改Guidebook for Improving
Logistics Operations(KAIZEN - Guidebook)善活Establishment of Improvement
Promotion System

動Grasping of Current Situation of
Logistics Operations
Improvement Planning
Execution of Improvement
Evaluation / Establishment /Horizontal Deployment

October 2018

Purpose of this guidebook
The environment for corporate management is drastically changing, with factors such as
economic globalization and the product life cycle becoming shorter. Amid such circumstances, theindustrial community is promoting the establishment of supply chain management and higher
efficiency for logistics, to survive global competition and enhance corporate value. In order to makesupply chain management and logistics function effectively in the current situation, in which highspeed and higher efficiency are strongly sought, it is absolutely necessary to strengthen the“Skills
required to improve logistics operations,”to cope with the environmental changes in business
management. Further, it is important to implement improvement activities for logistics operations,for the purpose of strengthening the“Skills required to improve logistics operations.”
Japan Institute of Logistics Systems (JILS) created the“Guidebook for Improving Logistics
Operations”in 2007 to provide impetus to the activities for improving logistics operations, and has
repeatedly revised it for dissemination since then.
In this guidebook, the implementation process for activities to improve logistics operations isdivided into four stages, and it is recommended that activities should be deployed in line with this“Cycle for activating improvement activities.”Thus, activities to improve logistics operations canbe disseminated broadly in the industrial community. The“Checklist for activating improvement oflogistics operations,”the“Checklist for finding problems,”and the“Competences required as aleader of logistics operations”are also introduced in this guidebook.
Furthermore, this guidebook is full of hints and company examples to strengthen the“Skills
required to improve logistics operations”. There are also six viewpoints for companies’
establishing and revitalizing activities to improve logistics operations, based on a questionnairetaken by 188 companies in 2017.
Please use this guidebook to gain awareness of the necessity of improving logistics operations,solve problems, and step up activities.

Efforts of JILS to Support Activities to Improve Logistics Operations▶Human Resource Development
・Certified Logistics Kaizen Master Course
・Seminar on Improvement of Logistics Operations▶Awards System
・Logistics Rationalization Award・Logistics Rationalization Effort Award▶Improvement Cases
・ Collection of Improvement Cases of Logistics
Operations
・Lecture Meeting for Promotion of Improvement of
Logistics Operations▶Improvement Case Presentations
・All-Japan Convention for Logistics Improvement Case
Studies・Kansai Logistics Improvement Case Presentation Meeting
・Chubu Logistics Improvement Case Presentation Meeting
・Kyushu Logistics Improvement Case Presentation Meeting▶Support Tools
・ Guidebook for Improving Logistics Operations
・Checklist for Activating Improvement of Logistics
Operations
・Checklist for Finding Problems
・Competences Required as a Leader of Logistics Operation

Introduction
Improvement of Logistics Operations
Improvement of Logistics Operations indicates activities to contribute to enhancement of
Customer Satisfaction and Employee Satisfaction, through all workers participating in them andcontinuously improving the work methods and content as well as the work processes, for a seriesof operations and auxiliary work in a distribution center, such as transportation, receipt of goods,
inspection, sorting, storage, picking, packing, cargo handling, loading, shipment and distribution.

Effects of Improvement of Logistics Operations【Enhancement of Customer Satisfaction（CS）and Employee Satisfaction（ES）】◦Enhancement of work productivity ◦Reduction of operation cost
◦Improvement of distribution quality ◦Enhancement of article management accuracy◦Safety improvement◦Reduction of environmental burden◦Improvement of work environment

Impact of Improvement of Logistics Operations
Higher logistics efficiency will be attained as a result of solving various distribution
problems through the results of improvement of logistics operations, and reinforcement ofcorporate competitive power and enhancement of corporate value will be achieved.
Eﬀects of improvement oflogistics operations

Solution of physicaldistribution problems●Cost reduction●Accuracy enhancement●Reduction of distribution lead time
●Environmental response

Improved eﬃciency
in logistics●Service level●Station plan
●Revenue management●Supply plan
●Inventory plan

Reinforcement of corporate
competitive power
Enhancement of corporate value•1•Basic Flow of Activities to Improve Logistics
Establishment of
Improvement Promotion
SystemBasic Flow of Activities to
Grasping of Current
Situation of Logistics
Operations

Improveme

Cycle for Activating the
Improvement Activities

Area Division• This guidebook describes the scope, work, related
departments and roles in the three areas of“Logistics,” “Physical Distribution” and “Distribution
Work.”• This guidebook describes the points in each processby dividing activities to improve logistics operations
into the four processes of “Awareness and Problem
Grasping,” “Improvement Activities,” “Information
Sharing and Horizontal Deployment” and “Evaluation
and Rewarding.”• It is possible to use this guidebook as an overview of
the total image of logistics and physical distribution,
and when confirming logistical functions, and thetarget areas for improvement activities.

• The process and the cycle (flow and circulation) ofactivities to improve logistics operations are
confirmed and it is recommended that improvement
activities should be deployed in line with this cycle.

Pages 4 to 5

Pages 6 to 7

Six Viewpoints to Establish andRevitalize Activities to Improve
Logistics Operations

Checklist for Activating
Improvement of Logistics
Operations• This guidebook describes the points to be worked
on by the entire organization to establish andrevitalize activities to improve logistics operations,using each of the following six viewpoints: “Human
Resource Development,” “Setting of Policy andTargets,” “Establishment of System and Framework,”“Organizational Structure and System,” “Company
Climate and Communication,” and “Inter-Company
Collaboration,” with company cases as examples.

• A checklist in which the implementation levels ofactivities to improve logistics operations (20 items),
based on the cycle for activating the improvement
activities, are represented in four stages.
• It is possible to use this checklist to grasp thestrengths and weaknesses of the company’s
improvement activities and stages of activities (i.e.,
prior to activity, initial stage, implementation, andrevitalization).

• It is possible to use this guidebook to grasp thecurrent situations of, and consider policies for,improvement activities in the entire organization.

Pages 8 to 11

Pages 12 to 13●●●●●The colors in the frames indicate the typical uses of the contents, corresponding to the color•2•

Operations and Use of this Guidebook
Improve Logistics Operations
nt Planning

Execution of
Improvement

Evaluation/Establishment
Horizontal Deployment

Frequently Occurring Problems,
Activities to Improve Logistics
Operations, KPI

Checklist for Finding
Problems• This guidebook describes the problems in distribution
work (i.e., transportation and delivery, receiving andshipping, inspection, loading, storage, sorting,picking, packing, packaging, etc.), and examples of
implementation measures for improvement activities.

• A checklist in which the implementation levels of
logistics operations and management (20 items) arerepresented in four stages.
• It is possible to use this checklist to detect problems
and grasp the stages of activities (i.e., prior toactivity, initial stage, implementation andrevitalization) in your company.

• It is possible to use this guidebook to confirm theprocedures for improvement activities for the target
work and achieve the action plan with concrete
examples of problems, issues, improvement
measures, a scale for evaluation, etc., all arranged inline with the cycle for activating improvement
activities.

Pages 14 to 17

Pages 18 to 19

Competences Required as a
Leader of Logistics Operations

Visual Samples (Frequently Occurring
Problems in Logistics Operations andExamples of Improvement Activities)• This guidebook describes the competences required
as a leader of logistics operations, such as “Ability to
Grasp Current Situation,” “Ability to Plan
Improvement,” “Ability to Perform Improvement” and“Ability to Evaluate and Establish,” and their content(competence requirements).

• This guidebook describes frequently occurring
problems in logistics operations and examples of
implementation measures for improvement, in aneasy-to-understand manner.
• It is possible to use this guidebook as material forawareness about problem detection in activities toimprove logistics operations, and in planning
improvement measures.

• Leaders can use this guidebook to recognize theirown strengths and weaknesses by performing
self-diagnoses on these competence requirements,
and to plan future self-development and training toovercome their weaknesses.

