Modularity, portability and logistics

My mother grew up on a small farm. We always spent a few weeks there in the summer. As a child, I stood in wonder as the great thrashing machine was towed up the road and rolled into the barn. Sheaves of wheat, thrown from the loft into a hopper on top, were magically converted into a continuous stream of grain and a growing pile of straw. My job was to count the bags of grain. This rattling contraption, powered by a slapping leather belt connected to a pulley on the tractor, is my first memory of a completely portable factory, or process.

More recently, in southern France I saw a large trailer parked next to a barn. Its’ sides were propped open to reveal a complete miniature bottling plant inside. Operators loaded clean empty bottles that were automatically filled from tanks of bulk wine, labeled and placed in cases, then palletized, ready for the market.

Both of these farms were small-scale operations and couldn’t afford “factories” of their own. So, the factory came to the farm – for one day out of the year.

I think that I have always been infatuated with processes that are sized to match the local demand. Certainly, lean manufacturing principles attempt to tie fabrication and sub-assembly processes to the main assembly line, operating at the same rate, with little, or no buffer inventory.

As we can see, this concept of portability and modularity is not something new. But, sometimes we lose sight of its’ value and separate production from demand, creating costly handling, inventory and transportation steps in between.

I was saddened when the major soft drink companies focused so closely on the production cost per can that they closed all of the local bottling plants, created mega-facilities and then proceeded to truck water all across the country. In the process, they removed their visible presence from the community, making themselves just another grocery commodity.

What percent of the cost of bulky products is created by transportation from a centralized production point? The Original Mattress Factory has attacked this problem by creating mini-factories, in the middle of a market, bringing in high-density raw materials and converting them into high cube mattresses and box springs. Truck-miles of transportation cost are saved. And, much of the costly packaging is eliminated.

I still believe that there is an opportunity for “one-man” branches for plumbing and electrical suppliers. A city, like Atlanta, might have 50, instead of only three larger ones. These could be housed in trailers, or containers, and easily moved from one construction hot spot to another as the demand changes.

Perhaps the crowning achievement that I witnessed last week was a completely automated convenience store, SmartMart in Memphis, TN. Offering 1500 products, including beer, this store is basically a vending machine in a 53’ container with a sophisticated customer interface that walks you through the aisles, assists in your selections, checks your I.D., takes your money and delivers your order into a bin at your side. It is a wonderful combination of a bold idea and materials handling and systems technology that we all would recognize.

Please stick with me! I am visualizing “factories where we make factories”, creating modular units that can be quickly deployed to capture a market opportunity. Stretch your imagination. Believe that creativity can overcome conventional wisdom. And, maybe we can get a few of the big trucks off the road.

ABOUT THE AUTHOR

James M. Apple, Jr. is a Director in The Progress Group. Prior to co-founding The Progress Group in 1991, he was a Partner with Coopers & Lybrand's SysteCon division. During 1992-1995 he served as a Senior Systems Advisor with Vanderlande Industries, a major conveyor and systems provider in Europe.

Jim is an internationally recognized thought leader in the area of facility design and integrated distribution systems. His contributions to the improvement of distribution practices have been recognized by his receipt of the prestigious Reed-Apple Award, which is given for lifetime contributions to the advancement of the material handling profession. Jim has also received the Institute of Industrial Engineers' Facilities Planning and Design Award. He has written numerous articles and handbook chapters on warehousing and logistics operations and is a popular speaker on logistics seminar and conference programs.

Prior to SysteCon, Jim worked as an Industrial Engineer with IBM, was Supervisor of Facilities Planning for the Oldsmobile Division of General Motors and was Executive Vice President for an automotive aftermarket parts supplier. He holds B.S. and M.S. degrees in Industrial and Systems Engineering from the Georgia Institute of Technology.