Digital Supply Chain (DSC)
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From Standstill to Efficient Material Flow: How AGVs and SAP Optimize Work in Progress (WIP)
Unfinished products tie up capital and slow down material flow. The use of Automated Guided Vehicles (AGVs) in combination with SAP solutions specifically reduces Work in Progress (WIP) through automated material movements, shorter cycle times, and maximum transparency. Here’s how AGVs and SAP together can accelerate your manufacturing process.
Work in Progress: The Key to Efficient Production
Work in Progress (WIP) refers to semi-finished products that are still in the production process but are not yet completed. Some level of WIP is inevitable and even beneficial, as it ensures continuous production and allows for the compensation of bottlenecks. Strategic WIP monitoring ensures that materials are available at the right time in the right place, without interrupting the production flow. This provides flexibility to quickly respond to fluctuations in demand while simultaneously boosting productivity.
The challenge is finding the optimal WIP level – enough to ensure smooth operations, but not so much that unnecessary costs or delays occur. A high WIP level leads to longer cycle times, inefficient material flows, and higher storage costs. Conversely, a low level risks production bottlenecks. The right balance between the two is crucial for cost-efficient manufacturing.
From Lean to AGVs: Innovative Approaches to WIP Optimization
Various methods exist to optimize WIP levels. Lean Manufacturing, with techniques like Just-in-Time (JIT) and Kanban, aims to minimize WIP and improve material flow by delivering materials exactly when they are needed. The Kaizen principle also promotes continuous improvements to eliminate waste and bottlenecks. Adjusting production capacity to demand also contributes to WIP optimization, such as through flexible working hours or additional shifts. However, a key role is also played by automation and advanced technology, which improve material flow and eliminate bottlenecks.
A particularly effective approach to optimizing WIP is the use of Automated Guided Vehicles (AGVs). These systems automate the transport of semi-finished products, enabling continuous material flow. By minimizing manual transport efforts, cycle times are shortened, and production resources are used more efficiently. AGVs offer high flexibility, allowing rapid responses to sudden changes in production or demand.
Efficient Material Flows with VDA 5050 and "Move by Robots"
Integrating AGVs into existing production processes can be challenging, as they must seamlessly work with existing systems. A solution that effectively addresses this challenge is the IGZ Best Practice "Move by Robots" in combination with the standard interface VDA 5050. Move by Robots enables seamless integration of AGVs from different manufacturers into SAP Extended Warehouse Management (EWM).
With this flexible integration without middleware, smooth communication between the AGVs and existing systems is ensured, without the need for expensive or complex custom solutions. The solution choreographs all transports in real-time, even in collaboration with existing conveyor systems and building technology such as high-speed doors, elevators, or fire doors. This results in optimized, automated material flow control, which increases the efficiency and throughput of the entire production process.
Use Cases for AGVs in WIP Production
Below are four use cases that illustrate the deployment of AGVs and the "Move by Robots" solution from IGZ in WIP production:
Automated Material Transport Between Production Cells
In the automotive industry, SAP-integrated AGVs transport components between various production stations. SAP EWM and SAP TM control transport orders based on production progress and inventory in real-time, optimizing material flow.
Just-in-Time Supply for Assembly
In electronics manufacturing, AGVs ensure that components such as circuit boards or chips are delivered to the assembly position at exactly the right time. SAP MES and SAP EWM automatically send material requests to the AGVs.
Return Transport of Empty Containers and Waste Management
In food production, AGVs handle the transport of raw materials to the production lines while simultaneously automating the return transport of empty containers and waste.
Flexible Provision of Workpiece Carriers in Metalworking
In metalworking, AGVs transport workpiece carriers to the appropriate processing stations in the correct sequence. This ensures optimal machine utilization and minimizes wait times.
Conclusion and Outlook
The use of AGVs in WIP transport offers significant advantages: By automating material transport, Just-in-Time supply, and the return of empty containers, cycle times are shortened, bottlenecks are avoided, and labor efforts are reduced. Move by Robots plays a central role in the future of automated manufacturing. It enables the seamless integration of AGVs into existing SAP systems like SAP EWM and SAP TM, ensuring efficient real-time control of material flow.
With the support of VDA 5050, communication between different AGV manufacturers and the production environment is optimized, without expensive middleware. In the future, Move by Robots will be a key technology for optimizing warehousing and manufacturing processes and achieving Industry 4.0 goals in WIP production. This allows companies to increase their production capacity, reduce costs, and respond flexibly to market changes.
Do you have any questions?
On our website, you can find more information on how our solution "Move by Robots" can optimize your warehouse!
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