Page 20

Pages 21 to 29

of each process in the “Basic Flow of Activities to Improve Logistics Operations”•3•

Division into Areas
With the division into the three areas of“Logistics,”“Physical Distribution”and“Distribution Work,”one operation that goesto make up“Logistics”is defined as“Physical Distribution,”and within“Physical Distribution,”the work in a distribution
center and the auxiliary work are defined as“Distribution Work.”
In this guide book, improvement of“Distribution Work”(the blue section in the figure below) is classed as“Distribution site
improvement.”

Management
Logistics

Reinforcement of corporate competitive power and enhancement of corporate valu

Service level

Station plan

Production

Revenue management

Supply plan

Procurement andPurchasing

Planning andDevelopment●Replenishing lead time
●Stock volume of materials
and parts●Shape●Volume●Weight●Quality retention
period●Production lead time
●Production lot●Stock volume of materials

Inv

PhysicalDistribution
Distribution operation and management

Ｓｕｐｐ ｌｉｅｒ

Cost reduction

Order receiving and ordering management

Accuracy enhancement

Transportation and distribution management

Reduction of distribution lead timeInventory management

Environmental reWork management

Pac

Distribution
CenterTransportation Cargo receipt

Incoming inspection Storage

Sorting

Picking

Packing Cargo handling LoadingO

Enhancement of Customer Satisfaction（CS）and Employee Satisfaction（ES）
Enhancement of work productivity

Reduction of operation cost

Improvement of distribution quality

Enhancement of article management accuracy

Safety improve

Operation and management of works in a distribution center and auxiliary works
Distribution work•4•【Area Division】
Logisticsue

Targetscope

ventory planning

Targetwork

Marketing andSales

Relateddepartments

Cross-departmental (collaboration with
subcontractors)

Roles

Service level; station plan; revenue management;
supply plan, inventory planning; etc.

●Delivery date
●Proper order-receiving lot●Inventory query

Physical Distribution

cking management

ＣｕｓｔｏｍｅｒesponseTargetscope

The target is the integrated scope of multiple
distribution operations and processes.

Targetwork

Order receiving and ordering management; transportationand distribution management; inventory management;
work management; and packing management

Relateddepartments

Distribution department

Roles

Cost reduction; accuracy enhancement; reductionof distribution lead time; environmental response;etc.

Outgoing inspection Shipment Distribution

Reduction of environmental burden

Distribution Work
Targetscope

The target is a small group that can complete thework in one workplace (site).

Targetwork

Transportation; cargo receipt; inspection; storage;
sorting; picking; packing; cargo handling; loading;
shipment; and distribution

サプライヤ

ement

The target is the integrated scope of: planning anddevelopment; production; physical distribution; andmarketing and sales.
Planning and development; procurement andpurchasing; production; physical distribution; andmarketing and sales

Relateddepartments

Distribution center

Roles

Enhancement of work productivity; reduction of operation cost;
improvement of distribution quality; enhancement of article management
accuracy; safety improvement; reduction of environmental burden; etc.

•5•

Cycle for Activating Improvement Activities
The cycle for activating improvement activities indicates the improvement activities appropriate for each process, when theactivities to improve logistics operations are divided into four processes.
In this guidebook, it is recommended that activities should be deployed to improve logistics operations in line with the cycle foractivating improvement activities. As an impetus to improvement, awareness and grasping the problem are achieved, improvement
activities are performed to solve the problem, and the results are shared as information and deployed horizontally. Furthermore, toconnect this to the next improvement, it is important to link the results with awareness and problem grasping, firmly establish theactivities to improve logistics operations, and at the same time evaluate and reward the results both internally and externally.

Evaluation and rewarding (Award)

Evaluation and rewarding(Award)Information sharing and horizontal deployment (See)Sharing of information on distribution
site improvement activities (See)Enhancement of quality, productivity
and Customer Satisfaction（CS）
Target and quantitative
performance indicators

Improvement
activity (Improve)

Plan
Act

Top-down type(Design-like)Plan
Establishment of
Improvement Activities
Clarify the change points required for improvement

Doand enhancement of the process.（Act）

Evaluate and analyze the measured results

Check
Set a target for improvement andof the improvement activities.（Check）

design the process.（Plan）

Execute the plan for improvement andmeasure the performance.（Do）【Spiral type】
After a certain result has been obtainedin the PDCA cycle, the PDCA cycle
will be continued with a further target
set under the same theme.

Awareness and problem grasping (Mind)

Bottom-up type
(Analytical)

Problem grasping in
logistics operations

Fostering of problem awarenessfor tackling improvement of logistics
operations (Mind)•6•

Awareness and problem grasping (Mind):

Improvement activity (Improve):

Indicates the stage of understanding the necessity of improvement andgrasping where the problem lies, in a situation where distribution site
improvement activities are not performed. What is required: To provide
an impetus for distribution site improvement activities.

Indicates the stage of performing distribution site improvement activities
with the PDCA cycle through accurate target setting and a systematic
approach, in a situation where a problem has been grasped and a distribution
site improvement activity is performed. What is required: To get results fromand firmly establish the distribution site improvement activities.

Information sharing and horizontal deployment (See):

Evaluation and rewarding (Award):

Indicates the stage of sharing information on and horizontallydeploying the results, in a situation where distribution site improvement
activities are performed continuously. What is required: To use theseresults as an impetus to cause a ripple effect to other sites and thus leadto new distribution site improvement activities.

Indicates the stage of evaluating and giving a reward for the improvement results on
which information has been shared, both internally and externally, and thus enhancing
motivation to perform distribution site improvement activities. What is required: To
broadly commend the results not only within the company, but outside it as well.

【Key points for firmly establishing the cycle】［Evaluation and rewarding］
Self- (internal) and mutual development:◦Internal evaluation system◦Transmission of information to the outside◦Evaluation from the outside［Information sharing and horizontal deployment］
Information sharing：◦Accumulation of improvement database◦Presentation in the company and in
the group
Horizontal deployment：◦Firm establishment Compiling into
manuals

Evaluate and analyze the measured resultsof the improvement activities.（Check）

Clarify the change points required for improvement
Execute the plan forimprovement and measure

the performance.（Do）and enhancement of the process.（Act）
Establishment of
Improvement Activities［Improvement activity］
Support from organization：◦Intentions of top management
Education：◦Development of human resources
Workplace environment：◦Mechanism for participation of
all employees◦Environment for continuation andestablishment
Firm establishment：◦Standardization

Set a target for improvementand design the process.（Plan）【Project type】
After a certain result has been obtained in the PDCA cycle,
the PDCA cycle is continued with a target set for a new theme.

[Awareness and problem grasping]
Human：◦Desire to tackle improvement
Environment：◦Easiness of tackling improvement•7•Six Viewpoints for Establishing and Revitalizing
Activities to Improve Logistics Operations
It is necessary to“work on improvement in the entire organization”to establish and revitalize activities toimprove logistics operations. It will be important to create the organizations and frameworks for deciding
policies and targets and promote improvements under the guidance of management and senior executives.
Having performed questionnaires and interview surveys targeting companies that perform activities toimprove logistics operations, JILS has summarized the points for establishing and revitalizing activities toimprove logistics operations from six viewpoints. These are introduced together with company cases.

Six Viewpoints for Establishing and Revitalizing Activities to Improve Logistics Operations
Setting of Policy and Targets

Organizational Frameworks
and Systems

Establishment of Systems
and Frameworks

Human Resource
Development

Company Climate andCommunication

Inter-Company Collaboration

Even between
interested companies(i.e., between a
consignor and aconsignee, between ashipper and a logistics
company, between
logistics companies,etc.), it is necessary toshare policies andtargets for distribution
improvement, and also
share information andgive it consideration
while communicatingwith each other.

It is indispensable to set not only
company-level strategy and targets
but also the policy and targets for
improvement of logistics operations. It
is also necessary to share them at theworkplace level.

Setting of
Policy andTargets

Inter-Company
Collaboration

Establishment andRevitalization of
Activities to
Improve Logistics
Operations

Organizational
Frameworks
and Systems

A specialized
department shall beestablished andpersons in charge shallbe assigned to manage
company-level
improvement activities.
Many duties shall be
performed, such assupport for and controlof improvement at each
distribution site,
creation of a humanresource development
plan, and horizontal
deployment of
improvement results.

