Original Date: 05/17/1993
Revision Date: 01/18/2007
Information : Material Handling Facility
The Physical Distribution operations for fleet support and local production at the Crane Division-Naval Surface Warfare Center is currently under a process and facility modernization project. The major goal of this effort is to provide a time responsive, cost efficient part delivery service to customers. Approaches to achieve this goal include consolidation of facilities, automation of operations, and reduction of labor requirements. The current physical distribution operation which supports local production requires transporting items 6.4 miles with a fleet of ten trucks. This situation has resulted in potential delays and reliance on equipment and personnel from external organizations.
The upgrade, construction, and consolidation of operations for receipt and storage of components will reduce the transportation requirement to one mile with five trucks. This modernization consists of constructing an Automated Storage and Retrieval/Hi-Rise in an existing building. The $5.7 million project ($2.5 million construction and $3.2 million equipment) will provide the Crane Division with 7,000 Electro-static device protected drawers ranging in size from two feet by four feet up to 18 inches deep each with a 500-pound capacity. They are housed in a temperature and humidity controlled enclosure. An additional 41,000 square feet of palletized storage racks, receiving docks, and three automated receipt conveyor stations have been added for efficiency. These stations have the necessary advanced data processing (ADP) equipment to acknowledge receipt, authorize payment, and determine disposition of the item.
The Crane Division's efforts are directed at providing a cost effective, rapid distribution to local production customers. Personnel savings are estimated to be 31 positions equaling $1.894 million per year. The net savings for this project is estimated at $2.05 million per year with an investment payback of 2.8 years.
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