itl lecture-11 (material handling & storage system)

07/06/10 1

By :

Prof. Amit Kumar

07/06/10 2

“Logistics has advanced from warehousing and transportation to boardrooms of the successful leading companies across the world. Due to increasing importance of business logistics, it becomes necessary for the student pursuing management education from IILM- Graduate School of Management, to understand logistics, its basic framework and practical utility.”

IILM-GSM

Importance of this course

International Trade Logistics

07/06/10 3

Course: International Trade Logistics1. Logistics - At the Centre of World Trade

2. Supply Chain Management

3. Warehousing: A Role Beyond Storage

4. Material Handling & Storage System

5. Transportation: Backbone of Logistics

6. Logistics Packaging

7. Logistics Information System

8. Global Logistics & Outsourcing

IILM-GSM

International Trade Logistics

07/06/10 4

IILM-GSM

International Trade Logistics Material Handling & Storage System

07/05/10f4t 5

Contents• Role of Material Handling in Logistics• Material handling Equipment and Systems

Manual System, Mechanized System Semiautomatic & Automatic System Case: Material Handling at Steel Stockyard- SAIL

• Storage Principles• Storage Design- Benefits• Storage Methods

Block Storage Racking System, Shelving System Pallets, Containers

IILM-GSM


07/05/10 6

Material handling can not be avoided in logistics, but can certainly be reduced to a minimum level. The

productivity potential in logistics can be exploited by selecting right type of handling equipment.

In fact, the investment in material handling system will be a total waste if it is not compatible with the warehouse layout plan. The layout could create obstacles for the free movement of equipment and the goods resulting

in poor equipment productivity.

Introduction

IILM-GSM


07/05/10 7

Material Handling System Decisions

IILM-GSM


Material HandlingSystem

Decisions

Productivity Potential for goods

being handled

Hygiene & humane safety

Cost Implication

Compatible to storage system and warehouse

layout

Minimum dead weight to pay load

ratio

07/05/10 8

“ Improving your material handling system fuels a stunning return on your investment. It makes more sense that almost anything you can do”.

- John Wagner

Introduction

IILM-GSM


07/05/10 9

• For moving a material in and out of warehouse, various kinds of equipment and systems are used depending on the type of products and volumes to be handled.

• These equipments are used for the movement of goods over a short distance for the purpose of loading and unloading operations.

Role of Material Handling in Logistics

IILM-GSM


07/05/10 10

In warehouse, the material handling operation is performedat the following stages:

1. Unloading the incoming material from transport vehicles;2. Moving the unloaded material to the assigned storage place in

the warehouse;3. Lifting the material from its storage place during order picking;4. Moving the material for inspection and packing;5. Loading the packages, boxes or cartons on the transport

vehicles.

Role of Material Handling in Logistics

IILM-GSM


07/05/10 11

There are various material handling systems in use, right from fully manual to the fully automatic ones. However, the selection of a particular system depends on factors such as:• Volumes to be handled• Speed in handling• Product Characteristics (weight, size, shape)• Nature of the product (hazardous, perishable, crushable)

Material Handling Equipment and Systems

IILM-GSM


07/05/10 12

There are various material handling systems,1. Manual System2. Mechanized System3. Semiautomatic System4. Automatic System

Major criteria for selection of the right system are units moved and the distance of movement covered. Higher

volumes moved over large distance call for more sophisticated systems, which attract higher investment.

Material Handling Systems

IILM-GSM


07/05/10 13

1. Manual System:• Manual system is the cheapest and most common

method of material movement.• Limitations are low volume, slow speed, physical

characteristics of the product and the distance.• Investment in equipment is not justified in such case.

In a warehouse where cartons are weighting not more than 20 kilogram and volumes handled are not too

large, material loading and unloading and movement are done manually.


IILM-GSM


07/05/10 14

2. Mechanized System:• The mechanized equipment requires the space for the

free movement across the warehouse.• One of the important benefits of mechanization is to

transfer the fatigue from human to machine. It enhances the system productivity.

• The mechanized system need not be a powered equipment. A wheeled trolley with handle can be driven manually.


IILM-GSM


07/05/10 15

2. Mechanized System:The mechanized system includes a large variety of handlingequipments.

1. Wheeled trolley2. Forklift3. Pallet truck4. Tractor-trailer device5. Conveyors6. Cranes7. Carousels


IILM-GSM


07/05/10 16

2. Mechanized System:The criteria for choosing a machine for material movement inthe warehouse should be:

• Improving space utilization• Reducing the time for the material movement• Speeding up the overall material flow• Reducing the material damages during handling• Should be safe for human beings to operate


IILM-GSM


07/05/10 17

2. Mechanized System:

Out of 52 stockyards (warehouses) of SAIL spread over the country, the one which is located at Kalambori in Navi

Mumbai is spread over 40 cares of land. It caters to the customer needs in Maharashtra.

Materials such as plates, angles and channels are stacked in open place while cold rolled coil, galvanized coils,

electric grade sheets in shaded area.

