Materials Handling Analysis 1 Material Handling Material handling is the function of moving the right material to the right place, at the right time, in the right amount, in sequence, and in the right position or condition to minimize production costs. 2 Five Aspects of Material Handling 1. 2. 3. 4. 5. Movement Quantity Time Space Control 3 Goals of Material Handling Maintain or improve products quality, reduce damage, and protect materials Promote safety and improve working conditions Promote productivity Straight flow Automate as required Use gravity! It’s free power 4 Goals of Material Handling Promote increased facility use Cube utilization Versatile equipment Develop a PM program Reduce tare weight (dead weight) Control inventory 5 Material Handling Proper material handling can: Improper Material Handling accounts for 50% of all work related injuries Material Handling accounts for 40% of the organization’s operating costs. 6 Material Handling Proper material handling can: Improve ergonomics Minimize total costs Improve worker safety Reduce human exertion Minimize physical labor 7 Material Handling Examples Lift tables are available with complete 360degree turntables so that the operator can work from one side. They can also be made to tilt up to 90 degrees so that master cartons can be accessed more easily without bending over into the carton 8 Material Handling Examples Filled drums can be moved utilizing one person will the proper material handling equipment. 9 Material Handling Examples How about combining four trips into one? 10 Material Handling Examples Sheet goods. . .why use more than one worker when you can achieve the same results with less waste of waiting and risk of injury? 11 Material Handling Examples Odd shapes? No problem. . . 12 Material Handling Examples Heavy coil . . . Heavy boxes . . . Roll stock . . . 13 Material Handling Examples Conveyors . . . Gravity Conveyor Powered Roller Conveyor Ball Transfer Table 14 Material Handling Examples Telescoping Conveyors . . . 15 Material Handling Examples Stretchaveyor Systems. . . 16 Material Handling Supporting Pull Manufacturing Custom built for unique products. Note: Holding slots designed to aid inventory control. 17 Material Handling Supporting Pull Manufacturing Container holds approximately 200 pieces. Note: Kanban sign Note: Tare weight for weigh counting 18 Material Handling Ideals Material Handling Ideals to live by. . . 1. KISS – “keep it simple and sane” 2. “the best material handling system is no material handling system at all” 19 Material Handling Basic Questions What operation are we doing? Why do we need to move this material? Where is the material going? When and how often are we doing it? How are we currently doing it? Who is performing this function? 20 Cost Justification Example An oil remanufacturing company uses clay in its manufacturing process. The clay comes into the plant in 80# bags (only size available) stacked 40/pallet and 50 pallets/boxcar. Two carloads per year are used. Since there is no railroad spur to the dock, the union and company agreed that two part-time workers would be hired for one week, twice a year at the rate of $7.50/hr to unload these cars. You are asked to investigate the process and provided recommendations for improvement. 21 Cost Justification Example Why is this done? We need clay, and the railroad is by far the cheapest way to transport it. Let’s look at it like this: What? = 80# x 40 bags x 50 pallets = 160,000#/boxcar Where? = From the boxcar to the warehouse (300 feet) Who? = Two temporary workers When? = One week, twice a year How? = Manually unload the pallets then move these pallets into the storeroom with the fork truck that we own. 22 Cost Justification Example What do we know? 4 weeks x 40 hrs/week x $7.50/hr = $1,200/year 1. Is the current method the cheapest in the long run? 2. How could you justify a $2,400 expenditure (2 year ROI) to improve the task that is performed so infrequently? 23 Part of Body Affected by Injury Number of Nonfatal Occupational Injuries & Illnesses Multiple Parts 10% Neck 2% Body Systems 1% Shoulder 6% Back 30% Lower Extremities 24% Upper Extremities 27% 1999 BLS Data 24 Cost Justification Example What do we know now? 1. Consider the worker. 2. Material handling is not a simple cost benefit analysis. 3. Look at the whole approach when asking the questions. 4. Consider the claim rates of the company. 25 SECS Study Eliminate Combine Simplify 26 Large Vs. Small Unit Load One should always try to maximize / optimize the quantity, size, and weight of the load handled. The intent is to reduce the overall number of movements or trips required to move or transport a given quantity of materials. Don’t increase load at the expense of inventory! 27 Materials Handling and Cycle Time Move Operation A Move Operation B Lot Size Operation C Container Size Cycle Time 1 1 30 min 100 100 3,000 min 100 1 1,020 min 28 Cycle Time Example Remember the second ideal? “the best material handling system is no material handling system at all” How about SECS? Do we really need to move between the operations? 29 Material Handling Utopia The best of both worlds combines manufacturing and shipping containers Prevalent in the auto industry Stackable / nestable racks Collapsible containers Inexpensive to acquire and retain 30 Material Handling with Pallets The most common unit load is the pallet. Almost anything can be stacked on a pallet, tied with bonding or plastic wrap, and moved around the plant or world as on unit. Pallets are made of a variety of materials with greatly differing costs. Cardboard pallets @ $1 ea will make one trip Plastic pallets @ $4 ea will make 20 trips Wooden pallets @ $20 ea will make 100 trips Steel skids @ $150 ea will make 2,000 trips 31 Material Handling with Pallets 32 Collapsible Containers 33 Collapsible and Nestable Containers 34 Materials Handling Analysis Tools Operation process chart (OPC) is used to analyze relations between operations and is useful for analyzing assembly operations and layout Flow process chart is used to identify detailed problems such as delay in time, storage costs and material handling costs Flow diagram mainly concerns with floor space, traffic congestion and traveling distance PERT chart is used as a project scheduling tool and concerns with timing objective and costs for major projects 35 The Performance Principle Know what your material handling costs are and continuously work to reduce them. The process chart provides the form to calculate the unit cost of every move. Tracking this percentage can show the improvements in performance. Material Handling Hours Percentage of M.H. = Total Labor Hours 36 From-To Charts Can indicate both volume and process flow Constructed like a mileage chart List the process steps in their “natural” direction Can be computer generated or simple hash tabulation marks Note both the required sequence and intensity of materials flow Note the handling difficulty and cost 37 From-To Chart Most exact technique of the three Considers the importance of the parts Establishes a relative importance ranking 38 From-To Chart Example Step 1 Establish the Relative Importance factor Part No. Quantity per Day Weight in Pounds Total Weight (lbs) Relative Importance 1 2 3 2,000 2,000 3,000 0.5 9.0 15.0 1,000 18,000 45,000 1.0 18.0 45.0 Step 2– Create the from-to matrix 39 To Example From-To Chart R R A B C 1 18 45 FROM A 1 B C D D 18+45 1 Total 64 45 18 S 18 1 64 19 1 64 45 46 Total: 257 S 40 From-To Chart Example Step 3 Assign the penalty points To R R A B C 1 1 18 36 45 135 1 1 A FROM C S Total P.P. 64 172 64 208 19 20 1 2 64 252 45 45 46 47 18 72 1 2 18+45 252 1 2 D Double P.P. 45 135 18 18 B D S T P.P. 64 252 19 37 64 155 46 137 64 119 257 699 41 From-To Chart Example Step 4 Determine the efficiency and evaluate To R R A B C 1 1 18 36 45 135 1 1 A FROM C 45 135 18 18 B D 18 72 1 2 18+45 252 1 2 D S Total P.P. 64 172 64 208 Efficiency = 257 / 699 19 20 1 2 64 252 45 45 46 47 Can we do better? S T P.P. 64 252 19 37 64 155 46 137 64 119 = 37% 257 699 42 5 Ms Five basic factors affect all moves: Man Materials Methods of handling Moves – distances and elevations Money – cost of materials movement and handling equipment 43 Questions and Comments 44