Unit09 Material Handling Principles (1)

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    Facilities Planning- Unit 09

    Material Handling Principles

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    Hierarchy of Facility Planning

    Facility

    Planning

    Structural Design

    Facility

    Location

    Facility

    Design

    Handling SystemDesign

    Layout

    Design

    Source for Figure: Tompkins and White,Facilities Planning, 2nd edition, Wiley

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    Facility Layout

    The physical arrangement of

    production machines and equipment,

    workstations, people, materials, and

    material handling equipment.

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    Material Handling Defined

    Material handlingis the function of moving the right

    material to the right place in the right time, in the

    right amount, in sequence, and in the right condition

    to minimize production cost.

    The cost of MH is estimated to be 20-25% of total

    manufacturing labor cost in the United States.Source: The Material Handling Industry of America (MHIA)

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    Nature of Material Handling

    Material handling (MH) is the artand scienceinvolving

    the moving, packing, and storing of substances in any

    form.

    The artof MH is the fact that there is no one rightanswer to a MH problem.

    The scienceof MH encompasses a technical

    understanding of the field.

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    The Value of Material Handling

    MH does not change the shape or form of a good or

    serviceit does not add value.

    MH adds cost to the good or service and,

    consequently, is something to be avoided. Material handling is the creation of timeand place

    utility in a material.

    Timeutilityhaving the proper good or service at the right

    time. Placeutilityhaving the proper good or service at the right

    place.

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    Objectives of Material Handling

    Increase efficiency of material flow Reduce material-handling cost

    Improve facility utilization

    Improve safety and working conditions

    Facilitate the manufacturing process

    Increase productivity

    Material handling can account for 30-75% of production costs and

    can reduce operational costs by 15-30%. It affects building

    requirements, departmental arrangements, and production time.Source: Manufacturing Facilities: Location, Planning, and Design [Sule, 94]

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    Scope of Material HandlingManufacturing

    Raw materials receiving and shipping

    Materials issue and distribution

    Inter/intra departmental handling Workplace material handling

    In-process storage

    Finished goods storage

    Stock picking and order assembly

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    Scope of Material HandlingHospitals

    Patient handling

    Staff personnel handling

    Food handling Garbage handling

    Laundry handling

    Medication handling

    Patient records handling

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    Scope of Material HandlingAirports

    Passenger handling

    Flight crew handling

    Baggage handling

    Fuel handling

    Food handling (flight meals and terminal)

    Air freight cargo handling

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    Components of Material Handling

    The Materialsproducts, items, substances and/or people

    which are being moved, transported, or physically relocated.

    The Move(origin, travel path, destination, frequency) to be

    made.

    The Method(equipment, people, procedures, physicalfacilities) to be used to make the move

    Material Handling Equation

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    Principles of Material Handling

    A principle is a general rule, fundamental, or other

    statement of an observed truth.

    Over time certain fundamental truths of material

    handling have been found to exist. The "principles" ofmaterial handling are often useful in analyzing, planning

    and managing material handling activities and systems.

    At the very least they form a basic foundation upon

    which one can begin building expertise in materialhandling.

    The Material Handling Industry of America (MHIA) is the major source used for compiling the remainder of this is unit

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    Principles of Material Handling

    The Principles of material Handlingserve as a starting

    point to identifying potential problems and assessing

    need, are:1. Planning

    2. Standardization

    3. Work4. Ergonomic

    5. Unit Load

    6. Space Utilization

    7. System

    8. Automation

    9. Environment

    10. Life Cycle Cost

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    Principles of Material HandlingPlanning Principle

    All material handling should be the result of a deliberate

    plan where the needs, performance objectives and

    functional specification of the proposed methods are

    completely defined at the outset.

    Definition: A plan is a prescribed course of action that is

    defined in advance of implementation. In its simplest

    form a material handing plan defines the material (what)and the moves (when and where); together they define

    the method (how and who).

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    The plan should be developed in consultation between

    the planner(s) and all who will use and benefit from the

    equipment to be employed.

    Success in planning large scale material handling

    projects generally requires a team approach involving

    suppliers, consultants when appropriate, and end user

    specialists from management, engineering, computer

    and information systems, finance and operations.

