New racking system supports continuous improvement

At the Toyotetsu plant in Simcoe, Ontario, workers stamp the metal frame parts for cars such as the RAV4, Corolla and Lexus. Amid rapid growth, the company expects a two-fold increase in the number of parts to build, along with volume increases. To use available warehouse space as efficiently as possible, the company installed a new rack system to save space and increase storage density for components.

Components are stored in plastic boxes or hand totes, depending on weight and size. Pickers with tugging tractors work on a 30-minute cycle, so team members must get into the pick area, identify the parts they need, get those components on the cart and move them to the welding area as quickly, safely and accurately as possible. The company recognized that projected growth would result in a tight squeeze for the existing tugging zone, where some flow racks had been used since the plant opened in 2007.

A custom-designed flow rack system (Unex) integrated the new flow rack system with an existing one to eliminate an entire tugging aisle by increasing storage density while doubling the length of the racks and tightening spaces between roller chutes. The new flow rack system gave the plant 10% more floor space and created bi-level storage areas for even more space savings. Overall, Toyotesu gained enough extra storage to accommodate a 30% increase in business.

The system has also improved pick rates while ensuring first in, first out (FIFO) rotation. Inventory is replenished from the back without interrupting order picking in front. SKU storage is up to seven times denser per bay than pallet rack storage, which translates into up to 80% less travel time for pickers.

“The new racking provides a designated storage area for every part and bins are clearly marked with key product characteristics,” says Andy Elkin, production control manager at Toyotetsu. “Team members are able to find what they need and keep the job moving forward.”

The roller racks are made of portable material, and they are easy for staff to take apart, reconfigure and put together. This allows Toyotesu to make continuous, incremental improvements to their storage systems as their business evolves.