1. Chapter 10
Material Handling

2. Objectives
After reading the chapter and reviewing the materials presented the students will be able to:
Justify the need for material handling
Understand the goals of material handling
Understand the principles of material handling

3. Introduction
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.
Part numbering systems, location systems, inventory control systems, standardization, lot size, order quantities, safety stocks, labeling, and automatic identification systems (bar coding) are some of the systems required to keep the industrial plant’s material moving.
Material handling equipment has reduced the cost of production and improved the quality of work.
On average, material handling accounts for 50 % of the total operations cost. This justifies grater effort on the part of industrial managers and facility designers.

4. Cost Justification
Material handling equipment can be expensive, so all investments should be cost justified.
The lowest overall cost per unit gives you the best answer.
Safety, quality, labor, power, and equipment costs must all be included in the unit costs.

5. Goals of Material Handling
The primary goal of material handling is to reduce unit cost of production. Subgoals:
1. Maintain or improve product quality, reduce damage, and provide for protection of materials.
2. Promote safety and improve working conditions.
3. Promote productivity: use gravity.
4. Promote increased use of facilities: purchase versatile standardized equipment.
5. Reduce dead weight.
6. Control inventory.

6. Principles of Material Handling
1. Planning Principle: The planning process is important: Why, who, what, when, where, and how? As information is collected, the picture becomes clearer and the plan takes shape.
2. Systems Principle: The boxes fit the pallets, the pallets fit the rack, and the pallets fit the workstation. Everything fits.
3. Work Principle: Ask 4 questions: 1. Can the job be eliminated? 2. If you cannot eliminate, can you combine jobs to reduce cost? (use automated systems) 3. If you cannot eliminate, or combine, can you rearrange the operation to reduce costs? (reduce distance) 4. If you cannot eliminate, combine, or rearrange, can you simplify? (automation). Material handling equipment makes cost reduction easier.
4. Space Utilization Principle: The better you use the building, the less space you need to buy or rent.
5. Unit Load Principle: A unit load is a load of many parts that move as one. The most common unit load is the pallet. Wooden pallets are the most popular, because the trucking industry trades pallets.
6. Automation Principle: Automatic storage and retrieval systems place material into storage racks automatically and remove them when needed.
7. Standardization Principle: You want to standardize on one (or as few as possible) size, type, and even brand name because training, spare parts inventory, maintenance and operation of this equipment is most cost efficient.

7. The Material Handling Problem Solving Procedure
1. Define the problem.
2. Determine the magnitude of the problem. Cost analysis is best.
3. Collect information: why, who, what, where, when, and how.
4. Search for vendors. Suppliers often provide outstanding assistance.
5. Develop viable alternatives.
6. Collect cost and savings data for all alternatives.
7. Select the best method.
8. Select the supplier.
9. Prepare the cost justification.
10. Prepare the formal report.
11. Make a presentation to management.
12. Obtain approvals.
13. Place an order.
14. Receive and install equipment.
15. Train employees.
16. Debug (make it work).
17. Place into production.
18. Follow up to see it is working as planned.
19. Audit performance to see payback was realized.

8. Summary
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.
On average, material handling accounts for 50 % of the total operations cost. This justifies grater effort on the part of industrial managers and facility designers.
Material handling equipment can be expensive, so all investments should be cost justified.
Planning Principle: The planning process is important: Why, who, what, when, where, and how? As information is collected, the picture becomes clearer and the plan takes shape.
Systems Principle: The boxes fit the pallets, the pallets fit the rack, and the pallets fit the workstation. Everything fits.
Work Principle: Ask 4 questions: 1. Can the job be eliminated? 2. If you cannot eliminate, can you combine jobs to reduce cost? (use automated systems) 3. If you cannot eliminate, or combine, can you rearrange the operation to reduce costs? (reduce distance) 4. If you cannot eliminate, combine, or rearrange, can you simplify? (automation). Material handling equipment makes cost reduction easier.
Space Utilization Principle: The better you use the building, the less space you need to buy or rent.
Unit Load Principle: A unit load is a load of many parts that move as one. The most common unit load is the pallet. Wooden pallets are the most popular, because the trucking industry trades pallets.
Automation Principle: Automatic storage and retrieval systems place material into storage racks automatically and remove them when needed.
Standardization Principle: You want to standardize on one (or as few as possible) size, type, and even brand name because training, spare parts inventory, maintenance and operation of this equipment is most cost efficient.

9. Home Work What is material handling?
What are the 4 work principle questions to ask to reduce costs?
Why should you standardize on equipment?