1. Material Handling

2. Materials Handling Materials handling is a non-value activity that your customer is unwilling to pay for. Constantly question material handling methods and manufacturing methods... your competitors do! Just because you “have always done it that way” does not make it right.

3. Materials Handling Mistakes WAREHOUSE A Local Company’s Materials Handling Process- Step 1- Begin Assemblies Step 2- Move to WIP Warehouse Step 3- Store in WIP Warehouse Step 4- Move back to Manufacturing

4. Materials Handling Mistakes WAREHOUSE Local Company’s Materials Handling Process- Step 5- Begin Assembly Continue Until Complete 36 Trailers / Day Step 6- Back to the Warehouse

5. Materials Handling Mistakes Material was handled so much that damage was inevitable. Their customer began penalizing them $100 per damaged part received due to the poor finished goods quality. The materials handling inefficiencies manifested themselves in higher product costs, larger amounts of WIP, poor product quality and longer lead times. The parts were inspected eight (8) times on average, product yield was a dismal 60%. A reduction in two (2) inspections steps generated over $1M in annual savings...the right question should have been “Why are we moving these parts so much?” Company Results:

6. Materials Handling Example Fabric Rolls in Excess of 100# Electric Lift Hoist

7. Cycle Times and Materials Handling Old Adage: “the smaller the lot size, the higher the materials handling and setup costs” “the faster the assembly line conveyor speed, the higher the production output” Response: Ask the right answer and get the right question... Focus on the true problems that prevent smaller lot sizes and faster production speeds.

8. Cycle Times and Materials Handling 30 in. Typical Speed = 60 in. / 18 sec = 200 in. / min Range width 30 in. Units / shift: 60 sec / cycle time per unit = 60 / 18 = 3.33 units per minute 3.33 units per minute X 60 minutes X 7 hours = 1400 units / shift

9. Cycle Times and Materials Handling 12 in. Typical Speed = 42 in. / 15 sec = 168 in. / min Range width 30 in. Units / shift: 60 sec / cycle time per unit = 60 / 15 = 4 units per minute 4 units per minute X 60 minutes X 7 hours = 1680 units / shift

10. Cycle Times and Materials Handling The right question was how to increasing production while reducing cycle time...the wrong answer was speeding up the line! Results: 1,680 / 1,400 = 1.2 = 20% Production Increase

11. Key Manufacturing Fundamentals Four Fundamental Customer Expectations: 1. Product Quality 2. Delivery as scheduled / requested 3. Flexibility to handle change and service 4. Low $$$ One method to achieve this is by implementing Lean Manufacturing principles

12. Benefits of Lean Lead Time Reduction 0255075100 Percentage of Benefits Achieved Productivity Increase WIP Reduction Quality Improvement Space Utilization

13. Conclusion Two Major Elements of the Direct and Indirect Factory Labor Costs Equation are Effected by: 1. The way we handle materials 2. The way our facilities are laid out This will be our focus this semester