March 26, 2015 - enfasis.com...The Pareto Principle 6 ©2013 abco automation, llc 3/26/2015 History...

Data-driven Automation Design

Introduction – “The Knack”


First Law of Material Handling


We’re dealing with Engineers! How fast?

How many?

How long?

How high?

How heavy?

Six Sigma: “We measure what we value”

What do we measure?

How much comes in every day?

Maximum? Variation/stability?

How much goes out every day?

Maximum? Variation/stability?

How much stays in inventory?

How do we measure?

Pieces per day?

Lines per day?

© 2012 abco automation, llc. March 26, 2015 5

The Pareto Principle

3/26/2015 ©2013 abco automation, llc 6

History

Italian economist Vilfredo Pareto, observed in 1906 that 80% of the land in Italy was owned by 20% of the population

Business management thinker Joseph M. Juran developed the 80/20 principle and named it after Pareto by observing that 20% of the pea pods in his garden contained 80% of the peas.

Point: 20% of your SKUs make up 80% of your volume

Class SKU SKU Cumul SKU, %SKU, %

CumulLineas/ Dia

Lineas/ Dia

Cumul

Lineas/ Dia,

%

Lineas/ Dia

Cumul, % Piezas/ Dia

Piezas/ Dia

Cumul

Piezas/ Dia

%

Piezas/ Dia

Cumul, % Cu. Vel./ Dia

Cu. Vel./ Dia

Cumul

Cu.

Vel./ Dia%

Cu. Vel./ Dia

Cumul, %

Piezas por

Linea

A 13 13 2.0% 2.00% 820 820 9% 9% 52 ,350 52,350 19% 19% 3 3 6% 6% 64

B 118 131 18.0% 20.0% 4 ,440 5,260 50% 60% 134 ,275 186,625 49.6% 69.0% 10 13 19.0% 24.7% 30

C 98 229 15.0% 35.0% 1 ,740 7,000 20% 79% 48 ,590 235,215 18.0% 87.0% 5 18 9.2% 33.9% 28

D 196 425 30.0% 65.0% 1 ,360 8,360 15% 95% 31 ,049 266,264 11.5% 98.4% 32 50 62.4% 96.3% 23

E 228 653 35.0% 100.0% 460 8,820 5% 100% 4 ,228 270,492 1.6% 100.0% 2 52 3.7% 100.0% 9

Totals 653 100.00% 8 ,820 100% 270 ,492 100% 52 100%

<- Format axis interval between labels and tick marks to 13

Sorted by ABC

<- Format axis interval between labels and tick marks to 13-3.0%

2.0%

7.0%

12.0%

17.0%

22.0%

27.0%

32.0%

37.0%

42.0%

47.0%

52.0%

57.0%

62.0%

67.0%

72.0%

77.0%

82.0%

87.0%

92.0%

97.0%

102.0%

1 14

27

40

53

66

79

92

10

5

11

8

13

1

14

4

15

7

17

0

18

3

19

6

20

9

22

2

23

5

24

8

26

1

27

4

28

7

30

0

31

3

32

6

33

9

35

2

36

5

37

8

39

1

40

4

41

7

43

0

44

3

45

6

46

9

48

2

49

5

50

8

52

1

53

4

54

7

56

0

57

3

58

6

59

9

61

2

62

5

63

8

65

1

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

7,000

7,500

8,000

8,500

0%

2%

4%

6%

8%

10

%

12

%

14

%

16

%

18

%

20

%

22

%

24

%

26

%

28

%

30

%

32

%

34

%

36

%

38

%

40

%

42

%

44

%

46

%

48

%

50

%

52

%

54

%

56

%

58

%

60

%

62

%

64

%

66

%

68

%

70

%

72

%

74

%

76

%

78

%

80

%

82

%

84

%

86

%

88

%

90

%

92

%

94

%

96

%

98

%

10

0%

OL

/Dia

100%

-8,8

20

SKUs

OL

/Dia

100%

-

8,8

20

SKUs 100% - 653

Pareto Classico

March 26, 2015 © 2013 abco automation de méxico S de RL de CV 7

History

3/26/2015 ©2013 abco automationsaudi arabia 8

All operations used to be manual

In manual operations, we measure order-lines

Dematic Multi Shuttle (DMS)


Manual vs. Machine

When designing automated

systems, everything changes

Automated systems are

concerned with tub

movements

Introducing “Cubic Velocity”


The Automation Tote

© 2012 abco automation, llc.

Tote & Location Configuration

Schaefer LTF-6210 Length Width Height Cube

Outside Dim. 600 mm 400 mm 210 mm 85%

Internal Dim. 566 mm 366 mm 205 mm 36.1 l.³


CumulLineas/ Dia

Lineas/ Dia

Cumul

Lineas/ Dia,

%

Lineas/ Dia


Piezas/ Dia

Cumul

Piezas/ Dia

%

Piezas/ Dia


Cu. Vel./ Dia

Cumul

Cu.

