Automatic ID technologies help rubber hose
manufacturer accurately track thousands of
products around the world

Keeping track of thousands of products in 41 factories and 28 distribution centers worldwide is at best a daunting task. That's why, several years ago, Gates Rubber began integrating Auto ID technologies throughout its operations.

"Today, we universally see the advantages of Auto ID technologies," explains Tom McGraw, Gates bar code systems manager. "Increased accuracy, gains in productivity and efficiency, in addition to cost savings drove the use of these technologies into a range of functions throughout the company." Gates' foray into the world of automation began in 1990 with the implementation of Auto ID technologies in its manufacturing operations for inventory control. "When we realized Auto ID technologies were reliable and efficient, the next step was the development of a paperless warehouse management system (WMS) based on the same technology," explains McGraw. In 1991, the first Auto ID-based WMS was implemented and quickly proved itself. Tremendous gains in accuracy and productivity led to a variety of implementations including the installation of a new print-and-apply system in Gates' Charleston, MO, facility in September 1997.

Pilot projects

Founded in 1911, Gates Rubber manufactures curved rubber hoses for automotive and industrial applications. If you’ve ever used an air pump at a gas station to fill up your tires, you've probably used a Gates hose. Likewise, your car's cooling system probably uses a Gates hose. With worldwide operations, Gates maintains development centers and manufacturing operations in North America, Europe, Asia and South America. Gates' products are sold directly to automotive and industrial original equipment manufacturers and through a network of 150,000 distributors and dealers worldwide."At Gates, we try to do things generically and universally," says McGraw. "For example, before implementing new technologies across the board, we do pilot projects. In step one, we go into a smaller plant where we may not have the production and speed (volume) concerns. In step two, we go to a plant where they do everything-a plant that produces a wide range of products and has a much higher capacity. This step really refines the process or application. Based on our experience with these two extremes, we know what to expect and are prepared for just about any scenario."

Automating the inventory system

In 1990, Gates started working to integrate Auto ID technologies into its inventory control system in manufacturing plants. Until then, the company had kept track of inventory on paper. Information written on charts or lists was then keyed into a computer.

"We broke down our inventory control system into two components-the scanning component and the bar-coded label printing component," explains McGraw. "For the scanning capability, we purchased Mars scanners and programmed them ourselves; for batch printing bar-coded labels, we used Zebra printers." Today, Gates inventory control system tracks virtually every product the company manufactures. This equates to thousands of products tracked through the system on a daily basis.The process starts when a product comes off the assembly line and is packaged, usually in a corrugated container. A bar-coded label is then hand-applied to the package.As product is moved into the warehouse, workers scan the label on the package as well as the bar-coded bin location where the goods are being stored. If an entire pallet of one product is being stored, the pallet is given a bar code label (the same type applied to individual products) which is scanned during putaway. Gates is using Mars 300, 400 and 430 scanners from Compsee, Inc. of Mt. Gilead, NC. When a shipping order is received at the warehouse, the product number is manually entered into the system to find the location of the product. When the product is pulled to be taken to the loading dock, the bar code is scanned again to deduct from inventory.The bar code data on the label includes Gates' internal stock number and quantity along with customer information. "In addition to tracking our products internally," says McGraw, "we've also done our best to make our labels serve our customers. Ninety-five percent of our labels have bar codes that also incorporate the customer's part number and purchase order number."

A key link-the inventory database

Currently, Gates maintains 190 different label formats in its product database. Written in Access using an Oracle database, it has been structured to support a one-to-one relationship between the customers' part number and Gates' internal stock number. Designed for flexibility, the system easily updates customer's part numbers, dates and quantities. (Bar code symbologies supported include: Code 39 for both Gates internal stock number and customer part numbers, U.P.C. and Interleaved 2 of 5 for Gates retail products, and EAN for Gates' international requirements.) Each night, a program reviews the product database and downloads data, such as internal stock numbers, standard quantities and customer part numbers, which is then distributed automatically to 17 different locations. Labeling requirements for each facility, in addition to recommended labeling formats, are part of the information distributed through this process. Each facility can use this information to batch print the requisite labels for the next day or next week. All Gates facilities are connected via a Novel] network and, at a local level, use Printware for Windows from Wallace Computer Services to format labels.

Benefits and challenges

"The one benefit that everyone agrees on is the improvements in accuracy," says McGraw. "Transposing just two characters in one of our internal stock numbers wreaks havoc. A customer service representative will think stock is available that isn't. When a customer requests that stock, a customer service representative agrees to a delivery date based on a false inventory reading. Then, when the order is picked and the inventory is not there, it creates customer service problems. This is something that could happen every day over and over again. With the Auto ID system, it can’t."

In addition to the efficiencies achieved by going paperless, Gates believes the system’s flexibility also is helping to increase productivity. "Because data is stored in a central place it can be easily distributed,"' explains McGraw. "We can put a printer anywhere that a line can be dropped-just simply hook a PC and printer to the system and it's up and running."Although Gates has completed implementing its current automated inventory system in manufacturing, it's already planning for the future. "In one to two years, we're going to start to look at how to make it more user-friendly and how to incorporate RF technology," says McGraw. "The label printing component of the system is constantly updated. We're always looking for ways to make the information more user-friendly, or to capture more information from existing databases; we're always looking for new ways to feed more information into the labeling system so that the guess work can be eliminated and the keying work can be automated."

Automating labeling

Gates Rubber began testing new ways to integrate Auto ID last summer at its Charleston, MO, facility with a print-and-apply system. A pilot system was launched with one of Gates automotive products-air hoses-that is supplied to retail outlets.The process starts once a piece of the air hose has been machine reeled and placed on a conveyor. The conveyor shrink-wraps the hose-typically 25- or 50-foot packets of hose. After the hose comes out of the shrink wrap oven, it is sensed by an electric eye, and a label is printed and applied to the top of the pack.The system consists of a Zebra 170PAX print engine mounted on a Universal print-and-apply piece of equipment that is driven by a Windows-based PC. "The label data for this system is the same as we use in the rest of the plant-the internal stock number and the quantity pulled right off the network." explains McGraw. "In this case, because the product goes into a retail environment, we also print a UPC on the label."To date, the system has only been used for the company's auto air hose product; however, that should change shortly because the company is actively looking to use the system for other products.

More benefits and challenges

"Once again, the big plus we hear about this system is increased accuracy," says McGraw. "Before we installed the system, we used corrugated packaging and hand applied the label. Not only has the accuracy in label placement improved, but we've had significant savings from the reduced cost of packaging materials."The only challenges McGraw noted in implementing the system were programming issues. "Since it was a new effort for us, we had some questions regarding things like the sequencing and the way things need to flow so they would work right," McGraw says. "We got a lot of recommendations from Zebra," he continues, "we found their tech support very helpful."

The bottom line

According to McGraw, Auto ID has been a catalyst and an enabling technology at Gates. "These technologies helped Gates to improve efficiencies and make major gains in productivity. Based on results to date, there's a lot of momentum for using Auto ID throughout the corporation," he says.McGraw cited one recent example in which Gates incorporated Auto ID technologies into a job-tracking system. "All of our plants don’t have this type of system," he explains, "but they all understand the value of it. So, if another plant wanted to develop their own system and ask for some guidance, part of the recommendation would be that Auto ID be a component of the system.