Pal System Consumers’ Co-operative Union (Hachioji Center: Construction of a System for Dry Products)
Mr. Takuo Amino (General Manager, Logistics Department, Product Management Headquarters)
Challenges
- Reduce human error in picking processes.
- Maintain a high level of quality.
- Improvement of line productivity.
Results
- Achieved significantly lower error rate compared to other centers.
- Reduced human error and maintained high quality.
- Improved efficiencies that come from using new technology.
BackgroundReducing human error was the key to achieving higher productivity and better quality of services.
Background
Reducing human error was the key to achieving higher productivity and better quality of services.
Our conventional warehouses could no longer support the increase in co-op members so we had to consider moving ahead with the Inagi Center in Tokyo and Sugito Center in Saitama. Reducing human error was the single most important goal toward achieving a stable and high quality operation at the Hachioji Center in Hachioji, Tokyo. Because of the huge variety of dry goods from grocery to household goods, many tasks were difficult to automate. However, the more reliance there was on human operators, the higher the possibility of error. We addressed each area of concern at the center such as specialized zone for high velocity items such as rice. By doing so, we could move closer to realizing greater productivity at higher quality services. We also wanted to allow for flexibility going forward, especially as the online store, “Online Pal,” contributes to greater growth and expansion of business.
Reasons We Chose Toyo Kanetsu Solutions:Toyo Kanetsu has a wealth of experience and a stellar reputation for innovative design and development in the industry. Moreover, they had an incredibly friendly manner, making them a pleasure to work with.
Reasons We Chose Toyo Kanetsu Solutions:
Toyo Kanetsu has a wealth of experience and a stellar reputation for innovative design and development in the industry. Moreover, they had an incredibly friendly manner, making them a pleasure to work with.
Based on our work with Toyo Kanetsu on a previous center, we wanted to develop a mechanism that could centralize the physical distribution from other centers. Toyo Kanetsu had experience in this area as well as case replenishment for the rice only zone, for example. While we worked through the replenishment of the rice only zone through trial and error, Toyo Kanetsu had lots of good advice as far as the size of pallets and forklift travel paths, etc. that shortened the process. We adopted the SPD III (Super Pick Director) that directs picking according to light, making it easier for operators. This light-directed picking has been very useful. We introduced the system with the expectation that it would eliminate the errors before and after picking, which accounts for most errors.
After ImplementationIn just six months, the rate of human error was better than all other existing centers.
After Implementation
In just six months, the rate of human error was better than all other existing centers.
Compared to the Sugito Center, the Hachioji center error rate was already 10% in just 6 months after opening. It is not one single function that improved productivity and quality at the center, but a combination of solutions such as volume checking system which actually prevented misplacing of boxes downstream, as well as using light guidance in bays, Nestack (returnable stacking machine), and the “rice only zone” together with SPDIII that, combined, made all the difference. The bay light guidance indicates to the picker where to pick from by row and level so even newcomers can work easily in this environment. In fact, the work is now much easier and more intuitive so training has been reduced so people are immediately more productive.
What’s Next?We look forward to working with Toyo Kanetsu as the Co-op continues to grow and develop.
What’s Next?
We look forward to working with Toyo Kanetsu as the Co-op continues to grow and develop.
The Hachioji Center has a low velocity line where picking frequency is low and products are merged to an order downstream. In the future, we would also like to develop an “ultra-low velocity” line for such items as books, CDs, DVDs, that can handle unlimited items. Demand generated by ecommerce is still relatively low, but we believe demand will increase significantly if ultra-low frequency lines can be handled and more SKUs are offered on ecommerce site. While we continue with the current project underway to support growth of the Co-op, we will move ahead with Toyo Kanetsu to develop the new system. We have high expectations that Toyo Kanetsu, based on their experience and study of our operation, will provide new and creative picking solutions that uniquely meet the needs of co-ops and its customers.
* Source: Based on an interview conducted March 2009. Data, organizational departments and personal names appear as they were at time of interview.
