THE CONNECTED DISTRIBUTION CENTER · •Reduce maintenance labor costs up to 20%; spare parts / material spend up to 30% •Reduce total cost of ownership Maximum uptime, reduced

Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved. Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.

Business Results Through Digital TransformationTHE CONNECTED DISTRIBUTION CENTER

O P E R AT I O N A L A N D B U S I N E S S E X C E L L E N C E A C R O S S T H E E N T E R P R I S E

Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.

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E-commerce

and e-retail

DISTRIBUTION

VOLUME

ACCELERATING

at a rate of

MANUAL

OPERATION

is today’s norm for

Industry growth

OUTPACES THE

LABOR POOL

by a ratio of

A positive delivery

experience means

REPEAT BUSINESS

for80% OF D C s

S IX TO O N E

25%

A NNUA LLY

73% OF

C ONSUM ER S

THE MARKETPLACE

FOR CONNECTED DISTRIBUTION CENTER


Pace of Change in Today’s Commerce Environment Is Relentless

2

BUSINESS PRESSURESENDLESS COMPLEXITYEVER-INCREASING SPEED

• Continued acceleration of e-

commerce and e-retail order volumes

• Massive increases in mobile device

orders

• Heightened consumer expectations

for delivery and accuracy

• Increased product and package

variability

• Workforce scarcity and skill set

mismatches

• Hardware-software-sensor integrations

from component to system to operation

• Margin reduction

• Service level commitments

• Capacity constraints within existing DCs

• Geographic expansion to meet

customer demands

Maximum throughput Intelligent, data-driven, high-speed execution

Complete flexibility

Future-proof scalability

Actionable intelligence

Automated, adaptable processes for machines and workers

Optimized utilization with ability to seamlessly adapt and expand

Insights and predictive analytics, from sensors to the cloud

Situation

Customers’

Accelerating

Requirements

Connected

Distribution

Center


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An accessible, end-to-end capability designed to drive efficiency and optimized decision making

with unparalleled visibility and agility, from a single asset to the entire enterprise

Assets

Systems

Robots

Freight

Workers

Enterprise

Third-PartyProviders

Other Distribution

Centers

WHAT IS

THE CONNECTED DISTRIBUTION CENTER?

Achieve Operational and Business Excellence via Digital Transformation

Distribution Center Overview

Pace of Change in Today’s Commerce Environment Is Relentless

• Ever-increasing Speed

• Endless Complexity

• Business Pressures

Worker

Assets Systems

• Predictive asset health and performance

• Improved information visibility and data analytics

• Productivity, safety and reduced attrition

• Scalable, configurable, extensible software

• End-to-end solutions/ improved visibility

Improve utilization;

Reduce CAPEX spend

Increase reliability;

Reduce OPEX spend

Maximize productivity,

consistency and

attrition

Logistics

• Package location and condition tracking

Reduce product loss

and waste

Robot

Intelligence/Analytics With Honeywell Sentience

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Momentum Warehouse Execution System (WES)

• With extensive modular functionality, flexible integration protocols and clear

upgrade paths, Momentum WES is designed to reduce the complexity of

custom development and give you the tools you need to:

- Maintain visibility of fulfillment activities

- Access unified controls

- Achieve automation-driven efficiencies

• It’s that simple.

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Redefining WES: Warehouse Execution. Simplified.

Warehouse Optimization Powered by Momentum

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BI & ANALYTICS

CONFIGURABLEMASTER DATA

MOMENTUM CONNECT

SCALABLE ALARMS & EVENTS

TASKS EXTENSIBLE

MACHINE CONTROLS

& PLC INTERFACE

At the core of Momentum is a suite of services

designed to connect your warehouse systems

• Momentum Connect:

Interfaces with your host system (WMS)

• Master Data:

Stores item master and more

• Business Intelligence & Analytics:

Provides enterprise level reporting

• Alarms & Events:

Sends notifications of events requiring attention

• Tasks:

Creates and assigns segments of work

• Machine Controls & PLC Interface:

Interfaces with mechanical systems

Momentum Modular Solutions*

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ORDER EXECUTION

PICKING

MOMENTUM CORE

ROUTING

LOOP SORTATION

LMS

LINEAR SORTATION

PRINT AND APPLY

PUTWALL

AS/RS

BUFFER

INVENTORY

GTO PICKING

PUTAWAY

AGV

LABOR OPTIMIZED ROUTING

AMR

SHIPPING

SCALABLE

CONFIGURABLEMODULAR

EXTENSIBLE

* For illustration purposes, not intended to be a comprehensive list of existing or future functionality


