6/2/04
The
Benefits of Going Vertical
Written by:
Shana Martin, SCRC |
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Managers
in many industries are discovering the advantages
of going vertical in warehouse and production
floor storage. Vertical Lift Modules (VLMs) can
be used on production floors to store, locate
and retrieve inventory. The setup is similar across
industries. The primary components are vertically
arranged trays, an extractor platform and a series
of computer-directed controls (1). The trays of
parts and supplies move vertically within the
unit and are available for loading and unloading
at a terminal placed at a comfortable height for
workers. VLMs are providing organizations with
more floor space, greater efficiency in storage
and other functional benefits. A look at three
different companies that have installed these
systems describes some of the benefits VLMs hold
for the manufacturing process.
Hayes Manufacturing (HM)
This family-owned business is a manufacturer of
power transmission assemblies in Fife Lake, Michigan.
The company discovered that the majority of the
manufacturing area was overwhelmed with product
storage. Vice President Jim Hayes remembers that
there was a lot of wasted space on their traditional
shelving units, space that was needed in production
areas. Because the building had the advantage
of 20-foot high ceilings, HM looked for options
to utilize the extra space overhead. The VLM’s
small footprint gave back the needed room in the
assembly area. HM uses its VLM for items that
are smaller than a pallet load. HM has noted the
following improvements:
| • |
The
VLM provides double the capacity of the legacy
shelving. |
| • |
The
new system occupies 78 square feet of floor
space, compared with more than 1,000 square
feet consumed by previous shelving. |
| • |
HM
tripled the amount of space available for
assembly. |
| • |
The
institution of a First-in/First-out (FIFO)
turnover of stock is more feasible. |
| • |
Efficiency
improved because employees do not have to
know what a part looks like to search the
shelves. The computerized system has a code
assigned to each part (2). |
Thermo
Forma
Laboratory equipment manufacturer Thermo Forma
has discovered that using VLMs helps conserve
floor space at the company’s facilities in
Marietta, Ohio. Starting with one VLM unit, Thermo
Forma found that the automation for its repair
and service parts decreased the amount of time
spent by employees walking to retrieve parts.
After seeing success in the service part area,
Thermo Forma installed another VLM for items used
in manufacturing. The company observed a number
of improvements:
| • |
Time
spent picking components decreased by 25 percent. |
| • |
Floor
space increased dramatically. |
| • |
Volumes
available on the floor increased. |
| • |
Same-day
processing of repairs became possible. |
| • |
Parts
are cleaner from being stored in containers
rather than on shelves. |
| • |
The
ergonomic environment improved because workers
bend and lift less often (3). |
Givaudan
Fragrances Corporation
Givaudan Fragrances Corporation in Mount Olive,
New Jersey installed VLMs on the production floor
to minimize time spent searching for raw materials.
The plant produces fragrances for perfumes, detergents,
soaps and shampoos in quantities ranging from
a few hundred grams to thousands of kilograms.
While high-bay racks and narrow aisle lift trucks
were effective in Givaudan’s 40,000 square
foot warehouse area, this was not the best solution
for production. Installing VLMs gave Givaudan
high-density storage of raw materials and conserved
floor space. The company reports that the units
have contributed to the plant’s success in
a couple of ways:
| • |
The
units require minimal training for operation. |
| • |
VLMs
shorten the amount of time it takes to get
raw materials to production (1). |
Common Trends
All three companies accomplished two primary tasks
by instituting a VLM system. First, floor space
was increased for activities other than storage.
Second, inventory management improved. In one case,
the company found it needed fewer inventories on
hand because employees could find items more easily
using a VLM system.
These systems do have limitations. For vertical
storage to work, significant physical overhead capacity
is required. Finally, the primary use of these storage
units is for storage of smaller items. Other systems
may provide a better alternative for operations
that require large parts.
References:
(1) Trebilcock, Bob. “The Sweet Smell of
Success.” Modern Materials Handling, Dec2002,
pg. 25.
(2) Maloney, David. “No Delays for Parts
at Hayes.” Modern Materials Handling, Oct2000,
pg. 59.
(3) Maloney, David. “The Proof is in the
Storage.” Modern Materials Handling, Aug2002,
pg. 29.
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