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Lecture 7-1: Automated Storage and Retrieval Systems

Introduction
The demands on distribution, storage, and materials handling systems today have resulted in greatly increased demands on the efficient use of space, stock turnaround, order fulfillment, and error-free delivery to customers. With an efficient order fulfillment system in place, a company can:

Reduce inventory levels, Improve material flow and inventory control, Drastically reduce labor costs, Improve stock rotation, and Increase safety.

Todays storage facility no longer consists of racks and conveyors, but is a highly sophisticated automated storage and retrieval system (AS/RS) that operates with precision and synchronization, collecting materials (which can range from raw materials to final products) from within a designated area, and delivering those materials to programmed stations.

Definition and Description

An automated storage/retrieval system (AS/RS) is a combination of equipment and controls that handles, stores, and retrieves materials with precision, accuracy and speed under a defined degree of automation. Systems vary from relatively simple, manually controlled order-picking machines operating in small storage structures to giant, computer-controlled storage/retrieval systems totally integrated into the manufacturing and distribution process [MHIA (n.d.)].

Automated storage and retrieval systems are very complex computerized machines, which works as follows. With the new system in the warehouse, information identifying the incoming part(s) is keyed into the mainframe computer. A bar code label is printed and the part(s) is inspected and sent to the appropriate storage area (shelf or carousel). When the bar code label(s) is scanned, it enables the systems computer to store the parts data. The operator then places the part(s) on a scale and the system computes the quantity, by weight. Another bar code label is generated for the part(s), indicating part number, quantity, and lot number is ready for storage. The carousel controller tells the operator where to put the part(s) and updates the location and inventory status - a paperless transaction. When its time for picking, a list is generated and sent to the PC screen. The operator merely clicks the cursor on the appropriate part(s) and lot number(s) while the carousel moves to the correct row. A digital readout and indicator light guide the operator to the correct picking location. Finally, a bar code label is printed and accompanies the part(s) to production, while the inventory status is automatically updated.

History
Automated storage and retrieval systems (AS/RS) have been around since the late 1960s and used primarily in libraries. With the introduction of the Internet, "the first AS/RS combined with an online catalog was heralded as a 'pilot project' when it was introduced in 1990 at California State University at Northridge (CSUN). Librarians across the country were watching to see whether the system would suceed or fail" (Kirsch, 1999). As one might imagine. the success of the AS/RS would solve the storage problems that libraries have encountered, especially large college libraries. It is not hard to believe that the majority of automated storage and retrieval systems were first implemented in libraries around the world as the automated storage and retrieval systems can store large amounts of materials that were previously kept offsite in large storage areas. Today, automated storage and retrieval systems have become more and more popular with other types of businesses such as automakers, factories, hospitals (for medication) and other manufacturing industries.

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Lecture 7-2: Types of Automated Storage and Retrieval Systems

Automated storage and retrieval systems come in several sizes and capacities to accommodate many, different applications. Click on each of the types of ASRS to learn more.

Mini-Load System
On the lower end of the capacity scale, the mini-load system (MLS) uses a storage racking architecture and stores material in specially-designed containers or totes. The mini-load system uses a robotic arm or lift to load and retrieve the totes. The mini-load system can handle these totes with higher speed and efficiency and can store more material in less space than manual methods, thereby increasing throughput and reducing floor/storage space. Mini-load systems can normally handle a tote capacity of 100 - 500 pounds, and are 10 - 50 feet tall. Heavy-duty miniload systems can handle totes up to 1,000 pounds, and can reach over 50 feet tall. An application of the mini-load system is shown in the success story of California State University- Northridge's Oviatt Library: "A unique feature of the Oviatt Library is the Automated Storage and Retrieval System (ASRS) in the east wing. The ASRS consists of 13,260 steel bins, each 2' x 4', on a rack structure that occupies an 8000 sq. ft. room forty feet high. The ceiling of the room is at the level of the ceiling of the main floor of the Library. As shown, the bins are arranged on both sides of six aisles, each of which has a 'mini-load crane' guided by rails at top and bottom" (CSUN, 2005). "Older periodicals (all before 1990 except for a limited number of very high use titles) and books that have been used infrequently are stored in the bins. Their bar codes are mapped to their bin locations in the ASRS

