Presented to
Group Members
01/10/2014
Material handling Definition
“Material handling means providing the right amount of the right material, in the right
condition, at the right place, in the right position, in the right sequence, for the right
cost and by the right method”
Material handling Definition
• Right amount
• How much inventory needed?
• Smaller load size are preferred
• Right material
• Manual material handling results in picking wrong material
• Automatic identification is key to accurate identification and picking right material
e.g. using Bar-code-based or RFID-based system
• Right condition
• It is the state which customer desires to receive the material
• The goods must also be received without damage
• Right orientation
• It means positioning of material for ease of handling
• The orientation should be in such a way that it reduces the handling time
Material handling Definition
• Right place
It is desirable to directly transport material to point of use rather than store the
material at some intermediate location.
• Right time
It means ON-TIME delivery
The goal is to achieve a lower cycle time MH system
• Right cost
It is not necessarily the lowest cost
Minimizing cost is wrong objective in material handling system design
The most appropriate goal is to design most efficient material handling system at
the most reasonable cost
ESTIMATING MH COST
The development of MH equipment today is much more complex task than
it was in the past
MH solution are no longer a simple case of moving material through conveyors
New MH technologies have dramatically changed the amount of labor required for
MH tasks
 Before installation Simulation techniques are used to estimate the cost of
different systems, to find an optimal MH system
 From the time of installation of a MH system, one can reduce cost by
continuous improvement in the system.
SCOPE OF MATERIAL HANDLING
• In a typical facility, material handling accounts for;
25% of all employees
55% of all factory space
87% of all production time
15 to 70% of total product cost
• Material Handling can be viewed as a mean by which total
manufacturing costs are reduced through more efficient material flow
control, lower inventories and improved safety.
SAFETY CONSIDERATIONS
 Facility designers should be familiar with all the safety requirements
for the type of facility they are designing.
 Poor ergonomics ,which means setting the workers in the job instead
of setting the job for workers, accounts for one-third of all workplace
injuries.
 A poor layout for the rack area is a common shortfall in the designs of
pallet-rack solutions in industries.
 OSHA regulations for general industry provide the basis and represent
the minimum standards.
MATERIAL HANDLING PRINCIPLES
1)
2)
3)
4)
Planning principle (what, when, where, how, who)
Standardization Principle (Less variety, Customization)
Work Principle (volume/weight * distance)
Ergonomic Principle (working conditions according to abilities of
workers)
5) Unit Load Principle (Single entity)
6) Space Utilization (cubic space)
7) System Principle (Collection of entities)
8) Automation Principle (Electro-mechanical devices)
9) Environmental Principle (not to waste natural resources)
10)Life-Cycle Cost Principle (All cash flows)
DESIGNING MH SYSTEM
6 steps to design Material Handling system;
Define objective and scope
Analyze the requirements for moving, storing, protecting and controlling materials
Generate alternative designs for MH system requirement
Evaluate alternative material handling system designs
Select the preferred design
Implement the preferred design
It is unrealistic to expect that the material handling system will operate perfectly the
first time around.
Adopting a posture of continuous improvement will result in far more efficient
operation of material handling system.
ALTERNATIVE MH SYSTEM
For development of Alternatives “Ideal System Approach” is used, which consist of four
phases;
AIM
CONCEPTUALIZE
DESIGN
INSTALL
• Aim for theoretical
Ideal System
• Conceptualize the
Ultimate ideal system
• Design the
technologically
workable system
• Install the
recommended system
• Theoretical Ideal
System has;
• Zero cost
• Perfect Quality
• No hazards
• No wasted space
• Ultimate Ideal System
is a system that would
be achievable in
future
• Technologically
workable system has;
• Not applicable
• High cost
• Not appropriate
conditions
• Recommended system
is;
• Cost effective
• Match our
requirements
MH SYSTEM EQUATION
=
MH SYSTEM EQUATION
• What Question
• What are the types of material to be moved?
• What are their characteristics
• What are amounts moved and stored
MATERIALS
• Where Question
•
•
•
•
Where is the material coming from?
Where is the material delivered?
Where is the material stored?
Where can material handling tasks be eliminated, combined or
simplified?
• When Question
• When should material be moved?
• When is time to mechanize or automate?
MOVES
MH SYSTEM EQUATION
• How Question
• How is material moved or stored?
• How much inventory should be maintained?
• How should the material be tracked?
• Who Question
• What are required skills to perform MH tasks?
• Who should be trained to service and maintain the MH system?
• Who should be involved in designing the system?
• Which Question
• Which MH operations are necessary
• Which types of MH equipment?
• Which MH system is cost effective?
