【With Case Studies】Key Points for Successful Manpower Reduction in Factory Intra-Logistics: Explaining the Evolution of Manpower Reduction in Manufacturing and Warehouse Industries, and the Benefits o

Intra-logistics

"Intra-logistics," also known as "in-plant logistics," refers to the movement and transportation of materials, parts, and finished goods within a factory. Intra-logistics involves the efficient and timely conveyance of the necessary items in the required quantities, playing a crucial role in enhancing the overall productivity of the factory.

Below, we provide detailed explanations about intra-logistics (in-plant logistics).



The next chapter will introduce the evolution of labor-saving measures in intra-logistics.

The Evolution of Manpower Reduction in Manufacturing and Warehouse Industries

The automation of logistics has seen four innovations driven by technological advancements, culminating in the era of 'Logistics 4.0,' which focuses on manpower reduction and automation through AI and IoT. This transition from Logistics 1.0 to Logistics 4.0 will be explained.

Logistics 1.0

"Logistics 1.0" refers to the era when it became possible to transport large quantities of goods quickly. During the First Industrial Revolution, people migrated to urban areas where factories were located, enabling mass production. However, conventional transportation methods took time for transportation because of the vast quantities involved. With the widespread adoption of railway and maritime technologies, it became possible to transport large volumes of goods to their destinations in a short time.

Logistics 2.0

"Logistics 2.0" refers to the mechanization of cargo handling operations after World War II. Originally used to streamline the supply of military goods, forklifts became indispensable in logistics after the war, especially with the widespread adoption of pallets. This led to rapid mechanization of cargo handling operations.

Logistics 3.0

"Logistics 3.0" refers to the systemization of logistics management in the 1980s. While the post-industrial revolution era saw significant innovations in mechanization within the logistics industry, automation was limited primarily to on-site operations such as loading and unloading. Tasks such as cargo tracking, inventory management, and other administrative processes continued to rely on manual methods, documented through paperwork and ledgers. With the widespread adoption of computers in the 1980s, Warehouse Management Systems (WMS) were introduced to streamline management and processing tasks. These systems enhanced the accuracy of logistics management within warehouses, allowing for comprehensive control over operations from inbound processes like receiving and storing to outbound processes such as picking, inspection, and packaging.

Logistics 4.0

AI and IoT technologies are predicted to further accelerate automation and workforce reduction by enabling robots to perform tasks previously carried out by humans. With the mechanization of tasks such as human judgment and operations that were traditionally exclusive to humans, the forefront of logistics operations is transitioning from humans to new technologies like IoT and AI. By replacing tasks previously performed by humans with machines, automation can help alleviate labor shortages, cope with increased demand, reduce costs, and improve employee welfare.

While automation in manufacturing and logistics has advanced, the following section will explain the contemporary context driving the demand for workforce reduction.

The Background Driving Workforce Reduction in Manufacturing and Logistics Industries

One of the backgrounds driving the workforce reduction in logistics is the shortage of labor. There is a growing need to expand employment to a wide range of demographics, including seniors and foreign workers. It is essential to create logistics environments that reduce workload and do not rely on the abilities of individual workers.

The benefits of working on labor reduction in the factory's internal logistics are as follows:

The benefits of advancing labor reduction in the internal logistics of factories include the alleviation of labor shortages by reducing human-operated tasks, as well as preventing risks such as employee accidents, injuries, and human errors due to the decrease in human-operated tasks.

Alleviation of labor shortages:

Labor reduction results in fewer tasks performed by humans. Since robots operate without time constraints, human-operated tasks can be minimized.

・The risk of employee accidents and injuries can be mitigated:

Robots and machines performing tasks can prevent risks such as tripping while carrying heavy loads or collisions with forklifts.

・Elimination of human errors:

While human-operated tasks inevitably result in human errors, robots can eliminate them. Additionally, since robots perform tasks consistently, there is a significant efficiency benefit without variability in operations.

Key Points for Successful Automation of Intra-factory Logistics

When tackling the automation of intra-factory logistics, challenges such as 'implementation and maintenance costs' and 'failure to achieve expected results' often arise. To achieve cost-effectiveness, it is crucial to first assess the flow of one's own processes. For instance, in factories, the intertwining of production and intra-factory logistics processes can create complex flows, leading to various inefficiencies.

In the next section, we will present case studies of the implementation of intra-factory logistics automation.

Case Study: YKKAP Corporation

YKK AP Corporation is the leading manufacturer of aluminum sashes in Japan, serving as a core company in the building materials business of the YKK Group. The company is primarily engaged in the design, manufacturing, construction, and sales of housing materials such as windows and sashes, as well as building materials for commercial structures.

・Pre-AGV and System Implementation Situation:

At the company's logistics center, there were numerous types of small parts used in assembling window frames, leading to insufficient space on conventional shelves for storage. As a result, these parts were stored in areas outside of pallets or shelves, causing increased travel distances and a decrease in operational efficiency, as well as physical strain on workers. Additionally, only some workers were aware of the storage locations, resulting in inconsistent work times due to decentralized management. Facing these challenges, along with concerns about the impending shortage of workers, the company decided to address these issues by introducing an automated system as a trial measure to enhance operational efficiency and standardization.

Concept of the Implemented System

After the introduction of the AGV and system, two key benefits were achieved:

Achievement of Standardization in Tasks Previously Dependent on Individual Expertise

The implementation of the system resulted in two significant effects being observed:

①Elimination of the need for workers to walk long distances, leading to improved operational efficiency and reduced physical strain.
②Standardization of picking tasks that were previously personalized, allowing anyone to perform the tasks.

Thus, the improvement goals set during the initial consideration of implementation were achieved. Additionally, there were preventive effects against operational errors, and the work environment was significantly enhanced.

The solution implemented at YKK AP Co., Ltd. is detailed in the following document:

Efforts toward labor reduction in intra-factory logistics (internal logistics) are supported by LOGITO.

At Daiichi Jitsugyo, we offer the logistics automation solution service 'LOGITO' tailored to the needs of manufacturing and warehouse companies. We provide various solutions such as automated warehouses and AMRs (Autonomous Mobile Robots) tailored to our customers' challenges, supporting the improvement of intra-factory logistics (internal logistics). Additionally, we offer comprehensive support from on-site analysis in the factory to the coordination of equipment and facilities, and post-installation follow-up. By collaborating with domestic and international group companies, we provide swift and optimal solutions, effectively achieving labor reduction in intra-factory transport operations.

In the following document, we introduce specific solutions for improving intra-factory logistics, including logistics automation. If you are interested, please take a look.