Individual Oral Presentation for BA004 Strategic Operation Management

Module 2 : Material Handling –

part 2
Reported by:

Engr. Armelito D. Ferrer

MBA Student

Submitted to:
Amalia Ureta Giron, PHD
Dean
Material Handling Definition
❖Material handling is the function of moving the right material to
the right place in the right time, in the right amount, in sequence,
and in the right condition to minimize production cost.
❖The cost of MH estimates 20-25% of total manufacturing labor
cost in the United States [The Material Handling Industry of
America (MHIA)]
❖Globally including PH - 20% to 50% of the total operating
expenses within manufacturing are attributed to material handling
(Tompkins et al.Jan 23, 2016)
Material Handling Definition
Material handling is defined as the art & science of moving , packing & storing
of material in any form . The industry comprises establishments primarily
engaged in manufacturing material handling equipment. This definition
includes :
•Aerial work platforms, hydraulic or electric truck or carrier mounted,
manufacturing
•Escalators and parts, manufacturing
•Automobile wrecker hoists, manufacturing
•Hoisting and lifting machinery, manufacturing
•Carts for moving goods (e.g., laundry, grocery), manufacturing
Material Handling Definition
•Industrial trucks, tractors, trailers and stackers and parts, manufacturing
•Conveyors and conveying equipment, manufacturing
•Tackle blocks, metal, manufacturing
•Cranes, industrial, manufacturing
•Walkways, moving, manufacturing
•Dollies and hand trucks, manufacturing
•Wheelbarrows, manufacturing
•Elevators and parts, manufacturing
•Winches, manufacturing
Scope of Material Handling
There are three perspectives about material handling.

❖The traditional point of view: Emphasis is on material

movement from one Location to another within the confines of
individual plant
❖Plant wide concern: focuses on overall flow of material.
❖The system point of view: Requires visualization of materials
handling problem, the physical distribution activities as a one
encompassing system.
The Importance of Material Handling
❖Material handling is an important part of factory and industrial processes.
It covers the entire spectrum of functions such as waste handling, assembly
line management, storage and material transport.
❖ A material handling system includes several smaller
components that work side by side, to make the everyday business more
efficient and cost effective.
❖New advances in technology have revamped the entire material handling
system and function. Robotics and automation techniques are increasingly
becoming prevalent.
❖If you have an existing business, consider hiring a consultant, to set up
your material handling processes.
The Importance of Material Handling
❖Such experts derive conclusions regarding overall
efficiency of operations, recommend appropriate safety
precautions and ensure regulatory compliance. Do an
adequate study and search for both a material handling
expert as also appropriate material handling systems required
for your purpose and set up an efficient and effective
material handling system for your organization.
The Objectives of Material Handling
❖ The primary Objective is to reduce unit costs of production
❖Maintain or improve product quality, reduce damage of materials
❖ Promote safety and improve working conditions
❖ Promote productivity
–material should flow in a straight line
–use gravity! It is free power
–move more material at one time
–mechanize material handling
–automate material handling
 Material Handling Principles
1. Orientation Principle
Study the system relationships thoroughly prior to preliminary planning in order
to identify existing methods and problems, physical and economic constraints, and
to establish future requirements and goals.

- Facilitate next operations in handling materials

Material Handling Principles
2. Planning Principle
Establish a plan to include basic requirements, desirable options, and the
consideration of contingencies for all material handling and storage activities.

In this principle you will answer:

What, When, Where, How, Who in order to properly handle your materials
Material Handling Principles
3. Systems Principle
Integrate those handling and storage activities which are economically viable into
a coordinated system of operation including receiving, inspection, storage,
production, assembly, packaging, warehousing, shipping and transportation.
Material Handling Principles
4. Unit Load Principle
Handle product in as large a unit load as practical.
Material Handling Principles
5. Space Utilization Principle
Make effective utilization of all cubic space.
Material Handling Principles
6. Standardization Principle
Standardize handling methods and equipment wherever possible.
Within the limits of achieving overall performance objectives and without
sacrificing needed flexibility, modularity (several parts) and throughput (units
processed )
Example; Batch type material handling from batch operation
Example: Batch operation of Bitumen (asphalt) processing
Material Handling Principles
7. Ergonomic Principle
Recognize human capabilities and limitations by designing material handling
equipment and procedures for effective interaction with the people using the
system.
Example
- Ergonomic interventions can include training in back safety, reducing the
weight of objects lifted, using mechanical lifting devices, or changing the height
of a pallet or shelf. The goal of ergonomics is to reduce your exposure to work
hazards.
Material Handling Principles
8. Energy Principle
Include energy consumption of the material handling systems and material
handling procedures when making comparisons or preparing economic
justifications.
It considers consumption of energy during material handling
Material Handling Principles
9. Ecology Principle
Minimize adverse effects on the environment when selecting material handling
equipment and procedures.