    Principles of Material HandlingPlanning PrincipleKey Points

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    Principles of Material HandlingPlanning PrincipleKey Points

    The material handling plan should reflect the strategic

    objectives of the organization as well as the more

    immediate needs.

    The plan should document existing methods andproblems, physical and economic constraints, and

    future requirements and goals.

    The plan should promote concurrent engineering ofproduct, process design, process layout, and material

    handling methods, as opposed to independent and

    sequential design practices.

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    Principles of Material HandlingStandardization Principle

    Material handling methods, equipment, controls and

    software should be standardized within the limits of

    achieving overall performance objectives and without

    sacrificing needed flexibility , modularity andthroughput.

    Definition: Standardization means less variety and

    customization in the methods and equipment employed.

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    The planner should select methods and equipment thatcan perform a variety of tasks under a variety of

    operating conditions and in anticipation of changing

    future requirements.

    Standardization applies to sizes of containers and

    other load forming components as well as operating

    procedures and equipment.

    Standardization, flexibility and modularity must not be

    incompatible.

    Principles of Material HandlingStandardization PrincipleKey Points

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    Principles of Material HandlingWork Principle

    Material handling work should be minimized without

    sacrificing productivity or the level of service required of

    the operation.Definition: The measure of work is material handling

    flow (volume, weight or count per unit of time) multiplied

    by the distance moved.

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    Simplifying processes by reducing, combining,

    shortening or eliminating unnecessary moves will

    reduce work.

    Consider each pickup and set-down, or placingmaterial in and out of storage, as distinct moves and

    components of the distance moved.

    Process methods, operation sequences andprocess/equipment layouts should be prepared that

    support the work minimization objective.

    Principles of Material HandlingWork PrincipleKey Points

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    Principles of Material HandlingWork PrincipleKey Points

    Where possible, gravity should be used to move

    materials or to assist in their movement while

    respecting consideration of safety and the potential forproduct damage.

    The shortest distance between two points is a straight

    line.

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    Principles of Material HandlingErgonomic Principle

    Human capabilities and limitations must be recognized

    and respected in the design of material handling tasks

    and equipment to ensure safe and effective operations.

    Definition: Ergonomics is the science that seeks to

    adapt work or working conditions to suit the abilities of

    the worker.

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    Principles of Material HandlingErgonomic PrincipleKey Points

    Equipment should be selected that eliminates repetitive

    and strenuous manual labor and which effectively

    interacts with human operators and users.

    The ergonomic principle embraces both physical and

    mental tasks.

    The material handling workplace and the equipment

    employed to assist in that work must be designed sothey are safe for people.

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    Principles of Material HandlingUnit Load Principle

    Unit loads shall be appropriately sized and configured in

    a way which achieves the material flow and inventory

    objectives at each stage in the supply chain.Definition: A unit load is one that can be stored or

    moved as a single entity at one time, such as a pallet,

    container or tote, regardless of the number of individual

    items that make up the load.

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    Principles of Material HandlingUnit Load PrincipleKey Points

    Less effort and work is required to collect and move

    many individual items as a single load than to move

    many items one at a time.

    Load size and composition may change as material

    and product moves through stages of manufacturing

    and the resulting distribution channels.

    Large unit loads are common both pre and postmanufacturing in the form of raw materials and

    finished goods.

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    Principles of Material HandlingUnit Load PrincipleKey Points

    During manufacturing, smaller unit loads, including asfew as one item, yield less in-process inventory andshorter item throughput times.

    Smaller unit loads are consistent with manufacturingstrategies that embrace operating objectives such asflexibility, continuous flow and just-in-time delivery.

    Unit loads composed of a mix of different items are

    consistent with just-in-time and/or customized supplystrategies so long as item selectivity is notcompromised.

    P i i l f M t i l H dli

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    Principles of Material HandlingSpace Utilization Principle

    Effective and efficient use must be made of all available

    space.

    Definition: Space in material handling is threedimensional and therefore is counted as cubic space.

    P i i l f M t i l H dli

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    Principles of Material HandlingSpace Utilization PrincipleKey Points

    In work areas, cluttered and unorganized spaces and

    blocked aisles should be eliminated.

    In storage areas, the objective of maximizing storage

    density must be balanced against accessibility and

    selectivity.

    When transporting loads within a facility the use of

    overhead space should be considered as an option.

