MATERIAL HANDLING MATERIAL HANDLING AND PACKAGINGAND PACKAGING

Material handling is the movement of raw Material handling is the movement of raw material, work-in-process (WIP) material, work-in-process (WIP) inventory, and finished products within a inventory, and finished products within a facility.facility.

The art and science of moving, packaging, The art and science of moving, packaging, and storing of substances in any form.and storing of substances in any form.

A properly installed Material handling A properly installed Material handling system can reduce the costs and labor, system can reduce the costs and labor, increase safety, increase productivity, increase safety, increase productivity, reduce waste, increase capacity and reduce waste, increase capacity and improve service.improve service.

Symptoms of Inefficient Material Symptoms of Inefficient Material HandlingHandling

Depending on the industry, material handling Depending on the industry, material handling can account for 30 to 70 percent of the cost of can account for 30 to 70 percent of the cost of manufacturing, so inefficiencies should be manufacturing, so inefficiencies should be eliminated.eliminated.

Objectives of Material HandlingObjectives of Material Handling

Movement - Movement of product into, Movement - Movement of product into, through, and out of warehouses. Efficient through, and out of warehouses. Efficient movement inside a facility helps control costs movement inside a facility helps control costs and improve customer service.and improve customer service.

Time – Parts and raw materials must be Time – Parts and raw materials must be available when needed at production stations, available when needed at production stations, loading docks, and terminals.loading docks, and terminals.

Objectives of Material HandlingObjectives of Material Handling

Quantity – Goods must move in the right Quantity – Goods must move in the right quantity between the production stations as quantity between the production stations as well as to the customerwell as to the customer

Space – The material handling system should Space – The material handling system should effectively use the available cubic space in the effectively use the available cubic space in the warehouse, terminal or plant. warehouse, terminal or plant.

Material Handling Systems and Material Handling Systems and EquipmentEquipment

There are 3 types of material handling systemsThere are 3 types of material handling systems manualmanual mechanized and mechanized and automated.automated.

Types of Material Handling SystemsTypes of Material Handling Systems

Manual material handling systems -Tend to be Manual material handling systems -Tend to be labor-intensive. Typical equipment would be labor-intensive. Typical equipment would be hand dollies, drawers, low racks, pallet jacks, hand dollies, drawers, low racks, pallet jacks, bins, and gravity flow conveyors.bins, and gravity flow conveyors.

Manual systems yield low throughput because Manual systems yield low throughput because of a lack of handling speed. Also, they, use of a lack of handling speed. Also, they, use cubic space poorly. Most firms have modified cubic space poorly. Most firms have modified manual systems to mechanized systems to manual systems to mechanized systems to increase efficiency.increase efficiency.

Types of Material Handling SystemsTypes of Material Handling Systems

Mechanized material handling System – Is Mechanized material handling System – Is most efficient. It replaces some manual most efficient. It replaces some manual handling systems with mechanical movement. handling systems with mechanical movement. The forklift truck is the backbone of a The forklift truck is the backbone of a mechanism material handling system. Other mechanism material handling system. Other equipment found in this system include pallets, equipment found in this system include pallets, towlines, cranes, storage rack systems, and towlines, cranes, storage rack systems, and wheel conveyors.wheel conveyors.

Types of Material Handling SystemsTypes of Material Handling Systems Automated Material Handling System – Most Automated Material Handling System – Most

Sophisticated. It uses carousels, automatic Sophisticated. It uses carousels, automatic storage and retrieval systems, item-picking storage and retrieval systems, item-picking equipment, optical scanners, high-rise rack equipment, optical scanners, high-rise rack systems, and robots. It can fully utilize the systems, and robots. It can fully utilize the available cubic space in the facility. available cubic space in the facility.

Automated systems seem superior in most Automated systems seem superior in most situations, but are extremely costly, may situations, but are extremely costly, may require special types or sizes of facilities, and require special types or sizes of facilities, and create serious problems when the system create serious problems when the system crashes.crashes.

The physical structure of the facility will often The physical structure of the facility will often dictate the system to use. If the firm plans to dictate the system to use. If the firm plans to build a new structure, the facility should be build a new structure, the facility should be designed around the material handling system.designed around the material handling system.

The type of system also depends on the type and The type of system also depends on the type and amount of equipment required.amount of equipment required.

The equipment selection equation is :The equipment selection equation is :

What + Where + When = EquipmentWhat + Where + When = Equipment

The The WhatWhat refers to the type of material refers to the type of material being handled in the facility.being handled in the facility.

WhereWhere refers to everything involved in refers to everything involved in routing the material throughout the facility.routing the material throughout the facility.

