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MaterialsHandling.definitionandAnalysis1.pdf

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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