METHODS
MH PLANNING CHART
• Material handling planning chart can be used to;
Gather information pertaining to a specific MH problem
To provide Preliminary examination of the alternative solutions
• The result from analyses using this chart can be used in simulation of
alternative solutions
• Following figure shows a planning chart which includes;
• Information on operations (O), transportations (T), storages (S) and inspection (I)
• All movements, performed by operator or machine should be recorded
MH PLANNING CHART
• This planning chart usually contains 15 columns
• First eight columns provide information on the Where Question
• The 9th to 12th column answer the What Question
• The frequency to move is recorded In 13th column. Frequency is calculated based on
estimated production volume and the capacity of unit load.
• The 14th column tells about length of the move. The distance moved can only be
calculated after the completion of facility layout design
• The 15th column tells about the method of material handling with appropriate
material handling equipment
UNIT LOAD DESIGN
Definition:
“A single item, a number of items, or bulk material, which is arranged or
restrained so that the load can be stored and picked up and moved between
two locations as a single mass.”
• The nature of unit load could change each time an item, or a number of
items, or bulk material is moved. Variability in quantity/size per move is
permissible.
Further Understanding
 A single item moved between two locations manually constitutes one
unit load.
 Two tote pans with identical components moved by a dolly from one
machine to the other constitute one unit load.
 One pallet load of non uniform-sized cartons moved by a lift truck
from packaging area to the shipping dock constitute one unit load.
Pallet
Tote pan
SIZE OF UNIT LOAD
 Size of Unit Load can range
from a single part carried by a person to:
Each carton moved through conveyors
A number of cartons on a pallet moved by fork lift trucks
A number of containers moved by rail across states or by container ships across
continents.
 Two important elements in determining the size of the unit load are;
Cube (length x with x height)
Weight limit
Carton boxes, pallets, tote pans can be used according to need
EFFECTS OF SIZE OF UNIT LOAD
 Large Unit Loads
• Require bigger & heavier equipment with higher load capacities
• Increase WIP inventory
• Completion time increases
• Major advantage is fewer moves
 Small unit loads:
• Increased transportation needs
• Reduce WIP Inventory
• Require simple material handling (push carts and similar devices)
• Decrease job completion time
Important conclusion: In order to achieve single unit production the material handling time must
be shorter than the unit processing time.
BASIC MANNERS TO MOVE UNIT LOAD
1.
2.
3.
4.
Lifting under the mass
Inserting the lifting elements into the body of unit load
Squeezing the load between two lifting surfaces
Suspending the load
RETURNABLE CONTAINERS
• Containers with good Stacking and Nesting features can provide significant
reduction in material handling
Stackability
Nestability
• Full container can be stacked on
top of another full container in
the same spatial orientation
• The shape of the containers
permits an empty container to
be inserted into another empty
container
This figure shows why we need stackability and nestability
PALLETS AND PALLET SIZES
 A common method of containing the unit load.
 They come in a variety of designs and are usually dictated by the
application. Common designs are;
a) Stringer design
b) Block design
CONTAINER & PALLET POOLING
 It was widely accepted in Europe first then north American companies
adopted it also.
 It means, instead of buying, rent containers and pallets for a fee per
day per container or pallet.
 Whenever you need them, you go to the nearest depot and get as
many as you need.
 After use, they are returned to the nearest depot or another company
in the supply chain.
 The figure in next slide shows the container/pallet flow in
a).Conventional
b). Pallet pooling system
c). Integrated logistics and pallet pooling system
Example (on efficiency of returnable containers)
Solution
1. Container Space utilization:
Divide the useable cube by the exterior envelope of the container.
2. Storage space efficiency:
Ratio of useable cube and the storage of cube.
3.Container nesting ratio:
Overall container height by the nested height.
4. Trailer Space Utilization:
• Along the Length=
• Along the width=
• Along the height=
Total=
• Utilization
containers.
containers.
containers.
containers.
5. Retailer Return Ratio:
• One stack of empty containers contain 55 containers.
• The total number of empty containers per trailer;
• Trailer Return Ratio.
MH EQUIPMENT CLASSIFICATION
1. Containers and unitizing equipment
1. Containers (pallets, skids, tote pans)
2. Unitizers (Stretchwrap, Palletizers)
2. Material Transport Equipment
1. Conveyors (chute, belt, roller, wheel, slat, chain, trolley, sorting)
2. Industrial vehicles (walking, Riding, Automated)
3. Monorails, hoists &cranes
3. Storage and retrieval equipment
1. Unit Load storage and retrieval (Block stacking, Mobile rack)
2. Small load storage and retrieval equipment
4. Automatic identification and communication equipment
1. Automatic identification and recognition (Bar codes, radio frequency tag)
2. Automatic paperless communication (voice headset, smart card)
ESTIMATING MH COST
The development of MH equipment today is much more complex task than
it was in the past
MH solution are no longer a simple case of moving material through conveyors
New MH technologies have dramatically changed the amount of labor required for
MH tasks
 Before installation Simulation techniques are used to estimate the cost of
different systems, to find an optimal MH system
 From the time of installation of a MH system, one can reduce cost by
continuous improvement in the system.