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Destination: Production

BMW's Sequence Center assures that the right parts get to the right places at the right times.

David Maloney, Senior Editor -- Modern Materials Handling, 8/1/2003

It's not often that a warehouse has only one customer, but that is precisely the case with BMW's Sequence Center. The building is located adjacent to the company's Spartanburg, S.C. manufacturing facility and was created to feed sequenced and bulk parts from distant suppliers just-in-time to the assembly line.

Since the automaker builds the vast majority of its cars to meet customer-selected options, accurate sequencing of individual parts is crucial to manufacturing efficiencies. The process is designed so that a needed part for a particular order is sequenced exactly to match a car body just as it reaches a specific assembly station. In a typical day, 12,000 picks are made and put on 2,200 pallets for delivery to manufacturing.

The addition of the X-5 Sports Activity Vehicle and a new body shop for the Z-4 Roadster model were primary drivers for erecting the on-site facility to handle sequencing tasks. These


BMW's Sequence Center, Spartanburg, S.C.

Primary Function:
Sequences parts for production

Began Operation:
2000

Facility Size:
 250,000 square feet

Employees:
86, two shifts

Daily Throughput:
2,200 pallets


parts, from far-flung suppliers across North America and Europe, are received and then stored for just a few days before they are picked according to the sequenced build schedule. They account for nearly half of all parts fed to the assembly line, with the other half coming from local suppliers that truck parts directly to the plant.

Prior to building the new center, BMW leased warehouse space that was nearly 12 miles away. Materials handling there was primarily manual and required a large labor presence to pick and ship parts for assembly.

'We wanted to be more flexible with our sequencing and have faster access to parts,' explains Jay Tee Tucker, BMW's department manager for logistics. 'Our increased volumes also dictated the need for an on-site warehouse. We additionally sought to reduce our transportation costs.'

The new building is light on labor and heavy on automation. Some 2,200 pallet loads of parts are picked and sent by conveyor through a connecting bridge tunnel to the production plant daily. Two efficient automated storage and retrieval systems (AS/RS) provide most of the muscle for the facility.

The larger of the AS/RS systems stores pallets of fast-moving parts. Eight storage/retriev-al machines (S/RMs) working within eight aisles serve the system, which stores pallets six deep based on first-in/first-out processing. Since the system can retrieve from either adjacent aisle, up to two pallets may have to be relocated to another position to reach a pallet stored deeper in the racking. Usually about 85% of the available 17,500 locations in the system are occupied at any given time.

The other AS/RS is a mini-load that handles small cartons of medium to fast-moving items. Instead of storing products on pallets, this system holds the cartons in 23,500 trays. Five S/RMs working in five aisles pull trays with needed parts to match assembly orders. The trays are conveyed to processing stations where workers remove the required number of cartons from the tray, then return what is left to the system. About 2,500 picks are made from the mini-load each day. The picked items are batched onto a mixed pallet for transport to the assembly building.

Pallet loads selected from the storage systems take about 20 minutes to pass through the tunnel.

'Our software system flags the needed items and calculates the time needed to pick them and then the travel time through the tunnel to the line,' explains Tucker.

Lift trucks and tuggers transport items to assembly positions once they reach the manufacturing building.

Additional items in the Sequence Center are stored at floor level or in conventional pallet racks. Many of these are either slower movers or items that are too large for the automated storage systems, such as engines and body panels. Most of these items are loaded onto trucks for a short ride to the manufacturing building.

BMW still maintains a 280,000 square foot warehouse offsite, some 12 miles away, for anything that is larger than 4 x 4 feet. That facility operates manually with its products also trucked to the plant.

While BMW owns the Sequence Center building and inventory, it contracts with a third-party provider, TNT Logistics, to manage the labor within the warehouse, as well as the transportation of products between buildings and to line positions in manufacturing (see One-On-One interview, Workforce outsource)

The Ultimate Buffer System

 

 

Receiving

Incoming parts from North American suppliers arrive at one set of receiving docks (1). Another dock area (2) handles products arriving from overseas. The warehouse management software (WMS) determines the storage location for each receipt. Lift trucks gather pallet loads and take them to the assigned locations relayed through on-board terminals. Each stock keeping unit (SKU) is warehoused in only one storage area within the building at a time.