WhenWhen means the material must be in the means the material must be in the right place at the right time.right place at the right time.

Rules of Equipment SelectionRules of Equipment Selection Use mechanical equipment – This reduces Use mechanical equipment – This reduces

labor costs, decreases fatigue, improves safety, labor costs, decreases fatigue, improves safety, increases production, and speeds flow.increases production, and speeds flow.

Use existing equipment whenever possible – Use existing equipment whenever possible – Money can be saved if existing equipment can Money can be saved if existing equipment can be utilized.be utilized.

Keep cost considerations in mind – Any Keep cost considerations in mind – Any equipment selected should reduce the overall equipment selected should reduce the overall costs of material handling. costs of material handling.

Rules of Equipment SelectionRules of Equipment Selection Standardize equipment – Standardization Standardize equipment – Standardization

reduces inventory, allows for reduces inventory, allows for interchangeability of equipment, and interchangeability of equipment, and normally costs less to purchase.normally costs less to purchase.

Integrate equipment –it is required that the Integrate equipment –it is required that the equipment chosen fits together into a equipment chosen fits together into a smooth material handling system.smooth material handling system.

Provide alternative methods – It is possible Provide alternative methods – It is possible that the system could break down. that the system could break down. Therefore think about alternative methods Therefore think about alternative methods of movement and of equipment. of movement and of equipment.

Rules of Equipment SelectionRules of Equipment Selection Check facility limitations – Some equipments Check facility limitations – Some equipments

requires special facility conditions (like requires special facility conditions (like smooth surface, clean) so it is important to smooth surface, clean) so it is important to inventory the facility’s limitations.inventory the facility’s limitations.

Consider the unit cost – Do not select Consider the unit cost – Do not select equipment on its initial costs. Select it on the equipment on its initial costs. Select it on the basis of comparative unit costs of handling.basis of comparative unit costs of handling.

Rules of Equipment SelectionRules of Equipment Selection

Plan for the future – Anticipate changing Plan for the future – Anticipate changing requirements of the material handling system.requirements of the material handling system.

Do not overlook maintenance – Some Do not overlook maintenance – Some equipment costs considerably more to equipment costs considerably more to maintain than others. Make sure these costs are maintain than others. Make sure these costs are included in the overall analysis.included in the overall analysis.

Principles of Material HandlingPrinciples of Material Handling

There are 10 principles of material handling.There are 10 principles of material handling.1. Planning principle – All material handling 1. Planning principle – All material handling

should be the result of a deliberate plan where should be the result of a deliberate plan where the needs, performance objectives, and the needs, performance objectives, and functional specification of the proposed functional specification of the proposed methods are completely defined at the outset.methods are completely defined at the outset.

2.Standardization principle – Material handling 2.Standardization principle – Material handling methods, equipment, controls, and software methods, equipment, controls, and software should be standardized within the limits of should be standardized within the limits of achieving overall performance objectives and achieving overall performance objectives and without sacrificing needed flexibility, without sacrificing needed flexibility, modularity and throughput.modularity and throughput.

3. Work principle – Material handling work 3. Work principle – Material handling work should be minimized without sacrificing should be minimized without sacrificing productivity of the level of service required of productivity of the level of service required of the operation.the operation.

4. Ergonomic Principle – Human capabilities 4. Ergonomic Principle – Human capabilities and limitations must be recognized and and limitations must be recognized and respected in the design of material handling respected in the design of material handling tasks and equipment to ensure safe and tasks and equipment to ensure safe and effective operations.effective operations.

5. Unit load principle – Unit loads shall be 5. Unit load principle – Unit loads shall be appropriately sized and configured in a way appropriately sized and configured in a way that achieves the material flow and inventory that achieves the material flow and inventory objectives at each stage in the supply chain.objectives at each stage in the supply chain.

6. Space utilization Principle – Effective and 6. Space utilization Principle – Effective and efficient use must be made of all available efficient use must be made of all available space.space.

7. System Principle – Material movement and 7. System Principle – Material movement and storage activities should be fully integrated to storage activities should be fully integrated to form a coordinated , operational, system, that form a coordinated , operational, system, that spans receiving, inspection, storage, spans receiving, inspection, storage, production, assembly, packaging, production, assembly, packaging, unitizing,order unitizing,order selection,shipping,transportation, and the selection,shipping,transportation, and the handling of returns.handling of returns.

8. Automation Principle – Material Handling 8. Automation Principle – Material Handling operations should be mechanized and/or operations should be mechanized and/or automated where feasible to improve automated where feasible to improve operational efficiency, increase operational efficiency, increase responsiveness, improve consistency and responsiveness, improve consistency and predictability, decrease operating costs, and predictability, decrease operating costs, and eliminate repetitive or potentially unsafe eliminate repetitive or potentially unsafe manual labor.manual labor.

