During this research, we looked at the information part of PCOI, in this part we looked at KPI's. KPI stands for key performance indicator and is a variable to analyze performance. Determining KPI's is important. Failure to establish KPI's can lead to problems such as rescheduling, rework and waste.
KPI's for the research to how Augmented Reality can be applied in the order picking process in the warehouse of Coolblue:
-Delivery time to the customer
The delivery time is the time that starts from the moment an order is placed until the moment the order arrives at the customer. The delivery time is used as a KPI, because the delivery time is expected to be shortened with the help of the AR glasses during order picking. This is because the order pickers don't have to search as long for the right items and this makes the process more efficient.
-Lead time
The lead time is the total time a product takes through a process, from start to finish. This KPI is used for the same reason as above. The product will spend less time in the process and arrive at the customer sooner, because the order pickers can find the item easier and faster.
-Picking errors
With picking errors we mean an error during order picking. Examples of picking errors are: picking the wrong item, picking the wrong quantity and forgetting to pick an item. The KPI picking errors is chosen because the number of picking errors is expected to decrease with the use of AR glasses. This is because the system is less prone to errors, because picking is done by location and product photo and not by product name. If a wrong item is picked up, the glasses will give an error message.
The potential benefits of using AR glasses during order picking for Coolblue are:
-Fewer picking errors
The amount of picking errors will increase, because of the system that is built in the Smart Glasses. Order picking will also be easier for employees.
-Faster picking
Employees do not have to search for the right place anymore. The system will do that for them. That is why the order picking process will go faster.
-Shorter delivery time to the customer
Because the order picking process will be easier to use and the effect of that is that the process will be shorter and orders can go faster to the customer.
-Shorter lead time
The product will potentially spend less time in the process.
-Greater operational efficiency
The efficiency will potentially be greater, because there will be less mistakes and because the order picking process is easier to use. This way the employees will as expected be satisfied with their jobs.
-Reduction routine tasks
With the use of Smart glasses, the process will be faster. The time employees have left, they can use on other activities and work.
The information and communication
The information and communication will also partly change when the AR glasses are implemented in the process of Coolblue. The communication will largely be about the software.
AR glasses are portable computer glasses. The glasses add information to what the person already sees. These AR glasses come with certain software. On this software Coolblue can add all order places, making it possible for the AR glasses to indicate the correct route to employees. Orders must also be entered on these glasses so that the glasses know which products need to be picked.
This software could be linked to the system that Coolblue is already using at the moment, such as an SAP system.
For the implementation of the AR glasses, 2 people of the company can get a training about how to implement the glasses into the system. This training will be given by the suppliers of the glasses and software.
The communication from the AR glasses to the employee is as follows:
A route is projected on the glasses so the employee can see the route and product names of the products he has to pick. The employee can also ask the AR glasses certain questions, to which the glasses can provide answers.
The communication from the AR glasses to the system holder:
The system shows which products have been picked by whom and when. In this way, a good overview can be kept of what has been picked and what still needs to be done.
Everything is captured and can be found in the software. This leads to shorter communication lines.
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