Case Study 01
Lean Store/VLM Integration with Biometric Access & BOM-Driven Outbound Stock Retrieval
Overview
A global manufacturer of automotive precision components operates a high-throughput warehouse that supports Just-In-Time (JIT) production. The facility faced recurring challenges in maintaining FIFO (First-In-First-Out), avoiding manual inventory errors, and tracking visual product details. To overcome these issues, the company implemented a fully automated warehouse system using Vertical Lift Modules (VLM), integrated barcode scanning and printing, and introduced product image storage for visual traceability.

Problem Statement
- FIFO Compliance Issues: Improper rotation of inventory due to manual tracking led to old or obsolete parts being picked last.
- Manual Stock Verification: Daily physical stock counts consumed excessive time and labor.
- No Product Visual Traceability: Operators had no access to visual references of stored components, increasing mispicks.
- Barcode Labeling Gaps: Barcode tags were sometimes damaged or unreadable, and labels were not consistently generated or printed at the right stages.
- Limited Access Control: No user-based access, leading to unrestricted or accidental machine operations.
- Space Utilization: Flat storage racks resulted in inefficient use of warehouse space.
- Error Recovery: Manual recovery and troubleshooting of VLM errors caused delays and confusion.
Objectives
- Integrate barcode scanning and label printing into all inventory movements.
- Store and link product images to each item stored in the system for visual confirmation.
- Improve inventory accuracy through automated data capture.
- Enforce FIFO logic automatically during storage and retrieval.
- Maximize warehouse space with Vertical Lift Modules and eliminate daily stock counting.
- Enable user-wise access, weight-based restrictions, and detailed performance monitoring.
- Provide real-time Andon displays for visibility of inventory and system health.
Solution Overview: VLM + Barcode Printing + Image Storage
Key Features
Barcode Scanning & Printing
- Barcodes are printed automatically for each item during inbound.
- Barcode scanners are installed at all critical points (inbound, storage, outbound).
- The system validates barcode scans to track part codes, batch numbers, and quantities.
Product Image Storage
- At the time of receiving or registration, images of the products are captured or uploaded.
- Each stored item is linked with its image in the database for easy visual identification.
- Images are displayed during picking/dispatch to avoid part mismatches.
User-Wise Access & Machine Management
- Role-based access to VLM software functions.
- Machine operations are restricted by user type (admin, operator, supervisor).
- Access logs are stored for auditing.
- Weight limits and sensor integration prevent overloading.
VLM Integration
- Automated storage and retrieval with vertical space optimization.
- FIFO enforced based on timestamps and lot/expiry tracking.
- No operator decides the storage or retrieval location—system-controlled.
Error Handling & Diagnostics
- VLM sends machine fault/error signals to the central system.
- Notifications are displayed on Andon boards and in software dashboard.
- Error logs are recorded for service diagnostics and performance review.
Real-Time Andon Displays
- Large-screen displays in common areas show:
- Item stock levels by part number.
- System health and machine status.
- Retrieval status and FIFO compliance alerts.
Workflow Overview
Inbound Process
- Products are received at the warehouse with PO/reference numbers.
- Barcode is automatically generated and printed using a barcode printer.
- Product images are captured or uploaded via HMI.
- Items are scanned and entered into the system.
- VLM stores items using automated FIFO logic.
- Data is stored in the local inventory database with linked barcode and image.
Inventory Management
- Real-time inventory is maintained via barcode scanning and sensor data.
- Operators access visual confirmation of items before picking using stored images.
- FIFO logic ensures the oldest stock is retrieved first.
- Inventory checks can be initiated any time without physical stock-taking.
Outbound Process
- The production system issues a request for components.
- VLM retrieves parts automatically based on FIFO.
- Barcode scanning is done at the point of retrieval for validation.
- Product image is shown on-screen to verify correct part selection.
- Outbound is confirmed and stock updated in the system database.
Benefits
- Zero Manual Entry: Barcode and image automation eliminate operator input errors.
- Visual Identification: Reduces mispicks and part confusion during outbound.
- Automated FIFO: Ensures aged inventory is consumed first.
- Faster Operations: Scanning reduces the time for verification and stock movement.
- Audit Trail: All actions logged with user ID, timestamps, and item images.
- High System Uptime: With real-time diagnostics and automated error management.
- Data Accuracy: Live inventory levels with every scan and action.
Lessons Learned
- Image resolution and part orientation standards must be defined for uniformity.
- Barcode label quality and placement are critical for scanning reliability.
- Error handling logic must account for user override scenarios.
- Ongoing user training is essential for maintenance and exception handling.
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