February - Modern Materials Handling

EDITORIAL OFFICES225 WYMAN STREETWaltham, MA 02451(781) 734-8000ANDELonHandlingTOM ANDEL,EDITOR IN CHIEFTom AndelEditor in Chieftom.andel@reedbusiness.comNoël P. BodenburgExecutive Managing Editornoel.bodenburg@reedbusiness.comBob TrebilcockEditor at Largerobert.trebilcock@myfairpoint.netSara Pearson SpecterEditor at Largesara@moxiemarketingllc.comRoberto MichelEditor at Largerobertomichel@new.rr.comJeff BermanGroup News EditorRobert EckhardtSenior Art DirectorDaniel GuideraSenior Art Director/IllustrationNorman GrafDirector ofCreative ServicesBrian CeraoloGroup PublisherMichael LevansGroup Editorial DirectorEDITORIAL ADVISORY BOARDRon GiuntiniOEM Product-Services InstituteJohn HilleSyncSusan RiderRider & Assoc.Ken RuehrdanzDematicDr. John UsherUniversity of LouisvilleCol. Alan B. Will2d Marine Logistics GroupBrett WoodToyota Material Handling USABOSTON DIVISIONMark FinkelsteinPresidentREED BUSINESS INFORMATIONTad SmithChief Executive OfficerJohn PoulinChief Financial Officer &Executive Vice PresidentMAGAZINE SUBSCRIPTIONSFREE magazine subscriptionsavailable at:www.getFREEmag.com/MMHSend magazine subscriptioninquiries to:8878 Barrons BlvdHighlands Ranch, CO 80129-2345Phone: 303-470-4445Fax: 303-470-4280E-mail: subsmail@reedbusiness.comENEWSLETTER SUBSCRIPTIONSKeep up with the latest industrynews and resources—sign-up for ourFREE eNewsletters at:www.mmh.com/subscribe.aspThe system you can’tlive withoutFOR A MAGAZINE LIKE Modern, manufacturershave always made great copy. Butin the economic times we’re living in now,these stories are even more compelling.The Big Three and bailouts aside, mostmanufacturers have to rely on their wits, notonly to stay competitive, but to survive.This issue of Modern features the storiesof two manufacturers, each of which havecombined materials handling strategieswith amped-up customer service capabilitiesto succeed in business. Both are globaland specialize in aftermarket parts.Our cover subject, Mazak Corporation,a maker of machine tools, ships 1,000aftermarket parts orders a day, and mostare same-day. Our Modern Thinker, DonWeidendorf, on page 50 is manager of informationsystems and warehouse operationsfor Interstate McBee, which sells to dieselengine distributors and repair shops.Where these two companies differ is asinteresting as what they have in common. ForMazak, the creative mix of automated materialshandling solutions was key to achievingservice levels. For Interstate McBee, it wasthe creative selection and use of space.Mazak equipped a 45,000 square feetportion of its 500,000 square foot plant withvertical lift modules, pallet storage servicedby an automatic stacker crane, and pickto-lighttechnology, doubling its currentservice capabilities and positioning itself forthe business upturn it anticipates.Interstate McBee’s 18,000 part numbersgo through a number of different manualhandling processes to prepare for customerdelivery. Some go out as discrete parts,others are assembled into kits. Kitting isa fairly new service offering for InterstateMemberMember ofWinnerJesse H. NealCertificates of Meritfor JournalisticExcellenceMcBee, but today kits go into 40% of thecompany’s finished items. Kits require morelabor and more careful storage. That’s whythe company relies on racks and zone picking—ratherthan automation—to meet itsservice goals.“If we had vertical storage systems, wewould have to look at a new WMS,” DonWeidendorf told me. “I spent a year of mylife on nothing but this [relocation] project.For us to go to another WMS or ERPwould take another year or two of my life. Inthe meantime, the business has to operate.”But just by moving from the constraintsof their old building to a more spacious onethat was a steel plant in its previous life, andgoing from discrete order picking to zonepicking, Interstate McBee was able to meetits customers’ service requirements withoutapplying new automation.For Mazak, on the other hand, automationnot only increased its storage density,but it helped make operators significantlymore productive. Now five workers do thework that nine used to handle. They wentfrom 111 to 200 orders per day per person.And same-day shipments improved from95% to 97.5%.Yes, automated materials handling cansave a company that has the right businesscase—and the discipline to apply it. Butthe same can be said of a properly engineeredmanual system. Discipline is definedas a system of rules governing conduct oractivity. That’s the only materials handlingsystem anyone needs.mmh.com MODERN MATERIALS HANDLING / FEBRUARY 2009 7