Lights, Voice, Action

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Welcome Attendees! ProMat 2007 Knowledge
Center An On-Floor Theater Experience
SESSION 121
Lights, Voice, Action!
Sponsor Diamond Phoenix Corporation Speaker
Greg Chaffee
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You have a problem

• Consider a couple of recent studies
• The first involved 150 warehouses - 35 showed
  less than 10 of lines picked from split case and
  50 showed less than 20 of lines picked from
  split case.
• A second study showed that on average, warehouses
  produce 9 times more full case units per hour
  than split case. Together, these studies suggest
  many warehouses may utilize as much or more labor
  in split case picking as full case, even if split
  case only accounts for a fraction of the revenue.

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You have a problem

• We recently conducted a study for one of our
  major clients which supports the above
  contention. Less than 10 of the companys
  warehouse revenue comes from split case areas,
  yet over 55 of its order picking labor is in
  split case zones.

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You have a Choice

• Get rid of split case picking or
• Get better at split case picking

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You have a Choice

• Split case picking may be greatly improved by the
  application of paperless picking technologies.
• RF Picking
• Pick to Light
• Voice Directed Picking

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Today we will examine

• Cost
• Accuracy
• Performance
• and the application of RF, Lights, and Voice
  picking primarily in split case environments

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Fundamental Assumptions

• You are currently picking by paper
• You wish to improve your split case picking with
  technology

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Faster - Better

• Today, picking by paper, you achieve rates in the
  30-60 lines/hour range
• Today, picking by paper, you suffer too many
  picking errors
• Tomorrow you want to be faster and better

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Common Errors

• Item is not picked at all.
• Wrong item is picked. Often from wrong
  replenishment or no verification of the picker
  serving the correct location.
• Reading mistakes
• Counting wrong least likely

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Technology Solutions

• RF Picking
• Pick to Light
• Voice Directed Picking

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RF Picking

• A variety of screen based RF devices which use
  laser scanning for barcode identification.
• A pick list from the host is displayed on the
  screen.
• Devices may be handheld, wrist mounted, or truck
  mounted, etc.

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RF Picking

• Operator is directed by prompt to a location
• Operator scans barcodes to confirm correct
  location and/or product
• Operator picks and confirms quantity on the screen

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RF Picking Costs

• Typical costs for handhelds and related
  components range from 1500 to 4000 each,
  depending on environmental needs
• Typical base costs range from 35k to 75k per
  system which include survey, communications
  network, training and project services

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RF Picking Accuracy

• Accuracy to 99.5
• Inaccuracy due to quality or availability of
  barcodes
• Inaccuracy due to cheating - scanning many
  times and picking afterwards causing count or
  wrong item mistakes
• Line of sight requirements can be cumbersome

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RF Picking Productivity

• Productivity typically 50 to 100 lines per hour,
  higher rates to 200 plus in batch environments
• Productivity is limited by continual manual
  handling of the terminal, scanning functions, and
  terminal inputs
• Costs are falling on hardware, 802.11, and
  integration with RFID is advancing

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Pick to Light
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Pick to Light

• Bay Controller defines zone boundaries by
  color, indicates activity and order number,
  custom order functions and diagnostics
• Digital Display indicates activity and quantity
  to pick, special functions, including shorts,
  replenishments, and splits
• Beacon for slower items indicates activity,
  quantity is displayed serially at the bay
  controller
• Area Controller slowest items, shows order
  number, location, and quantity to pick for many
  SKUs

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Pick to Light

• Smart Carts multiple orders are picked where
  many SKUs exist with low pick rate density
• 802.11 onboard provides the location, scanning
  the location lights the cart indicating the pick
  distribution to the cart

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Pick to Light

• Frequently applied in Retail store based
  fulfillment
• Where individual SKUs are spread across multiple
  destinations, put applications may apply
• Inbound SKUs are scanned and lights indicate
  which locations and the quantity to put in each
• Other applications may include back side
  replenishment or putaway and returns processing

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Pick to Light

• Operator scans the tote, carton, or order barcode
  initiating the lights in the zone
• Lights indicate quantity to pick for the active
  order
• Confirmation by pressing the light/button at the
  display
• The tote is passed to the next active zone or
  completed

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Pick to Light

• Zone picking is the typical application
• Dynamic balancing of zones is key to high
  productivity
• Expected work and individual productivity may be
  used to define zone sizes
• Testing predictive models against anticipated
  work is provided by the pick to light software

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Pick to Light Costs

• Typical costs for each light range from 100 to
  150 each depending on the size of the system
  installed
• Typical base costs range from 50k to 150k per
  system which include engineering, software,
  server, scanners, training and project services

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Pick to Light Accuracy

• Accuracy to 99.7
• Inaccuracy due to mistakes in replenishment
• Inaccuracy due to cheating hitting task
  complete first and picking afterwards causing
  count or wrong item mistakes
• Correct pick wrong order tote in batch
• Counting error

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Pick to Light Productivity

• Productivity typically 100 to 600 lines per hour
  depending on application
• High hit density environments excel with pick to
  light due to human multi tasking
• Work balancing, slotting and system layout such
  as pick and pass or parallel picking effect
  productivity
• RFID and dynamic personnel zoning will improve
  productivity moving
• forward

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Pick by Voice
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Pick by Voice
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Pick by Voice

• Hands free, eyes free operation
• Work is transmitted from the Host to the Voice
  server and subsequently to the belt worn Voice
  terminal
• Operators are guided by voice to a location and
  respond with a location check digit(s)
• Operators are given quantity and respond with a
  verbal acknowledgement
• Item verification with UPC check digit(s) is
  optional

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Pick by Voice Cost

• Typical costs for voice terminal, headset and
  related components range from 4000 to 6000 each
  depending on environmental needs
• Typical base costs range from 75k to 175k per
  system which include survey, communications
  network, server, chargers, training and project
  services

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Pick by Voice Accuracy

• Accuracy to 99.8 plus
• Inaccuracy due to cheating confirming check
  digit of location before arriving and picking
  afterwards from the wrong location
• Inaccuracy due to operators memorizing their SKUs
  and related check digits and do not visually read
  the check digits
• Counting error

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Pick by Voice Productivity

• Productivity typically 100 to 300 lines per hour
  depending on application
• Low and High hit density environments work well
  with Voice picking
• Work balancing, slotting and system layout such
  as pick and pass or parallel picking effect
  productivity
• Productivity is limited by the serial nature of
  acknowledgements vs. looking ahead
• Hardware costs are falling as more producers
  enter the fray

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Conclusions

• Slow movers with large SKU counts and large real
  estate may best be served by RF Picking
• Medium movers with large SKU counts and large
  real estate may best be served by Voice Picking
  or Light Picking on a Smart Cart
• Fast movers with high density may best be served
  by Pick to Light
• No technology with human picking will currently
  out perform Pick to Light in
• close quarters

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Conclusions

• Broader applications with RF and Voice for
  receiving, putaway, etc. enhance the value for
  these technologies making them easier to justify
• RF low cost flexible low productivity
• Lights less flexible highest productivity
• Voice high cost flexible - accurate

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Conclusions

• Questions?

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Want More Information?

• Greg Chaffee gchaffee_at_diamondphoenix.com
• Home Page www.diamondphoenix.com
• Visit Diamond Phoenix Corporation
• Booth 3631