Material Handling SystemsMaterial Handling at Steel Stockyard

IILM-GSM


07/05/10 18

2. Mechanized System:

For handling such heavy products they are using, push-pull trolley (1 MT capacity), forklift trucks (up to 5

MT), portable cranes (up to 30 MT-outsourced) and overhead crane.

90% of the material dispatches from SAIL plants to steel stockyards and to the strategic customers, such as L&T,

Bamler lawry and Godrej, through rail transport.

Material Handling SystemsMaterial Handling at Steel Stockyard

IILM-GSM


07/05/10 19

3. Semiautomatic System:• In this system, all mechanized handling equipments may be

used but the specific handling requirement for a particular warehouse operation many be performed automatically.

• The automation is done in parts, that is the individual equipment may be fully automatic with computerized system, but the other equipments in the warehouse are mechanized with manual.

This system is a mix of mechanized and automatic handling equipment.


IILM-GSM


07/05/10 20

3. Semiautomatic System:These are the various types of automated equipments insemiautomatic warehouse system.

• Sorting device (used along with powered conveyors)• Robotics (robots are human-like machines with

microprocessor used for performing a series of activity like break bulk and consolidation operation)

• Automatic guided vehicle system ( AVGS is a mechanized material handling equipment without an operator.)


IILM-GSM


07/05/10 21

3. Semiautomatic System:These are the various types of automated equipments insemiautomatic warehouse system.Automatic guided vehicle system • AVGS is a mechanized material handling equipment without an

operator.• The vehicle moves on a fixed magnetic or optical path.• The vehicle reaches to the destination tracing the assigned

path covering the pickup and drop stations without operator.• They operate at the speed of 150-250 feet per minute, which is

slower than the typical forklift truck at 300-350 feet per minute.


IILM-GSM


07/05/10 22

4. Automatic System:• Human factor is minimized and restricted to programming

and controls.• Advantages are speed and accuracy, which enhance

productivity.• Main disadvantages are high investment, complexity in

development and absence of flexibility• The system is connected to the computer for programming

the equipment operations, material pickup route, packing and loading instructions.


IILM-GSM


07/05/10 23

4. Automatic System:

ITC Bhadrachalam uses unmanned automated storage and retrieval system at its plant in Bhadrachalam, installed by Godrej- Eface. This system can, using automatic stacker crane, move 3500 pallets of size 600 to 1400 mm at the rate of 25-40 pallets per hour. A conventional system, by

contrast, can handle maximum 6-8 pallets an hour.

Material Handling SystemsMaterial Handling Automation

IILM-GSM


07/05/10 24

In general following rules are followed for designing andeffective storage system:• Minimize the travel distance• Maximize the utilization of available space• Provide easy and quick access to the stored goods• Facilitate easy tracking of the material• Provide security against fire, damage and theft• Prevent contamination and deterioration of the goods

Storage Principles

IILM-GSM


07/05/10 25

Storage Methods

IILM-GSM


07/05/10 26

Block Storage:

• Simplest type of storage method and does not attract any financial investments.

• Boxes, cartons or sacks containing the material are stored in the spread or stacks formed in the area assigned for storage.

• Stacking is done on the floor or on the wooden platform.• Public warehouses normally adopt this type of storage

method due to a wide variety of products they are storing. Food grains sacks are normally block stacked.

Storage Methods

IILM-GSM


07/05/10 27

Block Storage:

Block stacking has limitations on the stack height due tofollowing reasons:

• Load bearing capability of the package ( boxes, carton, container) at the bottom of the stack

• Sensitivity of the product inside the pack to load• Ease of loading and unloading

Storage Methods

IILM-GSM


07/05/10 28

Racking System:

• Racks are used for storage of items longer in length, small containers and boxes and pallets etc.

• As the weights of these unit loads are beyond human handling capacity, the mechanical material handling equipments are normally used for storage and retrieval operations.

• Racks may further be divided into two types such as stationary and portable.

Storage Methods

IILM-GSM


07/05/10 29

Shelving System:

• Shelving systems are in use for non-palletized or non-uniform type of loads.

• The material is stored and retrieved in the shelf manually.• These shelves are close or open type depending on the

product configuration.• The structure can be easily modified to suit the desire

functionality. Shelving is the most flexible and cost-effective storage structure.

Storage Methods

IILM-GSM


07/05/10 30

Pallets:

• Pallets are specially designed platforms for storage of goods with a view of moving the whole load by forklift, wherever it is required.

• Pallets are made out of wooden, metal or plastic. Most common is wooden. The standard size of the pallets in use are 40* 48 Square Inches.

• Pallets can be broadly classified into two groups:1. Sturdy multiple reusable pallets2. One-way non-returnable pallets

Storage Methods

IILM-GSM


07/05/10 31

Containers:

• The container is basically a cubical construction with one (top) side open for depositing and removal of the material.

• Most commonly used in manufacturing plants for in-process material handling application.

• Different types commonly in use are:1. Welded Wire Containers2. Corrugated Metal Containers3. Plastic Containers

Storage Methods

IILM-GSM


itl lecture-11 (material handling & storage system)

Leadership & Management