1. Material Handling Control System Software
Extends Supply Chain Visibility
BY SAL SPADA NOVEMBER 15, 2001 ARC INSIGHTS# 2001-051MD
KEYWORDS:
Material Handling
SUMMARY:
Optimization of the sourcing, manufacturing, and delivery of goods remains a viable
opportunity for businesses to improve profitability. Consequently, a greater emphasis is
on synchronization of the supply chain with customers and suppliers by improving the
supply chain visibility. Material handling systems are the underlying infrastructure for
execution in the supply chain. Consequently, these systems are under
Material handling systems are pressure to deliver six-sigma performance. Designing a material han-
the underlying infrastructure for dling system to achieve six-sigma can be a significant challenge as
execution in the supply chain.
many systems must be capable of functioning with dramatic swings in
demand, reduction in staff, and a wide range of package sizes.
ANALYSIS:
Material handling systems have taken on greater importance because of the greater focus
on supply chain visibility. Optimizing the supply chain provides many opportunities to
improve profitability. Emphasizing the sourcing, manufacturing, and delivery of goods
without creating the infrastructure that provides visibility throughout all tiers of the
supply chain leads to the inability to execute. To be effective, extending supply chain
visibility depends upon a greater reach of information on inventory in transit, work in
process, and inventory in warehouses and distribution centers. Developing a set of met-
rics for each element of the supply chain function is an absolute imperative in gauging
the performance of the operation as a whole. An overall metric is Perfect Order Fulfill-
ment, which depends on several key factors where products are manufactured to
specification, delivered on time, undamaged, in the right quantity, with no unauthorized
substitution, and billed correctly.
Achieving six-sigma performance on Perfect Order Fulfillment forces companies to reach
into every element of the business process at all phases of the operation. Material han-
dling systems in the manufacturing, distribution centers, parcel handling, and third
party logistics are considered key factors in achieving six-sigma performance. Specifi-
cally, manufacturing plants are under pressure to improve operating effectiveness,
which is measured by factors such as production quality, turnaround time, capability to
ENTERPRISE AND AUTOMATION STRATEGIES FOR INDUSTRY EXECUTIVES

2. ARC Insights, Page 2
customize, and responsiveness to smaller orders. Over the last ten years, manufacturers
have infused more automation in the factories to implement agile manufacturing tech-
niques and implement electronic design techniques. Manufacturers have leveraged
automated material handling systems to route work in process between each stage of the
manufacturing operation to improve operating effectiveness. Automated material han-
dling solutions on the factory floor offer the ability to extend the reach of the supply
chain.
Material Handling Systems under Pressure
Material handling systems are under pressure to deliver six-sigma performance. Design-
ing a material handling system to achieve this, however, can be a significant challenge,
as many systems must be capable of functioning with dramatic swings in demand, re-
duction in staff, and a wide range of package sizes. This translates into more intelligent
and agile material handling systems. Without the underlying infrastructure of intelli-
gent, information rich material handling system solution, a higher-level business system
such as a Supply Chain Execution (SCE) system, Collaborative Production Management
Solution (CPM), and Warehouse Management Systems (WMS) cannot accurately make
decisions to achieve the goals of the business. SCE, CPM and WMS are an integral part
of the operational planning
and scheduling while highly
Enterprise Systems dependent upon the capabili-
ties of the MCS software
Warehouse solutions. As a result, Mate-
Database Management Material Handling Control System rial Handling Control System
System
(MCS) software must be con-
sidered a part of a larger
Sorters
Transport Tracking
Robotics group of Supply Chain Man-
Systems Sensors
agement (SCM) solutions or
Material Handling Control System Software Architectures manufacturing solutions.
Uniform Interfaces Provided to a Broad Range of Equipment
MCS software provides a uniform interface to broad range of material handling equip-
ment from numerous equipment suppliers. These systems provide shop floor personnel
with instructions on what to do next and often direct the manner in which a job is com-
pleted. For managers, these systems track work-in-process, provide real-time visibility
of what is currently happening, and produce a historical record or audit trail. End users
are seeking to reduce the training time of operators, reduce the maintenance costs, and
minimize the transport time of individual items being routed with MCS software solu-
tions. MCS software provides at minimum the following distinct functions:
© 2001 • ARC Advisory Group • 3 Allied Drive • Dedham, MA 02026 USA • 781-471-1000 • ARCweb.com
USA • UK • Germany • Japan • India