Human
Resource
Development
To achieve smoothcommunication, it isimportant to perform
various activities withflexibility. This will break
down the barriers
between organizations,enhance interdepartmental
collaboration andteamwork among
employees, and thus
lead to revitalization of
improvement activities.

Company
Climate andCommunication

The development of
human resources capableof improving logistics
operations is regarded
as most important also
in companies where
improvement of logistics
operations has become
firmly established. The
key to it will be further
development of and theplaying of active roles byleaders for improvementof logistics operations.

•8•

Establishment
of Systems andFrameworks

Providing opportunities
to present the
improvement activities
and achievementsinternally and externallywill lead to revitalizationof improvement.
Furthermore, it will beeffective to create andimplement various
systems andframeworks to promote
improvement activities.

Setting of
Policy andTargets

It is indispensable to set not only company-level strategy and targets but also the policy
and targets for improvement of logistics operations. It is necessary to share themcompany-wide, from the management to the workplace level, and to work on
improvements toward achieving the targets in line with the policy.

Points for Promotion
□

□
□

□

□

Set the policy and targets for
improvement of logistics operations ina way that relates them to the strategy,
policy and targets in the company.
Set the targets concretely andquantitatively. Set the Key
Performance Indicators (KPIs).
Make the policy and the targets
thoroughly known among the company
members and get the significance of
KPIs to be understood through day-today communication, so that company
members will actively participate in
and work on improvement activities.
The management and senior
executives must not simply leave theactivities to the site, but shall actively
maintain contact with it and work toensure its members have the same
sense of purpose, all while listening totheir voices.
Strive to achieve the targets while
confirming the KPI trends with thepeople concerned.

Organizational
Frameworks
and Systems

□

□

□

□

□

(Business type: Logistics subsidiary)

・In Company A, policies and targets, etc., on improvement aresummarized in the improvement promotion department and decided
by means of the President’s Report.
・On the basis of the fact that achievements from improvement oflogistics operations will be reflected in “Cost” and “Quality,” the “CostReduction Rate” and the “Number of Complaints” are defined as Key
Goal Indicators (KGIs).
・In the distribution centers throughout Japan, for the purpose of achieving
the KGIs, the KPIs for achieving cost reduction and reducing complaints
to zero are defined and improvement activities are proceeded with.
・Policies and targets for improvement of logistics operations are sharedthrough the heads of distribution centers having many opportunities tohave direct conversations with employees.
・The heads of distribution centers participate in small group
improvement activities wherever possible, and give guidance on
improvements and share the progress situations of the improvementsin each distribution center, using their daily morning and mid-day
meetings.
・Through continued communication, a foundation is being created inwhich policies and targets for improvement of logistics operations areshared by all members, from the management and senior executives
to the site staff, and then improvements are carried out.

A specialized department shall be established and persons in charge shall be assigned to
manage company-level improvement activities. Many duties shall be performed, such assupport for and control of improvement at each distribution site, creation of a humanresource development plan and horizontal deployment of improvement results.

Points for Promotion□

Example: Sharing of Policy and Targets through Continued
Direct Communication

To get activities to improve logistics operations
established in the whole company, senior
executives shall get actively involved andalso conduct top-down promotion.
Make the approach not only top-down but,bi-directional with a bottom-up approachtoo. Company members from the top
management to employees shall have thesame sense of purpose.
Establish a department to perform companywide management of activities to improvelogistics operations, and assign a dedicatedperson in charge of improvement and aperson in charge of improvement
concurrently with other duties at each
distribution center.
The persons in charge of improvement shallmanage and support the activities toimprove logistics operations and extend
cooperation through reporting, communicationand consulting with senior executives.
Because the scope of the work for the
persons in charge of improvement is broadand diverse, proceed with the work
systematically through multiple memberswith shared duties.
Senior executives shall create anenvironment in which the persons in chargeof improvement can perform activities easily.

Company Example: Assigning Dedicated Persons in Chargeof Improvement of Logistics Operations(Business type: Logistics company)

・In Company B, three dedicated persons in charge of improvement,
including managers, have been assigned, and internal management
for improving logistics operations is performed so that the internal
improvement of logistics operations can be promoted.
・The dedicated persons in charge cover a wide range of work,
undertaking guidance for improving logistics operations based on KPIs,
management of small group activities in the whole company, the role of
lecturers in internal training on improvement of logistics operations,evaluation and commendation of the achievements of each improvement
activity, and support for external presentation meetings, etc.

(Business type: Logistics subsidiary)

・In Company C, two dedicated persons in charge of performing
company-wide summarization of improvement of logistics operations
and one person in charge of improvement work at each site(concurrently with routine work) have been assigned, and arepromoting improvement of logistics operations.
・The dedicated persons in charge are proceeding with improvement
work in collaboration with the person in charge at each station while
managing the progress of improvement activities. Furthermore, they
provide support, etc., when monthly study sessions are held on
improvement activities or excellent improvement cases are presented
at internal/external presentation meetings.

•9•

Establishsmentof Systems andFrameworks

Providing opportunities to present the improvement activities and achievements internallyand externally will lead to revitalization of improvement. Furthermore, it will be effective tocreate and implement various systems and frameworks to promote improvement
activities.

Points for Promotion
□

□

□
□
□

Hold an improvement casepresentation meeting every year
internally, share improvement resultswith the whole company and performhorizontal deployment of improvement
activities.
Raise the motivation of employees andrevitalize improvement activities further
by commending and rewarding
excellent improvement cases, postingthem in the in-house newsletter andon the bulletin board, etc.
Announce the results of excellent
internal improvement cases at external
improvement presentation meetings.
Link improvement activities with thepersonnel system (promotion andincrease in status).
Establish and revitalize improvement
activities by establishing systems andframeworks to support them.

Human
Resource
Development

Create a system and education program
for the development of distribution humanresources through mutual cooperation
between logistics and personnel
departments, while taking into
consideration the relationship with thecompany-level education system.

□

Classify what internal training is possible
and what is not possible, and make use of
external training.

□

Provide education on knowledge and theimprovement methods required according
to each stage of the procedures for improving
logistics operations (grasping of the current
situation, problem detection, improvement
planning, implementation, evaluation,
establishment and horizontal deployment).

□□(Business type: Retailing)・In Company D, a report meeting (presentation of improvement cases)
is held three times a year jointly with other companies concerned. Fiveto ten companies get together at the report meetings, andimprovement cases are presented that have been tackled by eachcompany. Company members from senior executives to persons incharge of the workplaces participate. These report meetings are held
every year, with the improvement promotion department as the mainorganizer.
・The aim of presenting improvement cases at the report meetings is tobring problems to the attention of senior executives and managers,
create an opportunity for the relevant companies and departments toeasily collaborate with each other and handle them as problems thatbelong to the whole company, and give the persons in charge theauthority to solve them.
・In the report meetings, sympathy awards (for cases that have gained
sympathy) are selected through voting by the meeting participants,
and certificates of commendation and rewards are granted according
to the ranking.
・Holding of the report meetings creates the driving force for
improvement activities and the fact that “the persons in charge of theworkplace take a leading role” enhances motivation.

The development of human resources capable of improving logistics operations isregarded as most important also in companies where improvement of logistics operations
has become firmly established. The key to it will be further development of and the playingof active roles by leaders for improvement of logistics operations.

Points for Promotion□

Company Example: Implementation of Improvement Case
Report Meeting and Evaluation of Improvement Results

Teaching is learning. Therefore, have theemployees who have learned improvement
techniques and gained practical experience
serve as lecturers for internal training.
Secure an education budget every year to
perform human resource development
continuously.

Example: Human Resource Development by Means of a
Systematic Education System(Business type: Logistics subsidiary)

・In Company E, a framework has been established in which the yearlyschedule is set under a systematic education system structured toaddress common, stratified and cross-functional needs, and all
employees, from new staff to the president, can learn through grouptraining or e-learning, etc.
・Regarding improvement of logistics operations, improvement
techniques and methods such as the “Seven Basic Tools of QC*,”“Small group activities** ” and “Improvement practices using Industrial
Engineering (IE)” are being widely taught, and the degree of mastery isdetermined by conducting tests.
・In internal training, experienced middle-ranking or higher-ranking
employees serve as lecturers. Through this, know-how on
improvement is provided, and at the same time, it leads to growth andlevel improvement for the employees serving as lecturers.
・To create the foundation for improvement of logistics operations,
including the education system, the persons in charge in the
improvement promotion department have worked on building thecooperation system together with the personnel department, rather
than just working on it in the logistics department alone, and havedeveloped the system into a company-wide framework.