Vel./ Dia%

Cu. Vel./ Dia

Cumul, %

Piezas por

Linea

A 13 13 2.0% 2.00% 820 820 9% 9% 52 ,350 52,350 19% 19% 3 3 6% 6% 64

B 118 131 18.0% 20.0% 4 ,440 5,260 50% 60% 134 ,275 186,625 49.6% 69.0% 10 13 19.0% 24.7% 30

C 98 229 15.0% 35.0% 1 ,740 7,000 20% 79% 48 ,590 235,215 18.0% 87.0% 5 18 9.2% 33.9% 28

D 196 425 30.0% 65.0% 1 ,360 8,360 15% 95% 31 ,049 266,264 11.5% 98.4% 32 50 62.4% 96.3% 23

E 228 653 35.0% 100.0% 460 8,820 5% 100% 4 ,228 270,492 1.6% 100.0% 2 52 3.7% 100.0% 9

Totals 653 100.00% 8 ,820 100% 270 ,492 100% 52 100%


Sorted by ABC


2.0%

7.0%

12.0%

17.0%

22.0%

27.0%

32.0%

37.0%

42.0%

47.0%

52.0%

57.0%

62.0%

67.0%

72.0%

77.0%

82.0%

87.0%

92.0%

97.0%

102.0%

1 14

27

40

53

66

79

92

10

5

11

8

13

1

14

4

15

7

17

0

18

3

19

6

20

9

22

2

23

5

24

8

26

1

27

4

28

7

30

0

31

3

32

6

33

9

35

2

36

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37

8

39

1

40

4

41

7

43

0

44

3

45

6

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9

48

2

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5

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8

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1

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4

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0

57

3

58

6

59

9

61

2

62

5

63

8

65

1

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

7,000

7,500

8,000

8,500

0%

2%

4%

6%

8%

10

%

12

%

14

%

16

%

18

%

20

%

22

%

24

%

26

%

28

%

30

%

32

%

34

%

36

%

38

%

40

%

42

%

44

%

46

%

48

%

50

%

52

%

54

%

56

%

58

%

60

%

62

%

64

%

66

%

68

%

70

%

72

%

74

%

76

%

78

%

80

%

82

%

84

%

86

%

88

%

90

%

92

%

94

%

96

%

98

%

10

0%

OL

/Dia

100%

-8,8

20

SKUs

OL

/Dia

100%

-

8,8

20

SKUs 100% - 653

Piezas Pareto Classico

(Lineas)


What if both products are right next to each other on the Pareto curve & both push 100 OL/day @ 2 pieces/line?

Significance of Cubic Velocity

How many bowling balls

would fit in this tote?

2

How many eyeliner

pencils?

Aprox. 5,115


Significance of Cubic Velocity

Bowling balls would

move 100 tubs per day

Eyeliner pencils would

have enough stock in a

single tub to cover more

than 25 days (5115/200

pcs/day)



CumulLineas/ Dia

Lineas/ Dia

Cumul

Lineas/ Dia,

%

Lineas/ Dia


Piezas/ Dia

Cumul

Piezas/ Dia

%

Piezas/ Dia


Cu. Vel./ Dia

Cumul

Cu.

