Bauer Compressors is in its fourth year of double-digit growth -- a feat accomplished using only 9% of the parts storage space it originally needed! How did they do it? With a little help from Remstar.
Bauer Compressors manufactures high pressure compressors internationally and locally, in Norfolk, VA. The company is considered a specialist in markets such as high pressure breathing air, industrial air, plastics technology, natural gas, and inert gas compression.
Adding Part Numbers . . . and Work Cells
With nearly all of its parts stored in shelving, the parts department at Bauer Compressors was using over 100 sections of shelving, occupying a 50 x 90 ft area. With parts consuming 4,500 sq ft of warehouse space, Bauer had no room to grow the manufacturing part of the business.
"At the rate our business was growing, our inventory count was increasing daily and we were running out of places to put parts," said Joseph Stark, operations manager.
By installing three Shuttle Vertical Lift Modules (VLMs) from Remstar along with a batch picking area, the company was able to reduce the size of the parts department from 4,500 to 395 sq ft, recovering 91% of previously used floor space. Bauer then used this reclaimed floor space to add more work cells and increase the number of parts in inventory.
"Moving our parts inventory into a smaller area was a benefit, but the ability to add more manufacturing work cells in the reclaimed area was really the selling point," said Stark.
By utilizing overhead space, Bauer Compressors increased the number of parts in inventory by 50%. "To keep up with our increasing manufacturing demands it was necessary for us to increase the number of parts we had on hand," said Stark. Bauer Compressors was able to add 1,500 parts to inventory; growing from 3,000 SKUs located in the old shelving system to 4,500 SKUs located in the VLMs.
In addition to the space savings and increase in inventory, manhours were cut in half. Picking out of the old shelving system required two people, each picking only one order at a time. Using an integrated software system with the automated Shuttle VLMs, one person can do all of the order picking.
Refining the Parts Process
As in many companies, the parts department at Bauer Compressors has two types of customers: external customers, who need spare parts shipped to their location; and internal customers on the manufacturing floor, who need parts to build the compressors. Meeting the needs of both can be challenging.
The order entry department enters spare parts orders and job orders into the host ERP system (Made 2 Manage). The orders are held in queue until the parts department is ready to begin fulfillment. The ERP system is integrated with FastPic4 software, which manages the Shuttle VLMs' workzone.
The operator selects up to eight orders to be picked simultaneously, creating a batch. "Picking multiple orders at one time has increased our pick efficiency tremendously," said Gunter Rennhofer, planning manager.
The batch station has a put light indicator in front of eight positions (one for each order). The operator places a tote in front of each put light and the FastPic4 software automatically looks for SKU commonality within the batch and associates each tote with an order.
The software directs the Shuttle VLMs to retrieve the trays required. As each tray is presented in the pick window, a pick light indicates which SKU to pick and the quantity is displayed on the unit's display screen. The operator picks the required quantity out of the VLM and turns around to the batch station to distribute the product among the orders. Put lights direct the operator as to what quantity to put in each tote.
As the operator places the items in the correct order, he/she presses the task complete button in front of the tote, indicating the quantity for that order has been fulfilled. When the last task complete button is pushed for that part, the VLM immediately retrieves the next part. As the picker is picking from the first VLM, units two and three are presenting trays for the next picks. The VLMs are always one step ahead of the picker. This process is repeated until the entire batch has been picked and the totes are then routed to the manufacturing floor or to shipping.
If there is an immediate need for a part on the floor during batch pick, the operator simply does a hot pick. This pause button in the FastPic4 software will suspend the batch picking process and allow the operator to pull a part, or multiple parts, from the Shuttle VLMs. When the hot pick is completed, the operator simply continues batch picking wherever the process left off. In a fast-paced manufacturing facility it is important to be flexible and able to pick parts as needed.
Bauer Compressors has also incorporated a bagging and tagging picking process to handle quantities of small parts such as bolts, screws, washers, etc. When parts are picked from the VLM tray, a label is automatically printed with the part name and SKU number. Each part is counted, sealed in a plastic bag, and labeled before being placed in the order bin on the batch station.
"Before this system, we had part numbers handwritten on some parts and not at all on others. It made it difficult to find parts when picking an order and it was a nightmare for restocking unused or returned parts." said Stark. "Now each part is individually labeled and bagged, giving our customers clean and clearly labeled parts and giving us a more professional look."
Adding and Organizing Parts
Another dilemma the company faced was how to deal with overstock and new parts.
"Our markets are constantly growing and changing and so are our parts. When the shelving was first set up, all similar products were stored close together to make them easier to locate. The problem we found was when we needed to add another valve to our inventory there was no room by the existing valves, so the new one was stored in a separate location, making it harder to find when picking an order," Stark explains. "And when we received overstock of a part, sometimes not all of the parts would fit in the fixed location and we would have to create another location for the same part in a different area of the shelving. This gave us multiple locations for one part, making it difficult to track inventory." Multiple storage location features in FastPic4 allow parts to be stored randomly in the VLMs, making it easy to add new parts and locations and track inventory levels.
Replenishment is just as easy as order picking. FastPic4 manages the process. Pick-to-light technology directs the worker to where a new part number or overstock product should be stored. With over $1.5 million of inventory in the three Shuttle VLMs, having accurate inventory levels is important.
"We don't have to worry about similar parts being next to each other because the software tracks the inventory automatically," said Rennhofer.
Using the Shuttle VLMs to store inventory has also increased inventory security. "To operate the Shuttle VLMs, a security code is required, allowing us to limit the number of people that can access our parts inventory." said Rennhofer.
Picking Product Instead of Climbing Ladders
Picking orders from the shelving required workers to be familiar with the parts location to find them. With over 10,000 parts in inventory, training new employees was no small task. Now pick lights direct the picker to the exact location of the part so there is no guessing.
"Our accuracy level is over 99% and training new employees is much easier. After two days someone can work by themselves; no product knowledge is necessary," said Rennhofer.
With the previous shelving, once workers found the correct part, they might then have to find a ladder to get to it. "Workers were constantly in search of ladders to reach product," said Rennhofer. "We needed them to spend their time picking parts, not finding ways to reach the part." With the Shuttle VLMs parts are automatically delivered to the worker at an ergonomic level. There is no reaching, bending, or stooping when retrieving the part.
"Our main reasons for purchasing the Shuttle VLMs were storage density, improved picking speed, and greater inventory control," said Stark. "The Shuttles have given us all of that plus improved accuracy and better employee ergonomics."