*Seven Basic Tools of QC : A set of methods that enables anyone to easily use SQC (Statistical Quality Control) as a tool to analyze the cause of observation of the facts and from the data obtained there,leading to problem solving such as quality improvement. Seven Basic Tools of QC are Cause-and-effect diagram, Check sheet, Control chart, Histogram, Pareto chart, Scatter diagram, and Stratification.
**Small group Activities : A method for improving activities to make employees construct a small group of 10 people or less, to raise labor motivation through voluntary joint activities, and effectively
achieve the purpose of the company.

• 10 •

Company
Climate andCommunication

To achieve smooth communication, it is important to perform various activities withflexibility. This will break down the barriers between organizations, enhance interdepartmental collaboration and teamwork among employees, and thus lead torevitalization of improvement activities.

Points for Promotion
□

□

□
□
□
□

Actively go to the site and havecommunication opportunities because
the strength of connection between
the site and the management andsenior executives will be a big
advantage when promoting
improvement activities.
Considering the variety of effective
activities that can be performed acrossthe whole company, and in eachdepartment and group, it is importantto have flexibility.
Interactions between employees who
do not routinely work together are
effective.
Provide opportunities to enable people
to come into contact with each otherfor reasons other than work.
Use not only direct interaction but also
the in-house newsletter.
Consider the budget required for
guiding the plan toward achievingsmooth communication.

Inter-Company
Collaboration

□

□

□
□

・In Company F, recognizing that “Internal Communication” is importantto establishing and continuing improvement activities, the following
activities are being implemented.
▷ Interaction through participation by the management in the morning
meeting.
▷Pointing out of things to be improved through mutualcommunication between the persons in charge at different sites.
▷Introducing as many employees as possible through photos in thein-house newsletter.
▷Active holding of convivial parties, such as welcome/farewell parties.
・Through these various activities, smooth company-wide communication
has been achieved, the employees’ teamwork has been enhanced,
and activities to improve logistics operations have been revitalized.

(Examples from other companies)

・In other companies, activities to create “opportunities forcommunication between people” are being performed.
▷ Holding study sessions in the workplace.
▷Conducting study tours.
▷Promotion of “smiling and greeting” campaigns.
▷Holding dinner and lunch parties.

Even between interested companies (i.e., between a consignor and a consignee, betweena shipper and a logistics company, between logistics companies, etc.), it is necessary toshare policies and targets for distribution improvement, and also share information andgive it consideration while communicating with each other.

Points for Promotion□

Company Example: Implementation of Activities for SmoothInternal Communication(Business type: Logistics company)

Because relations involving interested
parties tend to occur in many situations
between companies that have business
relations, clarify the purposes, targets,and policies for related companies as awhole, and work on improvements fromthe viewpoint of total optimization.
Share the progress of activities and theresults of improvements among therelated companies as a whole, andcreate a mechanism that enables
everyone to get a sense of achievement.
Set a periodic joint meeting between
companies, share the progress ofimprovement and problems/issues, andpromote improvement activities throughmutual cooperation.
Make the targets, the actual results, andthe differences between themquantitatively visible. (Setting of KPIs)
Make efforts toward smooth day-to-day
communication and informationtransmission, so that information can beshared on occasions other than periodic
meetings.

Company Example: Sharing of Improvement Policy and
Improvement Proposals that goes beyond
Inter-organizational Barriers(Business type: Logistics subsidiary)

・In Company G, the policy “Pursue the interests of the entire group” hasbeen declared and is shared between the parent company and the company
itself, and distribution improvement is promoted through mutual collaboration.
・The company has a system in place to immediately propose an
improvement idea to the persons in charge in the departments related todevelopment, materials, procurement, production, etc., in the parent company
when it finds “an opportunity” for distribution improvement in them.
・Based on improvement proposals, both companies examine thenecessary investigation, designing of parts, changes to delivery
conditions, etc., through mutual cooperation.
・This company is promoting improvement of logistics operations jointlywith the parent company, not only at the periodic meetings, but by usingsmooth day-to-day communication and collaboration between
departments as a foundation.

(Examples from other companies)

・Meetings with senior executives from shippers and logistics companies
that are related to each other through the supply chain are held on aregular basis, and implementation measures for each company are
decided that are based on policy collaboration from the viewpoint of total
optimization.

• 11 •

Checklist for Activating Improvement of Logistics Operations
JILS recommends activities to improve logistics operations that are in line with the cycle for activating improvement
activities.
The purpose of this checklist is for you to identify how you differ from the industry’s average with regard to which
processes in the cycle for activating improvement activities you have strengths or weaknesses in.
↓Please self-analyze the present level of your company and fill out the response sheet using numerical values.


Category

Awareness
andProblem
Grasping

Item
１

Recognitionof necessity

２

5S

３

PointsLevel 1
（１ Point）

Level 2
（２ Points）

Necessity of improvement is not recognized.

Necessity of improvementnothing has been done.

No definition of 5S (Seiri, Seiton, Seisou,
Seiketsu, Shitsuke)

Being performed occasionally

Periodic
cycle

Being handled on an ad hoc basis.

There is a system for raising
irregularly.

４Knowledge forobservation

There is no viewpoint for recognizing waste.

Education on waste elimination

５

Education

No education is being provided.

Education is being provided,

No activities in small groups are performed.

It is impossible to create
activities regularly.

The word PDCA is known.

The content of PDCA is 		
is not being run.

Category Total

Improvement
Activity

6

Activity in small
groups

7

PDCA
cycle

8

Reporting, informing
and consulting

Being answered when asked.

There is a format but not being

9

Conference
body

There is no conference body regarding
improvement.

Being held irregularly.

10

Organization andpersonnel affairs

There is no organization and no person in
charge of improvement.

An organization and a person in charge
established/assigned, but no sufficient

Category Total

Information
Sharing andHorizontal
Deployment

11

Personnelchanges

There are no personnel changes.

There are no periodic personnel

12

Informationcollection

There is no environment that enables
information collection.

As there is no place where improvementtakes much time to collect information.

13

Introduction of
improvement cases

There is no introduction of improvement cases. Introduction is only done in a simple

14

Posting on inhouse intranet

There is no intranet.

There is an intranet, but no 		appears on it.

15

Transmission of
improvement information
to the outside

Information is not transmitted.

There are opportunities for improvementtransmitted to the outside, but the respo		

Category Total

Evaluation
andRewarding

16

Corporate
policyThere is no periodic announcement of thepolicy.

The policy is periodically an		content cannot be understo		

17

Improvement
proposal system

There is no improvement proposal system.

There is an improvement pro		
it is not utilized.

18

Internal
qualification

There is no qualification system.

An internal qualification sys
to a partial extent.

19

Personnel evaluationand promotion

Evaluations are not fed back.

Evaluations are fed back, enabling
their own weaknesses.

20

Improvement casepresentations

Presentations are not held.

Presentations are held, but 		
not recognized.

Category Total
Total points and activity stages

Pre-activity stage (20 to 29 points)• 12 •

Initial stage (30 to(Target: Organizational units of small groups, etc.）

Level 3（３ Points）

Level 4（４ Points）

is recognized, but The necessity of improvement is recognized
and worked on.
as a campaign.
a problem, but

The necessity of improvement is recognized, and an
environment that makes working on it easier is in place.

Seiri, Seiton, Seisou, Seiketsu and Shitsuke are
Setting criteria are being reviewed and updated.
being displayed, and have taken form
Detecting problems is conducted regularly.

New themes are set according to annual policies.

is being provided.

The viewpoint of the Seven Wastes isunderstood.

Wastes have been eliminated, thus leading to
productivity improvement (cost reduction).

but not regularly.

An education curriculum and the texts for it
have been created and education is provided.

