and Distribution 18 Jan 2016 TH So Topics 1 Material handling systems and their objectives 4L 2T 13SDL 11 Overview of the various types of automated and nonautomated materials handling systems ID: 724337
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Slide1
MRI 2315
Warehousing
and Distribution
18
Jan 2016
TH SoSlide2
Topics
1. Material handling systems and their objectives (4L, 2T, 13SDL)
1.1 Overview of the various types of automated and non-automated materials handling systems.
1.2 Examine the role of packaging in warehouse operation.
1.3 Demonstrate the important role of computer technology in materials management.
1.4 Cost reduction, increased productive capacity and better working conditions.
1.5 Types of handling equipment in manufacturing and warehousing: conveyors, cranes, hoists, trucks.
1.6 Advantages and limitations. Automatic guided vehicles (AGV). Automatic storage and retrieval systems (AS/RS).
1.7 Materials Handling
2.
Analysing
and measuring the efficiency of existing systems (2L, 1T, 7SDL)
2.1 The unit load concept.
2.2 Selection of the most appropriate equipment in particular situations
2.3 Integration of warehousing systems.
2.4 Economic analysis of systems. Slide3
Topics
3. Health and safety aspects in warehouse and material handling systems (4L, 2T, 10SDL)
3.1 Types of legal liability.
3.2 Negligence, duty of care, breach of duty, causation and remoteness, damages. Contributory negligence.
3.3 Statutory duty and employers’ liability.
4. Inventory and Materials Management (4L, 2T, 10SDL)
4.1 Basic concepts of inventory management.
4.2 Calculate safety stocks.
4.3 Production policies influence inventory levels.
4.4 Interrelated within Inventories and customer service levels.
4.5 Financial aspects of inventory strategy.
4.6 Ways to recognize poor inventory management and improvement methods. Slide4
Topics
5. Transportation (4L, 2T, 10SDL)
5.1 Roles of transportation in logistics management.
5.2 Alternative transport modes.
5.3 Examine the impact of deregulation on carriers and shippers.
5.4 Examine the issues of transportation cost and performance measurement.
6. Warehouse Management (2L, 1T, 8SDL)
6.1 Types of warehouses
6.2 Layout and design
6.3 Utilization of warehouse space
6.4 Warehouse management system.Slide5
Topics
7. Customer Service (4L, 2T, 10SDL)
7.1 Define customer service.
7.2 The central role that customer service plays in an organization’s marketing and logistics efforts.
7.3 Identify opportunities for improving customer service performance.
8. Information System and Technology (4L, 2T, 10SDL)
8.1 Describe information systems as a combination of transaction, decision support, and communication systems.
8.2 Describe the role of information system functionality, major modules and external interfaces of supply chain information systems.
8.3 Discuss the enterprise integration and administration, enterprise operations, enterprise planning and monitoring, and communication technology applications.Slide6
Objective
T
o provide a sound understanding of material handling systems, systems efficiency, health and safety aspects in warehouse operation, inventory and materials management, land transportation, warehouse management, customer services, and information System and Technology.
Slide7
Learning Outcome
Describe modern business Warehousing and Distribution Management and its application in the business world, so as to enhance customer satisfaction.
Explain the operations of the warehousing systems in the information age and effectively utilize the concepts learnt to gain a sustainable competitive advantage for the company.
Identify solutions associated with warehousing operations problems.
Apply problem solving skills including identifying, formulating and solving warehousing and distribution problems.
Define the roles and functions of customer service as part of warehousing and distributionSlide8
Always Ask
Who
What
Why
How
When
WhereSlide9
References
Main references
Edward
Frazelle
World Class Warehousing and Material Handling (Sept.18, 2001)
David E.