computer system. Requests for retrieval of ASRS items are submitted via the Library catalog, and are transmitted electronically to the ASRS Manager, which directs the automatic crane in the appropriate aisle to deliver the bin to a pickup station on the mezzanine at main floor level. The approximate location of the book in the bin is displayed on a terminal at the pickup station, along with author, title, and bar code" (CSUN, 2005). "The last two digits of the bar code of each book were written on the top edge when it was stored, allowing the ASRS operator to find the book easily. The operator reads the bar code in the book with a light pen, to confirm that it has been picked up, and places the book, along with a delivery ticket printed by the ASRS computer, in an electric track vehicle (ETV) that carries it through the ceiling to the Circulation desk. Time from initial request to availability at the Circulation desk is under ten minutes. In the Northridge earthquake on January 17, 1994 almost 100% of the library's open shelf collection was dumped on the floor. Not one book in the ASRS was damaged. No bin was in danger of falling" (CSUN, 2005).

Lean-Lift System
Hanel USA, headquartered in Pittsburgh, PA, created what Hanel calls the "Lean-Lift System". This AS/RS has a 60% greater storage capacity than the normal MLS; faster storage and retrieval capabilities; and can hold bulky, heavier parts with optimum use of storage volume due to its height. [Hanel.USA (n.d.)] The Lean-Lift System is an improvement over the normal MLS, due to storage shelves in front and back of the lift, and the lift in the middle of the two columns operating like an elevator. (See photo depiction of the Lean-Lift System and comparison to the normal MLS shown at the left.)

Vertical Carousel System

In addition to the Lean-Lift System, companies like Hanel USA have created the vertical carousel storage system, what Hanel calls the "Rotomat System." This system is used mostly for filing, storing, and retrieving office documents such as binders, paper files, and folders, stores documents vertically instead of horizontally.

This increases storage capacity and saves floor space. This carousel (or Ferris Wheel) storage method provides quick and accurate document storage and retrieval, while retrieving the documents to an "ergonomic retrieval height". The maximum load capacity per shelf in the Rotomat System is from 331 - 1,324 pounds, but because of its vertical storage capacities the maximum load capacity per carousel system is nearly 31,000 pounds. [Hanel.USA (n.d.)] On the higher end of the capacity scale, automated storage and retrieval systems, using automated cranes and pulley systems, are most common. These systems use heavy-duty pallets and large racking structures that can exceed 100 feet. The cranes run on guide rails along the length of the rack structure, with many models using laser beams to accurately measure the distance needed to properly position the crane in front of the column where the material is being stored/retrieved.

Expanding on this technology for industrial use, companies have now created 3dimensional storage racking structures to store materials vertically and horizontally, together in the same structure. While this minimizes floor space, it also increases work flow, as the system is designed to move material to the requested location just as efficiently as it stores the material. Companies like Cisco-Eagle have developed a 3dimensional system, named "ACTIV," to meet such a need. "ACTIV is Super High Density Dynamic Storage technology that moves unit loads in a continuous flow. ACTIV assigns the unit loads into a path and subsequently through the system rather than to a static location within the system, as with conventional S/R operations" [Cisco-Eagle (n.d.)]. "ACTIV's patented technology is based on four basic components: 1. 2. 3. 4. Rack Structure, Vertical Transfer Lift (VTL), Deep Lane Transfer (DLT), and Cross-Aisle Transfer (CAT)" [Cisco-Eagle (n.d.)].

"The rack structure is a 3-dimensional rail system that can store material vertically and horizontally within the same structure. The vertical transfer lift (VTL) is a robotic lift/hoist system moves material up and down, between levels within the structure. The deep lane transfer (DLT) is a conveyor system that moves material back and forth within the rack in the structure. The cross-aisle transfer (CAT) is a conveyor system that moves material side to side, from one rack to another, within the structure" [Cisco-Eagle (n.d.)]

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Lecture 7-3: ASRS Software

These automated storage and retrieval systems are managed through the use of key pad devices or computers with AS/RS software. The AS/RS software, too, has been upgraded through the years to perform more tasks than operate the robotic components of its automated storage and retrieval system. Today, companies like RemStar and Egemin Automation have developed inventory or warehouse management software to control and report the material workflow of the AS/RS. [Remstar (n.d.)] The software is further enhanced to more effectively manage the work flow of office records AS/RS. Todays software incorporates the Microsoft Office Suite, has Crystal Reports Writer functionality, and can interface with a companys existing ERP platform such as SAP. Hanel USA has developed inventory management software that connects their AS/RS to a systems network, where employees with a designated PC with communication software can request materials from the AS/RS. The software tracks the inventory levels and usage of each material and each AS/RS, increasing the overall efficiency of the complete, networked system. (See Diagram Below) [Hanel USA. IT Systems (n.d.)]