Vel./ Dia%

Cu. Vel./ Dia

Cumul, %

Piezas por

Linea

A 13 13 2.0% 2.00% 820 820 9% 9% 52 ,350 52,350 19% 19% 3 3 6% 6% 64

B 118 131 18.0% 20.0% 4 ,440 5,260 50% 60% 134 ,275 186,625 49.6% 69.0% 10 13 19.0% 24.7% 30

C 98 229 15.0% 35.0% 1 ,740 7,000 20% 79% 48 ,590 235,215 18.0% 87.0% 5 18 9.2% 33.9% 28

D 196 425 30.0% 65.0% 1 ,360 8,360 15% 95% 31 ,049 266,264 11.5% 98.4% 32 50 62.4% 96.3% 23

E 228 653 35.0% 100.0% 460 8,820 5% 100% 4 ,228 270,492 1.6% 100.0% 2 52 3.7% 100.0% 9

Totals 653 100.00% 8 ,820 100% 270 ,492 100% 52 100%


Sorted by ABC


2.0%

7.0%

12.0%

17.0%

22.0%

27.0%

32.0%

37.0%

42.0%

47.0%

52.0%

57.0%

62.0%

67.0%

72.0%

77.0%

82.0%

87.0%

92.0%

97.0%

102.0%

1 14

27

40

53

66

79

92

10

5

11

8

13

1

14

4

15

7

17

0

18

3

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20

9

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2

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24

8

26

1

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7

30

0

31

3

32

6

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9

35

2

36

5

37

8

39

1

40

4

41

7

43

0

44

3

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6

46

9

48

2

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5

50

8

52

1

53

4

54

7

56

0

57

3

58

6

59

9

61

2

62

5

63

8

65

1

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

7,000

7,500

8,000

8,500

0%

2%

4%

6%

8%

10

%

12

%

14

%

16

%

18

%

20

%

22

%

24

%

26

%

28

%

30

%

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%

34

%

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%

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%

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%

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%

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%

48

%

50

%

52

%

54

%

56

%

58

%

60

%

62

%

64

%

66

%

68

%

70

%

72

%

74

%

76

%

78

%

80

%

82

%

84

%

86

%

88

%

90

%

92

%

94

%

96

%

98

%

10

0%

OL

/Dia

100%

-8,8

20

SKUs

OL

/Dia

100%

-

8,8

20

SKUs 100% - 653

Actual Customer Data


This is their Pareto curve

of their order lines

traditional view of lines

Actual Customer Data



CumulCu. Vel./ Dia

Cu. Vel./ Dia

Cumul

Cu.

Vel./ Dia,%

Cu. Vel./ Dia

Cumul, % Lineas/ Dia

Lineas/ Dia

Cumul

Lineas/ Dia

%

Lineas/ Dia


Piezas/ Dia

Cumul

Piezas/ Dia

%

Piezas/ Dia

Cumul, %

Piezas por

Linea

A 13 13 2.0% 2.00% 29 29 57% 57% 340 340 4% 4% 23 ,481 23,481 9% 9% 69

B 118 131 18.0% 20.0% 14 44 28% 85% 3 ,684 4,025 41.8% 45.6% 158 ,439 181,920 58.6% 67.3% 43

C 98 229 15.0% 35.0% 5 48 9% 93% 2 ,025 6,050 23.0% 68.6% 50 ,368 232,289 18.6% 85.9% 25

D 196 425 30.0% 65.0% 3 51 6% 99% 2 ,066 8,116 23.4% 92.0% 32 ,462 264,750 12.0% 97.9% 16

E 228 653 35.0% 100.0% 0 52 1% 100% 704 8,820 8.0% 100.0% 5 ,741 270,492 2.1% 100.0% 8

Totals 653 100.00% 52 100% 8 ,820 100% 270 ,492 100%


Sorted by ABC


-3.0%

2.0%

7.0%

12.0%

17.0%

22.0%

27.0%

32.0%

37.0%

42.0%

47.0%

52.0%

57.0%

62.0%

67.0%

72.0%

77.0%

82.0%

87.0%

92.0%

97.0%

102.0%

1 14

27

40

53

66

79

92

10

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3

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6

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9

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6

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9

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25

30

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40

45

50

0%

2%

4%

6%

8%

10

%

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%

14

%

16

%

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%

20

%

22

%

24

%

26

%

28

%

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%

32

%

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%

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%

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%

40

%

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%

44

%

46

%

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%

50

%

52

%

54

%

56

%

58

%

60

%

62

%

64

%

66

%

68

%

70

%

72

%

74

%

76

%

78

%

80

%

82

%

84

%

86

%

88

%

90

%

92

%

94

%

96

%

98

%

10

0%

Ve

locid

ad

Cu

bic

o p

or

Dia

100%

-

52 m

³

SKUs

Ve

locid

ad

Cu

bic

o p

or

Dia

100%

-

52 m

³

SKUs 100% - 653

This is their Pareto curve of their cubic velocity

Holy s@#t! 13 SKUs generate 57% of the cubic velocity!

These SKUs should not be automated

Y SKUs (16-25 Days)


Z SKUs (15 days or fewer)



Frecuencia de Picking Cajas –

Vol.

Top 20% (84 SKUs) generate 67% of the lines, 68% of the cube, and over half of the cases (2,853) per day!

Top 14 SKUs


Only 14 SKUs move more than 1 pallet per day

These SKUs would benefit from double-deep pallet flow

The remaining 70 SKUs can go in single-deep pallet locations

Pallet Locations

Only 8 SKUs require more

than 0.6 pallets per day

The other 62 SKUs may

go in B-locations based

upon use

Need to review the

receiving data to see if we

receive partial pallets for

this concept

© 2013 abco automation de méxico S de RL de CV March 26, 2015 22



Frec.

This set of SKUs (199 SKUs) generate only 6% of the lines (41), 3.9% of the cube, and 2.6% of the cases (87) per day

These SKUs should be picked with a TSP to prevent excess carton flow



Frec.

This set of SKUs (139 SKUs) generate 27% of the lines (185), 28% of the cube, and 12% of the cases (396) per day

These SKUs should be placed into carton flow-rack to compress the pick-path and SKU density



Frec.

