Material Handling
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.
Materials Handling
Mistakes
A Local Company’s Materials Handling Process-
Step 1Begin
Assemblies
Step 2Move to WIP
Warehouse
Step 3Store in WIP
Warehouse
Step 4Move back to
Manufacturing
WAREHOUSE
Materials Handling
Local Company’s Materials Handling ProcessMistakes
Step 6Back to the
Warehouse
Step 5Begin
Assembly
Continue Until
Complete
36 Trailers / Day
WAREHOUSE
Materials Handling
Mistakes
Company Results:





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?”
Materials Handling
Example
Electric Lift Hoist
Fabric Rolls in
Excess of 100#
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.
Cycle Times and
Materials Handling
Range
width
30 in.
30 in.
Typical
Speed
= 60 in. / 18 sec
= 200 in. / min
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
Cycle Times and
Materials Handling
12 in.
Typical
Range
width
30 in.
Speed
= 42 in. / 15 sec
= 168 in. / min
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
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
Key Manufacturing
Fundamentals
Four Fundamental Customer
Expectations:
1.
2.
3.
4.
Product Quality
Delivery as scheduled / requested
Flexibility to handle change and service
Low $$$
One method to achieve this is by
implementing Lean Manufacturing principles
Benefits of Lean
Percentage of Benefits Achieved
0
Lead Time Reduction
Productivity Increase
WIP Reduction
Quality Improvement
Space Utilization
25
50
75
100
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