The Supply Chain Management Guide 5. Material Handling

5.1. Key Concepts 5.1.1. Material Handling (1) 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.

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.

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.

5.2. 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.

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.

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.

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.

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.

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.

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.

5.2. Principal Issues 5.2.4. Cost-effective Means of Transport (1) 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.

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

5.2. Principal Issues 5.2.4. Cost-effective Means of Transport (3) 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.

5.2. Principal Issues 5.2.5. Warehousing (1) 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.

5.2. Principal Issues 5.2.5. Warehousing (2) 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. Mission Location Demand Balance and buffer Near the manufacturer Monthly/quarterly replenishments of stocks Accumulate and consolidate Central to production locations Weekly/monthly orders Rapid response Close to customer Daily

5.2. Principal Issues 5.2.5. Warehousing (3) 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).

5.2. Principal Issues 5.2.5. Warehousing (4) 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.

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.