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WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 1 IE 368: FACILITY DESIGN AND OPERATIONS MANAGEMENT Lecture Notes #8 Materials Handling.

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Presentation on theme: "WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 1 IE 368: FACILITY DESIGN AND OPERATIONS MANAGEMENT Lecture Notes #8 Materials Handling."— Presentation transcript:

1 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 1 IE 368: FACILITY DESIGN AND OPERATIONS MANAGEMENT Lecture Notes #8 Materials Handling

2 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 2 Materials Handling Data Materials handling is a means by which total manufacturing costs are reduced through more efficient Materials handling and storage accounts for  25% of all employees  55% of factory space  87% of production time  15-70% of the production cost of a product  Damage to 3-5% of the products handled

3 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 3 Materials Handling Definitions 1. Materials handling is the art and science of moving, storing, protecting, and controlling material 2. Materials handling means providing the right amount of the right 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, using the right method

4 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 4 Unit Load A central component of any materials handling system is the definition of a unit load A unit load is the single item picked up and moved between two locations  A unit load may contain many items Not necessarily identical  A unit load may be different in different parts of the system

5 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 5 Unit Load (cont.) Example – Sheet metal stamping  Delivery and storage of raw material Unit load = A coil of steel  Blanking operation Unit load = Pallet of blanks. One coil generates multiple unit loads of blanks  Stamping operation Unit load = A rack of stamped parts. One pallet of blanks generates multiple unit loads of racks  Assembly operation Unit load = One vehicle body. One rack of parts is moved on multiple vehicle bodies

6 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 6 Unit Load (cont.) Often a unit load is a batch of items from a production process  Large unit loads Less movement Larger equipment needed for the move May need larger aisles Larger floor load capacity  Smaller unit loads Opposite of above What would you expect for a JIT system? What performance system parameter (from a queuing model perspective) does batching affect?

7 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 7 Unit Load (cont.) Should you always have the smallest unit loads possible? Example  For a forklift truck, empty travel functions in the same manner as setup times for equipment Too much empty travel may mean lack of forklift capacity to accommodate move requirements  More movement also requires more coordination and control

8 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 8 Unit Load (cont.)

9 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 9 Unit Load (cont.) The design of a unit load also affects and is affected by  The materials handling methods/equipment e.g., human materials handlers  weight and size limits  The storage methods – the availability and alternatives for containers and pallets e.g., unit loads in sturdy containers may permit stacking  The transformation to different unit loads throughout the production process e.g., how can pallets (one type of unit load) be loaded onto trailers (another type of unit load)

10 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 10 Unit Load (cont.)

11 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 11 Unit Load (cont.) Principles of Materials Handling CD

12 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 12 Returnable Containers Returnable containers with good stacking and nesting features are preferred Examples  Plastic totes  Metal racks  Cardboard boxes

13 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 13 Returnable Containers – Example (cont.) Stackable plastic containers that can be nested when empty (pp Tompinks et al.)  Inside dimensions (L x W x H): 18” x 11” x 11”  Outside dimensions: 20” x 12” x 12”  Two empty containers nested  14” high  Trailer dimensions used for container transport 240” x 120” x 120” 1. Container space utilization  Storage space in the container/Space required to store the container

14 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 14 Returnable Containers – Example (cont.) 2. Container nesting ratio  Container height/Additional height when a nested container is added 3. Trailer space utilization  Total storage space for the max number of containers in a trailer/Trailer volume 240”/20” = 12 containers stored lengthwise 120”/12” = 10 containers stored widthwise 120”/12” = 10 containers stored vertically Max of 1200 containers per trailer

15 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 15 Returnable Containers – Example (cont.) 3. Trailer space utilization 4. Trailer return ratio  Max number of empty containers in a trailer/Max number of full containers in a trailer

16 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 16 Materials Handling System Design  Apply the engineering design process 1. Define the system, scope, and objectives 2. Develop the system requirements 3. Generate alternatives 4. Evaluate alternatives 5. Select alternatives 6. Implement  Developing alternative materials handling systems by way of procedures and algorithms is much more difficult than for layout  This is due to the almost infinite possibilities of items to move and the vast numbers of alternative material handling equipment and methods

