Warehouse Management System Solutions(WMS)Success Story Siemens

Warehouse Solutions - Success Stories - Siemens

Auto Parts Manufacturer Installs Warehouse Management System, Again

Having just installed the RF Navigator warehouse management system, Siemens Automotive is starting to realize the benefits of a real-time solution versus its prior manual processes, says Wretha Schoch, team leader for the automotive parts manufacturer in Newport News, Virginia. The company expects even greater benefits when an SAP enterprise resource planning solution in installed later this year.

Prior to implementing the WMS in February, Siemens relied on an in-house WMS from 1986 to 1992, when it was replaced by a Dun & Bradstreet business system for stock location and receiving activities. At that point, all warehouse operations reverted back to a manual system, says Schoch. "The D&B system required warehouse personnel to key in a lot of data, which heightened chances for error." At the end of each day, WMS would batch orders and transmit them to the host computer system.

In 1995, Siemens decided that it wanted the functionality of a WMS back in its warehouse. Over a one-year period, the company searched for a system vendor, considering such companies as HK Systems and Applied Automation Techniques. Ultimately, Siemens selected the RF Navigator real-time WMS because it would easily interface with the D&B business system.

"Our system will interface to SAP with little impact to Siemens' operations," says Joe Updegrove, a solution center engineer. "The interface transition from the D&B system to SAP will be transparent to Siemens' material handlers in the warehouse." Siemens expects to replace the D&B system with SAP by the end of this year.

Siemens is using RF Navigator to control processes from receiving to quality control to delivering product to the production shops, says Schoch.

In the receiving area, Siemens has made some modifications to the system. It wanted the system to generate receiving labels that indicate information about the incoming part. The WMS usually doesn't require that information but this was a carry over from the prior system and a comfort factor. This functionality is now a part of RF Navigator's standard package.

During picking operations, the WMS communicates to a handheld RF device, which prompts a user to select a particular part needed on the production floor.

RF Navigator is supported by the IBM RS/6000 server, and the handheld spread spectrum RF terminals are supplied by Norand. However, HP servers and LXE RF units are also easily interfaced to the system.

Schoch says that using the system has reduced the errors associated with the manual data entry system and improved the accuracy associated with stock location. In addition, the warehouse has created a first-in/first-out (FIFO) operation with incoming inventory.

Siemens' customers are also benefiting, says Schoch. "They rely on us to help them achieve a just-in-time manufacturing environment," she says. "They want product from the warehouse when they need it, which requires us to be more accurate with the inventory levels."

In addition, Schoch says the WMS will help increase production volumes on the production floor, or at the very least, help meet current daily objectives. Siemens' auto parts are supplied to companies such as Ford and Chrysler as well as some international companies.

The system is currently being used at its main facility and at an off-site warehouse, both in Newport News, although hopefully there will be others. Schoch says, "When the new WMS came in, it was like getting a Christmas present. It has certainly lived up to our expectations."