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Chapter 5
Material Handling
5.1 Introduction
The design of the material handling system is an important component of the overall facilities
design. The layout design and the material handling system design are inseparable. The
integration between these two design functions is critical in the design of a new facility.
Material handling activities commonly account for at least 25% of labor costs, 55% of all factory
space, and 87% of production time. Material handling is estimated to represent between 15% and
70% of the total cost of a manufactured product. Frequently much more than that may be hidden
in overhead accounting practices. This function, which happens to be so obvious that we tend to
overlook it, is a major influence on such things as the utilization of expensive equipment, the
work-in-process inventory, quality, scrap, transportation, packaging, production control,
warehousing space and cost, and customer satisfaction. Look at the best factory, the best
warehouse, best transportation service, best distribution facility - and you'll find it is integrated
with a superb handling system.
Material handling and distribution operations are essentially systems. No longer are they
independent activities within one firm. Properly planned systems may begin on the design desks
of your suppliers and end on the shipping docks of your customers. How well your firm fares in
improving the productivity of this total cycle will depend on the role your systems planners are
prepared to assume. Material handling is a prime target for cost improvement, but this rapidly
changing field requires imagination, ingenuity, and awareness of current technical advances.
There exists a strong relationship between the layout design function, and the material handling
design function.
Material Handling uses the right method to provide the right amount of the
right material at the right place, at the right time, in the right sequence, in the
right position, in the right condition, and for the right cost.
This definition tells us that we should look at the material handling function from a broader
systems perspective instead of a simple material transfer activity. It involves handling, moving,
storing, protecting, and controlling material. As such, material-handling (MH) systems must be
designed with care to ensure they are properly integrated with 1) manufacturing; 2) distribution;
and 3) management information systems.
While taking a systems approach to MH, we must also bear in mind that, depending on the
product handled, anywhere from 20% to 70% of a product cost can be attributed to MH cost. The
objective in designing a MH system should be not only to minimize design and operational costs,
but also to come up with a system that supports all the activities on the shop floor effectively.
In addition to describing material handling in terms of movement, time, and place, material
handling may be described in terms of quantity, position or orientation, condition, space, profit,
quality, safety, and productivity. These are because:
a) Material must be delivered undamaged, and must be used before becoming obsolete.
b) Material that is moving is much more dangerous than static material, therefore safety is important.
c) The impact of material handling on total operating system shows its significant improvements in total
productivity.
The Department of Commerce has identified material handling as one of the fastest growing
segments of the world economy. It is therefore extremely important to understand the principles
of material handling, as well as their design, implementation, operation, and control so that that
they can assure the cost effectiveness of this investment. These principles provide guidance and
perspective to material handling system designers. However, the use of these principles should
not be constructed as a substitute for good judgments and experience.
There are 20 material handling principles in total, based on two learning modules. From these
principles, a number of checklists have been developed to facilitate the identification of
improvement opportunities for existing systems.
The first module is titled 10 Principles of Material Handling and their definitions recently
adopted by the College-Industry Council of Material Handling Education (CIC-MHE), are as
follows:
1) Planning Principle.
Establish a plan to include basic requirements, desirable options, and the consideration of
contingencies for all material handling and storage activities. In its simplest form a material
handling plan defines the material (what) and the moves (when and where); together they define
the method (how and who).
2) Standardization Principle.
Standardize handling methods and equipment wherever possible. Standardization means less
variety and customization in the methods and the equipment employed.
3) Work Principle.
The measure of work is the material flow (volume, weight, or count per unit of time) multiplied
by the distance moved.
4) Ergonomic Principle.
Recognize human capabilities and limitations by designing material handling equipment and
procedures for effective interaction with the people using the system.
5) Unit Load Principle.
Handle product as a single entity at one time, such as a pallet, container, or tote, regardless of the
number of the individual items that make up the load.
To stimulate the development of alternative system designs, the following four-phased Ideal
Systems Approach is suggested:
Phase 1. AIM for the theoretical ideal system; a perfect system having zero cost, perfect quality, no safety
hazards, no wasted space, and no management inefficiencies.
Phase 2. CONCEPTUALIZE the ultimate ideal system; a system that would be achievable in the future, but
because of a lack of available technology, is not available at present time.