17 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 17 Materials Handling System Design (cont.) As a guide, a set of material handling principles have been developed to help guide and evaluate designs  Principle – 1. fundamental truth, law, etc. upon which others are based, 2. A rule of conduct,… See MH Principles presentation 1. Planning 2. Standardization 3. Work 4. Ergonomic 5. Unit load 6. Space utilization 7. System 8. Automation 9. Environmental 10. Life cycle cost

18 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 18 Materials Handling System Design (cont.) Some approaches for starting a design 1.Benchmarking and case studies  Examine other good systems  Similar application (e.g., airports, distribution center,…)  Similar technology (e.g., AGVs, power and free conveyors) 2.Identify the intent of different types of materials handling equipment and match it to specific needs  Conveyors  Material moved frequently between specific points  Fixed path movement  Many types of conveyors exist for different materials

19 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 19 Materials Handling System Design (cont.) Some approaches for starting a design (cont.) 2.Identify the intent of different types of materials handling equipment and match it to specific needs (cont.)  Industrial vehicles  Intermittent movement and/or movement over long distances  Many pick-up/drop-off locations  Variable path movement  There are many different types and sizes of vehicles  Hoists/Cranes  Movement over short distances  Intermittent movement  Variable items to be moved

20 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 20 Materials Handling System Design (cont.) Some approaches for starting a design 3.Storage and retrieval  Unit load storage systems  Larger loads  Many design decisions Storage configuration Lane depth Stack height Access  There are many different types of unit load storage systems Block stacking Pallet racks AS/RS

21 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 21 Materials Handling System Design (cont.) Some approaches for starting a design 4.Storage and retrieval  Small load storage systems  Generally under 500 lbs. per storage location  Types Operator to stock (e.g., library shelving) Stock to operator (e.g., carousel)  There are many different types of small load storage systems Shelving Cabinets Carousels AS/RS

22 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 22 Materials Handling System Design (cont.) Some approaches for starting a design 5.Use of automatic identification (Auto ID)  Tracking material movement and storage is an integral part of MHS  A variety of technologies exist  Bar codes/scanners  Radio frequency identification (RFID)  Radio frequency data communications (RFDC)  Voice recognition  …

23 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 23 Materials Handling System Design (cont.) It is impossible to review each materials handling and storage option We will review selected methods/calculations for specific aspects of materials handling and storage  e.g., returnable container analysis  The approach and methods for quantification are as important as the specific application

24 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 24 Materials Handling System Design (cont.) Resources for practitioners  MHIA – Materials Handling Institute of America  Materials handling classics  Case studies  CICMHE – College Industry Council on Materials Handling Education  Materials handling taxonomy  Materials Handling Institute  Books, seminars targeted toward practicing engineers  The Material Handling Education Foundation, Inc  Scholarships

25 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 25 Example of Design Decisions Pages

26 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 26 Example of Design Decisions (cont.) Carton size to use at the packaging station, and carton material Pallet size, material, and 2-way or 4-way Palletizer  Max load height, automatic, manual Lift trucks  Type, capacity, fork height, power source Storage  Pallet racks, storage depth, access to loads Trailers  Dimensions …

27 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 27 Example of Design Decisions (cont.) Decisions will affect requirements for  Space  Pallets  Conveyor specifications  Palletizer specifications  Trailer utilization  …

28 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 28 Calculating the Number of Industrial Vehicles Required Examples  Forklifts  Automated guided vehicles (AGVs)  Pallet trucks  … Inputs  Layout At least enough to estimate distance data  From-to data

29 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 29 Calculating the Number of Industrial Vehicles Required (cont.) Factors that affect the number of AGVs required 1.The system layout 2.Location of load transfer points 3.Trip exchanges b/w work centers per unit time 4.The vehicle dispatching strategy 5.System reliability 6.Speed of travel

30 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 30 Calculating the Number of Industrial Vehicles Required (cont.) Vehicle dispatching problem  How load pick up and delivery orders are assigned to vehicles for satisfaction  Determines  Empty vehicle runs during time t (e.g., a shift)  Degree of interference experienced by vehicles during any time interval  Vehicle dispatching is the main driving force for distributing the vehicles throughout the network!

