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The Supply Chain Management Guide

The Supply Chain Management Guide. 5. Material Handling. 5. Material Handling. 5.1. Key Concepts 5.1.1. Material Handling (1). Material Handling: moving of goods between incoming transport, storage, processes and outgoing transport

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The Supply Chain Management Guide

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  1. The Supply Chain Management Guide 5. Material Handling

  2. 5. Material Handling 5.1. Key Concepts 5.1.1. Material Handling (1) • Material Handling: • moving of goods between incoming transport, storage, processes and outgoing transport • the set of activities that move production inputs and other goods within plants, warehouses and transportation terminals.

  3. 5. Material Handling 5.1. Key Concepts 5.1.1. Material Handling (2) • Providing the right amount of material: • in the right condition • at the right place • at the right time • in the right position • in the right sequence • for the right cost • by using the right methods.

  4. 5. Material Handling 5.2. Principal Issues 5.2.1. Materials Handling Manager (1) • The task for the materials handling manager is to find the methods, the routes, the layouts and the right components to minimize handling.

  5. 5. Material Handling 5.2. Principal Issues 5.2.1. Materials Handling Manager (2) • Six main responsibilities of the materials handling manager: • packaging - unitizing • internal transport • storage • retrieval • identification • communication.

  6. 5. Material Handling 5.2. Principal Issues 5.2.2. Material Handling System Design • The design of a material handling system depends upon the the type and the characteristics of the materials to be handled.

  7. 5. Material Handling 5.2. Principal Issues 5.2.3. Material Handling System Components (1) • Material handling equipment: • unitizing equipment • material transport equipment • storage and retrieval equipment • automatic identification and communication equipment.

  8. 5. Material Handling 5.2. Principal Issues 5.2.3. Material Handling System Components (2) • Unitizing equipment: • containers, such as cartons, boxes, and bags • carriers or support, such as pallets, skids, and plywood • stretch wrap • shrink wrap.

  9. 5. Material Handling 5.2. Principal Issues 5.2.3. Material Handling System Components (3) • Material transport equipment: • conveyors (belts and rollers) • industrial vehicles, such as pallet trucks, lift trucks, and automated guided vehicles (AGV) • monorails • hoists • cranes.

  10. 5. Material Handling 5.2. Principal Issues 5.2.3. Material Handling System Components (4) • Storage and retrieval equipment: • unit load storage equipment • unit load retrieval equipment • small load storage and retrieval equipment.

  11. 5. Material Handling 5.2. Principal Issues 5.2.3. Material Handling System Components (5) • Automatic identification and communication equipment: • bar coding • radio frequency tag • magnetic stripe • smart cards • voice headsets • machine vision.

  12. 5. Material Handling 5.2. Principal Issues 5.2.4. Cost-effective Means of Transport (1) • Key factors to consider in selecting means of transport: • physical characteristics of loads • the number of loads to be moved • the distance to be moved • the required speed of movement.

  13. Units moved/ hour Conveyors Motorized trolleys Forklift trucks Manual trolley Manual Movement distance (m) 5. Material Handling 5.2. Principal Issues 5.2.4. Cost-effective Means of Transport (2)

  14. 5. Material Handling 5.2. Principal Issues 5.2.4. Cost-effective Means of Transport (3) • Other factors which influence the means of transport: • cost of building/dismantling loads • packaging costs • space requirements • interface with other storage, transport and handling systems • housekeeping issues.

  15. 5. Material Handling 5.2. Principal Issues 5.2.5. Warehousing (1) • The warehouse must be: • located in the right place • the right size • organized • to allow: • efficient delivery and placing • cost-effective use of its space • adequate access to stored materials • security from theft and weather • flexibility to deal with the various items.

  16. Mission Location Demand Monthly/quarterly replenishments Balance and buffer Near the manufacturer of stocks Accumulate and consolidate Central to production locations Weekly/monthly orders Rapid response Close to customer Daily 5. Material Handling 5.2. Principal Issues 5.2.5. Warehousing (2) The mission (or goal) of a warehouse is set by demand. The warehouse location is a means to achieving the mission.

  17. 5. Material Handling 5.2. Principal Issues 5.2.5. Warehousing (3) • Within the warehouse, stock must be: • put into known places and • in known order • so that it can be: • retrieved quickly and in the right quantity • rotated properly (ex. first-in, first-out).

  18. 5. Material Handling 5.2. Principal Issues 5.2.5. Warehousing (4) • Warehousing activities: • receiving goods • identifying goods • sorting goods • dispatching goods to storage • holding goods • picking goods • preparing shipments • dispatching shipments.

  19. 5. Material Handling 5.3. Suggestions • Suggestions for materials handling: • use identification systems, such as bar coding to handle the right material: • give a part identification number • give a location identification number • handle similar materials, packaging and size of loads at the same time • implement improvements in material handling systems which will increase the efficiency of the overall system.

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