The environmental principle of material handling believes that all environmental

impact and energy consumption should be considered when designing or selecting
alternative equipment and material handling systems
Material Handling Principles
10. Mechanization Principle
Mechanize the handling process where feasible to increase efficiency and
economy in the handling of materials.
Material Handling Principles
11. Flexibility Principle
Use methods and equipment which can perform a variety of tasks under a variety
of operating conditions.
Has several distinct meaning but it is always associated with ability to change or
adapt.
Example of this are;
a) Product/Service Flexibility – the product it brings to market
b) Mix Flexibility – the mix of products it produces at any one time.
c) Volume Flexibility – the volume of products it produces
d) Delivery Flexibility – delivery time of its products in the market
Material Handling Principles
12. Simplification Principle
Simplify handling by eliminating, reducing, or combining unnecessary
movements and/or equipment.

Example: In Pencil Making, one machine for ferrule

insertion and one machine for eraser insertion

By simplication, combine the two machine into one

Material Handling Principles
13. Gravity Principle
Utilize gravity to move material wherever possible, while respecting limitations
concerning safety, product damage and loss.
Material Handling Principles
14. Safety Principle
Provide safe material handling equipment and methods which follow
existing safety codes and regulations in addition to accrued experience.
Material Handling Principles
15. Computerization Principle
Consider computerization in material handling and storage systems, when
circumstances warrant, for improved material and information control.
EX. Warehouse Management System
Material Handling Principles
16. System Flow Principle
Integrate data flow with the physical material flow in handling and
storage.
Ex. Cement
Material Handling Principles
17. Layout Principle
Prepare an operational sequence and equipment layout for all viable system
solutions, then select the alternative system which best integrates efficiency and
effectiveness.
Material Handling Principles
18. Cost Principle
Compare the economic justification of alternate solutions in equipment and
methods on the basis of economic effectiveness as measured by expense per unit
handled.
Cost which is used in the production of a product from its initial stage to its last
stage. It includes cost such as machinery cost, machinery installation cost, fuel
cost, labor cost, etc.
Material Handling Principles
19. Maintenance Principle
Prepare a plan for preventive maintenance and scheduled repairs on all
material handling equipment.
Material Handling Principles
20. Obsolescence Principle
Handling materials no longer required but in usable condition.
Material Handling Costs
The costs of material handling arises from two sources

❖ The cost of owning & maintaining the equipment.

❖ Cost of operating System

Every effort should be made to how to reduce the material handling

cost.There are three functional ways:

1.Eliminating handling itself, where ever & whenever possible

2.Mechanizing largely by conveyors power driven trucks.
3.Making the necessary handling more efficient
Material Handling Costs
•Unit load - number of items or bulk material arranged
so they can be picked up and delivered as one load
•Large or small?
•If large, cost/unit handled decreases
•But, depending upon
–cost of unitizing, de-unitizing
Material Handling Costs
–space required for material handling
– material handling carrier payload
– work-in-process inventory costs
–storage and return of empty pallets or containers used to hold the unit load
•smaller unit load may be desired
–space required for material handling
– material handling carrier payload
– work-in-process inventory costs
- storage and return of empty pallets or containers used to hold the unit load
 Factors for consideration in planning Material Flow(Material
Characteristics)

Category Measures
Physical state Solid, liquid, or gas
Size Volume; length, width, height
Weight Weight per piece, weight per unit volume
Shape Long and flat, round, square, etc.
Condition Hot, cold, wet, etc.
Safety risk and risk of damage Explosive, flammable, toxic; fragile, etc.,
 Factors for consideration in planning Material
Flow( Plant Layout
Layout Type Characteristics Typical MH Equipment
Fixed – position Large product Cranes, hoists, industrial trucks
size, low production rate
Process Variation in product and Hand trucks, forklift trucks,
processing, low and medium AGVs (Automatic Guided
production rates Vehicle)