An education curriculum and the texts for it have been created,education is provided, and the content is reviewed as required.

opportunities for Small groups are registered and conduct
activities regularly.
understood, but
continued.

Leaders of the members have been re-elected
and things have become active.

The content of the PDCA cycle is understood and
The PDCA cycle is always being run.
activities are performed in accordance with the cycle.
“Reporting, informing and consulting”isprepared regularly.

There is a mechanism for feeding back by superiors.

Meetings are periodically held under the theme
Information is shared through the minutes.
of improvement.
of improvement have been An organization and a person in charge of improvement have
The results are reviewed periodically.
been established/assigned, and the sufficient result is seen.
results are being seen.

changes.

Personnel changes are performed periodically.

information is reported, it There is a place where improvement informationis reported (collected).

and fixed format.

Personnel changes are performed that can be understood as developmentof human resources based on“the right man in the right place”.
Information is systematized.

There are opportunities for improvement cases Improvement cases are being horizontallyto be introduced regularly.
deployed internally in an active manner.

information

Improvement information is posted on display
and updated regularly.

The effects of posted information are verified.

information to benses are not collected.

There are opportunities for improvement information to betransmitted to the outside, and the responses are being collected.

It is possible to determine the level of thecompany compared with other companies.

nounced, but theod.

The policy is periodically announced, but it does People’s responsibilities are reviewed using numericalnot lead to a sense of achievement.
values, and this is connected to the targets for the next year.

posal system, but There is an improvement proposal system and proposals
An improvement proposal system has been firmly established in the workplace,are submitted, but it does not lead to improvement results. improvement proposals are made willingly, and this leads to improvement results.
tem is available

A qualification system has been put in placeinternally.

Promotion and qualification responsibilities arelinked with each other.

Improvement activities are evaluated.

There is a company climate whereby highly
evaluated individuals and teams advance further.

their necessity is Company-wide periodic presentation
conferences for are held.

The presentations are used for PR directed toward
the outside.

employees to recognize

49 points)

Implementation stage (50 to 69 points)• 13 •

Revitalization stage (70 to 80 points)

Frequently Occurring Problems and Examples of Improvement Activities
Practical measures for improvement activities are described from the viewpoints of“Target Work”and“Main Cause of Problem”
with regard to the problems mentioned, such as“The cost is high,”“There are many complaints,”“Work eﬃciency is low,”“Distribution is ineﬃcient,”“There are many errors,”“The safety level is low,”and“The environmental burden is large.”

Improve

Mind
Target Work

Viewpoint for Awareness and Problem Grasping

Reduce waitingtime

Too much idling time (waitingtime) for vehicles

Review the routes

Unable to ascertain the amountof cargo in advance

Identify appropriate typesof vehicles (e.g. use ofbigger/smaller vehicles)

Rough driving

Improve the quality of transport
by producing a manual for
proper driving proceduresConsumption of too much fuel

Reduce the amountof fuelConsumption of too muchfuel overall

Establish a system tomonitor the amount ofgoods being delivered

Most cargo handling is done
manually and it takes a long time
to reach ﬁnal conﬁrmation

Introduce automatic
recognition technology

The layout is not in line withthe work ﬂow

Introduce a unit
loading system

Storage is not in one place

Change the layout

Repeated inspections are being
done more than necessary

Review the list ofitems for inspection

Not enough storage spaces

Storage is not all in one place

Complete control ofthe stock in hand

Storage places
not easy to identify

The appropriate storage size forthe line of goods has not been
identiﬁed

Change the layout

Too much spacefor storage

Space is not put to eﬀective use

Complete control ofthe location

No stock whenorders are received

No stock of“required goods.”
Discontinued goods are being
neglected

Change the size ofstorageToo many vehicles
Too many delays in delivery
Damage to the goods
High environmental burden

Receipt/
shipment/
inspection/loading of
goods

Storage

Improvement

Delivery routes may not beappropriate

Big gaps in the loading eﬃciency between
various transportation/delivery routes

Transportation
and Delivery

Issue to be solved

It takes time to receive goods
and process shipments
It takes a long time to inspectdelivered cargos

Inventory discrepancies
occur• 14 •

items for which improvement of logistics operations is required (The color for each main cause
Main Cause of Problem: The
corresponds to the color in the Viewpoint of Awareness and Problem Grasping in the table below.)

Cost

Distribution Quality

Working TimeWork Accuracy

Environmental Response

Measure for evaluation / Achievement
Improvement Measures
Consider measures to reduce theloading/unloading time
Set the most appropriate routes
to standardize the loading eﬃciency
and the delivery time（⇒①）
Review the mixed-loading with goods from nearby
centers and other companies and the delivery method
for such mixed consignments （⇒②）

Decrease loading timeby X min. / truck (Yｔ)

Reduction in
driving time

X min. reduction in
driving time

Reduction in
the number oftrucksDecrease the numberof trucks by X

Less damage togoods in transit

X％ reduction indamage to goods intransitLess fuel consumption
CO2 emission
reduction

Decrease fuelconsumption by X％

Use barcodes, IC tags, etc.（⇒⑤）
Reduce manual cargo handlingby using fork lifts, conveyors,
sorters, etc.
Setup work spaces and provisional
storage spaces to meet the needs ofordering and/or delivery of goods
Ensure that workers understandthe issues which are“necessary”

Reduction ofworking time

X min. reduction in
working time

Reduction of the time toreceive goods andprocess shipments

Processing time tobe reduced by X min.

Improvement in the accuracy ofinspection of goods received
and goods for shipment

Inspection accuracy
to improve by X％

Put the storage spaces to eﬀective
use and control the stock by using
automated warehouses
Adjust the space between, andthe height of, shelves, to suit theline of goods（⇒⑪⑫⑬）
Make eﬀective use of material
handling facilities and equipment,such as racks

Stock control
Improvement instorage eﬃciency
Reduction in
the amount ofstorage space

Enhancement ofwork productivity

Reduction ofoperation cost

Improvement of
distribution quality

Enhancement of article
management accuracy

Complete control of the stock inhand through a review of thelocation display（⇒⑥）
Designate the location of the storage spaces
by considering the frequency of shipments,ease of understanding, etc.（⇒⑦⑧⑨⑩）

Enhancement of Customer
Satisfaction（CS）and
Employee Satisfaction（ES）

Accuracy of stock
control to improveby X％
Operation rate ofstorage space toimprove by X％
X％ increase in
the amount of stock
X％ increase in theamount of storage
space

Set standards for stock control
and disposal of left-over goods

Safetyimprovement

Reduction ofenvironmental burden

See

Award

Announcement of high evaluations and awarding both internally and externally

Promote modal shift（⇒④）

Loading time
reduction

Achievement

Sharing of achievement and horizontal deployment

Reduce the waiting time, teach driving
methods with less fuel consumption,
reduce idling time（⇒③）

KPI Candidate

─ Standardization and ﬁrm establishment of eﬀects Creation of manuals Installation of display objects or signboards
DetentUse cushioning materials toeliminate the gaps

Improvement Eﬀect※ The sample numbers (the red numbers circles) in the column for Improvement Measures correspond to the visual samples on Page 21 and onward.

• 15 •

Frequently Occurring Problems and Examples of Improvement Activities
Practical measures for improvement activities are described from the viewpoints of“Target Work”and“Main Cause of Problem”
with regard to the problems mentioned, such as“The cost is high,”“There are many complaints,”“Work eﬃciency is low,”“Distribution is ineﬃcient,”“There are many errors,”“The safety level is low,”and“The environmental burden is large.”

