Challenges and Improvement Points in Intra-facility Logistics (Factory Internal Logistics).

The movement of materials such as raw materials, parts, and finished products within a factory is referred to as "intra-facility logistics" or "factory internal logistics." Intra-facility logistics is required to transport the necessary items in the required quantities when needed, and it is a critical factor in improving overall productivity within the factory. This article explains the processes, challenges, and improvement points of intra-facility logistics.

Intra-facility logistics (factory internal logistics)

Intra-facility logistics" refers to the movement and transportation of goods within a factory, from logistics bases to production lines, between different stages of production, and so forth. In manufacturing environments, there are various lines and processes through which products are assembled while materials are transported between these processes. Efficient transportation of goods is essential for improving overall productivity within the factory, as production can be disrupted if necessary parts and raw materials do not arrive on time at the manufacturing lines. Therefore, achieving efficient intra-facility logistics is crucial. It's worth noting that intra-facility logistics is also referred to as "factory internal logistics.

Types of Intra-facility Logistics (Factory Internal Logistics)

In manufacturing, there are three main types of intra-facility logistics (factory internal logistics).

Sales Logistics

This involves the logistical operations associated with shipping finished products produced in factories. Apart from being transported from logistics bases or redistribution centers to wholesalers, retailers, etc., there is also an increasing trend of direct delivery to consumers due to the proliferation of e-commerce. When referring to "logistics," it is common to refer to sales logistics. Since it is necessary to deliver goods to consumers at the timing they request, the optimization of sales logistics efficiency is also crucial.

Reverse Logistics

Reverse logistics involves logistical operations related to the retrieval and recycling of products, containers, or defective items. In addition to production and sales, manufacturing industries may also be responsible for these retrieval processes. In recent years, there has been an increasing emphasis on promoting a circular economy as a response to environmental issues. Consequently, the importance of reverse logistics has also grown.

Procurement Logistics

Procurement logistics involves logistical operations occurring during the acquisition of materials, components, etc. Necessary parts, materials, and raw materials are procured from suppliers or other sources and stored in warehouses. With the increasing emphasis on "just-in-time" practices, ensuring the availability of required items in the required quantities at the right time has become crucial, making procurement logistics a significant phase.

Processes of Intra-facility Logistics (Factory Internal Logistics)

Intra-facility logistics (factory internal logistics) consists of the following five processes.

Receipt and Storage

This process involves accepting parts, materials, and raw materials delivered from suppliers and storing them at logistics bases or similar facilities. Upon receipt, the items are checked against the order to ensure accuracy before being stored on shelves or similar storage locations within warehouses. To reduce the burden on workers during the transportation and stacking of incoming goods, equipment such as AGVs (Automated Guided Vehicles) or palletizing robots can be utilized, enabling efficient operations.

Procurement Logistics
Please refer to the following articles for detailed explanations:

Picking (Order Fulfillment)

Picking is the process of retrieving necessary materials or parts from storage locations and delivering them to the manufacturing line. It requires accurately picking the required items in the necessary quantities based on the instructions provided. When workers move around a large warehouse to perform picking tasks, it is not uncommon for challenges such as increased physical strain and personalization to arise.

Therefore, solutions such as AGVs (Automated Guided Vehicles) or AMRs (Autonomous Mobile Robots) that autonomously transport items, as well as digital picking systems that streamline picking processes, are sought after.

Warehousing

It is common for raw materials, parts, materials, etc., to remain in warehouses for a certain period before being transported to the manufacturing line. This process is called "warehousing." Products manufactured in the factory are also stored as inventory.

Inventory stored in warehouses must be constantly monitored for accurate information such as arrival dates, production dates, quantities, etc., to prevent shortages or excess surplus. However, errors are inevitable with manual labor alone. Therefore, it is recommended to introduce solutions such as WMS (Warehouse Management Systems) or automated warehouses that can centrally manage the entire flow from receipt to storage and retrieval, and efficiently manage warehouse operations.

The article explaining solutions to streamline warehousing operations is available at the following link:

Transportation

In each of the aforementioned processes, transportation of goods is constantly occurring. Failing to smoothly transport the necessary items when needed can result in significant impacts such as halting subsequent processes. Therefore, achieving accurate and efficient transportation is crucial.