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Lecture 7-4: ASRS Components, Purposes, and Implementation Considerations

ASRS Components
Automated storage and retrieval systems consists of three major components: (Gaither & Frazier, 2002) Click on each of the photos to reveal each component's information.

1. Computers and communication systems

2. Automated materials-handling and delivery systems.

3. Storage and retrieval systems in warehouses

ASRS Purposes
There are four main purposes for installing an automated storage and retrieval system within a company: (Gaither & Frazier, 2002) Think about each purpose listed. Once you have done that, click on each purpose to learn more. 1. Increased storage capacity.

2. Increased system capacity.

3. Reduced labor costs.

4. Improved product quality.

Implementation Considerations
ASRS implementation requires companies to consider the following: 1. Determine return on investment. "There are typically five categories of tangible justification:

Operational Savings - This includes the reduction of labor, increased product integrity due to the precision of movement and facility savings in terms of higher densitiy, lower utility costs and smaller footprints. Strategic Advantages - This includes increased visibility and efficiency throughtout the supply chain. Safety - This includes producing consistent performance in hazordous environments, such as freeezer or cooler environments, without the personnel risks. Functional Benefits - This includes 100% inventory accuracy, intellegent slotting of goods, JIT production sequencing, and time controlled storage. Security - This includes physical and logical security inherent in a secure, computer driven automated storage and retrieval system involving high value or government-regulated materials" [HK Systems (n.d.)].

The Chart below indicates a typical return on investment spread of automated storage and retrieval systems. [HK Systems (n.d.)]

2. Conducting data analysis and design research. A company's operating plan and the activites it expects the automated storage and retrieval system to accomplish helps to decide what equipment will be needed and the system layout that best works for the company. 3. Integrating equipment and control into the company's material flow strategy. "This involves selecting the appropriate input/output interface technology and balancing system throughput with your sources of supply and demand. There are several alternatives for interfacing to the automation and a few are illustrated below" [HK Systems (n.d.)].

4. Cultural adaption. Owning and operating a "justified, properly designed, and integrated AS/RS not only provides many years of high return on the company's investment, but also brings several responsibilities; a few of these newly added responsiblities are listed below.

Safety - Though such systems are designed with compliant safety features, owners and operators must subscribe to safe practices in operation and maintenance. Commitment - Reaping the rewards of an automated storage and retrieval system requires a trust in equipment repeatability and data integrity, often uncommon with typical manual alternatives. Ownership - Like any other technological asset, electromechanical systems require regular maintenance and periodic upgrades to maintain their level of performance and reliability" [HK Systems (n.d.)].

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Lecture 7-5: ASRS Benefits and Challenges

ASRS Benefits

One of the most important benefits of ASRS technology is the reduction of storage space requirements. (Boss, 2008) To put things into prespective using libraries as his example, Boss writes that: "Storage of 400,000 books and bookequivalents requires no more than 2,000 square feet of storage space as compared to 40,000 square feet of space using the conventional shelving system." (Boss, 2008) He continues by arguing that another important benefit is low operating costs, and he provides the following hard numbers: "The cost of maintaining 2,000 square feet of ASRS space with a ceiling height of 40 feet (HVAC and custodial) is approximately $16,000 per year. The custodial cost is low because the area is small and not open to the public; the HVAC cost is slightly higher because of the greater ceiling height and stricter temperature and humidity controls. In contrast, the cost of maintaining 40,000 square feet of open stacks space is approximately $60,000 per year" (Boss, 2008). Boss continues by writing that, "Maintenance of the equipment requiring 2,000 feet of space costs roughly $10,000 per year, plus an allowance of about $2,500 per year for computer replacement. In addition, an onsite technician is highly desirable, which costs over $45,000 per year, assuming 23% for fringe benefits" (2008). Boss also writes that, "An AS/RS will require at least one operator each hour the library is open. One should assume that peak activity will be at least three times the average; therefore, two or three operators will be needed during some hours. Assuming that the materials in the AS/RS have been selected on the basis of low frequency of use, it is likely that no more than 15,000 retrievals per 100,000 volumes will occur each year. In open stacks, the circulation averages can be as high as 200,000 circulations per 100,000 volume" (2008). Continuing, Boss states, "Assuming as many as 60,000 retrievals and 60,000 'rebinnings' in a year in an AS/RS collection of 400,000 volumes, it would take at least

