Services

Challenge:

Diebold is a world leader in banking equipment, security systems and devices, and electronic voting machines. They are the number one supplier of ATMs in the United States. They had two service facilities in Northeast Ohio; One was a Distribution Center located in Mogadore, Ohio and another was a Repair Facility located thirty miles away in Seville, Ohio which was supported by the distribution center.

The Distribution Center was outdated and could not respond to changes in customer demands and order profiles. Orders were picked discretely, one at a time by personnel on order-picker trucks.

The distance between the facilities increased the response time on rush or breakdown orders, increased operating and logistics costs, and necessitated the need for a mini-warehouse at the repair center which increased the overall inventory. Something had to be done to increase customer service and reduce total operating expense.

Solution:

Trommer & Associates worked with both the Distribution and Repair management teams to develop a layout that would maximize the benefits of the consolidation. Tools were added to the Distribution Center to allow zone picking and consolidation of orders. This included the addition of high-rise shelving and decked rack, pallet flow and carton flow rack, and a conveyor system.

The challenge to the Repair Center was to reduce work-in-process inventory and processing time in the same square foot area as the current operation and allow for growth within the business. The Repair Center was designed to allow a progressive teardown and repair instead of a single work cell operation which increased productivity and throughput.

Trommer & Associates Project Managed the implementation which included managing the bidding processes for new equipment, assisting in move planning, product placement, and other implementation services.

Benefits:

The introduction of new storage media reduced the net storage requirements and allowed for future expansion in the new building. Cycle time for Repairs was reduced by three days.

Additional benefits included:

Eliminated redundant inventory
Reduced headcount by combining material handling functions
Implemented same day shipping while reducing headcount