Industry 4.0 efforts to digitize processes are bringing return on investment with time saved, accuracy boosted, injuries prevented and data analysis eased. Bulk material inventory, for example, relies less on clipboards or ladder climbing and more on sensors and software to determine levels of grain, plastic, cement, fuel and fertilizer within bins, silos and tanks.

Figure 1. Sophisticated instruments such as level sensors and cloud-based software now replace these outdated practices, but don't eliminate the need for personnel. Source: BinMaster

Sophisticated instruments such as level sensors and cloud-based software now replace these outdated practices, but that doesn’t eliminate the need for personnel.

Such technology doesn’t replace human decision-making skills. In fact, bulk inventory systems often revolve around a human-centric design. Automated bulk level systems deliver accurate data to operators who receive easy-to-understand data and make informed decisions based on that data. Machines measure, while people strategically decide.

Level sensors deliver measurements to the cloud via a wired or wireless network. In internet of things (IoT)-based manufacturing, benefits include:

• Reduction in lead times for production processes
• Mitigation of carrying costs and impromptu purchases
• Minimization of waste associated with spoilage of bulk inventory
• Seamless integration of inventory data with enterprise resource planning systems
• Optimization of transportation logistics and timely procurement
• Diminished reliance on labor-intensive and speculative practices

Achieving end-to-end visibility through sensors

Multiple people and departments can collaborate when reports are shared to the cloud; it is a key component of Industry 4.0 and 5.0. IoT describes wireless devices – like level sensors – connecting data with cloud access.

With cloud-based reports, employees can collaborate on inventory balancing, planning and control to ensure the right amount of inventory is available to avoid lost orders. A procurement team can make sure money is not unnecessarily tied up in safety stock. Aligning the physical location and logistics of inventory gives companies the ability to better control costs and improve profits.

Figure 2. Mike Mossage, regional VP of BinMaster Level Controls. Source: BinMaster

“We’ve put a lot of effort into cloud software that helps managers maximize decisions,” said Mike Mossage, regional vice president, BinMaster Level Controls. “Software must account for the difference in materials, workplace conditions, company goals and even the bulk density of the product.”

Considering how automated level monitoring affects time and productivity with personnel, the change from human logistics to automated measuring can offer a unique impact by simply removing the human from the equation. A typical bin measurement operation by a human can take 15 minutes for one silo when broken down:

• 4 minutes Employee walks from the control room to the silo and back
• 2 minutes Employee climbs 50 ft ladder, up and down
• 4 minutes Employee pulls heavy roof access door atop silo and drops a tape measure
• 5 minutes Employee records and shares measurements, maintains spreadsheet

Leveraging data to manage cash, carrying costs

The cost of storing materials along with related salaries, transportation, handling, taxes, insurance, depreciation and shrinkage could represent 10-30% of total inventory costs, according to Investopedia.

Consider a major manufacturer storing and using alumina. Their carrying costs are $1.50 per year, per 100 lbs. They consume 8 million lbs, which means carrying costs are $120,000 per year. Constantly monitoring inventory allows the company to ensure funds are not tied up in inventory so production can continue.

Reducing carrying costs also boosts profit. Managers could, at least in part, base inventory and purchasing decisions on economic fluctuations, helping reduce storage costs due to changes in purchasing power. Demonstrating a long-term understanding of quantity and timeline could present opportunities for trusting relationships with suppliers as well.

“It’s also important to capture and show historical measurements,” said Nathan Grube, VP central region, BinMaster. “That data can help build a trendline and help people anticipate when materials will run out. In the end, people can get more strategic and minimize carrying costs.”

Digital transformation limits safety risks and eases pressure with employee shortage

Human-centric tools can have profound impacts on safety as well. Reducing risk reduces the human toll on individual, families and co-workers. The average combined direct and indirect costs attributed to workplace injuries in 2022 was an average of $120,0000 per occurrence. Crucial to a stable employee environment are human-centric systems, where technology assumes the measurement role and individuals make informed decisions.

Consider these annual safety statistics:

• More than 300,000 ladder-related injuries reported in the U.S. according to the U.S. Bureau of Labor Statistics.
• Approximately 211,000 slip, trip and fall injuries recorded across the U.S. as per the U.S. National Safety Council.
• 4,400 accidents involving falls from heights, as reported by Height, Lift & Shift.

Analysts at Goldman Sachs said in the first quarter of 2022 there were 4.6 million more jobs than there were potential workers. According to a Deloitte study, the skills gap will result in 2 million unfilled jobs by 2025. Many of those jobs are considered dangerous, tedious and simply unpleasant physical work. Automation offers solutions.

Conclusion

There is no doubt among industry experts that automating operations can be the difference between a successful business and an ultimately underperforming one. It is crucial to find the right areas to introduce smart procedures while keeping humans at the forefront of intuitive decision-making. Utilizing the right end-to-end solutions can offer that missing piece.

About the author

David Zelnio, SHRM-CP, is manager marketing communications for BinMaster Level Controls in Lincoln, Nebraska. BinMaster sensors employ radar, capacitance, acoustic, laser and ultrasonic technology to measure bins, silos and tanks in every industry involving the storage of dry and liquid bulk materials. BinMaster’s industry-leading software, BinCloud brings measurement data to the cloud accessible by a phone or PC.