Mulcahy
McGraw – Hill Handbooks, Warehouse Distribution and Operations Handbooks (Sept, 1 1993)
Additional references
Stuart
Emmett Excellence in Warehouse Management: How to minimize Costs and
Maximise
Value ( June 13, 2005) Slide10
Assessment Methods and Types
Quiz
10%
-
written (week 3)
Mid Term Test 15% -
written (Week 7)
Assignment
35% - written (25%) & Presentation (10%)
Final Examination
40% - written (13 - 18 May 2016 : TBA) Slide11
Grading Scheme
Marking Range
Grade Point
Grade
Result
Exam Eligibility
90-100
4.00
A+
Pass
80-89
4.00
A
Pass
75-79
3.67
A-
Pass
70-74
3.33
B+
Pass
65-69
3.00
B
Pass
60-64
2.67
B-
Pass
55-59
2.33
C+
Pass
50-54
2.00
C
Pass
47-49
1.67
C-
Fail
Supplementary
44-46
1.33
D+
Fail
Supplementary
40-43
1.00
D
Fail
Supplementary
30-39
0.67
E
Fail
Re-take
0-29
0.00
F
Fail
Re-takeSlide12
Rules of Class
Attendance
Mobile Phone to silent mode
No talking during
lecture
Centralized dissemination of notes
No disturbanceSlide13
Logistics
What
is logistics
The Oxford English Dictionary logistics
as "the branch of
military science
relating to procuring, maintaining and transporting material, personnel and facilities."
Council of Logistics Management definition:
“Logistics is that
part of the supply chain process
that
plans, implements, and controls
the
efficient, effective
forward and reverse
flow and storage
of
goods, services, and related information
between the
point of origin
and the
point of consumption
in order to
meet customers’ requirements
.”
Logistic vs Logistics
Logistics Management Synonyms:
Logistical Management, Business Logistics, Logistics, Channel Management, Materials Management, Distribution Management, Physical defines
Distribution, Industrial Logistics, Quick-response systems, Supply
Chain ManagementSlide14
Components of Logistics ManagementSlide15
Supply ChainSlide16
1. Material handling systems and their objectives
1.7 Materials Handling
1.4 Cost Reduction, Increased Productive Capacity and Better
W
orking Conditions Slide17
System
Definition
:
a set of connected things or parts forming a complex whole, in particular.
a set of principles or procedures according to which something is done; an organized scheme or method.
Synonyms :
method
,
methodology
,
technique
,
process
,
procedure
,
approach
,
practice
An
efficient
and effective
material handling systemSlide18
Materials Handling
Definition:
Efficient short distance movement in or between buildings and a transportation agency.
Four dimensions
Movement
Time
Quantity
SpaceSlide19
Materials
Handling (
con’t
)
Material
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 and for the right cost, by using the right method.
“Material handling is the movement and storage of material at the lowest possible cost through the use of proper method and equipment”.
It is simply picking up, moving, and lying down of materials through manufacture.
It applies to the movement of raw materials, parts in process, finished goods, packing materials, and disposal of scraps. Slide20
Materials
Handling (
con’t
)
In
general, hundreds and thousands tons of materials are handled daily requiring the use of large amount of manpower while the movement of materials takes place from one processing area to another or from one department to another department of the plant. The cost of material handling contributes significantly to the total cost of manufacturing.
Material handling is a necessary and significant component of any productive activity.
A properly designed and integrated material handling system provides tremendous cost saving opportunities and customer services improvement potential. Slide21
What is a material handling system?
A material handling system can be simply defined as an integrated system involving such activities as handling, storing, and controlling of materials
.
The word material has a very broad meaning, covering all kinds of raw materials, work in process, subassemblies, and finished assemblies
.
The primary objective of using a material handling system is to ensure that the material in the right amount is safely delivered to the desired destination at the right time and at minimum cost
.
The material handling system is properly designed not only to ensure the minimum cost and compatibility with other manufacturing equipment but also to meet safety concerns.Slide22
Objectives of Materials Handling
The
total cost per unit
is the sum of the following:
Cost of material handling equipment
– both fixed cost and operating cost calculated as the cost of equipment divided by the number of units of material handled over the working life of the equipment.
Cost of labor
– both direct and indirect associated cost calculated in terms of cost per unit of material handled.
Cost of maintenance of
equipment
- damages
, lost orders and expediting expenses, also calculated, in terms of cost per unit of material handled
.
Cost Reduction
Reduce costs
Better control and manage inventory
Reduce damage, maintain or improve product qualitySlide23
Objectives of Materials
Handling (
con’t
)
2. Increased
Productive Capacity
Increase space utilization (e.g. minimize aisle space
)
Reduce delays
Reduced manufacturing cycle time (total time required to make a product from the receipt of its raw material to the finished state can be reduced
)
Order cycle – from the moment the customer issued the P.O. till the
time he/she receives
the product
Move more materials at one time and
faster
Materials move as short a distance as
possibleSlide24
Objectives of Materials
Handling (
con’t
)
3. Better
working conditions
Reduce product handling, less product damage and accidents
Promote safety (e.g. less accidents)
Develop effective and improved working conditionsSlide25
1. Material handling systems and their objectives
1.1
Overview of the
Various
T
ypes
of
Automated
and
Non-Automated
M
aterials
H
andling
S
ystems
.