Improve

Mind
Target Work

Issue to be solved

Improvement

A lot of picking being done
manually

Introduce automatic
recognition technology

No control in place regarding
location setting

Change the location

Picking lists diﬃcult to understand

Review the displayof the picking lists

Shelf labels for the storage
diﬃcult to understand

Review the picking
lines

No measures in place to prevent
damage on goods

Review the picking
procedures

Mode of packing that gives noconsideration to logistical requirements

When setting the mode ofpacking, logistical requirements
are not taken into accountInvestigate themost appropriate
mode of packing

It takes a lot of time
to package things

Excessive packaging and packing

Simplify packaging

Too much disposal of
packaging materials

No standardization of packaging

Reuse and recycle
packaging materials

Workplace isdisorganized

Increase awareness of 5S (Seiri (Shifting), Seiton (Sorting),
Seiketsu (Standardizing/Maintaining), Shitsuke (Discipline/

Viewpoint for Awareness and Problem Grasping

Many mistakes in picking(wrong goods, wrong quantity)
Sorting andpicking

Long picking times
Picking lines are complex
and the walking time is long.
Goods are damaged
during the picking process

Packing andpackaging

５ Ｓ

OthersSafetyEducation

Accidents caused by people

Improve work safety

Damage to, and soiling of, goods

Review cargohandling procedures

Damage to the facilities andequipment used

Take measures to prevent
breakdown of, and accidents
with, machinery and equipment

Traﬃc accidents

Take measures toprevent traﬃc
accidents

Workers have no understanding of
the quality required for logistics

Provide education on
logistical quality

Accidents

No educational program
for workers• 16 •

items for which improvement of logistics operations is required (The color for each main cause
Main Cause of Problem: The
corresponds to the color in the Viewpoint of Awareness and Problem Grasping in the table below.)

Cost

Distribution Quality

Working TimeWork Accuracy

Environmental Response

Measure for evaluation / Achievement
Improvement Measures

Improvement Eﬀect

KPI Candidate

Achievement

See

Award

Use barcodes, IC tags, etc.（⇒⑤）
Adopt a“no-thinking”picking
system, by making use of digital
picking and picking carts
lace the stock and walkways by taking
account of walking distance, transfer
time and human interactions（⇒⑭）
Review the display of the picking
lists in order to shorten picking
lines to a minimum（⇒⑮）

Reduction ofworking time

Walk count todecrease by X％

Establish a picking system whichcorresponds to the line of goods

Enhancement ofwork productivity

Set the most appropriate mode ofpacking throughout the whole
logistical process

Improvement inspace eﬃciency

Space eﬃciency toimprove by X％

Accommodate the features of thegoods with the absolute minimumof packing/packaging

Reduction ofworking timeWorking hours to
be reduced by X min.

Select and develop reusable
packaging materials

Waste reduction

Scrappage rate to
decrease by X％

Organization of
the workplace

Concept of“5S”to bedisseminated through theuse of a check sheet, etc.

Seisou (Cleaning/Polishing/Tidying) ,Sustaining))（⇒⑯）
Ensure workers wear work
uniforms / protective clothing（ ⇒⑰⑱）
Increase awareness of cargo handlingand working procedures whichcorrespond to the features of the goods

Enhancement of Customer
Satisfaction（CS）and
Employee Satisfaction（ES）

Reduction ofoperation cost

Improvement of
distribution quality

Enhancement of article
management accuracy

Fewer accidents

No accidents

Safetyimprovement

Fewer complaints
about damage to,or soiling of, goods

Damage / dirt todecrease by X％

Reduction ofenvironmental burden

Work quality
improvement andfewer complaints

Attendance for educationalseminars by workers toincrease by X％

Limit access to machinery
spaces（⇒⑱）
Improve knowledge of how to handle
machinery and equipment（⇒⑲）
Provide education on safe driving

Provide education to workers on
the logistical services and thework procedures（⇒⑳）
Produce a manual for logisticaloperating procedures（⇒㉑）

Announcement of high evaluations and awarding both internally and externally

X％ increase in thenumber of pickings
per hour

Sharing of achievements and horizontal deployment

Work quality
improvement

Reduce mistakesin picking by X％

Detent | Standardization and ﬁrm establishment of eﬀects Creation of manuals Installation of display objects and signboards

Design the location with reference
to the frequency of shipment

Improvement inwork accuracy

The number ofcomplaints todecrease by X％※ The sample numbers (the red numbers circles) in the column for Improvement Measures correspond to the visual samples on Page 21 and onward.

• 17 •

Checklist for Finding Problems (Target:
The purpose of this checklist is for you to grasp the problems in your own company’s improvement of logistics
operations and identify how you differ from the industry’s average.

↓Please self-analyze the present level of your company and fill out the response sheet using
Category

Cost

Item

PointsLevel 1
（１ Point）

Level 2
（２ Points）

１

On-sitework

The on-site flow is not analyzed.
How to analyze the on-site flow is not known.

２

Packing

The packing space rate (floor area ratio) is not The packing space rate (fl		grasped.
grasped, but no measures 		

３

Space

The storage size is not borne in mind.

Waste of the storage space 		measures are taken.

４

Loading
efficiency

The loading efficiency is not borne in mind.

The loading efficiency is g		measures are taken.

５Graspingof costCalculation of the amount of opportunity loss is The amount of opportunity
not borne in mind.
calculated.

The on-site flow has been 		particular measures are 		Category Total

Quality

6

Distribution
quality

The number of complaints is not grasped.

7

Potential
quality level

The voices of users regarding distribution quality There is only a sense of impend		
are not borne in mind.
the voice of users regarding dis		

8

Delivery
response 1

The response lead time for stock inquiries is that The response lead time for 		a response is given the following day.
10 minutes or shorter.

9

Delivery
response 2

It is not possible to provide a reply on the delivery A response will be provided
time of a stockout item.
the delivery time of a stock

10

Dirt anddamageThe number of complaints is 		and grasped.

The situation regarding dirt and damage is not Dirt and damage is defined 		
grasped.
the number of cases is gra		Category Total

Accuracy

11

Stockout
situation

The stockout ratio is not borne in mind.

The stockout ratio is defin		grasped.

12

Inventory
accuracy

Inventory discrepancies are not grasped.

Inventory discrepancies are 		accuracy is low.

13

DeliverysystemThe designated-date delivery rate is not grasped.

The designated-date delivery r		
measures for shortening the le		

14

Shipping
error rate

The shipping error rate is not grasped.

The shipping error rate is 		and its numerical value is 		

15

Lead time

Satisfied with the current situation

There is problem awarene		time but it is not managed.

Category Total

Others16

Accidents

The number of annual accidents resulting in property damage, vehicle The number of annual accidents resulting in property 		
accidents, accidents resulting in injury or death, etc. is grasped.
resulting in injury or death, etc. is grasped, and they 		

17

Clothing andappearance

There are no inspection rules.

18

Morale19

Workplace environment
regarding work safety

There are no work safety standards.

20

Devices andequipment

There are no maintenance standards for the devices There are maintenance st		and tools used.
devices and tools used.

There are workplace stan

No education is provided to temporary employees dispatched Education is provided only irregularly to tem		from a temporary-employment agency or part-time workers. dispatched from a temporary-employment 		
There are work safety sta

Category Total
Total points and activity stage

Pre-activity stage (20 to 29 points)• 18 •

Initial stage (30 toOrganizational units of small groups, etc.)

Level 3（3 Points）
analyzed, but notaken.

Level 4（4 Points）

The on-site flow is analyzed and measures are taken to The on-site flow is analyzed periodically and measures are constantly
reduce the number of times on-site handling is performed. taken for to reduce the number of times on-site handling is performed.

oor area ratio) is The packing space rate (floor area ratio) is grasped KPIs for the packing space rate (floor area ratio) are set,
are taken.
and measures are taken to improve the rate.
and measures are constantly taken to improve the rate.
is grasped, but no The width and height of shelves are reviewed as The width and height of shelves are reviewed
required according to the products handled.
periodically according to the products handled.
rasped, but noThe loading efficiency is grasped, and measures KPIs for the loading efficiency are set, and measures
are taken to enhance it.
are constantly taken to enhance it.

loss has not been There is a calculation rule for the amount of There is a calculation rule for the amount ofopportunity loss.
opportunity loss, and the amount is grasped regularly.

defined internally

The number of complaints is defined internally and grasped, The number of complaints is defined internally, KPIs for it
and measures to reduce complaints are taken.
are set, and measures to achieve the targets are taken.

ing crisis concerning There is a system for investigating and grasping There is a system for investigating and grasping the voices of users
the voices of users regarding distribution quality. regarding distribution quality, and there are proposed measures.
tribution quality.
stock inquiries is

It is possible to respond to stock inquiries without It is possible to view the response lead time for a stock inquiry
hanging up the phone.
on the user’s terminal and give a response immediately.

at a later date onout item.

