Material Handling

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Material Handling
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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.

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Materials Handling Mistakes
A Local Companys Materials Handling Process-
Step 2- Move to WIP Warehouse
Step 1-Begin Assemblies
Step 3- Store in WIP Warehouse
Step 4- Move back to Manufacturing
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Materials Handling Mistakes
Local Companys Materials Handling Process-
Step 6- Back to the Warehouse
Continue Until Complete 36 Trailers / Day
Step 5- Begin Assembly
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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?

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Materials Handling Example
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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.
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Cycle Times and Materials Handling
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
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Cycle Times and Materials Handling
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
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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
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Key Manufacturing Fundamentals

• Four Fundamental Customer Expectations
• Product Quality
• Delivery as scheduled / requested
• Flexibility to handle change and service
• Low

One method to achieve this is by implementing
Lean Manufacturing principles
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Benefits of Lean
Percentage of Benefits Achieved
0 25 50 75 100
Lead Time Reduction
Productivity Increase
WIP Reduction
Quality Improvement
Space Utilization
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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