9. Environmental Principle – Environmental 9. Environmental Principle – Environmental impact and energy consumption should be impact and energy consumption should be considered as criteria when designing or considered as criteria when designing or selecting alternative equipment and material selecting alternative equipment and material handling systems.handling systems.

10. Life Cycle Cost Principle – A thorough 10. Life Cycle Cost Principle – A thorough economic analysis should account for the economic analysis should account for the entire life cycle of all material handling entire life cycle of all material handling equipment and resulting systems.equipment and resulting systems.

Material handling productivity Material handling productivity ratiosratios

material handling ratios help judge the material handling ratios help judge the efficiency and productivity of the system. efficiency and productivity of the system.

There are several material handling ratios :There are several material handling ratios :

1. Material Handling Labor Ratio1. Material Handling Labor Ratio

To get this ratio, divide the number of people To get this ratio, divide the number of people assigned to material handling by the total number assigned to material handling by the total number of operating personnel. The number can be found of operating personnel. The number can be found by counting employees or through payroll by counting employees or through payroll records.records.

MHL=MHL=Personnel assigned to material handling dutiesPersonnel assigned to material handling duties

Total Operating PersonnelTotal Operating Personnel

2. Handling Equipment Utilization 2. Handling Equipment Utilization RatioRatio

The main problem with this ratio is to The main problem with this ratio is to determining theoretical capacity. Theoretical determining theoretical capacity. Theoretical Capacity maybe either when machines are Capacity maybe either when machines are carrying a full load or when the machinery is carrying a full load or when the machinery is in motion. The equation for this ratio is as in motion. The equation for this ratio is as follows:follows:

HEU = HEU = Items or load weight moved per hourItems or load weight moved per hour

Theoretical CapacityTheoretical Capacity

3. Storage Space Utilization Ratio3. Storage Space Utilization Ratio

To get this ratio, divide the number of To get this ratio, divide the number of occupied cubic feet of storage space by the occupied cubic feet of storage space by the total number of cubic feet of storage space total number of cubic feet of storage space available.available.

A common mistake in developing the total A common mistake in developing the total available space is to use only floor space and available space is to use only floor space and not cubic space.not cubic space.

SSU = SSU = Storage space occupied _Storage space occupied _Total available storage spaceTotal available storage space

4. Aisle space percentage ratio4. Aisle space percentage ratio

As space become more costly, available space must As space become more costly, available space must be better utilized. Aisles are necessary in a facility be better utilized. Aisles are necessary in a facility and should not be used for storage because of and should not be used for storage because of congestion problems. Like the storage space congestion problems. Like the storage space utilization equation, cubic feet of total space should utilization equation, cubic feet of total space should be used. Aisle space ratios should be lower in be used. Aisle space ratios should be lower in automated material handling systems than in manual automated material handling systems than in manual or mechanized systems. or mechanized systems.

ASP = ASP = Space occupied by aisles _Space occupied by aisles _Total space availableTotal space available

5. Movement/Operation Ratio (M/O)5. Movement/Operation Ratio (M/O)

This equation shows the overall efficiency of This equation shows the overall efficiency of material handling operations. High ratios point material handling operations. High ratios point to potential improvement by reducing handling to potential improvement by reducing handling steps or moving to mechanized or automated steps or moving to mechanized or automated handling. handling.

M/O = M/O = _____Number of moves_________Number of moves____

Number of productive operationsNumber of productive operations

6. Manufacturing Cycle efficiency 6. Manufacturing Cycle efficiency ratio (MCE)ratio (MCE)

It measures the effectiveness of product flows It measures the effectiveness of product flows in the facility. It will provide insight into in the facility. It will provide insight into delays. To get this ratio, divide the time spent delays. To get this ratio, divide the time spent in production or storage operations by the time in production or storage operations by the time spent in the department.spent in the department.

MCE = MCE = __Time spent in facility structure operations__Time spent in facility structure operations

Time spent in the facility structureTime spent in the facility structure

7. Damaged Loads (DL)7. Damaged Loads (DL)

It’s the final ratio. Nothing is more frustrating It’s the final ratio. Nothing is more frustrating than having a product ruined by improper than having a product ruined by improper handling. It adds to the overall cost of handling. It adds to the overall cost of operation without adding value to the product. operation without adding value to the product.

DL = DL = Number of damaged loadsNumber of damaged loads

Total number of loadsTotal number of loads