Examine the Project with a Focus on Actual Business Needs
When considering automation, it is crucial to focus on actual business needs rather than automating for the sake of automation. Additionally, the manual operations that complement automation should also be taken into account. In fact, there are very few truly automated warehouses; most are a combination of automation and manual processes. When determining the project, a planning database should be established. Generally, factors such as the warehouse throughput, storage capacity, and the types of goods ordered over the next 3-5 years should be considered.
Conduct a Technical Evaluation to Determine the Suitability of Automation
Based on warehouse throughput and storage requirements, one can ascertain whether automation is necessary and to what extent it should be implemented.
Warehouse operations can be categorized into four levels, from low to high complexity:
Simple Manual Operations: For example, pallet stacking, shelving boxes, and picking based on paper orders.
Machine-Assisted Operations: Using lifts to send pallets to shelves or employing vertical conveyors to assist in transporting boxes.
Simple Automated Operations: For instance, using automatic cranes and basic conveyor systems in warehouses with full pallet in-and-out operations.
Complex Automated Operations: This includes light-directed picking systems, complex conveyor systems, and high-speed sorting systems.
As the complexity of warehouse operations and capacity increases, our choices will also change. For example, when the warehouse processes more than 500 orders per hour, automation operations will become a priority.
Conduct a Detailed Assessment of Equipment Performance
Once it is determined that automation is necessary, the next step is to carefully review the performance of the equipment. Each selected equipment feature can be evaluated using a simple "yes/no" checkbox. For instance, for a warehouse strictly implementing first-in, first-out (FIFO) operations, a single-deep automated storage system may suffice, and there is no need to adopt a double-deep storage system or a complex crane system. After such a detailed assessment of equipment features, it becomes justifiable to conclude which equipment can be discarded.
After this process, there may only be two or three suitable options left, which should then undergo a comprehensive cost comparison. When comparing, all relevant costs should be considered. For example, in addition to the capital investment in equipment, factors such as space occupancy, number of operators, maintenance, and upkeep should also be included.
Possible specific cost expenditures may include: rent for the space occupied by equipment, taxes, utilities (water, electricity, air conditioning), fire protection equipment, operational maintenance costs, and labor costs. Additionally, since some of these expenditures are one-time costs while others are periodic payments, it is essential to accurately assess the annual operating expenditures for each option. A prudent approach is to discount the expenses related to the warehouse automation project based on the depreciation period of the equipment and the expected rate of return, comparing the discounted cash outflows for each option, similar to a mortgage calculation.
Perform Sensitivity Analysis Based on Environmental Parameters and Unexpected Situations
By analyzing how changes in the operational environment might affect the final selected option, potential flaws in the plan can be identified. Computer simulation testing can be very useful here. For example, testing the impact of a crane malfunction in an automated storage system on overall operations can be done by simply inputting relevant parameters. In significant automation projects, this is very necessary; testing the design on a computer is straightforward, and discovering incompatibilities at the contract stage can lead to severe complications.
By gradually narrowing down the selection criteria, it is possible to consider various models of automation equipment. Only through such thorough analysis can a suitable automation system be selected.
Implementation and Installation of Automated Warehouses
Clearly, one important topic regarding implementation is how long the installation and debugging process will take. Constructing a standard warehouse and installing general equipment typically takes no more than a year. If suitable building facilities can be found, the construction period can be further shortened.
However, implementing a fully automated system requires a significant amount of time. The most time-consuming and critical step is often the development of the Warehouse Management System (WMS). One should not underestimate the time it may take and should avoid setting unrealistic deadlines. Throughout the project implementation process, ensuring compatibility between the warehouse and material handling equipment and the WMS is crucial. This coordination task begins during the initial process design and continues throughout the project implementation.
A common reason for the incompatibility between information systems and operational needs arises from the misalignment between material handling equipment and the WMS, or from not fully understanding the company's operational requirements during the design phase. Another critical point is that the warehouse layout design may differ from previous experiences. For instance, in a warehouse where forklifts are used for pallet handling, it may be acceptable to establish pedestrian pathways in aisles with adequate signage and barriers. However, it is hard to imagine having connecting pathways in an automated storage system. Consulting technical experts early in the engineering phase can effectively avoid related errors.