1.5 Types of Handling Equipment in Manufacturing and Warehousing : Conveyors, Cranes, Hoists, Trucks.Slide26
1.1 Overview of the Various Types of Automated and Non-Automated Materials Handling Systems.
Materials Handling is defined in Compton’s interactive Encyclopedia as “The movement of raw materials, semi-finished goods, and finished articles through various stages of production and warehousing is called materials handling.”
Material Handling is concerned with the movement, storage, and control of materials in a (production) process. Slide27
1.5 Types
of
Material-Handling
E
quipment
Storage and handling equipment
The
equipment that falls under this description is usually non-automated storage equipment. Products such
as pallet racking, shelving, casters and
carts, among others, belong to storage and handling. Many of these products are often referred to as "catalog" items because they generally have globally accepted standards and are often sold as stock materials out of Material handling catalogs.Slide28
Types of
Material-Handling Equipment (
con’t
)
Storage and handling equipment
It is usually non-automated storage equipment. Products such
as pallet racking, shelving, casters
and carts, belong to storage and handling.Slide29
Types of
Material-Handling
E
quipment (
con’t
)
Engineered systems
Engineered systems are typically custom engineered material-handling systems
. Conveyors, Handling Robots, Automatic Storage and Retrieval System (AS/RS), Automatic Guided Vehicles (AGV)
and most other automated material-handling systems fall into this category. Engineered systems are often a combination of products integrated to one system. Many distribution centers will optimize storage and picking by utilizing engineered systems such as pick modules and sortation systems.Slide30
Types of material-handling
equipment (
con’t
)
Engineered
systemsSlide31
Types of
Material-Handling
E
quipment (
con’t
)
Automated
Guided
V
ehicle
S
ystems
(
AGVs)
such as unit load carriers, towing, pallet trucks, fork trucks, and assembly line.Slide32
The
Components
of an
AGVs
The
vehicle. It is used to move the material within the system without a human operator
.
The guide path. It guides the vehicle to move along the path
.
The control unit. It monitors and directs system operations including feedback on moves, inventory, and vehicle status
.
The computer interface. It interfaces with other computers and systems such as the mainframe host computer, the automated storage and retrieval system, and the flexible manufacturing system.Slide33
The
Type
of
AGVs
AGVs
towing vehicles:
usually, towing applications involve the bulk movement of product into and out of warehouse areas. Towing vehicles are better used for large volumes with long moving distances of 1000
ft
or more
.
AGVs
unit load transporters:
are equipped with decks that permit transportation of an individual unit load on board the vehicle. The deck can be powered or non-powered roller, chain or belt deck, lift-and-lower type, or custom deck with multiple compartments. Unit load transporters are often equipped with automatic load transfer and normally used in warehousing and distribution systems where the guide path lengths are relatively short but the volumes are high
.
AGVs
pallet trucks:
are designed to lift, maneuver, and transport palletized loads. The vehicle is used for picking up and dropping off loads from and to floor level, thus eliminating the need for fixed load stands. It can be loaded and unloaded in automatically or manually. For load transportation, the vehicle normally proceeds along the path to a specific storage area destination, pulls off onto a spur, lowers the pallet forks to the floor, pulls from the pallet, and then automatically returns empty to the loading area
.Slide34
The
Type
of
AGVs (
con’t
)
AGVs
forklift trucks:
has the ability to pick up and drop off palletized loads both at floor level and on stands, and pickup height can be different from the drop-off height. The vehicles can position its forks at any height so that conveyors or load stands with different height in the material handling system can all be served. It is one of the most expensive AGVS types, so they are applied only in systems where full automation is required. A system with these vehicles requires a more intricate path layout and a method for accurately positioning the loads on the floor or on stands. It also requires greater discipline than other systems
.
AGVs
light-load transporters:
They are used to handle small, light parts over a moderate distance and to distribute the parts between storage and number of workstations. They are designed to operate in areas with limited space
.
