In component warehouses at assembly sites, many workers are engaged in daily operations. Component warehouses face several challenges. This article explains common issues that tend to occur in component warehouses and their solutions. We will identify five typical challenges in component warehouses and propose an inventory management system to resolve them. Furthermore, we will discuss actual case studies of companies that have implemented inventory management systems, their results, and product evaluations.
・Common Challenges in Component Warehouses
１．Insufficient Warehouse Space
２．Picking Errors
３．Complexity of Receiving and Issuing Operations
４．Time-Consuming Inventory Counts
５．Work Time Differences Between New and Experienced Workers
・How to Solve These Challenges?
・Implementing a Suitable Inventory Management System
・Actual Implementation Cases and Their Results
・Customer Feedback
We have classified the most common challenges in component warehouses at assembly sites into five categories and will explain each case. Let's examine them in order.
A component warehouse is, as the name suggests, a place to store components used in products. It is an essential location for production preparation. When existing product lineups expand or new products are added, the variety of components increases, requiring more storage space. This creates a situation where no amount of storage space seems sufficient.
When production instructions are issued, workers perform the task of collecting the required components, which is called picking. In modern warehouses, components are typically stored using a free location system. With free location, components are stored in available spaces rather than predetermined locations, which improves storage efficiency.
On the other hand, because component storage locations change, storing and retrieving components requires time and effort. For example, components designated for production are specified by the production management system, and workers search for the corresponding shelves and components based on the printed component list. Since storage locations are not consolidated in one area, workers must move back and forth throughout the component warehouse. The extended search path requires both time and effort.
Additionally, many material part numbers are similar. When only one character differs and it's a similar letter or number, workers may pick up the wrong component. Although barcode verification checks often prevent incorrect usage, the effort of returning the incorrectly picked component to the shelf still occurs. Furthermore, when returning items, workers may mistakenly place them on the wrong component shelf, increasing the effort required to swap for the correct component or search for it during the next picking operation.
Component receiving and issuing operations are fundamentally based on first-in, first-out (FIFO). Small components are stored on reels, but even when a reel is issued, not all components are necessarily used at once. Remaining partial components must be returned to the component warehouse. These returned partial components also require proper FIFO management, but returning them to component shelves requires time and effort.
Additionally, while companies may want to install new automated warehouses to improve receiving and issuing efficiency, there are concerns about whether they can successfully integrate with existing systems. Furthermore, even after implementing an automated warehouse, while components can be retrieved without errors, the time required to retrieve them may actually reduce efficiency.
At month-end, it's necessary to verify the inventory system quantities against actual inventory, which also requires significant time and effort. Components may be distributed not only in the warehouse but also on production lines and temporary storage shelves near production lines. Therefore, finding and verifying where and how many items are located also requires considerable labor.
Component picking and receiving/issuing operations involve a learning curve, so while each individual task may only show a small time difference between new and experienced workers, these differences often accumulate into significant time gaps. Additionally, even after experienced workers train new workers, it often takes considerable time for new workers to become accustomed to component searching and receiving/issuing processes with conventional shelf management.
To resolve the five challenges mentioned above that commonly occur in component warehouses, we recommend considering the implementation of the inventory management system we propose below.
As a proposal to prevent the five challenges mentioned earlier while promoting operational efficiency, we suggest an inventory management system. Implementing an inventory management system can improve and enhance operational efficiency while reducing the workload burden on staff.
Various inventory management systems have already been released, but here we will focus on the Smart Reel Rack. Operation is very simple. For receiving, attach a QR code to the reel and scan it. Place it in the rack, and you're done. For issuing, simply scan the component slip to complete the process. The target reel for issuing is indicated by a lamp, making it easy to locate the component. If you pick up the wrong item, a lamp and buzzer alert you, preventing picking errors. It's also useful for reducing inventory count time and is an effective product for improving the production efficiency of receiving and issuing operations.
It also supports multiple languages, so no training is required regardless of language. The specifications make it easy for anyone to use. Therefore, even foreign workers who are not yet proficient in Japanese can operate it smoothly.
While the magnitude of benefits varies depending on customer circumstances, we have received the following feedback from customers who have implemented the Smart Reel Rack:
• Inventory count personnel reduced to 1/6! (From 6 people total to 1 person)
• Time to locate target reels from storage racks reduced to 1/5!
• Personnel searching for target storage reels reduced to 1/5!
• Time to find and mount 200 reels reduced to 1/8!
• Zero reel retrieval errors!
Implementing the Smart Reel Rack enables reduction of worker workload and promotes improved worker operational efficiency.
We will explain the implementation case and subsequent results of Sanwa Denshi Co., Ltd. (hereinafter: the company), which has actually implemented the Smart Reel Rack. The company has a factory in Okayama Prefecture and faced challenges including: spending excessive time on electronic component picking, time loss caused by incorrect reel re-storage locations, spending an entire day on month-end inventory counts, and securing storage space.
The reasons for implementing the Smart Reel Rack included its ability to solve the company's challenges, as well as the following points that became key factors in the decision:
◇ Simple and user-friendly operator interface
◇ Availability of compatible shelving
◇ Ability to connect and integrate with the company's existing inventory management system
◇ Smooth component searching with lamp indicators on racks and reels
◇ Operator notification of picking errors via lamp indicators
◇ High cost-effectiveness
After implementing the product, the company successfully achieved the following results:
◇ Reduced reel storage space to approximately 1/7
◇ Reduced component receiving and issuing time to 1/5
◇ Halved the time required for new workers to become proficient
◇ Month-end inventory counts that previously required multiple people for a full day can now be performed by one person
◇ Reduced worker workload due to smoother receiving and issuing operations
As the company's evaluation after product implementation, we received the following comments:
◇ Peace of mind from high-quality support services typical of Japanese companies
◇ Ability to reduce receiving and issuing time to 1/5
◇ Excellent storage capacity
◇ Lower price than competitors' racks while storing more reels
◇ So convenient that we can't go back to the previous work methods