As reliance on manual labor for transportation can lead to decreased efficiency, AGVs (Automated Guided Vehicles) or AMRs (Autonomous Mobile Robots) that can autonomously transport items are also beneficial for inter-process transportation.

The article explaining robots that support picking is available at the following link:

Shipping

Once products are completed, they are stored in warehouses and shipped when needed. In some cases, tasks such as packaging and sorting may be performed before shipping. Since shipping also involves the transportation of goods, it is recommended to utilize solutions such as AGVs or palletizers to reduce the workload. For more details about AGVs and palletizers, please refer to the following articles:

Challenges in Intra-facility Logistics (Factory Internal Logistics)

In factories where intra-facility logistics are not optimized, various problems frequently arise. For example, challenges may include undefined storage locations for materials and parts, leading to wasted storage space and difficulties in locating items. Additionally, over-supply of parts can lead to overproduction, resulting in excess inventory and frequent need for removal. Neglecting these challenges can result in unnecessary costs and efforts, highlighting the need for improvement.

The Flow of Improving Intra-facility Logistics (Factory Internal Logistics)

It is important to be mindful of the following three aspects when improving intra-facility logistics (factory internal logistics).

Being Mindful of Efficiency in the Manufacturing Environment

First and foremost, it is crucial for the manufacturing environment to be mindful of efficiency. By identifying areas or processes where waste or delays occur, you can gain an understanding of key areas for efficiency improvement.

For instance, if there is inconsistency in the rules for incoming goods, leading to a failure to transport necessary items when needed, it may be necessary to thoroughly organize incoming goods rules and storage methods to ensure strict adherence to the first-in-first-out principle. Additionally, reconsidering the layout of storage shelves to a more efficient arrangement could also be considered.

Managing the Flow of Manufacturing Processes

It is also necessary to manage the entire flow of intra-facility logistics (factory internal logistics), including the supply of materials and parts from the warehouse to the production line, each process on the production line, and storage and shipping of finished products. This allows for the identification of areas where stagnation occurs, such as unnecessary movements or waiting times during the transportation of products or materials.

To manage this overall flow effectively, solutions that digitize warehouse management, such as automated warehouses or Warehouse Management Systems (WMS), may be required.

Improving the Efficiency of Intra-facility Logistics Itself

After identifying points for efficiency improvement and establishing the ability to manage the flow, the next step is to focus on improving the efficiency of intra-facility logistics (factory internal logistics) itself.

There are various methods to achieve efficiency, such as improving the layout of the factory, developing manuals to ensure correct procedures are followed, and providing training for workers. If the benefits outweigh the implementation costs, introducing new solutions such as systems or robots can also be effective. Through these efforts, it is possible to reduce the burden on workers and improve the accuracy of operations.

Introduction of Intra-facility Logistics (Factory Internal Logistics) Improvement Case

sashes, faced challenges in their internal logistics center where there were a large variety of small parts. These parts could not fit on the shelves traditionally used, leading to storage in areas other than pallets or shelves. Consequently, workers had to travel longer distances, resulting in decreased efficiency and increased physical strain. Furthermore, as only some workers were familiar with the storage locations, there were variations in work times due to the personalization of management.

To address these challenges, YKK AP introduced shelf-carrying AGVs for transporting parts from the storage location to the workstations between processes. Additionally, by integrating them with a Warehouse Control System (WCS), automation was achieved. This eliminated the need for workers to walk long distances, reducing workload and physical strain. Moreover, the standardization of picking operations progressed as the personalized management was eliminated, enabling anyone to perform the tasks.

Improvements in Intra-facility Logistics (Factory Internal Logistics) - Reach LOGITO

At Daiichi Sangyo, we provide a solution service called "LOGITO" aimed at automating logistics for companies in manufacturing, warehousing, and related industries. We offer various solutions such as automated warehouses and AMRs (Autonomous Mobile Robots), tailored to the challenges faced by our clients, to support the improvement of intra-facility logistics (factory internal logistics).

Furthermore, we provide comprehensive support ranging from on-site analysis in factories to coordinating equipment and facilities, and offering after-sales support following installation. By collaborating with domestic and international group companies, we swiftly and optimally deliver solutions, effectively achieving labor savings in intra-facility transportation operations within factories.



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