1 Materials Handling Analysis

2 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.

3 Five Aspects of Material Handling 1. Movement 2. Quantity 3. Time 4. Space 5. Control

4 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

5 Goals of Material Handling Promote increased facility use Cube utilization Versatile equipment Develop a PM program Reduce tare weight (dead weight) Control inventory

6 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.

7 Material Handling Proper material handling can: Improve ergonomics Minimize total costs Improve worker safety Reduce human exertion Minimize physical labor

8 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

9 Material Handling Examples Filled drums can be moved utilizing one person will the proper material handling equipment.

10 Material Handling Examples How about combining four trips into one?

11 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?

12 Material Handling Examples Odd shapes? No problem...

13 Material Handling Examples Roll stock... Heavy coil... Heavy boxes...

14 Material Handling Examples Conveyors... Gravity Conveyor Powered Roller Conveyor Ball Transfer Table

15 Material Handling Examples Telescoping Conveyors...

16 Material Handling Examples Stretchaveyor Systems...

17 Material Handling Supporting Pull Manufacturing Custom built for unique products. Note: Holding slots designed to aid inventory control.

18 Material Handling Supporting Pull Manufacturing Container holds approximately 200 pieces. Note: Kanban sign Note: Tare weight for weigh counting

19 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”

20 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?

21 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.

22 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.

23 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?

24 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

25 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.

26 SECS Study Eliminate Combine Simplify

27 Large Vs. Small Unit Load maximize / optimize 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!

28 Materials Handling and Cycle Time Operation A Lot SizeContainer SizeCycle Time min 3,000 min 1,020 min Operation B Move Operation C Move

29 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?

30 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

31 Material Handling with Pallets 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 $1 ea will make one trip Plastic $4 ea will make 20 trips Wooden $20 ea will make 100 trips Steel $150 ea will make 2,000 trips

32 Material Handling with Pallets

33 Collapsible Containers

34 Collapsible and Nestable Containers

35 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

36 The Performance Principle Material Handling Hours Total Labor Hours Percentage of M.H. = 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.

37 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

38 From-To Chart Most exact technique of the three Considers the importance of the parts Establishes a relative importance ranking

39 From-To Chart Example Step 1- Relative Importance Establish the Relative Importance factor Step 2- –Create the from-to matrix

40 From-To Chart Example

41 From-To Chart Example Step 3- Assign the penalty points Double P.P.

42 From-To Chart Example Step 4- Determine the efficiency and evaluate Efficiency = 257 / 699 = 37% Can we do better?

43 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

44 Questions and Comments