    P i i l f M t i l H dli

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    Principles of Material HandlingSystem Principle

    Material movement and storage activities should be

    fully integrated to form a coordinated, operational

    system which spans receiving, inspection, storage,

    production, assembly, packaging, unitizing, orderselection, shipping, transportation and the handling

    of returns.

    Definition: A system is a collection of interactingand/or interdependent entities that form a unified

    whole.

    P i i l f M t i l H dli

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    Principles of Material HandlingSystem PrincipleKey Points

    Systems integration should encompass the entire

    supply chain including reverse logistics. It should

    include suppliers, manufacturers, distributors and

    customers.

    Inventory levels should be minimized at all stages of

    production and distribution while respecting

    considerations of process variability and customer

    service.

    P i i l f M t i l H dli

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    Principles of Material HandlingSystem PrincipleKey Points

    Information flow and physical material flow should be

    integrated and treated as concurrent activities.

    Methods should be provided for easily identifying

    materials and products, for determining their locationand status within facilities and within the supply chain

    and for controlling their movement.

    Customer requirements and expectations regardingquantity, quality, and on-time delivery should be met

    without exception.

    Principles of Material Handling

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    Principles of Material HandlingAutomation PrincipleKey Points

    Material handling operations should be mechanized and/orautomated where feasible to improve operational efficiency, increase

    responsiveness, improve consistency and predictability, decrease

    operating costs and to eliminate repetitive or potentially unsafe

    manual labor.

    Definition: Automation is a technology concerned with the

    application of electro-mechanical devices, electronics and

    computer-based systems to operate and control production and

    service activities. It suggests the linking of multiple mechanicaloperations to create a system that can be controlled by programmed

    instructions.

    Principles of Material Handling

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    Principles of Material HandlingAutomation PrincipleKey Points

    Pre-existing processes and methods should be

    simplified and/or re-engineered before any efforts at

    installing mechanized or automated systems.

    Computerized material handling systems should be

    considered where appropriate for effective integration

    of material flow and information management.

    Principles of Material Handling

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    Principles of Material HandlingAutomation PrincipleKey Points

    All items expected to be handled automatically must

    have features that accommodate mechanized and

    automated handling.

    Treat all interface issues as critical to successfulautomation, including equipment to equipment,

    equipment to load, equipment to operator, and control

    communications.

    Principles of Material Handling

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    Principles of Material HandlingEnvironmental Principle

    Environmental impact and energy consumption should

    be considered as criteria when designing or selecting

    alternative equipment and material handling systems.

    Definition: Environmental consciousness stems from a

    desire not to waste natural resources and to predict and

    eliminate the possible negative effects of our daily

    actions on the environment.

    Principles of Material Handling

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    Principles of Material HandlingEnvironmental PrincipleKey Points

    Containers, pallets and other products used to formand protect unit loads should be designed forreusability when possible and/or biodegradability asappropriate.

    Systems design should accommodate the handling ofspent dunnage, empty containers and other by-products of material handling.

    Materials specified as hazardous have special needswith regard to spill protection, combustibility andother risks.

    Principles of Material Handling

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    Principles of Material HandlingLife Cycle Cost Principle

    A thorough economic analysis should account for the

    entire life cycle of all material handling equipment and

    resulting systems.

    Definition:Life cycle costs include all cash flows thatwill occur between the time the first dollar is spent to

    plan or procure a new piece of equipment, or to put in

    place a new method, until that method and/or

    equipment is totally replaced.

    Principles of Material Handling

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    Principles of Material HandlingLie Cycle Cost PrincipleKey Points

    Life cycle costs include capital investment,

    installation, setup and equipment programming,

    training, system testing and acceptance, operating

    (labor, utilities, etc.), maintenance and repair, reusevalue, and ultimate disposal.

    A plan for preventive and predictive maintenance

    should be prepared for the equipment, and the

    estimated cost of maintenance and spare parts should

    be included in the economic analysis.

    Principles of Material Handling

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    Principles of Material HandlingLie Cycle Cost PrincipleKey Points

    A long-range plan for replacement of the equipment

    when it becomes obsolete should be prepared.

    Although measurable cost is a primary factor, it iscertainly not the only factor in selecting among

    alternatives. Other factors of a strategic nature to the

    organization and which form the basis for competition

    in the market place should be considered andquantified whenever possible.