Information on the target delivery time of a stockout Establishment of the infrastructure for providing a response
item is given using guesswork.
on the delivery time of stockout items has been completed.

internally andsped.

Dirt and damage are defined internally, the number of cases Dirt and damage are defined internally, KPI for them are
is grasped, and measures are taken to reduce them.
set, and measures are taken to achieve the targets.

ed internally and

The stockout ratio is defined internally and The stockout ratio is defined internally, KPIs for it are
grasped, and the necessary measures are taken. set, and measures are taken to achieve the targets.

grasped, but theInventory discrepancies are grasped and the Inventory discrepancies are grasped, the accuracy
accuracy is high, but it takes time.
is high, and it only takes a short time.

ate is grasped, but
The designated-date delivery rate is grasped and The designated-date delivery rate is grasped and measures aretaken to reduce the lead time to the optimum one for each customer.
ad time are not taken. measures are taken to reducing the lead time.
defined internally The shipping error rate is defined internally, its numerical The shipping error rate is defined internally, KPIs for it
value is grasped, and measures are taken to reduce it.
are set, and measures are taken to achieve the targets.
grasped.
ss about lead

The lead time for ordering, cargo receipt, shipment
Measures are taken to reduce the lead time.
and arrival at the customers’is managed.

damage, vehicle accidents, accidents The number of annual accidents resulting in property damage, vehicle accidents, accidents Activities are performed with concrete measures to reduce to zero the number of annual accidents
resulting in injury or death, etc. is grasped, and the necessary measures are taken.
resulting in property damage, vehicle accidents, accidents resulting in injury or death, etc.
are handled through follow-up

dards.

There are workplace standards, and inspections Clothing and appearance are linked with work efficiency
are performed periodically.
and safety, and this is understood by employees.

porary employees
An education curriculum and the texts for it have been created for temporary employees Through education provided to temporary employees dispatched from a temporary-employment
agency or part-time workers. dispatched from a temporary-employment agency or part-time workers, and education is provided. agency or part-time workers, job satisfaction, motivation and a sense of achievement are fostered.
ndards.
andards for the

49 points)

There are work safety standards, and guidance Regular guidance is given based on the work safety standards,
is given regularly.
and at the same time, the workplace is reviewed appropriately.
Based on the maintenance standards for the devices Based on the maintenance standards for the devices
and tools used, maintenance is performed as required. and tools used, maintenance is performed periodically.

Implementation stage (50 to 69 points)• 19 •

Revitalized stage (70 to 80 points)

Competences Required as a Leader for Improvementof Logistics Operations (Competence Requirements)– Improvement Planning and Driving Force –This section gives the details of the competences required as a leader for improvement of logistics operations.
Competence
Required as a Leader
for Improvement

Ability to
Grasp theCurrent
Situation

Improvement
Planning
Ability

Improvement
Implementation
Ability

Evaluation
andEstablishment
Ability

Content ofCompetence

Definition of Content of Competence

Basic awarenessof the company

Understand the business circumstances of the company, such as the corporate targets,the departmental targets and the roles of departments and the sales proceeds and profits.

Basic awareness ofphysical distribution

Correctly understand how things and information for the products handled
by the company flow in a series of processes from procurement to sales.

Methods and techniques
for recognizing theactual situation

Can correctly recognize the actual situation regarding quality, cost and productivity of
the workplace through daily reports, etc., and use the analysis methods as required.

Ability to extract a
problem or an issue

Can correctly extract the problem to be solved on-site based onrecognition of the actual situation.

Ability to establish
an improvement plan

Can frame and establish an improvement plan for a problem that has
been extracted.

Ability to utilize
methods techniques

Can utilize the idea generation methods required to create an
improvement plan (the KJ method*, brainstorming, etc.).

Ability to establish
an action plan

Can concretely create an executable plan (plan, details of activity, persons in charge, necessary
investment, promotion system, difficulty, schedule, etc.) by deciding the priority of improvement ideas.

Ability to set atargetCan set an easy-to-grasp target that can be understood by all persons
in charge in a workplace.

Performance
driving force

Can explain an improvement action plan and a target in an easy-to-understand manner,and make them thoroughly known to the persons in charge in a workplace.

Education andleading ability

Can properly provide the education and guidance required for workplace improvementby evaluating the performance of workplace persons in charge and utilizing manuals, etc.

Ability to cope witha problem

Can take action to solve a problem promptly and appropriately if an unexpected problem or failure occurs
at the stage of performing improvement and an incident that causes a disturbance to improvement arises.

Communication
skillsCan listen to the content of consultations, reports etc., understand it correctly and communicate
about it. Furthermore, can issue reports to superiors and/or discuss matters with relevant
departments at the right time, thus ensuring improvement proceeds smoothly.

Ability to set an
evaluation indicator

Can evaluate an activity’s status and the level of target achievement
and also set operable indicators.

Progressmanagement skills

Can correctly evaluate the current progress situation based on theset evaluation indicators.

Ability to achieve atargetAs a result of evaluation, can speed up improvement activities (e.g. through enhancement of workplace motivation andreinforcement of the support system) as required and/or review of the plan, thus leading to achievement of the target.

Ability to attain an
established state

Can follow up on the workplace and attain an established state through standardization (review ofmanuals, provision of continued education), etc., so that the improved matters will not back-slide.

＊KJ Method: A method for summarizing data devised by Mr. Jiro Kawakita, a cultural anthropologist and Professor Emeritus at Tokyo Institute of Technology. The aim of themethod is to provide hints or inspiration useful for solving a theme while writing data on cards, gathering the cards together group by group and creating diagrams based on them.

• 20 •

Visual Samples (Frequently Occurring Problems in Logistics
Operations and Examples of Improvement Activities)
This is a collection of samples in which some of the content of improvement measures described in“Frequently Occurring Problems and Examples of Improvement Activities”(P14 to P17) is represented visually.
Utilize them as materials for awareness of improvement activities.
The“Sample Nos.”indicated at the end of each description in the column for Improvement Measurescorrespond to the Visual Sample Numbers.

Sample① The best distribution route for standardizing loading efficiency and distribution time
Picking up using three 2-t trucks Current situation
40

30

30

20

190

20

20

50

30

40

40
20

40

120

40

10

260

30
40

40

30

20

50

30

20

250

20

20

20

30

20

30

10

200

30

Picking up using two 4-t trucks = Number of trucks
reduced Improvement idea Improvement idea

20

20
20

40

20

30

Load size: 10 kg /unit * Based on weight

Sample② C onsidering review of mixed-loading with the cargo of neighboring

centers or other companies, and of the distribution method①Each supplier delivering parts separately②Change to the Milk Run method: Reducing thenumber of trucks Improvement idea

Current situationℓF

Sample③ Improving fuel costs by changing the oil replenishing method
E①Full-tank refueling

Current situation

Refueling

km
ℓ
F

ℓ
F

E

②Refueling as if half is afull tank Improvement idea

Refueling

E

km
ℓ
F

• 21 •

Reduced weight
for amount of fuelRefueling

Reduced weightkmSample④ Promoting modal shift

Changing long-distancetransportation from trucks
to rail/ships, resulting in a
reduction of CO2 emissions

Tokyo

Terminal

Terminal

Fukuoka

Sample⑤ Use of barcodes and IC tags
Visual inspection.
To make sure, checking manytimes, and spending too muchtime Current situation

Systematizing inspection
work by introducing
terminals, thus reducing
working time
Improvement idea

Sample⑥ Unit control through location display review①Current location display:
Location displayed by number②Improved location display: been
Improvement idea