Asset Reliability — Use Case for Distribution Centers

Transition to predictive maintenance model, minimizing unplanned downtime and reducing total annual

maintenance cost (material and labor)

Value

Opportunity

Solution

• Reduced unplanned downtime

• Predictive maintenance, reducing reactive and preventive hours (20% - 35% reduction = $40K annual savings)

• Reduced annual maintenance material spend (30% reduction annual parts spend, 20% reduction inventory value = $140K annual

savings)

Data collected from

controls and edge

Maximum uptime,reduced maintenance cost

Cloud-based event/fault detection

SECURED DATA

Asset model insights

Material Labor

1

2

5

3

Automated maintenance planning

4SENSORS

CONTROL NETWORK

750k sq. ft. DC, operating 5,200 hours

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Asset Reliability — Use Case for Manufacturing

Real-time monitoring, diagnostics and asset-level insights help increase reliability and improve utilization

Value

Opportunity

Solution

• Employ a condition-based, predictive maintenance model

• Minimize equipment downtime; reduction of 0.5% translates to up to $65,000 annually

• Reduce maintenance labor costs up to 20%; spare parts / material spend up to 30%

• Reduce total cost of ownership

Maximum uptime,reduced maintenance cost

Cloud-based event/fault detection

SECURED DATA

Asset model insights

Material Labor

2

5

3

Automated maintenance planning

4

Manufacturing facility running two 8-hour shifts, 6 days a week

Data collected from

controls and edge1

SENSORS

CONTROL NETWORK

9


Pulse – Events

Collaboration

10


Pulse – Trends

Increasing Motor

Vibration

Decreasing sorter rates Power consumption

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Asset Sentinel

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Asset Sentinel – Fault Tree

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Insight – Control Panel and Ambient Conditions

How efficiently is the system using power?

Power infeed quality +/- 5% Amperage draw – Should not increase

Temp – worker productivity/humidity – cardboard flow and weight

14


Insight – Motor Temperature and Vibration

Vibration should be less than 0.4 IPS

Temp should be less than 150 °F

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• Graphical UI

• Historical data capture

STAGE 1

Visualization

• Trend analysis

• Predictive maintenance

• Optimization

• Mobile Alerts

STAGE 2

Insights

• Work orders and reporting

• Inventory optimization

• Labor optimization

STAGE 3

Automation Increase

Reliability

Improve

Utilization

and

Scalability

Maximize

Productivity

Deployment Stages

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Optimize balance of system at main merge and shipping

Value

Opportunity

• Increase output by 1% = 120 more cases, or $1,200K per hour

• Annually, increase site revenue by $6M

Utilization Improvement — Use Case for Distribution Centers 750k sq. ft. DC, operating 5,200 hours, 200 CPM rate

Solution

Data collected

from site

Maximum throughput

Cloud-based

SECURED DATA

Flow insights

1 2

5

3

Labor planning4PRODUCT & PEOPLE

MACHINE CONTROL

SECURED DATA

WES

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Analyze machine performance trends per SKU, identify barriers to palletizer productivity and quickly resolve issues

Value

Opportunity

• Unlock potential increases in run time and reduce idle time; improved utilization of 1% translates to $130,000 annually

• Monitor throughput targets

• Detect, trend and resolve error conditions

• Enhance root cause analysis and issue resolution for improved efficiencies

Utilization Improvement — Use Case for ManufacturingManufacturing facility with an average revenue of $2,600 per hour

Solution

Maximum throughput

Cloud-based

SECURED DATA

Flow insights

2

5

3

Utilization Monitoring4

SECURED DATA

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Insight – Production Monitor

Total carton counts for each day Rate of cartons being sorted

Daily productivity miss on Merge Lane 2 (symptom) Constant faults on Merge Lane 2 (root cause)

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This chart Indicates frequent sorter stops throughout each day

Insight – Production Monitor


© C

opyright

Inte

llig

rate

d.

All r

ights

reserv

ed.

GoalPost® Labor Management System (LMS)

Standalone or combined with Momentum WES to provide full labor management and incentive

and performance pay solutions

• Reduces labor costs and increases throughput capacity

• Accurately and fairly calculates worker performance and incentives

• Dynamic, flexible reporting, analytics and dashboards

• Modules for resource time tracking, coaching, XYZ distance calculations and labor planning

• Easy to deploy and configure for fast ROI

• Current version installed in 40+ sites, product history has more that 150 installations

LMS measures, manages and plans warehouse labor for increased productivity, efficiency and performance.


