Logistics facility planning and improvement | Related knowledge __Go to menu__

jp tw _Email ___ ByLogistics Technology Research Institute
Logistics data analysis/training materials

4-2. Logistics data analysis and current status survey methods in logistics facility planning

February 24, 2009 (revised edition)

Logistics Technology Research Institute Toshiyuki Teramoto

advancedLogistics facility planningIn order to plan and build a next-generation distribution center with excellent return on investment (ROI), it is necessary to take a multifaceted approach that goes beyond simply aggregating numbers.Logistics data analysisis required.

Simply calculating the shipment quantity does not reveal the flow of work at the site, the transformation of packaging, or the bottlenecks in the flow line within the warehouse.Careful before data analysisCurrent status surveyBy doing this and verbalizing and quantifying the tacit knowledge in the field, we can create a stable and robust system.EIQ analysisIt is possible to select material handling equipment.

In this paper,Logistics facility planninglead to successLogistics data analysisFrom the thought process ofCurrent status surveyThe point ofEIQ analysisComprehensive explanation of practical procedures.

table of contents

1. Prior knowledge of logistics data analysis necessary for logistics facility planning

1-1. Discrepancies in the viewpoints of how physical quantities are perceived in each department within the company

Logistics data analysisWhen embarking on this process, the first thing to understand is that the way in which physical quantities are perceived is completely different depending on the department within the company.If you proceed with data analysis without understanding this gap in perspective, the designedLogistics facility planningThis can cause a significant deviation from on-site operations.

💡 Turning tacit knowledge into explicit knowledge (requirements definition)
Operational rules based on experience and intuition that exist only at the logistics site or in the minds of specific personnel are called ``tacit knowledge.''For example, rules such as ``This customer's package can only be sent in a specific box'' or ``Morning orders should be grouped on a specific shelf.''Logistics data analysisThe essence of this is to extract this tacit knowledge that only the person understands through interviews and convert it into "explicit knowledge (system requirements)" that can be logically understood and programmed by a third party.

1-2. Deepening data representation (from "points" to "lines" to "areas/multidimensional")

Appropriate material handling equipment and movement lines cannot be designed with only "point" data such as a single total number of shipments.We will build a multidimensional data model that combines the "line (From-To)" that represents movement from the shipping source to the shipping destination, and the concepts of "time axis (waves by time zone)," "packing style (PCB)," and "work area area (m2)."This makes the basic systemEIQ analysisorEIQVT analysisThis allows for seamless expansion.

1-3. Operational characteristics of distribution centers and the importance of “PCB analysis”

Distribution centers that handle sales logistics have severe operational characteristics that are different from production distribution warehouses.

Packaging patterns for each process of receiving, storage, and shippingP (Pallet)C (Case)B (Bara/Piece)There is a method for quantitative analysis by classifying into three units.PCB analysisis.Sites with a high ratio of "P input ➔ B output" require a vast piece picking area and a highly functional WMS, while sites with a high ratio of "C input ➔ C output" require automatic sorters.logistics systemThis will be the deciding factor in system selection, as it will be effective.

1-4. Processing capacity of main logistics equipment (capacity standards for system design)

Logistics data analysisBy comparing the "peak demand processing capacity (cases/hour, piece/hour)" derived from the above with the standard processing capacity of the following material handling equipment, we calculate the appropriate number of material handling machines and lines.

Standard logistics equipment/system name Standard processing capacity guide (standard value) Main applicable work/shipping zones
A type automatic Pic machine 1,200 totes (Oricon) / hour High-speed picking of small items and high-flow bulk items
SAS (case ordering system) 600 cases/hour Automatic buffering and sequential shipping of medium-flowing case products
High-speed piece/case sorting machine (sorter) 2,000 ~ 10,000 cases (pieces) / hour Secondary sorting and sorting by delivery destination after batch picking
High-speed branching and merging conveyor line 2,000 to 6,000 cases/hour Case merging/inspection line from multiple picking zones
Belt conveyor (conveying speed 20-70m/min) 1,800 to 3,600 cases/hour Sectional sorting/horizontal conveyance line for fixed length cases

2. Precise current situation investigation and omission correction conducted before data analysis

2-1. Simultaneous extraction of qualitative and quantitative data using current status survey form

Logistics data analysisThe required processes before entering the warehouse are on-site at the distribution center.Current status surveyis.Physical constraints and human operation costs that cannot be understood using data (CSV, etc.) alone can beCurrent status surveyOrganize using votes.

① Inventory characteristics survey

We interview and measure the number of registered master items, the number of actual items stored at all times, the average and maximum number of cases in stock, the number of storage stages and storage efficiency for each pallet/case/bulk.

② Shipping characteristics investigation

Identify shipping format (PL/case/bulk ratio), number of registered shipping destinations, average number of shipping destinations per day, number of trucks dispatched, time schedule, and monthly/annual volume fluctuation ratio.

③ Information system/IT environment survey

We will investigate the method of receiving orders (EOS, Web, EDI, Tel, Fax), closing time (reception time), number of shipping instructions, presence or absence of WMS, all area/partial location management method, and inspection method (BCR/visual inspection).

