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
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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)
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