Tag: A.I.

OM in the News: Post-Pandemic Supply Chains and Automation

A U.S.-based engineer working from home uses  software to examine a manufacturing line in China.

Factories around the world are turning to technology to help them safely open back up after being shut down by the coronavirus pandemic, reports The Wall  Street Journal (June 15, 2020). Software, sensors, robotics and A.I. tools that make it easier for workers to keep their distance in factories and let engineers monitor and fix problems remotely have surged in demand. “Covid has really been the catalyst for the adoption of software solutions to automate workflows and make it more efficient when you have less people around doing things,” said one industry expert.

Manufacturers are focusing on using software to dynamically change assembly lines. And they are using A.I. to remotely do quality inspections in real-time. For U.S. electronics manufacturers, mistakes, defects and wasted time add up to 25% of  costs and often require engineers from the U.S. to visit factories in China to fix problems. A.I. systems can scan images of every product produced on an assembly line to identify anomalies and defects. Engineers can then analyze and fix them remotely.

One Calif. food manufacturer remained open during the pandemic by using enterprise resource planning (ERP) software to remotely manage its manufacturing, supply chain and finances, letting 30% of its employees work from home. Meanwhile, technology is helping manufacturers deal with disruption to global supply chains stemming from factory shutdowns. Clear Metal, in San Francisco, has proprietary data from sources such as satellite data, shipping ports and trucking companies, along with A.I. that can predict problems in supply chains and help companies change shipping methods or suppliers in real-time.

And of course, supply-chain problems caused by factories closing in China have caused companies to look to move manufacturing closer to home. The only way to do that is automation, with factories closer to customers. Previously, automation was only used by large factories with budgets of millions of dollars with long production cycles. But automated assembly lines are now available for use in smaller spaces than large factories, with one machine doing the work of 3 people at a fraction of the cost.

Classroom discussion questions:

  1. How can technology help improve OM?
  2. Why is automation important in reshoring?

OM in the News: Will Robots Will Soon Rule the Warehouse?

Tracking the progress of the today’s orders at Southern Glazer’s.

Right in the center of Florida, in the city of Lakeland, lay some of the most technologically sophisticated distribution centers in the country, writes The Wall Street Journal (Feb. 9-10, 2019). You’ll find operations from Amazon, DHL (for Ikea), Walmart , Rooms to Go, Medline and Publix, along with a huge Geico call center, the world’s largest liquor distribution warehouse, and numerous local factories.

Some experts are arguing that the economic good times for Lakeland could rapidly come to an end. Brookings Institution placed it third on its list of metros that are most at risk of losing jobs because of the very same automation and A.I. that make its factories, warehouses and offices so productive.

To understand what’s going on in Lakeland, we look at Southern Glazer’s Wine & Spirits, the world’s biggest alcoholic-beverage distributor, and its highly automated 1.3-million-square-foot facility which ships out 85,000-90,000 cases/day. Like many other distributors in the area, Southern Glazer’s chose Lakeland because land is cheap, highways are readily accessible and wages are low. The facility employs 368 warehouse workers. As in automated warehouses the world over, humans do only the jobs that machines can’t—either knowledge work like managing the overall system or physical tasks that require a combination of delicacy, speed and visual acuity. All of the heavy lifting—from placing 2,500-pound pallets into 5-story shelving systems to conveying individual crates throughout the warehouse—is done by machines.

In many ways, the Lakeland warehouse represents a triumph of engineering. Ten years ago, Southern Glazer’s operated 5 warehouses in Florida. It consolidated them all into one thanks to automation–which meant layoffs of almost 20% of the workforce. With automation, though, workers use their brains more, managing the flow of goods through systems and adapting them as consumer demand changes. This has led to much lower turnover. Over the long run, there’s no evidence that automation reduces the number of jobs. Indeed, countries that automate the fastest appear to also grow their economies the fastest.

Classroom discussion questions:

  1. Will we soon see a “light’s out” warehouse?
  2. What functions are hard to automate at a distribution center?

OM in the News: Food Delivered by Robots at GMU

GMU’s robots deliver meals to students and faculty via an app

At most universities, meal plans allow college students to take advantage of on-campus cafeterias or chow down at local restaurants. Now, writes The Washington Post (Jan. 22, 2019), thousands of students at George Mason University will have another dining option at their disposal: on-demand food delivery via an autonomous robot on wheels. The school has a fleet of 25 Starship Technology delivery robots that can haul up to 20 pounds each as they roll across campus at 4 mph. Robots make deliveries in 15 minutes or less. GMU is the first campus in the country to incorporate robots into its student dining plan and has the country’s largest fleet of delivery robots.

The company’s app allows GMU students to order food from places such as Blaze Pizza, Starbucks and Dunkin,’ as well as a grocery store and other options. Once an order has been placed, users drop a pin where they want their delivery to be sent. The robot’s progress can be monitored using an interactive map. Once the machine arrives, users receive an alert, allowing them to unlock the robot using the app. The delivery cost–$1.99.

To navigate the campus, robots rely on A.I., ultrasonic sensors and 9 cameras. Two-way audio on board allows users to communicate with “human teleoperators” who monitor the robots from afar. The robots can cross streets, climb curbs, navigate around obstacles and operate in rain and snow.  Sodexo, which runs campus dining, says that “the delivery robots are at the forefront of changing trends.”

“Students and teachers have little free time as it is, so there is a convenience for them to have their food, groceries and packages delivered to them,” said Starship Technology’s VP. “Our goal is to make life easier, whether that means skipping the line, or finding the time to eat better when studying for exams. Commuters can even meet the robot on their way into class.”

Classroom discussion questions:

  1. Would this be popular and efficient on your campus?
  2. What concerns might you have regarding this new concept?