Phase 3. DESIGN the technologically workable ideal system; a system for which the required technology is
available, but costs or other conditions may prevent some components from being installed now.
Phase 4. INSTALL the recommended system; a cost-effective system that will work now without obstacles
to its successful implementation.
Throughout the design process, a questioning attitude should prevail. The basic questions of why,
what, where, when, how, who, and which should be asked constantly.
Use of the question why? is essential to separate what must be from what has been:
Asking what and why defines the correct material to be handled.
Asking where, when, and why identifies necessary moves.
Asking how, who, and why establishes the correct method.
Asking which and why yields the preferred design.
The following expression defines the method of performing each move within a facility:
Figure 5.2 Alternate ways of transporting a dry bulk ingredient from outside
Receiving area to a mixing operation in the plant.
The determination of the size of the unit load and the method of containing it is influenced by a
number of factors. Among those are:
1) The material to be unitized.
2) Number of times unit load is handled before it is de-unitized.
3) The quantity of material to be handled.
4) Environmental conditions to which unit load is exposed.
5) The susceptibility of the material to damage, and its security.
6) The method of receiving, storing, shipping, and handling.
7) The other loads to be utilized within the system.
Unit Loads can be lifted in a variety of ways. The most common methods of unitizing a unit load
are containers, platforms, sheets, and racks.
1) Containers: Tote boxes, cartons, bins, crates, baskets, and bags.
2) Platforms: Skids and pallets.
3) Sheets: Cardboard, plywood, and polyethylene.
A popular method of building a unit load is to place one or more items on a pallet. Factors in
determining the style and size of the pallet are:
1) Size of the carrier in shipping and receiving.
2) Size and weight of items to be placed on pallet.
3) Dimensions of space for storing loaded/unloaded pallets.
4) Equipment used to move loaded/unloaded pallets.
5) Slave palet versus non-slave palet considration.
6) Costs, supply, and maintenance considerations.
7) Aisles width, door sizes, and clear stacking heights.
Stacking Pattern: The relationship between the container and the pallet referred to as the pallet-
loading (stacking pattern) problem.
The objective in the pallet-loading problem is to maximize the use of space (i.e., the pallet
cube). Quite often, load stability is an equally important consideration for reasons of uniform
loading on material handling equipment and safety. Another measure is based on cost (e.g., cubic
feet per dollar).
For a given pallet size, there exists a variety of different stacking patterns that can be used in
placing cartons on the pallet.
Note that:
1) Cube utilization per pallet varies with pattern employed.
2) One generally restricts the number of alternative pallet sizes to two or three popular sizes
and selects the size that yields a satisfactory utilization of cubic space for the most
popular items to be placed on the pallet.
3) When the items being stored are quite heavy, weight considerations may be more
important than volume.
4) Weight influences structural design of the pallet, capacities of handling equipment, and
storage racks.
5) Pallet dimensions will also influence and be influenced by the dimensions of the space to
be used for storing loaded and unloaded pallets.
Figure 5.4 shows different shapes and sizes of pallets and different loading/stacking patterns.
The specification of the carton size is perhaps the most critical element on the design of the unit
load system. The carton size selected dictates the number of parts contained in each carton and
the total number of cartons that may be packaged and transported to the palletizer. Based on
parts flow rate to the packaging stations and the time required to package each carton, the carton
flow rate to the palletizer is determined.
The next step is the formation of the pallet load through a palletizer. The type and size of the
pallet selected. The rate at which full pallet load are formed is a function of the capacity of the
palletizer, the carton size and pallet size.
From the palletizer, the full pallet loads are stored in a warehouse with either a selective-rack or
open-rack design.
The next step is the loading of the pallet loads into a highway trailer-truck for delivery to the
customer.
In cases where an existing material handling system is to be improved, the unit load
specifications may be influenced by the physical configuration of an existing building. Door
widths, column spacing, aisle widths, turning radii of the material handling vehicles, maximum
stacking heights of the lift trucks are among the many factors that will influence the design of the
unit load system.
The unit load system design problem is one that must be done concurrently with the other
elements pf the overall material handling system design.
