual maintenance cost (material and labor)

Value

Opportunity

Solution

• Reduced unplanned downtime

• Predictive maintenance, reducing reactive and preventive hours (20%/35% reduction)

• Reduced annual maintenance material spend (30% reduction annual parts spend, 20% reduction inventory value)

Data collected from

controls and edge

Maximum uptime,reduced maintenance cost

Cloud-based event/fault detection

SECURED DATA

Asset model insights

Material Labor

1

2

5

3

Automated maintenance planning

4SENSORS

CONTROL NETWORK

750k sq. ft. DC, operating 5,200 hours


Pulse – Events

6

Collaboration


Pulse – Trends

9

Increasing motor vibration Decreasing sorter rates Power consumption


Asset Sentinel

10


Asset Sentinel – Fault Tree

11


Insight – Control Panel and Ambient Conditions

12

How efficiently is the system using power?

Power infeed quality +/- 5% Amperage draw – Should not increase

Temp – worker productivity/humidity – cardboard flow and weight


Insight – Motor Temperature and Vibration

13

Vibration should be less than 0.4 IPS

Temp should be less than 150 °F


Polling Question

• Do you have a system in place today that allows you to uncover

repetitive issues?

• Yes

• No

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15

Optimize balance of system at main merge and shipping

Value

Opportunity

• Increase output by 1% = 120 more cases per hour

Utilization Improvement — Use Case 750k sq. ft. DC, operating 5,200 hours, 200 CPM rate

Solution

Data collected

from site

Maximum throughput

Cloud-based

SECURED DATA

Flow insights

1 2

5

3

Labor planning4PRODUCT & PEOPLE

MACHINE CONTROL

SECURED DATA

WES


Insight – Production Monitor

16

Total carton counts for each day Rate of cartons being sorted

Daily productivity miss on Merge Lane 2 (symptom) Constant faults on Merge Lane 2 (root cause)


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Use labor metrics to reduce warehouse attrition rates through predictive modeling of “at risk” behaviors

Value

Opportunity

• Bureau of Labor Statistics estimates annual warehouse turnover to be 40%

Employee Turnover Reduction — Use Case 400 direct labor warehouse resources

Solution

Regression model uses historical

labor metrics to determine the

likelihood a resource will quit

Additional Value Drivers

• Ramp-up productivity

of new hires is typically

2–4 weeks

• Cost of reprocessing

errors impacts turnover

cost

• HR value for succession

planning and seasonal

hiring

• Cost impacts of new

hires who turn over

quickly and are replaced

Host system provides

activity data to LMS

WES * WMS * ERP * Vocollect

Resource Time Production

LMS Data Capture

LMS calculation engine

generates labor metrics

1

2

3

4 Outputs graph of resources

grouped by risk of departure


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Deployment Stages

• Graphical UI

• Historical data capture

STAGE 1

Visualization

• Trend analysis

• Mobile alerts

• Predictive maintenance

• Optimization

STAGE 2

Insights

• Work orders and reporting

• Inventory optimization

• Labor optimization

STAGE 3

Automation Increase

Reliability

Improve

Utilization

and

Scalability

Maximize

Productivity


Polling Question

• What stage of the digital transformation is your company currently in?

• Not started

• Stage 1: Visualization

• Stage 2: Insights

• Stage 3: Automation

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CONNECTED DISTRIBUTION CENTER

END-TO-END EFFICIENCY

FROM OPERATION TO ENTERPRISE


Conveyor &

Sortation

Systems

Fulfillment

TechnologiesLifecycle

Support

Services

Operations &

Solutions

Development

Palletizing &

DepalletizingRobotic

Solutions

Software

Solutions

Connected DC

Questions?

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MAKE THE DIGITAL TRANSFORMATION TO GREATER DC CONNECTIVITY€¦ · Maximum throughput Intelligent,...

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