Manufacturer stores more by going vertical

Vertical lift modules reduce storage footprint, allow manufacturing expansion.

By Staff -- Modern Materials Handling, 10/2/2006

Bauer Compressors had enjoyed four straight years of double digit growth. That said, the company recently increased its parts inventory by 50%, while reducing the overall floor-space dedicated to storage by 91%.

How did Bauer do it? By installing three vertical lift modules (VLMs) and building a batch-picking area. Bauer now uses overhead space and has been able to rededicate the floor space formerly used for parts storage to work cells for manufacturing. If that were not enough, the new system has increased pick accuracy while cutting labor hours in half.

Bauer Compressors has been designing and building compressors and purification systems internationally for 50 years. But the 4,500 square feet of warehouse space being consumed by the 100 sections of shelving in its Norfolk, Va., plant left little space for more manufacturing.

"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, Bauer's operations manager. "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 the real selling point."

When parts department operators enter orders into Bauer's enterprise resource planning (ERP) system, the software puts the requests in a queue and allows workers to pick up to eight orders at a time in one batch. The software directs the VLMs to retrieve each required tray. As the operator picks each part—identified by light indicators and quantified on a display—the other two VLMs are already working on selecting the next trays.

The ERP system also allows operators to suspend batch-picking and enter a hot pick if there is an immediate need for a particular part on the floor before continuing with the rest of the batch. Bauer's new system also seals small parts in bags, prints labels and improves security by requiring codes to access parts.

For managers at Bauer, while reducing floor space needed for spare parts was the primary objective behind the VLMs, the increased speed, accuracy and efficiency of picking has almost been as valuable.

"Picking multiple orders at one time has increased our pick efficiency tremendously," said Bauer planning manager Gunter Rennhofer. "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."

Remstar International 207-854-1861 www.remstar.com