Material transport equipment is distinguished from the other categories of material handling
equipment by their primary function: material transport. Material transport equipment types are
distinguished from one another by their
Degree of automation (walking, riding, and automated),
Flow pattern (continuous vs. intermittent, synchronous vs. nonsynchronous),
Flow path (fixed vs. variable),
Location (underground, in-floor, floor level, overhead),
Throughput capacity.
1) Conveyors are used when material is to be moved frequently between specific points.
Conveyors should be considered when large volumes of parts and materials are to be
transported. It is also advisable to use conveyors only when the material transported is
relatively uniform in size and shape. Conveyors can be categorized by:
a) The type of product being handled (as bulk, or unit): Bulk material might be conveyed using chute,
belt, pneumatic, screw, bucket, or vibrating conveyors. Unit material might be conveyed using chute,
belt, roller, wheel, slat, vibrating, pneumatic, trolley, or tow conveyors.
b) The location of the conveyor (as overhead, or floor).
2) Industrial vehicles are extensively used in manufacturing facilities and warehouses. Their
main advantage is that the material handling path need not be fixed, and they are particularly
useful when the unit load moved varies in size, shape, and weight. When there is a low
volume of parts or material to be moved, relatively few trips are required for each part.
Industrial vehicles vary widely in their features, cost, and functionality.
Three categories of industrial vehicles can be defined:
a) Walking industrial vehicles
b) Riding industrial vehicles
c) Automated industrial vehicles
Walking industrial vehicles are capable of handling several hundred pounds of load and are
available with outriggers, straddles, and other attachments. The operator can steer the self-
powered truck that can move forward to backward in a variety of speeds. This type of
vehicle is desirable when material movements are relatively short, require low lifts, and
volume is relatively low.
Riding industrial vehicles allow the operator to ride to, from, and between locations. These
are typically used for longer moves than walking vehicles and are useful when the aisle is
narrow; Riding vehicles also offer additional weight and storage height capacity.
The category of automated vehicles is distinguished from the other industrial vehicles by
the elimination intervention from powering and guiding the movement of the vehicle.
Automated Vehicles are variable path devices whose movement is guided by electrified
wires buried in the floor, magnetic tape lined along the floor, rails mounted in the ceiling,
cameras mounted on the vehicle, or inertial guidance systems. The types of vehicles
include in this category are all types of automated guided vehicles (AGVs), automated
electrified monorails (AEMs), and sorting transfer vehicles (STVs).
AGV is essentially a driverless industrial truck. It is a steer able, wheeled vehicle, driven by
electric motors using storage batteries, and it follows a predefined path along an aisle. AGVs
may be designed to operate as a tractor, pulling one or more carts, or may be unit load carriers.
2) Unitizers: In addition to the use of containers to unitize a load, special equipment has been
designed to facilitate the formation of a unit load. Unitizers are available as:
a) Stretchwrap, shrinkwrap, strapping, and banding equipment
b) Automatic palletizers and de-palletizers
Stretchwrapping and shrinkwrapping are performed using plastic film. The strapping process
can be performed manually or mechanically and is best suited for compact load.
Palletizers are high-speed automated equipment used to palletize unit loads coming off
production or assembly lines. They receive products and place them on a pallet according to
prespecified patterns; de-palletizers receive pallet loads and remove the product from the pallet
automatically. A variety of sizes and styles are available for both palletizers and de-palletizers.
Storage and Retrieval equipment is distinguished from material transport equipment by its
primary function to house material for staging or building inventory and to retrieve material for
use. There are two major classifications of storage and retrieval equipment are defined unit
load and small load systems.
Unit load systems typically house large loads such as full pallets, large boxes, and/or large rolls
of material.
Small load storage and retrieval systems typically house small inventory quantities of one or
more items in a storage location. The maximum storage capacity for each storage location is
typically less than 500 lbs.
Unit load storage and retrieval systems are further subdivided into unit load storage systems,
which house unit loads, and unit load retrieval systems, which allow access to unit load for
retrieval.
1) Unit load storage equipment types are distinguished from one another by their rack
configuration, line depth capacity, stacking capacity, unit load access, and capital expense.
2) Unit load retrieval equipment types are distinguished from one another by their degree of
automation, capital expense, lift height capacity, and aisle width requirements. Equipment
offering greater lift height capacity, operating in narrower aisles, and offering greater degree
of automation comes with higher prices. Those higher prices may be justified for the
associated space and labor saving.
