Preface

Introduction

This course is a practical guide for those considering EIQ Analysis for logistics improvement or seeking analytical methods beyond ABC analysis.

  • Basics to Application: Master the "how-to" of data interpretation through case studies.
  • Practical Excel: Chapter 15 includes specific analysis examples using Excel.
  • Planning Flow: Understand the systematic flow from results to distribution center planning.

I. Reading Analysis Results

Data analysis is common, but looking at results is not enough. The key is how you read and utilize the findings.

"Look at data, Read data, Think about data."

II. Making Data Readable

Method Selection

  • ABC Analysis: Identify priority management items (best-sellers or key customers).
  • Frequency Analysis: Understand data variance and volume zones.
  • EIQ Analysis: Reveal site characteristics (high-mix low-volume vs. large-scale focus) by Order (E), Item (I), and Quantity (Q).
  • Visualization: Use graphs to intuitively catch sudden changes or outliers.

III. How to Read Analysis Results

Relying on intuition when designing a center leads to equipment imbalances and poor efficiency.

1. Basic Analysis for the "Vessel"

  • Volume Fluctuations: Calculate max inventory (size of the vessel) and shipping peaks (staffing).
  • Inventory Turnover: Design storage efficiency by understanding dwell times.

2. Judgment via EIQ Analysis

In planning, EIQ analysis becomes the standard for judging "flow lines" and "automation".

IV. Data Cooking

Procedures (recipes) to utilize data for picking efficiency.

1. Prep: Classification

  • Total Picking: Aggregated data for bulk retrieval.
  • Order Picking: Data divided by customer packing units.
Before Cooking (Raw)After CookingField Effect
Order sequence listRoute order listReduced walking/fatigue
Flat item displayHighlight special itemsReduced errors/faster inspection
Complex tablesIntuitive graphsFaster staff onboarding

V. Perspective on Analysis

Analysis evolves from knowing the past to predicting the future.

  1. Know the Past: Confirm what happened.
  2. Interpret: Estimate why it happened.
  3. Predict: Forecast the next steps and set hypotheses for staff/inventory.