6,500 hours of staff time to handle the workload. The actual number of hours might be somewhat higher because of peaks and valleys in the activity. If one assumes 8,000 hours, the cost for 8.0 FTE (full-time-equivalent) staff would be $88,000 per year-a figure that assumes an hourly cost of $11.00" (Boss,2008). "While the open stacks shelving itself will require very little maintenance or repair for 20 or more years, re-shelving, shelf-reading, and shifting will require a minimum 28,000 hours a year (14 FTE) at a cost of $11 an hour - a total cost of $160,000 a year" (Boss, 2008). An ASRS can help a company's bottom line; and though strart-up costs are high, ongoing operating costs are low.

ASRS Challenges
Boss argues that, "There are a number of challenges to ASRS technology, including perceived risk of investing in an unfamiliar technology, lack of "browsability", inappropriate selection, inadequate prompting, and mechanical failure" (Boss, 2008). Click on each of these challenges to learn more. 1. Perceived Risk

2. Lack of "Browsability"

3. Inappropriate (or incorrect) Selection

4. Inadequate Prompting

5. Mechanical Failure

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Lecture 7-6: Closing Remarks

Whether ASRS is used for finished products, sub-assemblies, or raw materials, someone needs to be in charge. An ASRS controller or shipping supervisor needs to coordinate efforts between production processes, the materials department, logistics, maintenance crews, and possibly quality reviews. This role includes the direct supervision of all activities related to the shipment of goods, either for use in production or to the customer. The integrity of a computerized inventory must be maintained, to ensure that the products are in their correct locations for timely delivery. In case of machinery breakdown, there needs to be a backup plan. An FMEA (failure modes and effects analysis) is necessary for an effective reaction plan. A procedure must be in place to continue picking orders in the event of a machine break-down. A team should be developed to review each of the potential machinery or procedural failures, and devise a plan to react to them. BIBLIOGRAPHY Boss, R. W. (2008, May 8). Automated Storage/Retrieval and Return/Sorting Systems. Retrieved March 2, 2009 from http://www.ala.org/ala/mgrps/divs/pla/plapublications/platechnotes/automatedrev. pdf California State University - Northridge (2005, October 28). About the Library, Automated Storage and Retrieval System. Retrieved February 23, 2008 from http://library.csun.edu/About_the_Library/asrs.html Cisco-Eagle. (n.d.). ACTIV Systems: Super High Density Dynamic Storage Technology. Retrieved February 23, 2008 from http://www.cisco-eagle.com/systems/AS%20RS%20Systems/activ/default.htm Gaither, Norman and Frazier, Greg (2002) Operations Management. (9th Ed) SouthWestern Thomas Learning. Cincinnati, OH. Operations Technologies (P. 238-239, 252-253), Supply Chain Management and E-Business (P. 444-445), Maintenance Management (P.752-754) Hanel USA. (2006).The Lean-Lift system. Retrieved February 23, 2008 from http://www.hanel.us/pc/ie/en/lean_lift/index.htm Hanel USA. (2006) The Rotomat System. Retrieved February 23, 2008 from http://www.hanel.us/pc/ie/en/rotomat/index.htm Hanel USA. (n.d.) Control and software engineering. Retrieved February 23, 2008 from http://www.hanel.us/pc/ie/en/steuerung/index.htm

HK Systems. (n.d.) Deploying an Automated Warehouse. Retrieved February 23, 2008 from http://www.hksystems.com/resources/educational/es_ASRS_may.pdf Material Handling Industry of America (n.d.). Automated Storage Retrieval Systems. Retrieved February 23, 2008 from http://www.mhia.org/psc/PSC_Products_StorageRetrieval_MemberList.cfm?seci d=48 The Leader In Automated Storage & Retrieval Solutions for Manufacturing, Distribution, Warehousing & Retail Operations. (n.d.) Remstar. Retrieved February 23, 2008 from www.remstar.com