Materials Handling, Computerization and Packaging

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Presentation transcript:

Materials Handling, Computerization and Packaging CHAPTER 11 Materials Handling, Computerization and Packaging

Materials Handling Equipment - Manual Racks Conventional pallet racks Drive-in racks Drive-through racks High-rise racks Cantilever racks Pallet stacking frames Stacking racks Gravity-flow racks Shelving Drawers Mobile racking or shelving

Materials Handling Equipment - Automated 11-2 b Materials Handling Equipment - Automated Unit load AS/RS Car-in-lane Miniload AS/RS Horizontal carousels Vertical carousels Man-ride machines

Advantages of Automated Materials Handling Systems 11-3 Advantages of Automated Materials Handling Systems Operating cost savings Improved service levels Increased control through more and better information

Disadvantages of Automated Materials Handling Systems 11-4 Initial capital costs Downtime of equipment Maintenance interruptions Software-related problems Capacity problems Lack of flexibility Maintenance cost User interface/ training Worker acceptance Obsolescence

Operational and Implementation Problems with Warehouse Automation Systems 11-5 Problem Area Percent Mentioning Cost of equipment/financial justification Downtime or reliability of equipment/maintenance interruptions Software-related problems, such as poor documentation, incompatibility, failure or modification Capacity problems, such as limited applications/integration of equipment into existing system Lack of flexibility to respond to changing environment/not suitable for high degree of seasonality in business Maintenance cost/ maintenance parts User interface/training to operate system/transition from manual to automated procedure Worker acceptance of automation No problems/ we are adapting well Lack of top management commitment Obsolescence/ need more up-to-date automation/ need more automation 19.0% 10.0 8.0 6.0 5.0 4.0 3.0

Warehousing in a JIT Environment 11-6 Warehousing in a JIT Environment Total commitment to quality Reduced production lot sizes Elimination of non-value-added activities

Functions of Packaging 11-7 Functions of Packaging Marketing Information Promotion Logistics Containment Protection Apportionment Unitization Convenience Communication

Benefits of Good Packaging 11-8 Benefits of Good Packaging Lighter packaging may save transportation costs. Careful planning of packaging size/cube may allow better space utilization. More protective packaging may reduce damage and requirements for special handling. Environmentally conscious packaging may save disposal costs and improve the company’s image. Returnable containers provide cost savings and environmental benefits.

Technologies of the Modern Warehouse 11-9 Warehouse management systems (WMSs) Radio frequency communication and inventory update Bar-code reading and label generation equipment EDI and the Internet Transportation management systems Interface to enterprise requirements planning (ERP) systems Productivity tracking software Activity-based costing software

Information Flows in the Supply Chain 11-10 Supplier communication Manufacturer communication Warehouse communication Carrier communication Customer communication Supplier Carrier Inbound carrier Customer Manufacturer warehouse Order (or complaint) information Order/complaint Delivery information Appointment information Order information Pickup schedule Source: Arnold Maltz, the Changing Role of Warehousing (Oak Brook,IL: Warehousing Education and Research Council, 1998), p. 27.