AGVs
assembly-line vehicles:
are adaptation of the light-load transporter for applications involving serial assembly processes. The guided vehicle carries major subassemblies such motors, transmissions, or even automobiles. As the vehicle moves from one station to the next, succeeding assembly operations are performed. The major advantage of the AGVS assembly line is lower expense and ease of installation compared with hard assembly lines. The line can easily be changed by adjusting the guide path if necessary and by reprogramming.Slide35
Automated
Storage
and
Retrieval Systems
(AS/RS)
Automated
Storage
and
Retrieval
S
ystems
(AS/RS)
such as unit load, mini-load, person-on-board, deep lane, and storage carousel systems
.
An Automated Storage and Retrieval System (AS/RS) comprises the following:
A series of storage aisles having storage
racks
Storage and retrieval (S/R) machines, normally one machine per aisle, to store and retrieve
materials
One or more pickup and delivery stations where materials are delivered for entry to the system and materials are picked up from the system.Slide36Slide37Slide38
Function of
AS/RS
Receiving
, identification and sorting, dispatching to storage, placing in storage, storage, retrieving from storage, order accumulation, packing, shipping, and record keeping for raw materials, purchased parts, work in process, finished product, pallets, fixtures, tools, spare parts, rework and scrap, office supplies, and so forth have traditionally been considered the functions of storage systems
.
An AS/RS attempts to achieve these functions by automating most of these procedures in a cost-effective and efficient manner.Slide39
Function of
AS/RS
(
con’t
)
In
general, an AS/RS performs a basic set of operations without human intervention, regardless of the specific type of system that is employed
.
Automatic removal of an item from a storage
location
Transportation of this item to a specific processing or interface
point
Automatic storage of an item in a predetermined location, having received an item from a processing or interface point AS/RS components and terminology usedSlide40
Type of AS/RS
Unit
load AS/RS:
is used to store and retrieve loads that are palletized or stored in standard-size containers
.
Mini-load AS/RS
: is designed to handle small loads such as individual parts, tools, and supplies. The system is suitable for use where there is a limit on the amount of space that can be utilized and where the volume is too low for a full-scale unit load system and tool high for a manual system
.
Person-on-board AS/RS:
allows storage of items in less than unit load quantities
.
Deep-lane AS/RS:
is another variation on the unit load system. The items are stored in multi-deep storage with up to 10 items per row rather than single or double deep. This leads to a high density of stored items
.
Automated item retrieval systemSlide41
Why an AS/RS?
An
AS/RS is highly space efficient. Space now occupied by raw stock, work in process, or finished parts and assemblies can be released for valuable manufacturing space
.
Increased storage capacity to meet long-range plans
.
Improved inventory management and control
.
Quick response time to locate, store, and retrieve items
.
Reduced shortages of inventory items due to real-time information and control
.
Reduced labor costs due to automation
.
Improved stock rotation
.Slide42
Why an AS/RS
? (
con’t
)
Improved security and reduced pilferage because of closed storage area
.
Flexibility in design to accommodate a wide variety of loads
.
Flexibility in interfacing with other systems such as AGVS,
FMS (Flexible Management System),
and inspection systems such as coordinate measuring machines
.
Reduced scrap and rework due to automatic handling of parts
.
Reduced operating expenses for light, power, and heat
.
Helps implement just-in-time (JIT) concepts by getting the right parts, tools, pallets and fixtures to the right place at the right time because of automatic control of storage and retrieval functions and accurate inventory management.Slide43
Types of
Material-Handling
E
quipment (
con’t
)
Industrial T
rucks
Industrial trucks usually refer to operator driven motorized warehouse vehicles, powered manually, by gasoline, propane or electrically.