Zone, column and row categorization= a zone 2nd row 2nd column: a-2-2

Current situation※Layout from the top of the shelfb zoneColumna zone

１

２

３

４

５

６

b-1-3

b-1-2

b-1-1

a-1-1

a-1-2

a-1-3

７

８

９

10

11

12

b-2-3

b-2-2

b-2-1

a-2-1

a-2-2

a-2-3

13

14

15

16

17

18

b-3-3

b-3-2

b-3-1

a-3-1

a-3-2

a-3-3

19

20

21

22

23

24

b-4-3

b-4-2

b-4-1

a-4-1

a-4-2

a-4-3

25

26

27

28

29

30

b-5-3

b-5-2

b-5-1

a-5-1

a-5-2

a-5-3

31

32

33

34

35

36

b-6-3

b-6-2

b-6-1

a-6-1

a-6-2

a-6-3

Row

• 22 •

Sample⑦ Storage location taking into account delivery frequency and comprehensibility※View from the top of the shelves①Current position: No consideration given todelivery frequency

Entrance

Current situation

Exit②Improved layout: 
Locating the high frequency products
along the entrance exit aisle

Entrance

Improvement idea

ExitHigh frequency products

Sample⑧ Setting location according to shipment frequency
Location set without
considering theshipment frequency
Current situation

Reducing wasteful flowlines and working time②

Improvement idea

Low frequency of shipments③①

High frequency of shipments①

Entrance③

Entrance• 23 •②

Sample⑨ Review of storage layout

B74−B80〔Food〕 D03−D14〔Liquors〕
B74−B80〔Food〕 D01−D12〔Liquors〕

B74−B80〔Food〕 B74−B80〔Food〕
B74−B80〔Food〕 B81−B87〔Food〕

C80−C98〔Food〕• 24 •

B81−B87〔Food〕 B88−B94〔Food〕

C01−C26〔Food〕
C28−C50〔Food〕
C29−C51〔Food〕
C52−C79〔Food〕

C81−C99〔Food〕

C53−C78〔Food〕

By changing the layout to a Z-shaped
walking route, overtaking becomes
possible, enhancing productivity.

Because of going in both
directions, overtaking is notpossible.

B81−B87〔Food〕 D15−D20〔Liquors〕⑧

B81−B87〔Food〕 B88−B94〔Food〕
C80−C98〔Food〕
C01−C26〔Food〕
C28−C50〔Food〕
C29−C51〔Food〕
C52−C79〔Food〕
C53−C78〔Food〕

C81−C99〔Food〕

D03−D14〔Liquors〕D01−D12〔Liquors〕

E01−E09〔Liquors〕

F43−F53〔Liquors〕
F22−F42〔Liquors〕
F21−F41〔Liquors〕
F10−F20〔Liquors〕

F01−F09〔Liquors〕⑧

C81−C99〔Food〕

C81−C99〔Food〕

E01−E09〔Liquors〕

E21−F31〔Liquors〕

E10−E20〔Liquors〕

E32−E39〔Liquors〕⑦

E21−F31〔Liquors〕

F43−F53〔Liquors〕
F22−F42〔Liquors〕
F21−F41〔Liquors〕②⑩①

Wasteful flow lines are eliminated by⑨

arranging the storage layout to put products●
Start

Improvement idea⑥

E10−E20〔Liquors〕

E32−E39〔Liquors〕

⑦

③
⑮
End

⑥

④
⑤
⑭

④
⑤
⑭

F10−F20〔Liquors〕

⑬

①
②
⑩

③
⑮
End

F01−F09〔Liquors〕

Start
●

⑫
⑪

Current situation⑬⑫⑪

of the same type together, and from this,enhancement of efficiency can be expected.

⑨

Sample⑩ Review of storage layout

Current situation

Improvement idea

U-Shaped Walking Route

Z-Shaped Walking RouteSample⑪ Space between the goods①Current shelves: A lot of empty space due
to placing goods without considering theirsize Current situation②After improvement: The space is now
narrow and efficiently controlled.
Improvement idea

Empty space

Sample⑫ Height of shelves suitable for the goods①Current shelves: A lot of empty space due
to placing goods without considering theirsize Current situation②After improvement: The space is now low
and efficiently controlled.
Improvement idea

Empty space• 25 •

Sample⑬ Space between wagons according to the load (Two kinds of goods per wagon)①Current wagons: One wagon for one kind
goods Current situation②After improvement: Two kinds of goods
per wagon. The number of wagons has
been reduced by half. Improvement idea

Put a in partition to
make it a double-decker.

Sample⑭ Setting aisle and storage layouts that take into account walking distance and pick-up time①Current layout for picking:Narrow space due to the dead-end aisle
makes the picking job difficult.

Entrance

Current situation

Exit②Improved shelf layout for picking: Spaceat the end of the aisle enables picking job
to be carried out freely and smoothly

Entrance

Improvement idea

Exit

※Layout from the top of the shelves• 26 •

Sample⑮ The shortest picking distance, by reviewing the picking list
①Current picking display: Display in ascending order Current situation
Picking list

Actual location

location

Number

A-02

１

A-04

３

A-07

２

B-01

３

B-05

１

B-08

２

A-01

A-02

A-03

A-04

A-05

A-06

A-07

A-08

B-01

B-02

B-03

B-04

B-05

B-06

B-07

B-08

②After reviewing the picking: The picking list for the B shelves is printed in descending orderusing a computer program, to enable the shortest picking flow Improvement idea
Picking list

Actual location display remains the same

location

Number

A-02

１

A-04

３

A-07

２

B-08

２

B-05

１

B-01

３

A-01

A-02

A-03

A-04

A-05

A-06

A-07

A-08

B-01

B-02

B-03

B-04

B-05

B-06

B-07

B-08

Sample⑯ 5S (Seiri / Seiton / Seisou / Seiketsu / Shitsuke)

Damaged

Seiri

Seiton(Shifting)(Sorting)

Damaged

Seisou(Cleaning/
Polishing/
Tidying)

Scrap
the damaged
one

Shitsuke(Discipline/
Sustaining)

Seiketsu(Standardizing/
Maintaining)• 27 •

Sample⑰ Being thorough about wearing working uniforms /protective clothing
Not wearing a helmet

Wearing a helmet

Personal appearance:
Casual wear might

Personal appearance:
Work uniform;

cause an accident

always checkcuffs, collars, etc.

Sample⑲ K eeping out of machines’operating areas
Unstable
high
stack

Wearinga helmet

Keeping away frommachines’operating areas

Load arrangement

Checking safety aroundthe operating area

Sample⑲ T horough knowledge of how to handle machines/ Not using aequipment In addition: Enhancing work safety

safety belt
or protector

Repeatedly picking from ahigh (or low) position willburden your lower backPlace high frequency loads
on middle shelves.
When working, always keep
the burden on your lower
back small

Unstable equipment
Fix the vehicle in place
for high work to prevent
it from tipping over• 28 •

Wearing a safety belt
or protector wheneverworking in a high place

Sample⑳ Education
A newly
employed
worker？？ ？？
？ ？

No idea who to ask Current situation

責任者

Manager

Worker in charge

責任者

作業担当者

作業担当者

Make the workplace managers clearly
identifiable using armbands Improvement idea

Sample Creating manuals for the logistics work procedures
Many wasteful
movements, with nouniform working
wasteful
methodMany
movements, with noCurrent
situation
uniform working
methodCurrent situation

Many wasteful
movements, with nouniform working
methodCurrent situation

EstablishingWork Manual
Establishingstandardized
operations Work Name
standardized
operations
by creatingby creating
work work
EstablishingNO
Work Procedure
manuals and guidance
standardized operations
manuals andguidanceby creating
work of
Improvement
idea
①
Count
the number
manuals and guidance
Improvement ideaof Improvement
products on the
cart.
idea

CreatedMarch 11, 20XX

RevisedJune 8, 20XX

Key Point
Perform counting while putting a check markSupervisor

CreatorTanakaYamadaSupplement（Fig.1）On the stickers with a marker.
(To prevent double counting)(Refer to Fig. 1.)

Divide by drawing a diagonal line,
count the number of cartons and enter（Fig.2）the total on the number of cartons table.

20(Refer to Fig. 2.)

Number of cartons
on one cart

36

Shop A
56cases• 29 •

Enter the total
number.

<Reproduction without permission is prohibited>

October, 2018

Japan Institute of Logistics Systems
e-mail: education@logistics.or.jp
URL: http://www.logistics.or.jp/