3. ARC Insights, Page 3
• Equipment Manager: Integrates the automated material handling subsystems into a
single efficient transport system.
• Visualization: Graphical interface for system monitoring and a control tool to over-
ride routings.
• Maintenance: Provides an early warning maintenance system as well as managing
scheduled maintenance activities
• Routing: Material flow manager optimizing the transport of parcels, packages, and
inventory for a system. In manufacturing or assembly operations the application
routes work in process throughout the production process.
• Exception Handling: A uniform error handling procedure is employed across all
subsystems regardless of the manufacturer.
MCS software solutions are found in material handling systems located in manufactur-
ing plants, distribution centers, warehouses, and parcel handling centers. Managing the
equipment in these facilities requires sophisticated software that is capable of communi-
cating directly to conveyors, sortation equipment, Automatic Guided Vehicles, and,
Automated Storage & Retrieval Systems, and robots.
MCS Raises Material Handling Solution Efficiency
A key metric for a material handling solution is maximum throughput, which is depend-
ent on consistent, reliable material movement using the most efficient path. For
automated warehouses and manufacturing plants, ensuring a high level of efficiency re-
volves around selecting and integrating a proven MCS software solution. MCS software
can radically improve material handling implementation efficiencies as operators remain
well informed about maintenance issues, congested stations, and rapidly identify areas
of poor performance. A basic MCS solution increases efficiency in receiving, routing
work in process, put-away, picking, packing, and shipping. It allows higher-level WMS
or CPM software to accurately track inventory or work in process in a manufacturing
facility. The control capabilities of MCS software provide data gathering for later analy-
sis and reporting to facilitate continuing operational efficiencies.
MCS Software Solutions Seek Maturity
The market for MCS software is relatively immature in terms of functionality. Most ma-
terial handling suppliers have several variants of MCS software for specific niche market
segments. Currently, every effort is being made to incorporate a standard look and feel
between suppliers or even systems from one application domain to the next. A large
percentage of the MCS software installed at different sites is custom designed for the end
user according to their specifications. It is rare that a material-handling supplier can
quote a project based on off the shelf component software solutions, since many end us-
© 2001 • ARC Advisory Group • 3 Allied Drive • Dedham, MA 02026 USA • 781-471-1000 • ARCweb.com
USA • UK • Germany • Japan • India

4. ARC Insights, Page 4
ers are demanding customized software solutions
Company Software Applications
that can give them a competitive advantage. De-
Automotion Conveyors Automotion Sorter Controller
spite the lack of consistency between MCS
Brooks Automation ClassMCS, OpenMTS solutions, there is a minimum set of functionality
Dexion Material Handling Conveyor expected in these types of systems. A material han-
System Software dling application is a complex system composed of
Durr Basis, EMOS-SM numerous subsystems. To efficiently manage these
Eskay (Daifuku) Real-Time System subsystems requires a plant wide monitoring and
control systems, MCS.
FKI Logistex BOSS, Answer
Flexlink Dynamic Assembly Systems,
Assembly Flow Management Supply Chain Visibility
SCM software solutions, internal business practices,
HK Systems IristaAutomate
and tightly managed trading partner relationships
Jervis B. Webb PC/AIM, BASIS, Webb-View,
Reel-View allow a company to serve customers more effi-
ciently by organizing and coordinating internal and
Paragon Technologies Gantry Sorter, Command
Systems Software partner activities. Manufacturers, however, are in
PRI Automation
the middle of this tremendous effort to improve
profitability. Intelligent and information enabled
Siemens Dematic Sorter Control System, Pick
Director, Rapid Sort, Rapid material handling systems are the foundation be-
Route hind achieving these goals. Optimal performance
Swiss Log Automation Manager, Auto- depends on seamless communication from top to
mation Visualizer bottom of the business, enabling rapid response to
Material Handling Control System Software Solutions equipment repairs and autonomous, information
rich subsystems that facilitate collaboration
throughout all tiers of the business.
RECOMMENDATIONS:
• End users should seek to information enable plant with greater emphasis on Material
Handling Control Systems.
• Strive to create industry standard interfaces between Material Handling Control Sys-
tem the higher level business systems.
For further information, contact your account manager or the author at sspada@arcweb.com.
Recommended circulation: All MAS-D clients.
© 2001 • ARC Advisory Group • 3 Allied Drive • Dedham, MA 02026 USA • 781-471-1000 • ARCweb.com
USA • UK • Germany • Japan • India