Product Limited product variety, high Conveyors for product flow,

production rate trucks to deliver components to
Material Handling Costs
I. Unit load concept applicable?
II. Select the unit load type
III. Identify most remote source of load
IV. Determine farthest practicable destination for load
V. Establish unit load size
VI. Determine unit load configuration
VII. Determine how to build unit load
Material Handling Methods
1. Inspect materials for slivers, jagged edges, burrs, rough or slippery surfaces.
2. Get a firm grip on the object.
3. Keep fingers away from pinch points, especially when setting down
materials.
4. When handling lumber, pipe or other long objects, keep hands away from the
ends to prevent them from being pinched.
5. Wipe off greasy, wet, slippery or dirty objects before trying to handle them.
6. Keep hands free of oil and grease.
Material Handling Methods
Lifting and Carrying
Before employees are assigned to jobs requiring heavy and/or frequent lifting,
make sure they are physically suited for the job.
If a load is thought to be more than one employee can handle, assign two
employees to the operation or supply
materials handling equipment. Instruct employees in proper ways to lift.
Proper Way To Lift
Here are six steps to safe lifting:
•Keep feet apart - one alongside, one behind the object;
•Keep back straight, nearly vertical; bend at the knees instead of the waist;
Material Handling Methods
1. Tuck your chin in;
2. Grip the object with the whole hand;
3. Tuck elbows and arms in;
4. Keep body weight directly over feet
When bulky objects are to be handled or when objects are to be carried on the shoulder,
employees shall be trained in these techniques for special situations.
Handling Barrels and Drums
Whenever possible, use a dolly or other mechanical device when moving barrels or
drums.
If two employees are assigned to up-end a full drum, they should use the following
procedures:
Material Handling Methods
1. Stand on opposite sides of the drum and face each other;
2. Grasp both chimes (rolled edges at both ends of the barrel) near their high
points, lift one end; press down on the other;
3. As the drum is up-ended and brought to balance on the bottom chime,
release the grip on the bottom chime and
straighten the drum.
When two employees are to overturn a full drum, they should use this
procedure:
1. Make sure there is enough room. Cramped quarters can result in badly
injured hands.
Material Handling Methods
1. Both stand near each other, facing the drum. Grip the
closest point of the top chime with both hands, resting
palms against the side of the drum, push until the drum
balances on the lower chime.
2. Step forward a short distance, and each employee
releases one hand from the top chime in order to grip the
bottom chime. They ease the drum down to a horizontal
position until it rests solidly on its side.
Material Handling affects plant lay-out
because of:
1. Nature of the product: The nature of the product to be
manufactured will significantly affect the layout of the
plant. Stationary layout will be most suitable for heavy
products while line layout will be best for the manufacture
for the light products because small and light products can
be moved from one machine to another very easily and,
therefore, more attention can be paid to machine locations
can be paid to machine locations and handling of materials.
Material Handling affects plant lay-out
because of:
2. Volume of production: Volume of production
and the standardization of the product also affect the
type of layout. If standardized commodities are to be
manufactured on large scale, line type of layout may
be adopted.
Material Handling affects plant lay-out
because of:
3. Basic managerial policies and decisions: The type of
layout depends very much on the decisions and policies
of the management to be followed in producing the
commodity with regard to the size of plant, kind and
quality of the product, scope for expansion to be
provided for, the extent to which the plant is to be
integrated, amount of stocks to be carried at anytime, the
kind of employee facilities to be provided etc.
Material Handling affects plant lay-out
because of:
3. Basic managerial policies and decisions: The type of
layout depends very much on the decisions and policies
of the management to be followed in producing the
commodity with regard to the size of plant, kind and
quality of the product, scope for expansion to be
provided for, the extent to which the plant is to be
integrated, amount of stocks to be carried at anytime, the
kind of employee facilities to be provided etc.
Material Handling affects plant lay-out
because of:
4. Nature of plant location: The size shape and topography of
the site at which the plant is located will naturally affect the
type of layout to be followed in view of the maximum utilization
of the space available .For e.g., if a site is near the railway line
the arrangement of general layout for receiving and shipping and
for the best flow of production in and out the plant may be made
by the side of the railway lines .If space is narrow and the
production process is lengthy, the layout of plant may be
arranged on the land surface in the following manner:
Material Handling affects plant lay-out
because of:
5. Type of industry process: This is one of the most
important factors influencing the choice of type of plant
layout. Generally the types of layout particularly the
arrangement of machines and work centers and the
location of workmen vary according to the nature of the
industry to which the plant belongs. For the purpose of
lay out, industry may be classified into two broad
categories: (i) Intermittent and (ii) continuous
Material Handling affects plant lay-out
because of:
Intermittent type of industries is those, which
manufacture different component or different machines.
Such industries may manufacture the parts, when
required according to the market needs.

Example: Ship Building

Material Handling affects plant lay-out
because of:
Continuous industry; in this type of industry raw material are fed at
one end and the finished goods are received at another end. A
continuous industry may either be analytical or synthetic. A analytical
industry breaks up the raw material into several parts during the course
of production process or changes its form, e.g. oil and sugar refineries.
A synthetic industry on the other hand mixes the two or more materials
to manufacture one product along with the process of production or
assembles several parts to get finished product. Cement and
automobiles industries are the examples of such industry.
Relationship between plant layout and
material handling
A good layout reduces the material backtracking,
unnecessary workmen movement ensuring effectiveness in
manufacturing. Thus a good layout always ensures minimum
material handling.
References:
1) https://en.wikipedia.org/wiki/Material_handling
2) https://www.flostor.com/conveyor/20_principles.html
3) www.google.com/material handling
4)https://supplychainmechanic.com