Dashboard HomepageDashboard provides current views into metric trends, overall performance and utilization. Visualizes information using beautiful, interactive charts that allow you to drill down and investigate areas without running a report.

Facility Level Metrics

Drill down to any

Department/Operation/Shift within the UI


GoalPost calculates performance from engineered labor standards to provide accurate labor metrics that drive performance visibility.

• Performance calculations at all levels

• Flexible pay configurations

• Incentive pay curves

• User defined metrics

• Performance factors

Incentive and Performance calculations23

Performance factor equation builder

Pay curve example

Absence


Time Tracking

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TimeKeeper is a time tracking solution that automates the manual processes related to tracking employees' time.

• Kiosk based time entry

• Enhances existing time solutions

• Filter and apply group actions

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Group transfer options

Electronic time capture


Coaching and mentoring25

Coach is a coaching and mentoring tool for supervisors. Coach automatically identifies associates that need coaching, tracks the coaching sessions performed, displays performance data, and allows managers to view statistics by supervisor to evaluate coaching impact on performance.

• Flexible, user-defined coaching practices

• Automated identification of coaching candidates

• Track supervisor engagement

• Provides targeted feedback

Focused coaching

Coaching history


LineUp Staff Planning26

LineUp Staff Planning empowers supervisors and managers to make effective

staffing decisions, both for daily labor allocation and long-term labor planning.


Execution Dashboard27

LineUp Execution Monitoring allows operations to view in real-time how a plan

is executed and if resources should be added or removed in order to optimize

the labor involved.


Reporting and Data Analysis28

GoalPost InSite delivers robust analytical reporting and mobile analytics for smartphones and tablets with more than 70 interactive reports that cover KPIs across all levels of the facility.

• Enterprise views of KPIs

• User customizable reports

• Wide depth of reporting topics

• Information mining

Reporting Levels Key Metrics Reporting Options

Enterprise Performance Dashboards

Facilities Utilization Interactive Reports

Departments Units per Hour Graphs

Shifts Cost per Unit Sorting/Filtering

Employees Efficiency PDF/Excel/CSV Export

Hours Direct Db Connections

Bonus Dollars

Quality


InSite Dashboard Samples


Use labor metrics to reduce warehouse attrition rates through predictive modeling of “at risk” behaviors

Value

Opportunity

• Bureau of Labor statistics estimates annual warehouse turnover to be 40%

Employee Turnover Reduction — Use Case 400 direct labor warehouse resources

Solution

Regression model uses historical

labor metrics to determine the

likelihood a resource will quit

Additional Value Drivers

• Ramp-up productivity

of new hires is typically

2–4 weeks

• Cost of reprocessing

errors impacts turnover

cost

• HR value for succession

planning and seasonal

hiring

• Cost impacts of new

hires who turn over

quickly and are replaced

Host system provides

activity data to LMS

WES * WMS * ERP * Vocollect

Resource Time Production

LMS Data Capture

LMS calculation engine

generates labor metrics

1

2

3

4 Outputs graph of resources

grouped by risk of departure

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TechSight Overview

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Hands-free augmented reality

“See what I see” troubleshooting

Quickly diagnose critical issues

Reduction in required maintenance skills

Control system integration

Decrease unplanned downtime

Reduce costly travel for onsite experts

Subject Matter Expert access from anywhere


TechSight User View

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Touch NavigationNavigate cards and select items with the

device’s touch controls.

Voice NavigationSpeak to navigate cards and select items.

Hands-FreeFollow voice direction while keeping two hands

available for a safe work environment.

Offline SupportApplications and data are cached offline so

work can be done without network connection.


TechSight Expert Side

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TelestrationAnnotate on snapshots and

document snippets and synchronize

to smart glasses in real-time.

Document SharingClip and share snippets from PDF

documents directly to smart glasses.

HD Audio & VideoBi-directionally stream up to 720p HD

video and audio.

MessagingSend messages from Skylight Web

to smart glasses.

Remote ZoomRemotely zoom smart glasses.

Remote SnapshotsRemotely take snapshots from smart

glasses.


CONNECTED DISTRIBUTION CENTER

END-TO-END EFFICIENCY

FROM OPERATION TO ENTERPRISE

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Documents

THE CONNECTED DISTRIBUTION CENTER · •Reduce maintenance labor costs up to 20%; spare parts / material spend up to 30% •Reduce total cost of ownership Maximum uptime, reduced