NISSEI SEIKO Co., Ltd. introduced a unit load AS/RS to store threaded fasteners for construction machines and automobiles. Both first-in and first-out inventory control were achieved, which helped reduce labor costs in storage/retrieval operations.

NISSEI SEIKO Co., Ltd. is one of the major Daido Steel Group companies (headquartered in Aichi). In September 2007, the company introduced a unit load AS/RS (Automated Storage and Retrieval System) to store threaded fasteners at its main factory. This change accomplished first-in and first-out inventory control and resulted in labor savings in storage/retrieval operations.

Renovating material handling equipment to deal with an aging warehouse and heavy labor

NISSEI SEIKO handles approximately 5,500 kinds of threaded fasteners including highly durable hexagon socket bolts for construction machines and automobiles and produces approximately 14 million pieces monthly.

Previously, products manufactured at each line were stored in the warehouse at the same site. NISSEI SEIKO faced concerns about quake resistance due to the aging warehouse, which also required professionals to operate a guide-rail fixed rack of material handling equipment, and heavy labor to collect 20 kg (44 pound) boxes manually. Therefore, NISSEI SEIKO reviewed its factory layout and installed a unit load AS/RS in the existing building. During the second stage of construction in April 2010, the company then introduced picking robots directly connected to the unit load AS/RS. The old warehouse was demolished successfully solving these problems.

Eliminating the need for inventory checks and automating 80 percent of collecting operations

The unit load AS/RS is 25 m (82 ft) in depth, 9.5 m (31 ft) in width, and 8.5 m (27 ft) in height. It stores cartons, returnable containers specific to customers, and empty pallets. A Sorting Transfer Vehicle (STV) was employed between the unit load AS/RS and storage/picking stations to improve efficiency in storage/retrieval operations. For carton picking, robots were utilized to automate stacking operations to pallets.

Furthermore, an inventory management system ‘AWC’ managed lot numbers and packing information, which enhanced management accuracy and eliminated the need for inventory checks. Additionally, manual collecting operations for cartons used at 80 percent of the storage locations were eliminated. As a result, the number of dedicated workers was reduced 50 percent to only one with the same volume being processed as before.

“Prioritizing the building demolition, we divided the construction work into two stages. In addition to distribution efficiency, we are satisfied with improving the site environment,” shares Mr. Takanori Sugimoto, deputy director of Production Management Department.