This set of SKUs (199 SKUs) generate only 6% of the lines (41), 3.9% of the cube, and 2.6% of the cases (87) per day

These SKUs should be picked with a TSP to prevent excess carton flow


ABC-XYZ de Cajas Data Tota l % Sum % CUM X Y Z Total %X %Y %Z Total

Count SKUs 8 2 .0% 2.0% 8 0 0 8 1 .9% 0.0% 0.0% 1 .9 %

Sum OL 8 5 12 .4% 12.4% 85 0 0 8 5 12 .4% 0.0% 0.0% 1 2 .4 %

SUM Cases 9 8 5 29 .5% 29.5% 985 0 0 9 8 5 29 .5% 0.0% 0.0% 2 9 .5 %

SUM Cube 3 0 0 .9% 0.9% 30 0 0 3 0 12 .3% 0.0% 0.0% 1 2 .3 %

Count SKUs 7 6 18 .0% 20.0% 76 0 0 7 6 18 .0% 0.0% 0.0% 1 8 .0 %

Sum OL 3 7 3 54 .5% 66.9% 373 0 0 3 7 3 54 .5% 0.0% 0.0% 5 4 .5 %

SUM Cases 1 ,8 6 8 56 .0% 85.5% 1,868 0 0 1 ,8 6 8 56 .0% 0.0% 0.0% 5 6 .0 %

SUM Cube 1 3 3 4 .0% 4.0% 133 0 0 1 3 3 55 .5% 0.0% 0.0% 5 5 .5 %

Count SKUs 6 3 15 .0% 35.0% 49 13 1 6 3 11 .6% 3.1% 0.2% 1 4 .9 %

Sum OL 1 1 6 16 .9% 83.8% 92 22 2 1 1 6 13 .5% 3.2% 0.3% 1 6 .9 %

SUM Cases 2 8 1 8 .4% 93.9% 207 61 13 2 8 1 6 .2% 1.8% 0.4% 8 .4 %

SUM Cube 3 0 0 .9% 0.9% 25 4 0 3 0 10 .6% 1.6% 0.1% 1 2 .3 %

Count SKUs 1 2 7 65 .0% 85.0% 5 72 50 1 2 7 1 .2% 17.1% 11.8% 3 0 .1 %

Sum OL 9 5 13 .8% 97.7% 6 65 23 9 5 0 .9% 9.5% 3.4% 1 3 .8 %

SUM Cases 1 8 3 5 .5% 99.4% 8 120 55 1 8 3 0 .2% 3.6% 1.7% 5 .5 %

SUM Cube 4 1 1 .2% 1.2% 0 38 2 4 1 0 .1% 16.0% 1.0% 1 7 .1 %

Count SKUs 1 4 8 65 .0% 100.0% 0 0 148 1 4 8 0 .0% 0.0% 35.1% 3 5 .1 %

Sum OL 1 6 2 .3% 100.0% 0 0 16 1 6 0 .0% 0.0% 2.3% 2 .3 %

SUM Cases 1 9 0 .6% 100.0% 0 0 19 1 9 0 .0% 0.0% 0.6% 0 .6 %

SUM Cube 7 0 .2% 0.2% 0 0 7 7 0 .0% 0.0% 2.8% 2 .8 %

Total SKUs 4 2 2 138 85 199 4 2 2 32 .7% 20.1% 47.2% 1 0 0 .0 %

Total OL 6 8 3 555 87 41 6 8 3 81 .3% 12.7% 6.0% 1 0 0 .0 %

Total Cases 3 ,3 3 6 3 ,068 181 87 3 ,3 3 6 92 .0% 5.4% 2.6% 1 0 0 .0 %

SUM Cube 2 4 0 189 42 9 2 4 0 78 .5% 17.6% 3.9% 1 0 0 .0 %

A

B

C

D

E

Palle

t

Flow

TS

P

Palle

t

Flow

TS

P

Carton

Flow

Carton

Flow

ROI Tension -- SALT

pace:

Cost/sq.ft., cases/sq.ft., ability to find locations

Operational cost of travel distances, lighting, fire- suppression, HVAC, maintenance

ccuracy

Cost-per-error

Cost-per-loss

Product damage

abor

Quantity of labor / Quality of labor

Pick performance

Downstream (in-store) labor

hroughput

Order volume

Cycle-time

Range of distribution

3/26/2015 27 ©2013 abco automation, llc

Cory Flemings

VP Sales

abco automation

326 19th Street

PO Box 7

Carlstadt, NJ 07072

+1 (201) 589-1041

[email protected]


Thank you for your

interest in

abco automation

mailto:[email protected]

March 26, 2015 - enfasis.com...The Pareto Principle 6 ©2013 abco automation, llc 3/26/2015 History...

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Transcript of March 26, 2015 - enfasis.com...The Pareto Principle 6 ©2013 abco automation, llc 3/26/2015 History...