Two popular devices for retrieving unit loads are walkie stackers and counterbalanced lift
trucks.
The other major categories of unit load retrieval equipment are narrow-aisle vehicles and
automated storage retrieval (AS/R) machines.
Automated Storage/Retrieval System (AS/RS) is a combination of controls, which handles, stores, and
retrieves material with precision, accuracy, and speed under a defined degree of automation.
Unit Load AS/RS are used to store and retrieve loads that are palletized and weigh over 500lb.
Note that:
Stacker crane is top supported, but the S/R machine is mounted on a rail along the floor.
The handling mechanism on the S/R machine usually consists of a shuttle table, or a
mechanical clamp.
It can also be a vacuum- or magnet- based mechanism for handling sheet metal and coils.
If throughput requirements do not justify dedicating an S/R machine to each aisle, end-of-
aisle transfer cars are used to transfer the S/R machine between aisles.
Miniload AS/RS is appropriate for storing/retrieving small parts that can be stored in a
storage bin or drawer. It is often used to perform end-of-aisle order picking and
replenishment.
Man-on-Board AS/RS. The operator on board of the machine operates the AS/RS to
store and retrieve in less than unit load quantities.
Deep Lane AS/RS is similar to the unit load AS/RS with the exception that loads may
be stored to greater depths in the storage rack, thus saves space.
Automated Item Retrieval System allows individual items or cases to be automatically
retrieved from storage onto a conveyor for delivery to an accumulation line.
Storage Carrousel consists of a set of horizontal revolving storage baskets or bins. The
drive mechanism rotates the carriers in order to bring the appropriate basket to the
picking station. Carrousels can be controlled so that individual items on an order are
picked in a sequence that minimizes rotation time.
3) Small load storage and retrieval equipment
Small load S/R equipment is classified as operator-to-stock (OTS, sometimes referred to as
man-to-part or in-the-aisle systems), if the operator travels to the storage location to retrieve
material and as stock-to-operator (sometimes referred to as part-to-man or end-of-aisle
systems) if the material is mechanically transported to an operator for retrieval.
Stock-to-operator equipment types often offer higher productivity, easier supervision, and
better item security and protection than operator-to-stock alternatives. At the same time,
stock-to-operator options often are more expensive, more difficult to reconfigure, and require
more maintenance than operator-to-stock options. In OTS options, the design and selection of
the storage mode may be separated from the design and selection of the retrieval mechanism.
The three principal operator-to-stock equipment types for housing small loads are bin
shelving, modular storage drawers in cabinets, and gravity flow rack. To improve space
utilization, each of the storage systems can be incorporated into mezzanine or mobile storage
configurations. In operator-to-stock alternatives, the operator either walks or rides a vehicle
to the pick location. The four retrieval options distinguished include picking carts, order
picker trucks, person abroad AS/R machines, and robotic retrieval.
In stock-to-operator options, the travel time component of total order picking time is shifted
from the operator to a device for bringing locations to the picker. Also, the search time
component of total order picking time is reduced since the correct location is automatically
presented to the operator. In well-designed systems, the result is a large increase in
productivity.
The three most popular classes of stock-to-operator equipment are: carousels, miniload
automated storage and retrieval machines, automated dispensers. Carousels are mechanical
devices that house and rotate items for storage and retrieval. Three classes of carousels are
horizontal, vertical, and independently rotating racks. In the miniload automated storage and
retrieval system, a miniload storage/retrieval (S/R) machine travels horizontally and vertically
simultaneously in a storage aisle, transporting storage containers to and from an order picking
stations located at one end of the system. An automatic dispenser works much like vending
machines for small items of uniform size and shape.
Auxiliary and other equipment include automatic identification and recognition devices,
automatic paperless communications, robots, and lift tables. Note that:
1) Bar coding:
A bar code consists of a number of printed bars and intervening spaces. The structure of
unique bar/space patterns represents various alphanumeric characters. The same
bar/space pattern may represent different alphanumeric characters in different codes.
Devices for automatic, paperless communications with material handling operators include:
Radio frequency data terminal (RDT)
Voice headset
Light and computer Aids
Smart cards
RDT is a reliable device for inventory and vehicle/driver management. The RDT incorporates a
multicharacter display, full keyboard, and special function keys. It communicates and receives
messages on a selective frequency via antennae and a host computer interface unit. The majority
of RDTs use handheld wands or scanners for data entry, product identification, and location
verification.
