Success Story

Material flow control in final operation

Metals

Customer
Georgsmarienhütte GmbH
Location
Germany
Implemented solutions
OneBase®MFT

Georgsmarienhütte GmbH is one of the leading European suppliers of quality and engineering steel.
The company’s products are used to manufacture crankshafts, connecting rods, camshafts, drive shafts, transmission parts, chassis parts and much more.
Georgsmarienhütte GmbH is part of the GMH Gruppe, a group of over 20 companies that work together in partnership and have a global presence with their products.
From the raw material to the end product, different metallic materials are used.

Initial situation in final operation

The final operation of Georgsmarienhütte GmbH covers an area of approx. 130,000 m² and consists of a wide variety of production facilities such as heat treatment furnaces, straightening and testing lines, reworking units and dispatch stations, interspersed with storage areas.
The stocks of steel bar material fluctuate between 50,000 tons and 70,000 tons. According to the principle of “chaotic” warehousing, it is not possible in many places to separate semi-finished materials for further processing and material ready for dispatch by converting stocks, and these therefore merge seamlessly into one another.

Lagerhalle mit den Lagerbeständen an Stabstahlmaterial bei Georgsmarienhütte GmbH

A very large proportion of the employees in final operations work in this environment with 20 overhead cranes, sideloaders, narrow-gauge railroads and in truck and rail shipping, transporting the material through the process chain to the customer.
There were always situations in which the individual transport requirements were in competition with each other and therefore the risk of being forced to stand still due to waiting times.
Warehouse utilization was only decided on the basis of the current situation and did not take into account the production and dispatch planning spanning days and weeks, which led to unnecessary transports due to interim storage in this sometimes tense warehouse environment.

Decision to introduce a material flow control system in final operation
Based on this experience, the idea was born to implement an active material flow control system in final operation that has interfaces to existing production control and shipping logistics systems in order to manage and control the physical warehouse with all its restrictions due to product characteristics and customer requirements. The requirements for this were drawn up in a 122-page specification sheet for the tender and supplier selection, which already gives an impression of the complexity. “After intensive evaluation and reference visits, we ultimately opted for the company ABF from Linz, which was able to convince us with its product . However, it should not go unmentioned that our requirements in combination with the product portfolio and operational environment had never before been implemented in this form by any provider,” recalls Andreas Rahe, Project Manager at Georgsmarienhütte GmbH. After ABF was commissioned, a 3-month specification phase followed to compare requirements and technical feasibility at a detailed level. Right at the start of the project, the team was faced with the major challenge of the Covid-19 pandemic and later in the implementation due to supply bottlenecks, especially for electronic components, caused by the war in Ukraine. Even though the originally ambitious implementation period of 18 months was extended somewhat due to the circumstances, the defined project goal was achieved both technically and financially.
Project implementation with OneBase®MFT

In the first step, the entire final operation, including its external areas, was measured and each of the more than 4,000 storage locations and material transfer points were precisely transferred to this coordinate system.
This data was then used by the material flow tracking intralogistics module (MFT) of the ABF solution to create a 3D model of the warehouse environment, in which the company’s cranes and forklifts were recorded in real time.
For this purpose, the means of transport were equipped with positioning technology (RTLS) and other sensors for determining weight and position, which were provided and integrated by ABF.
The data is transmitted from the means of transport to via complete WLAN coverage of the warehouse area.

This information is linked there with the material information from the feedback from the production systems as well as master data from the SAP ERP system and thus leads to the creation of the warehouse visualization in the 3D model in real time.
With the help of sensors on cranes and forklifts, all material movements are now tracked seamlessly from the material’s origin to loading onto rail wagons and trucks.
The mobile warehouse application provided by ABF also helps with the handling of transports with dachshund wagons between the warehouse bays.

Mobile Lagerapplikation - von ABF beigestellt - hilft Georsmarienhütte GmbH bei der Abwicklung von Transporten mit Teckelwagons.
Scope of the new intralogistics system

With the knowledge of the exact position of the material during its creation and operation, the new intralogistics system looks at the subsequent production step in production planning and decides on the subsequent material flow through automatically generated transport orders.
The system should preferably transport the material that is required at short notice and whose requirements can be individually adapted to the immediate vicinity of the plant.
Material with a longer planned storage time should in turn be stored in a remote interim storage facility.
When making this decision, the MFT has to check and weigh up a wide range of criteria for the material at the storage locations.
The transports from the interim storage facility to the target plant are then triggered automatically via the production control system in order to secure the worklist at the target unit.

A transport order can consist of several transport orders using different means of transport and always relates to individual pieces of material.
This ensures the flexibility to prioritize the transport systems according to the situation. OneBase®MFT controls all transport movements in 14 halls of the final operation with appropriately prioritized transport orders.

From transportation on demand to independent decision-making

Usability was always the focus during implementation.
For example, existing operational data collection processes were used as triggers to initiate processes in the MFT so that they could run virtually invisibly in the background for employees.
The crane and forklift drivers now have a new role to play: in the past, they were tasked with carrying out transports on call.
With the new MFT and the user interfaces provided on the vehicle terminals in the vehicle cabs, they now take the decisions themselves.

3D-Visualisierung der Lagerhalle am Fahrzeugterminal in der Krankabine

From now on, this new role must be consolidated and lived.
The 3D visualization of the means of transport operator is linked to the mobile application of the ground staff, which provides support when attaching the material.
The optimized transport orders are thus processed in system synchronization between the two employees.
Shouts or hand signals are therefore a thing of the past.

3D-Visualisierung der Lagerhalle am Fahrzeugterminal in der Staplerkabine
Continuous further development of material flow control
Like all previous production-related systems at Georgsmarienhütte GmbH, the MFT will undergo continuous further development in collaboration with ABF. In future, the Georgsmarienhütte team will continuously incorporate the experience and findings from the data analyses into the control system for material flow control. As a result, warehouse logistics in the final operation will be constantly optimized within its physical possibilities.

Project manager at Georgsmarienhütte GmbH Andreas Rahe is very satisfied with the success of the project: “I would like to thank everyone who supported this project and in particular ABF for the reliable support from Helmut Danner and his team, who kept a cool head even in the most difficult moments with their experience and calmness.”
Das Team des Finalbetriebs und der Kranabteilung der Georgsmarienhütte und das Team der ABF stehen gemeinsam vor einem Kran.

ABF is also very happy about the success of this extensive project and is looking forward to laying the foundation for the ongoing digitalization of its customer’s intralogistics.
We would like to thank the team of the final operation, the crane department and the vehicle workshop as well as our ABF team for the great cooperation!

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