Faster moving pallets go into the automated storage and retrieval system (AS/RS) (3). Pallet loads that are too large for the automation go to conventional pallet racks (4) or are stored at floor level (5). Small items are placed into trays and sent to a separate mini-load AS/RS (6) .

The pallet load AS/RS (3) consists of eight storage/retrieval machines (S/RMs) that receive the loads on the bottom level and perform putaway within the racks of the storage unit. The racks are six deep and may be accessed from either side, which allows product to be reached even if an S/RM goes down.

The mini-load AS/RS (6) works in similar fashion, but consists of small trays to hold the parts. Up to 90% of its locations are normally occupied. Five S/RMs gather the trays and place them into the 24,000 tray locations within the system.

Other pallet loads are taken to the pallet rack area (4) and put away with reach trucks. Lift trucks deposit floor-stored loads (5) .

Picking and shipping

The enterprise resource planning system that controls plant operations and logistics calculates which parts are needed at each assembly position and how long it will take to get them there. It then signals the WMS to release the needed items.

Full pallet loads are pulled from the rack positions of the AS/RS (3) on a first-in/first-out basis. These are brought to output stations on the lower level (7) and placed automatically onto a conveyor for transport to a vertical lift. The lift raises the load to an automated conveyor mezzanine (8) where it is placed on a pallet conveyor that carries the load through a bridge tunnel (9) to the manufacturing building. Once there, another lift lowers the pallet to a distribution point where the loads are gathered by lift trucks or tuggers and taken to line-side positions.

Since the AS/RS (3) can hold pallets six deep, there are occasions when desired pallets are stored behind other products. When this occurs, the system automatically moves pallets in the forward positions to other locations until the desired pallet is accessible. The system can retrieve from either adjacent aisle, so the most that must be moved is two pallets.

Pallets may also be delivered to manual pick locations on the bottom level of the end row (10) . Workers access this bottom level and perform full carton and split carton picks onto a pallet. The pallet is then inducted onto the conveyor that feeds the vertical lift and eventually goes to the outbound tunnel.

Trays containing small cartons of parts within the mini-load AS/RS (6) are gathered by S/RMs and delivered to processing stations adjacent to the storage system (11) . Workers at the stations pick needed items out of the trays onto mixed SKU pallets that are then conveyed through the tunnel to the manufacturing facility. About 2,500 picks are performed daily from the mini-load system.

Full pallets as well as individual cartons are pulled from the pallet racks (4) using lift trucks and order pickers. On-board radio frequency data communication units receive instructions from the software to direct picking. Lift trucks select items from floor-level storage (5). Gathered loads are also inducted into the pallet conveyor for transport through the tunnel to manufacturing (9). Larger items are shipped from docks by truck to the plant (12) .

In addition to servicing the adjacent building, SKUs are also picked as repair parts for the models manufactured at Spartanburg. These are shipped to parts warehouses throughout the country (12) .

Altogether, about 12,000 picks are performed each day within the Sequence Center amounting to 2,200 pallets loads that pass through the bridge tunnel to manufacturing. A second pallet conveyor runs along the bridge in the opposite direction to return empty pallets back to the warehouse.

 

System suppliers

Design, integration, warehouse software, AS/RS systems:

Witron, 847-385-6000, www.witron.com

Labor management and transportation: TNT Logistics, 888-564-4789, www.tntlogistics.com

Conveyors: TGW, Inc., 301-698-9300, www.tgwusa.com

Lift trucks: Yale Materials Handling, 252-758-9253, www.yale.com

Order pickers: Linde Lift Truck Corp., 843-875-8000, www.lindelifttruck.com

Scanners: Symbol Technologies, 516-563-2400, www.symbol.com

Controls: Allen-Bradley, 414-382-2000, www.ab.com

 

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