1) Voice handset synthesized voice communication and human voice recognition systems.
In order to interact with the computer system a headset with earphones and an attached
microphone is used. RF is used to transmit communications to mobile operators.
2) Lights and computer aids. The objective of use these devices are to reduce the search
time, and a documentation time portions of total order picking time to improve order-
picking accuracy. Systems of this type are available for use with vertical carousels,
miniload AS/RS, and vertical lift modules.
3) Smart card is used to capture information ranging from employee identification, to the
contents of a trailer load of material, to the composition of an order picking tour. The
smart cards are inserted into a smart card reader on each order-picking cart. Is so doing,
the picking tour is illuminated on an electronic map of the warehouse appearing on the
front of the cart.
h) Tractor-trailer train
i) Material lift
j) Drum truck
k) Drum lifter
l) Dolly
m) Automated guided vehicle system
Advantages of Conveyors
1) Their high capacity permits moving a large number of items.
2) Handling combined with other activities such as processing and inspection is possible.
3) They are versatile and can be on the floor or overhead.
4) Temporary storage of loads between workstations is possible (for overhead conveyors in particular).
5) Load transfer is automatic and does not require the assistance of many operators.
6) Straight-line paths or aisles are not required.
7) Utilization of the cube (entire volume of the workplace) is feasible through the use of overhead conveyors.
Disadvantages of Conveyors
1) They follow a fixed path serving only limited areas.
2) Bottlenecks can develop in the system.
3) A breakdown in any part of the conveyor stops the entire line.
4) Since conveyors are fixed in position, they hinder the movement of mobile equipment on the floor.
Advantages of trucks
1) They are not required to follow a fixed path of movement and therefore can be used anywhere on the floor
where space permits.
2) They are capable of loading, unloading, and lifting, in addition to transferring material.
3) Because of their unrestricted mobility, which allows them to serve different areas, trucks can achieve high
utilization.
Disadvantages of Trucks
1) They cannot handle heavy loads.
2) They have limited capacity per trip.
3) Aisles are required: otherwise the trucks will interfere with the work on the floor.
4) Most trucks have to be driven by an operator.
5) Trucks do not allow handling to be combined with processing or inspection as other types of equipment do.
16) Are too many pieces of equipment being used, because their scope of activity is confined?
17) Are many handling operations unnecessary?
18) Are single pieces being handled where unit loads could be used?
19) Are floors and ramps dirty and in need of repair?
20) Is handling equipment being overloaded?
21) Is there unnecessary transfer of material from one container to another?
22) Are inadequate storage areas hampering efficient scheduling of movement?
23) Is it difficult to analyze the system because there are no detailed flow charts?
24) Are indirect labor costs too high?
Note:
1) By moving, storing, queuing and controlling product Overhead, you may significantly
control or reduce costs. A few benefits of overhead material handling systems are:
a) Improve the working environment and worker safety.
b) Increase Productivity.
c) Reduce and control operational costs and improve profitability.
3) Automatic Identification Devices: Moving beam laser scanners are the principle means of
collecting bar coded information along package conveyors. The main advantages of the
scanners are:
a) The scanner provides multiple read attempts, which enables the scanner to read a code that is moving.
b) The code does not have to contact the scanner in order to be read.
Homework Assignment:
1. Briefly describe the circumstances that would lead you to consider each of the following
conveyors in preference to others:
Belt conveyor, roller supported.
Belt conveyor, slider bed supported.
Powered roller conveyor.
Towline conveyor.
2. Robots are being developed with the capability of sensing the orientation of randomly
placed parts on a conveyor such that parts can be picked up and loaded into a machine tool
automatically. What are three other approaches that can be used to overcome the problem
of randomly oriented parts?
3. For each of the following material handling principles,
a) Explain what it means, and
b) Give a specific example of how it can be applied
1) Unit load principle
2) Space utilization principle
4. Distinguish between a two-way and a four-way pallet.
6. Develop a set of attributes for company unit load storage systems and unit load
retrieval technologies.
7. Develop a set of attributes for company bar code readers and bar code printers.