31 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 31 Calculating the Number of Industrial Vehicles Required (cont.) What method covered before may be applicable to computing the number of vehicles required to meet some specified movement demands over a fixed time period?

32 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 32 Calculating the Number of Industrial Vehicles Required (cont.) Average distance a vehicle can travel in a fixed time period  Assume drivers are always available

33 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 33 In-Class Exercise Develop a formula to calculate the average distance traveled by a single vehicle over time T

34 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 34 In-Class Exercise (cont.)

35 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 35 Calculating the Number of Industrial Vehicles Required (cont.) Total travel distance required for inter-departmental material movement

36 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 36 Calculating the Number of Industrial Vehicles Required (cont.) Total Travel Distance = 9,155 What is one critical requirement that is missing here?

37 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 37 Calculating the Number of Industrial Vehicles Required (cont.) Prior calculations only considered loaded vehicle travel  This implicitly assumes that a load is immediately picked-up after a load drop-off at the same location  Due to timing of movements, movement priorities, this is often not a good assumption

38 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 38 Estimating Empty Vehicle Travel Three methods will be presented for estimating empty vehicle travel  The method used depends on the size and nature of the operation Large operation  Be more precise since rough estimates may result in a large number of added vehicles Some operations may allow more drop-offs than pick-ups at the same location

39 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 39 Estimating Empty Vehicle Travel (cont.) 1. Assume all vehicles return to a central dispatching point after drop-off of a full load  If this is the case, then use the actual dispatch location  Otherwise, assume the dispatch location is at the center of the facility

40 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 40 Estimating Empty Vehicle Travel (cont.) Need distance data from the dispatch point to each department

41 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 41 In-Class Exercise Estimate total vehicle (loaded and empty) travel requirements

42 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 42 In-Class Exercise (cont.) ABCDE A -- B C D E ABCDE A B C D E Construct c i + c j matrix Total vehicle travel

43 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 43 Estimating Empty Vehicle Travel (cont.) 2. Assume empty vehicle travel equals full vehicle travel  For small systems this may be adequate  Easy to calculate 3. Estimate empty vehicle travel as a function of pick-up and drop-off activity from department i to department j (Egbelu 1987)

44 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 44 Estimating Empty Vehicle Travel (cont.) All deliveries into dept. i  empty vehicles will be available Empty vehicle travel is then weighted by the percentage of pick-ups at each department

45 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 45 Estimating Empty Vehicle Travel (cont.)

46 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 46 Example

47 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 47 Example (cont.)

48 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 48 Example (cont.)

49 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 49 Example (cont.)

50 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 50 Example (cont.) Multiply corresponding elements of the g ij and d ij matrices to get estimated total empty vehicle travel

51 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 51 Estimating Empty Vehicle Travel (cont.) Intuition  The elements of the g ij matrix will always equal ∑∑f ij – the sum of all elements in the from-to chart The number of empty vehicle trips = the number of full vehicle trips  In this method, empty vehicle trips from department i to j are weighted by the number of trips into department j and out of department i Empty vehicle trips are more likely to originate from departments receiving many loads, and more likely to terminate at departments sending out many loads.  This method also accounts for vehicles dropping-off a load at a department and then picking up a load immediately

52 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 52 In-Class Exercise For the following data, compute the total vehicle travel distance requirements using the three methods for estimating empty vehicle travel

53 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 53 In-Class Exercise (cont.)

54 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 54 In-Class Exercise (cont.)

55 WINTER 2012IE 368. FACILITY DESIGN AND OPERATIONS MANAGEMENT 55 Calculating the Number of Industrial Vehicles Required (cont.) Also must consider pick-up and drop-off times  Time when a vehicle cannot travel


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