Best Practices: 7 sanity-preserving tips for successful system upgrades

Modern assembled this checklist of seven best practices to keep your modernization project on track and your sanity intact.

By Sara Pearson Specter, Editor at Large -- Modern Materials Handling, 5/1/2009

Thinking of upgrading your facility's equipment or software system while continuing to operate? Nervous about potential disruptions that could jeopardize your current productivity? It's enough to drive a warehouse manager crazy, but don't get fitted for that straightjacket quite yet.

Such anxieties are completely understandable, says Paul Faber, principal at Tompkins Associates (800-789-1257, www.tompkinsinc.com). "There's nothing quite so skittish as an operations manager right before a cut-in."

Modern talked to experts from five different companies—from systems integrators to OEMs—and assembled this checklist of seven best practices to keep your modernization project on track and your sanity intact.

1 Plan every detail

While it may seem obvious, planning a system upgrade should include a multitude of components—not all of which immediately jump to mind.

First, consider seasonality. "If a company regularly schedules a holiday—like the week between Christmas and New Year's—then do the upgrade then," suggests Steve Brandt, director of business development and customer service for Dematic (877-725-7500, www.dematic.us). "Also pick a holiday far in advance of your busy time. For example, retailers are very busy October through December, so to do a major upgrade the last week of September is probably not a good idea."

Once you've determined when, then plan each day of the upgrade from a task perspective and a facility perspective. "Eventually you get down to a block diagram that shows day by day what the building is going to look like as you make this transition," says Ron Grove, vice president of TZA Consulting (800-229-3450, www.tzaconsulting.com).

"Often people don't take into account how much staging space they need for new equipment before it gets installed," Grove adds. "Work with the suppliers to coordinate the inbound equipment shipments and be sure you have enough space to put it while you continue operating your building."

Before diving headfirst into a system upgrade, be sure to plan every move,
considering timeframe, tasks, seasonality and facility constraints.

2 Select an experienced vendor

Whether you intend to project manage the upgrade process internally or not, you'll likely bring in an outside resource to help plan and execute the project. When evaluating a potential consultant, systems integrator, or supplier, several key questions are important to ask prior to signing any contracts, says Burke McCarthy, director of marketing and system sales for Retrotech (585-924-6333, www.retrotech.com).

"Does the company have a track record of sustained success or a specialization in upgrades? How many projects have they done? Do they use certified project managers? Do they finish projects on-time and under budget? And do they have high customer retention? These are all important considerations when selecting a company for a modernization project," says McCarthy.

Also, make sure the potential vendor offers expertise that matches your unique operating circumstances, adds Andrew Gill, manager of modernizations, enhancements, and project operations for Dematic.

"If I'm running a freezer operation and the vendor in front of me has never worked in a freezer before, they may not understand the implications, such as things take a lot longer than working in a regular temperate environment," says Gill.

3 Communicate internally and externally

Of course, operations and maintenance will be heavily involved in any facility upgrade. But don't neglect to advise the rest of the organization before jumping into the project, cautions TZA's Grove.

"For example, customer service should be aware that it's happening so if they start getting a lot of calls about late orders or picking errors they can share that feedback so the issue can be addressed quickly," he says. "Also purchasing should be instructed not to take advantage of opportunistic buys for truckloads of products you may not have room for while conducting the upgrades."

Additionally, Grove recommends that managers examine both inventory and activity levels within the building where the retrofit is to take place.

"If you have a multiple DC network, in the weeks prior to the upgrade you may be able to draw down the inventory from that building by diverting some receipts to other nearby facilities," he says. "Also, look at servicing some customers out of different DCs to reduce the volume in this building during the transition."

While in the thick of the retrofit, keep communicating with the vendor. It's important to be informed, whether the news is good or bad. "This ensures that everyone is focused on what is required. Nothing should be a surprise," says Dematic's Gill.

An experienced vendor is a must when approaching a retrofit project,
whether you intend to manage the project internally or delegate the entire undertaking.

4 Allot time for testing before installation

Not building in time to troubleshoot and test before tackling a project can be a big mistake, says Ken Johnson, vice president of modernization sales for HK Systems (800-424-7365, www.hksystems.com).

"Emulation reduces the risks—especially with electrical controls for conveyor systems, or upgrades for storage and retrieval machines," Johnson says. "Emulation is similar to simulation, but uses the actual PLC code and makes it look like loads are moving, photoeyes are seeing the loads, and limit switches are popping up and down for transfers."

While Johnson concedes that testing can add additional upfront time to the process, he maintains that it saves time in the long run, particularly with software upgrades. "We encourage a company to bring both the floor operators who use the software and the computer people to participate in a factory acceptance demo test running the emulators before we even go to a site."

The test shows how the system operates, and offers a chance for both customer and vendor to redefine functions to better meet operational needs.

"It's easy to do before you go into the field, otherwise you pay additional expenses on site and you may not get adequate testing time on the floor," adds Johnson. "If your first opportunity to test the system is with the real equipment and if it doesn't work, then you have to shut down everything. The more testing you can do before you go into the field the better."

5 Have a backup strategy

You've planned. You've tested. And something didn't turn out as expected. That's why you need a contingency plan, whether the upgrade is hardware or software.

"For equipment, leave the old system sitting there while installing the new so that if the new doesn't work you can switch right back," says HK Systems' Johnson.

Ditto for control software, according to Tompkins' Faber, "Know what your backout plan is for any changes if things aren't going well, and have operational workarounds planned. For example, how are you going to continue to ship orders if the new system doesn't work?"

A typical set of contingency scenarios might include planning for temporary labor, manual scanning or a return to the previous software. "You hope you never have to use one of those contingency plans, but you'll be glad to have them in case disaster strikes," says Faber.

Building in time to troubleshoot and test your new system through emulation
software will reduce the potential for problems during the upgrade, particularly with software upgrades.

6 Establish a point of no return

As you're preparing to do an upgrade, build into your schedule some go/no-go decision points where the team members convene to review and assess readiness to continue on to the next step, says Tompkins' Faber.

"It could be a functional test, a schedule milestone, or product available for shipment," he says. "If you thought you would get the system turned over at 6:00 p.m. and it's now midnight and you still aren't ready, ask yourself if there's still enough time to get it done? That should be an integrator-vendor-client joint discussion."

Further, adds TZA Consulting's Grove, know what you're going to do if you get to the point of no return and things aren't going as planned.

"Have to have the courage to stand up and say that something's not right," Grove says. "Sometimes the right thing to do is to delay the transition for a week to get something fixed or resolve an issue that's not functioning the exact way you want."

7 Train before, during and after installation

To ensure a swift conversion from the old software or equipment to the new, take every opportunity to train your people along the way.

Training is a huge component with all the technologies, says Dematic's Brandt. "Some of the real successes involve maintenance staff joining the installation team so they can learn from commissioning it with them and see exactly what they're doing," he says. "That time investment produces long-term ownership for the company, and enables maintenance to troubleshoot more quickly and effectively."

Applicable to equipment and software, it's important for both the operations and maintenance staff to understand how everything connects together as well as any issues that may arise in their operations, Brandt adds.

While on-site, consider downloading the new software onto a separate computer, so those who work in the warehouse and interface with the system can become familiar with it while your integrator executes the upgrade project, says Retrotech's McCartney. "If training time and cost are an issue, then ease of use should rank high among system requirements, because it reduces the need for training."

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