Industrial trucks include hand trucks such as two-wheeled, four-wheeled, hand lift, powered trucks such as tow tractors, stock chasers, forklift, tractor-trailer trains, industrial crane trucks, and
sideloaders
. Slide44
Types of
Material-Handling
E
quipment (
con’t
)
Industrial T
rucks
Industrial trucks can go where
engineering
systems cannot. Their greatest advantage lies in the wide range of attachments available; these increase the truck ability to handle various types and shapes of material
.Slide45
Types of
Material-Handling
E
quipment (
con’t
)
Industrial T
rucksSlide46
Types of
Material-Handling
E
quipment (
con’t
)
Bulk
Material
H
andling
Bulk material-handling equipment is used to move and store bulk materials such as ore, liquids, and cereals. This equipment is often seen on farms, mines, shipyards and refineries.Slide47
Types of
Material-Handling
E
quipment (
con’t
)
On-Rails
T
ransfer Cart
On-rails transfer cart
moves on the rails and can transfer heavy cargoes or equipment with the weight 1-300t between the workshops or warehouses in the factory. It is widely used in the line of metallurgy, coal, heavy manufacturing, automotive assembly, etc. In addition, there is the
manual rail transfer cart or
towed rail transfer cart, also
called motorized transfer trolley.Slide48
Types of
Material-Handling
E
quipment (
con’t
)
Conveyors
Conveyors can be used in a multitude of ways from warehouses to airport baggage handling systems.
Cranes and HoistsSlide49
1. Material
Handling
S
ystems
and
Their
O
bjectives
1.2 Examine the role of packaging in warehouse operation. Slide50
What Is Packaging?
Consumer
P
ackaging
Marketing managers primarily concerned with how the package fits into the marketing mix
.
Industrial
Packaging
Logistics managers primarily concerned with efficient shipping characteristics including protection, ability to withstand stacking when on a pallet, cube, weight, shape and other relevant factors.Slide51
What Is Packaging?
Consumer
P
ackaging
Marketing managers primarily concerned with how the package fits into the marketing mix
.
Industrial
Packaging
Logistics managers primarily concerned with efficient shipping characteristics including protection, ability to withstand stacking when on a pallet, cube, weight, shape and other relevant factors.Slide52
The Role of Packaging
Identify
product and provide
information (communication)
Improve efficiency in handling and
distribution
Containment
Unitization
Apportionment
Convenience in Handling
Protection
Interfaces with Customers, Production, Environment, LogisticsSlide53
Packaging Materials
Basic
considerations include:
Soft materials
Plastic
Environmental issues
Recycling (reverse logistics
)
Packaging Box
Packaging TapeSlide54
A comparison
of various packing material characteristics.Slide55Slide56Slide57Slide58Slide59Slide60Slide61Slide62Slide63
Main Interactions
of the
Packaging
S
ystemSlide64
1. Material
Handling
S
ystems
and
Their
O
bjectives
1.3 Demonstrate the important role of computer technology in materials management. Slide65
I
mportant
R
ole
of
Computer Technology In
M
aterials
M
anagement
The advantages of computer technology in materials management in today's organizations are sometimes hard to quantify since some elements are of intangible value. However, the positive impacts include:
Improvement on Return on Investment (ROI)
Reduce cost
Enhanced asset and liability management
Optimization of space
utilized
Improve efficiency
Reduce product processing time
Reduce order processing
errors
Enhanced customer serviceSlide66
1. Material handling systems and their objectives
1.6 Advantages and
Limitations
. Automatic
Guided
V
ehicles
(AGV). Automatic
Storage
and
Retrieval
S
ystems
(AS/RS). Slide67
Advantages Of Material Handling
System
Improve
efficiency of a production system by ensuring the right quantity of materials delivered at the right place at the right time most
economically
Cut down indirect labor cost, and thereby reducing operating
cost
Maximize space utilization by proper storage of materials and thereby reduce storage and handling
cost
Reduce overall cost by improving materials
handling
Unobstructed
MovementsSlide68
Advantages Of Material Handling
System (
con’t
)
Reduce damage of materials during storage and
movement
Minimize accident during materials
handling
Improve customer services by supplying materials in a manner convenient for
handlings
Easy interfacing with other
systems
Increase
saleability
of plant and equipment with integral materials handling featuresSlide69Slide70
Disadvantages Of Material Handling System:
Additional
investment :
Additional capital investment involved in any materials handling system
Additional cost of auxiliary equipment
Materials handling system needs maintenance, hence any addition to materials handling means additional maintenance facilities, costs and staff
.
Lack of Flexibility: Once a materials handling system get implemented, flexibility for further changes gets greatly reduced
.
Vulnerability
to downtime whenever there is a breakdown: With an integrated materials handling system installed, failure/stoppage in any portion of it leads to increased downtime of the production system.