Tera Calculation 1 to Layout

When considering equipment not incorporated into Tera Calculation 2, the values ​​required for the layout must be derived from Tera Calculation 1.
This chapter explains the procedure for aggregating work operations from the Tera Calculation 1 EIQ matrix table and calculating the values ​​required for the layout.
The EIQ matrix table makes it possible to classify work operations, which is not possible with conventional calculations, and we hope you will experience how efficiently aggregating the necessary data is possible.

Proposal 1 is performed using Tera Calculation 1, and Proposal 2 is performed using Tera Calculation 2.
In Proposal 2, material handling equipment is configured using Tera Calculation 2 to obtain the values ​​required for the layout.
Both proposals are calculated using Tera settings without changing the operator.

There are four major differences between Proposals 1 and 2.
1. Tera Calculation 1 (Proposal 1) assigns work operations to the EIQ matrix table, aggregates each work operation, and assigns material handling equipment to the aggregated value. There are no restrictions on the equipment that can be configured, but the required area for the equipment must be calculated manually.
Tera Calculation 2 (Proposal 2) uses the same EIQ matrix as Proposal 1, but because the logistics equipment to be configured is incorporated into Tera Calculation 2, it allows for automatic calculation of the required floor space. However, calculations for equipment other than the incorporated equipment are not possible.

2. Differences in Ranking Keys
Tera Calculation 1 (Proposal 1) uses the "Case" ranking key for case shipments and the "Row" ranking key for bulk shipments. These ranking keys emphasize operational operations, with case shipments being selected by case volume and bulk shipments by row count (number of picks).
Tera Calculation 2 (Proposal 2) prioritizes storage for both case and bulk shipments using the "PL Conversion" ranking key. While this has the advantage of making it easier to calculate approximate scale, Tera Calculation 1 (Proposal 1) will be required for detailed consideration.

3. Differences in Shipping Dates Used
Tera Calculation 1 (Proposal 1) uses the shipping date with the highest shipping volume (May 9, 2022). The idea is to be able to calculate the peak volume required for equipment size and capacity, as well as operational operations.
Tera Calculation 2 (Plan 2) uses average data for all shipments. This allows for the calculation to incorporate all item information, and the idea is to compensate for high shipment volume days with safety stock.

4. Differences in Selected Logistics Equipment
Tera Calculation 1 (Plan 1) selects logistics equipment with an emphasis on automation and mechanization, which is expected to see increased adoption in the future.
Tera Calculation 2 (Plan 2) selects logistics equipment primarily for manual operations, which are more commonly used.

How do these four differences (the settings between Tera Calculation 1 (Plan 1) and Tera Calculation 2 (Plan 2)) affect the analysis results? Please pay close attention to this point when looking at the flow diagram and layout diagram.

From here on, we will focus on Tera Calculation 1 (Plan 1), explaining how to create the EIQ matrix, flow diagram, and layout. Tera Calculation 2 (Plan 2) is explained in a separate chapter, so please refer to that for more information.

Section 1: Investigating the specifications and capabilities of the equipment you want to install with Tera Calculation 2

Section 2: Imagining the operational flow of the equipment you want to install (flow diagram)

The workflow can be summarized as follows:

1. For case shipments, sorting machines are used for high-flow destinations and high-flow items, while automated case warehouses with multi-stage running trolleys are used for low-flow destinations and low-flow items that do not require sorting machines.

2. For bulk shipments, flow shelves with digital displays are used for high-flow destinations and high-flow items, while automated case warehouses with multi-stage running trolleys are used for low-flow destinations and low-flow items that do not require flow shelves.

3. For low-flow destinations and low-flow items that require a heavy workload, case shipments and bulk shipments are sorted (picked) without walking in the same automated warehouse (outgoing station).

The following flow diagram illustrates this concept.

Section 3 Transferring work operations to the EIQ matrix

Assign work operations to the EIQ matrix table [Teramoto Toshiyuki 6].
B1-3 work operations are the same, but are separated because we want to view the quantities separately.

Aggregate by work operation.
(A1) Aggregate by work operation from the EIQ matrix table.
(A2) (A3) Check that the EIQ matrix totals match the destination and item totals.
While the table on the left shows case shipments (total shipments), similar aggregations are performed for bulk shipments. Aggregations are performed for each shipment (total shipments), bulk quantities, case equivalents, product liability equivalents, and weight equivalents.
For a list of these aggregations, please refer to "How to read the EIQ matrix table a.xlsx."

Example of how to read the aggregation list by operation:
The table below shows the aggregation by case shipment (total case equivalent).
918 items and 6,449 cases were removed from the storage area and shipped to 300 destinations.
Operation A shipped 4,893 cases from 365 items, Operation B1 shipped 780 cases from 365 items, Operation B2 shipped 643 cases from 452 items, and Operation B3 shipped 133 cases from 365 items.
There is some overlap in the number of items in each operation, and the exact number of items for each operation cannot be determined from this table. A separate calculation is required if necessary.
The same applies to bulk shipments, PL conversion, and volume conversion.

Similarly, for bulk shipments (converted to total cases),
2,393 items and 3,174 cases were shipped from the storage area and shipped to 411 destinations.
Operation C shipped 2,400 cases from 1,211 items, operation B1 shipped 356 cases from 1,211 items, operation B2 shipped 319 cases from 1,182 items, and operation B3 shipped 99 cases from 1,182 items.
As with the collection cases, there is some overlap in the number of items in each operation, and the exact number of items for each operation cannot be determined from this table. Separate calculations are required if necessary.
The same applies to bulk quantities, PL conversions, and volume conversions.

The operation-specific summary list makes it possible to determine the storage volume and in/out number of logistics equipment (including replenishments), as well as the number of shipping containers.

Section 1: Creating a flow diagram

Section 4: Operation and Equipment Settings

Section 1: Summary of Operation C and Operation D
The figure below shows a case shipment summary table with operation A and operation B color-coded. The area considered here is the shipping area.

Operation C involves shipment of 1211 items to 411 destinations.
1. 1211 items, 2400 cases (56PL equivalent) are shipped in bulk from the storage area.
2. Since 56/1211 ≒ 0.046, which is less than 0.125 per item, we assume 8 mixed loads, resulting in 1211/8 ≒ 151 shipments. 2400/1211 ≒ 1.98 cases/item.
3. Products are replenished from the back of the flow shelving unit, picked 3843 times from the front of the flow shelving unit, and shipped to 411 destination. 3846/411 = 9.35 picks/shipping destination.

Operation D is
3. 2,393 items and 774 cases (24PL equivalent) are shipped in bulk from the storage area.
4. The process involves placing each item into an outgoing container (0.061) rather than by pallet, using the EIQ matrix (24/2,393 = 0.01). The required number of containers is 33/0.06 = 550.
This means that the outgoing container can hold 2,393/550 = 4.35 items.

We've provided some numerical examples, but for calculating the equipment size based on these values, refer to Tera Calculation 2. Next, we'll summarize these four operational steps in the flow chart, as shown in the next section.

Section 2, Step 4. Enter the volume of material for each process from the EIQ matrix into the flow diagram.

Calculate the size of the logistics equipment and the required installation space.

Section 5: Layout Drawing Creation

Consider the efficient flow of work operations and arrange (layout) the logistics equipment in the building.

Section 6 Comparison of Tera calculations and layouts

Section 1, Step 6. Consider the ROI.
Compare the layout with the distribution center layout created in Tera Calculation 2 and consider the ROI.
Items to consider include the cost and maintenance of logistics equipment, the difficulty of operation and the number of workers required, the required floor space, and other related costs.