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Materials Handling Analysis
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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.
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Five Aspects of Material Handling
1. Movement
2. Quantity
3. Time
4. Space
5. Control
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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
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Goals of Material Handling
Promote increased facility use Cube utilization
Versatile equipment
Develop a PM program
Reduce tare weight (dead weight)
Control inventory
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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.
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Material Handling
Proper material handling can: Improve ergonomics
Minimize total costs Improve worker safety
Reduce human exertion
Minimize physical labor
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Material Handling Examples
Lift tables are available with complete 360-
degree 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
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Material Handling Examples
Filled drums can be moved utilizing one
person will the proper material handling
equipment.
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Material Handling Examples How about combining four trips into one?
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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?
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Material Handling Examples Odd shapes? No problem. . .
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Material Handling Examples
Roll stock . . .
Heavy coil . . .
Heavy boxes . . .
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Material Handling Examples Conveyors . . .
Gravity Conveyor
Powered Roller Conveyor
Ball Transfer Table
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Material Handling Examples Telescoping Conveyors . . .
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Material Handling Examples Stretchaveyor Systems. . .
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Material Handling Supporting Pull Manufacturing
Custom built for unique products.
Note: Holding slots designed to aid inventory control.
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Material Handling Supporting Pull Manufacturing
Container holds approximately 200 pieces.
Note: Kanban sign
Note: Tare weight for weigh counting
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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”
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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?
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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.
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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.
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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?
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Part of Body Affected by Injury
Number of Nonfatal Occupational Injuries & Illnesses
Upper Extremities
27%
Back
30%
Neck
2% Shoulder
6%
Lower Extremities
24%
Body Systems
1%
Multiple Parts
10%
1999 BLS Data
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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.
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Cost Reduction and work Simplification The SECS Method
Study
Eliminate
Combine
Simplify
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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!
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Materials Handling and Cycle Time
Operation A
Lot Size Container Size Cycle Time
1
100
100
1
100
1
30 min
3,000 min
1,020 min
Operation B
Move
Operation C
Move
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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?
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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
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Unit Load and Material Handling. Pallets & Containers
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
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Material Handling with Pallets
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Containers: -- Collapsible Containers
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Containers: --Collapsible and Nestable Containers
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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
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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 as measured by some of the following Productivity ratios:
1)- Material Handling Labor Hours (MHL) Ratio
Personnel Assigned to Material Handling MHL = Total Operating Personnel
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Performance Principle (Continue)
2)- Handling Equipment Utilization ratio (HEU) Items (or Load weight) Moved per hour HEU = Theoretical Capacity 3)- Storage Utilization Ratio (SSU) Storage Space Occupied SSU= Total Available storage Space 4)- Others….. (see textbook)
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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
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From-To Chart
Most exact technique of the three
Considers the importance of the parts
Establishes a relative importance ranking
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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 2,000 0.5 1,000 1.0
2 2,000 9.0 18,000 18.0
3 3,000 15.0 45,000 45.0
Step 2-
– Create the from-to matrix
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From-To Chart Example
R A B C D S Total
R 1 18 45 64
A 1 45 18 64
B 18 1 19
C 18+45 1 64
D 1 45 46
S
Total: 257
F R
O M
To
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From-To Chart Example Step 3-
Assign the penalty points
R A B C D S Total P.P.
R 1
1
18
36
45
135 64 172
A 1
1
45
135
18
72 64 208
B 18
18
1
2 19 20
C 18+45
252
1
2 64 252
D 1
2
45
45 46 47
S
T
P.P.
64
252
19
37
64
155
46
137
64
119
257
699
To F
R O
M
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From-To Chart Example Step 4-
Determine the efficiency and evaluate R A B C D S Total P.P.
R 1
1
18
36
45
135 64 172
A 1
1
45
135
18
72 64 208
B 18
18
1
2 19 20
C 18+45
252
1
2 64 252
D 1
2
45
45 46 47
S
T
P.P.
64
252
19
37
64
155
46
137
64
119
257
699
To
F R
O M
Efficiency = 257 / 699
= 37%
Can we
do better?
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Elements of a Material Handling System. 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
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Questions and Comments