Facilities Planning - Unit 09 Material Handling Principles

1. Facilities Planning - Unit 09 Material Handling Principles

2. Hierarchy of Facility Planning Facility Location Structural Design Facility Planning Facility Design Layout Design Handling System Design Source for Figure: Tompkins and White, Facilities Planning, 2nd edition, Wiley Material Handling Principles - 2

3. Facility Layout The physical arrangement of production machines and equipment, workstations, people, materials, and material handling equipment. Material Handling Principles - 3

4. Material Handling Defined Material handling is 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) Material Handling Principles - 4

5. Nature of Material Handling Material handling (MH) is the art and science involving the moving, packing, and storing of substances in any form. The art of MH is the fact that there is no one “right” answer to a MH problem. The science of MH encompasses a technical understanding of the field. Material Handling Principles - 5

6. The Value of Material Handling MH does not change the shape or form of a good or service – it 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 time and place utility in a material. Time utility – having the proper good or service at the right time. Place utility – having the proper good or service at the right place. Material Handling Principles - 6

7. 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] Material Handling Principles - 7

8. 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 Material Handling Principles - 8

9. Scope of Material HandlingHospitals Patient handling Staff personnel handling Food handling Garbage handling Laundry handling Medication handling Patient records handling Material Handling Principles - 9

10. Scope of Material HandlingAirports Passenger handling Flight crew handling Baggage handling Fuel handling Food handling (flight meals and terminal) Air freight cargo handling Material Handling Principles - 10

11. Components of Material Handling • The Materials – products, 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, physical facilities) to be used to make the move Material Handling Equation Material Handling Principles - 11

12. Cost Reduction Formula Material Handling Principles - 12

13. 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" of material 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 material handling. The Material Handling Industry of America (MHIA) is the major source used for compiling the remainder of this is unit Material Handling Principles - 13

14. Principles of Material Handling The Principles of material Handling serve as a starting point to identifying potential problems and assessing need, are: 1. Planning 2. Standardization 3. Work 4. Ergonomic 5. Unit Load 6. Space Utilization 7. System 8. Automation 9. Environment 10. Life Cycle Cost Material Handling Principles - 14

15. 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). Material Handling Principles - 15

16. 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 Principle – Key Points Material Handling Principles - 16

17. Principles of Material HandlingPlanning Principle – Key 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 and problems, physical and economic constraints, and future requirements and goals. The plan should promote concurrent engineering of product, process design, process layout, and material handling methods, as opposed to independent and sequential design practices. Material Handling Principles - 17

18. 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 and throughput. Definition: Standardization means less variety and customization in the methods and equipment employed. Material Handling Principles - 18

19. The planner should select methods and equipment that can 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 Principle – Key Points Material Handling Principles - 19

20. 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. Material Handling Principles - 20

21. Simplifying processes by reducing, combining, shortening or eliminating unnecessary moves will reduce work. Consider each pickup and set-down, or placing material in and out of storage, as distinct moves and components of the distance moved. Process methods, operation sequences and process/equipment layouts should be prepared that support the work minimization objective. Principles of Material HandlingWork Principle – Key Points Material Handling Principles - 21

22. Principles of Material HandlingWork Principle – Key Points Where possible, gravity should be used to move materials or to assist in their movement while respecting consideration of safety and the potential for product damage. The shortest distance between two points is a straight line. Material Handling Principles - 22

23. 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. Material Handling Principles - 23

24. Principles of Material HandlingErgonomic Principle – Key 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 so they are safe for people. Material Handling Principles - 24

25. 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. Material Handling Principles - 25

26. Principles of Material HandlingUnit Load Principle – Key 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 post manufacturing in the form of raw materials and finished goods. Material Handling Principles - 26

27. Principles of Material HandlingUnit Load Principle – Key Points During manufacturing, smaller unit loads, including as few as one item, yield less in-process inventory and shorter item throughput times. Smaller unit loads are consistent with manufacturing strategies that embrace operating objectives such as flexibility, 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 supply strategies so long as item selectivity is not compromised. Material Handling Principles - 27

28. Principles of Material HandlingSpace Utilization Principle Effective and efficient use must be made of all available space. Definition: Space in material handling is three dimensional and therefore is counted as cubic space. Material Handling Principles - 28

29. Principles of Material HandlingSpace Utilization Principle – Key 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. Material Handling Principles - 29

30. 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, order selection, shipping, transportation and the handling of returns. Definition: A system is a collection of interacting and/or interdependent entities that form a unified whole. Material Handling Principles - 30

31. Principles of Material HandlingSystem Principle – Key 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. Material Handling Principles - 31

32. Principles of Material HandlingSystem Principle – Key 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 location and status within facilities and within the supply chain and for controlling their movement. Customer requirements and expectations regarding quantity, quality, and on-time delivery should be met without exception. Material Handling Principles - 32

33. Principles of Material HandlingAutomation Principle – Key Points Material handling operations should be mechanized and/or automated 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 mechanical operations to create a system that can be controlled by programmed instructions. Material Handling Principles - 33

34. Principles of Material HandlingAutomation Principle – Key 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. Material Handling Principles - 34

35. Principles of Material HandlingAutomation Principle – Key Points All items expected to be handled automatically must have features that accommodate mechanized and automated handling. Treat all interface issues as critical to successful automation, including equipment to equipment, equipment to load, equipment to operator, and control communications. Material Handling Principles - 35

36. 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. Material Handling Principles - 36

37. Principles of Material HandlingEnvironmental Principle – Key Points Containers, pallets and other products used to form and protect unit loads should be designed for reusability when possible and/or biodegradability as appropriate. Systems design should accommodate the handling of spent dunnage, empty containers and other by-products of material handling. Materials specified as hazardous have special needs with regard to spill protection, combustibility and other risks. Material Handling Principles - 37

38. 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 that will 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. Material Handling Principles - 38

39. Principles of Material HandlingLie Cycle Cost Principle – Key Points Life cycle costs include capital investment, installation, setup and equipment programming, training, system testing and acceptance, operating (labor, utilities, etc.), maintenance and repair, reuse value, 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. Material Handling Principles - 39

40. Principles of Material HandlingLie Cycle Cost Principle – Key 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 is certainly 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 and quantified whenever possible. Material Handling Principles - 40