2-2. Structural reasons why "missing items and errors" occur frequently in major manufacturers' logistics data

Logistics data analysisThe biggest hurdle that everyone faces when doing this is ``missing or inputting errors in the provided data (core data/WMS data)''.Even for major manufacturers that tend to have particularly strict data management, there is a surprisingly high probability that product size (three-sided dimensions), volume (CBM), and weight are not entered or inconsistent in shipping data.There are structural reasons for this, including the following:

2-3. Correction of missing master/abnormal data and data rescue processing

Assuming that there are data omissions and writing errors specific to these manufacturers,Current status surveyand incorporate logic to appropriately correct and remedy data analysis transactions.

3. Comparison and role of logistics ABC, ABC analysis, and EIQ analysis

Logistics facility planninginLogistics data analysisTherefore, it is necessary to use different analytical methods depending on the purpose, or to combine them for multifaceted verification.

Logistics ABC (Activity Based Costing)

Work activity-based costing:This is a method that subdivides each work process in a warehouse (receiving, inspection, storage, picking, packing) into "Activities" and calculates the unit price (driver) from the labor and equipment costs for each task.

example:If a part-time worker with an hourly wage of 1,200 yen picks 300 cases per hour, the work cost per picked case is calculated as 4 yen/case.It is effective in identifying high-cost processes that are bottlenecks and converting improvement effects into monetary amounts.

ABC analysis (Pareto analysis)

Priority management method:This method sorts all SKUs in descending order of shipment quantity and sales amount, and categorizes them into A rank (top 20%), B rank (middle 30%), and C rank (bottom 50%) based on cumulative ratio.

Pareto's law:At many logistics sites,The top 20% of A-rank items account for 70% to 80% of the total quantity..This directly leads to flow line optimization, where A-rank products are placed close to shipping ports or on automated lines, and C-rank products (long-tailed, low-flow products) are placed on high-density shelves.

Concepts of EIQ analysis and application to logistics system design

Systematized by logistics consultant Shin SuzukiEIQ analysisFrom the shipping transaction dataLogistics facility planningThe most powerful tool that can directly derive the functional requirements necessary forLogistics data analysisIt's a method.

By cross tabulating these three elements and visualizing them as matrices and distribution curves (EQ curves, IQ curves, EN curves, etc.), it is possible to determine whether "individual picking (single picking)" or "batch sowing picking (batch picking + secondary sorting) is appropriate."logistics systemThe framework can be determined objectively and logically.

4. Practical procedures for EIQ analysis and application to system construction

Logistics facility planningto succeedEIQ analysisProceeds strictly in the following eight steps:

  1. On-site hearing/current situation survey:Based on the survey sheet, understand physical constraints, human operations, and tacit knowledge rules at the site.
  2. Data cleaning/DB construction:Import the provided shipping history (3 months to 1 year) and link it to the product master and customer master.
  3. Monthly/daily quantity calculation and target date setting:Create annual/monthly wave graphs and select analysis target dates such as the average day and annual peak day (maximum day).
  4. Creation of logistics material flow diagram:Visualize changes in packaging (PCB) from arrival to shipment, as well as the expected work flow and processing flow.
  5. Reflection of future growth simulation data:Based on the shipper's business plan, future data is constructed by multiplying the future volume growth rate (increase in the number of SKUs, increase in the number of shipments, increase in the number of delivery destinations).
  6. Multi-dimensional analysis and processing capacity calculation of EIQ index:Perform EQ analysis (shipment volume by customer), IQ analysis (shipment volume by product), and EN analysis (number of SKUs per order) to calculate the required processing capacity (cases/hour).
  7. Verification of 24-hour time schedule:Create a workload graph by time zone and verify the validity of part-time worker allocation and equipment capacity (throughput).
  8. Creation of logistics facility plan/proposal documents:Create a basic plan that covers equipment selection basis, layout diagram, and return on investment (ROI).

Basic concepts for field operations derived from analysis

EIQ analysisAs a result, instead of entrusting all work to excessively automated equipment, it is possible to define a hybrid operation concept with high cost performance, such as ``automating material handling for high-flow A-rank products'' and ``low-tech operation using fixed shelves (manual work with work support) for low-flow C-rank products.''

5. Examples of practical aggregation of EIQ analysis and its application to layout design

actualLogistics facility planninginEIQ analysisWe use SQL databases and other tools to aggregate and analyze millions of shipping details.

Wave summary by temperature zone/attribute

Calculate the quantity ratio by temperature range such as room temperature, chilled, frozen, etc., or by shipper/category.For example, if frozen items account for more than 90% of the total, we will focus our investment on cold-resistant material handling equipment that can withstand ultra-low temperature environments and high-speed automatic picks that minimize the time spent in the freezer.

Equipment selection based on shipping matrix

Create a shipping matrix that plots the shipping destination (E) on the vertical axis, the item (I) on the horizontal axis, and the shipped quantity (Q).We will divide the area into ``Large lot area,'' ``Small lot frequent area,'' and ``Ultra-low flow area,'' and clearly separate the scope of application of sorters and the scope of application of SAS (Sequential high-speed warehousing system).

Direct reduction to layout diagram (space design)

Logistics data analysisEIQ analysisThe ultimate goal is not to look at the analysis screen, but to translate it into an actual "distribution center floor layout diagram (drawing)."

Conclusion:certainCurrent status surveyand objectiveLogistics data analysisEIQ analysisPCB analysis) based onLogistics facility planningThis is the only way to ensure "improved work efficiency," "zero incorrect shipments," and "minimized total logistics costs" after operation.