Evaluating Usage of Automated Guided Vehicles with Respect to Warehouse Layout Changes: A Case Study at Haldex Brake Products

Abstract

Warehouse operations are considered a key aspect to the success of a supply chain. They are not only costly to the supply chain but they also affect the flow of material both upstream and downstream. Warehouse improvement measures play therefore a considerable role in decreasing cost and lead time by improving material flows. To increase the efficiency of material flows and aiming to reduce labor dedicated to traveling, automated material handling is seen as a key solution. In this regard, production warehouses especially, such as Haldex warehouse in Landskrona seek to invest in Automated Guided Vehicles (AGVs). In light of increased customer demand, Haldex is planning to upgrade its production capacity. The purpose of this study is to evaluate the usage of AGVs with respect to warehouse operations and layout changes. The objectives span from understanding how the layout changes affect material flows, to the evaluation of which flows should be covered by AGVs and finally determining the number of AGVs needed to support the flows. The research is carried out at the selected case company, Haldex Brakes.

The research has shown that as warehouse layout changes, so will the material flows. The increase in customer demand, without adding new storage locations also means that the existing material flows to and from manufacturing processes will become more frequent. The changes in flows were evaluated for AGV suitability based on a set of criteria: suitable storage equipment, distance of the flow, and the level of congestion risk. Based on the criteria, two scenarios were presented. The first scenario is the implementation of three flows which met most the criteria. The second scenario is suggesting flows that can be implemented, following minor changes in the future layout. The number of AGVs needed at Haldex was determined with respect to both scenarios.

To further improve the quality of this research and to develop the topic of automated material flows, it is suggested to perform simulations of the results and how the implementation of AGVs should be carried out. Due to limitations of time and resources, these aspects are not considered in this study.

Popular Abstract

Nowadays, companies are looking for new ways to improve the way they operate. Automation of operations has not only gained popularity but also credit for that purpose. Early uses of automation were destined for manufacturing activities, however, the latest trend has been to use them for logistics operations such as warehousing. An example that can be known to many is robots used by Amazon as part of the latest trends in warehousing. The automotive industry is also a heavy user of automation in material handling. Haldex Brake Products is one Swedish company that is aiming at fully automating their warehouse operations in the near future. In 2013, this brake company acquired two automated guided vehicles (AGV). The aim was to increase productivity in moving materials but also reducing labor costs that are associated with repetitive movements like loading, unloading and travelling.

In addition to their goals of automation, the company has been facing sustained customer growth and thereby increasing their manufacturing capacities. Due to the many changes in layout and processes resulting from the capacity upgrade, the appropriate use of AGVs have to be redefined. The objectives of this study span from understanding how these changes affect material flows, to the evaluation of which flows should be covered by AGVs and finally determining the number of AGVs needed to support the flows. The findings are aimed at providing direction to Haldex as well as similar companies especially production warehouses.

The research has shown that as warehouse layout changes, so will the material flows. For example, the increase in production capacity without adding new storage locations means that material transportation will become more frequent. The new flows were evaluated for AGV suitability based on a set of criteria: suitable storage equipment, distance of the flow, and the level of congestion risk. Based on the criteria, two scenarios were presented. The first scenario is the implementation of three flows which met most the criteria. The second scenario is suggesting flows that can be implemented, following minor changes in the future layout. The number of AGVs needed at Haldex was determined with respect to both scenarios.

Although benefits of AGVs are clear and proven, decisions such as the number of AGVs needed is a complex factor that existing literature is struggling to cover. An approximation of number of AGVs can be determined with mathematical models but simulation is a needed to validate the findings. To further improve the quality of this research and to confirm the findings, it is suggested to perform simulation as a tool to verify the results as well as define how the implementation of AGVs should be carried out.

• author: Jabrane, Zineb and Borgemo, Ebba
• supervisor: Joakim Kembro
• organization: Engineering Logistics
• course: MTTM02 20181
• year: 2018
• type: H2 - Master's Degree (Two Years)
• subject: Technology and Engineering
• keywords: Warehouse operations, warehouse design, warehousing, material flow, automated material handling, and automated guided vehicle (AGV)
• report number: 5862
• language: English
• id: 8951495
• date added to LUP: 2018-06-20 13:56:34
• date last changed: 2018-06-20 13:56:34