Material Handling

1. Material Handling

2. 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.

3. WAREHOUSE Materials Handling Mistakes A Local Company’s 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

4. WAREHOUSE Materials Handling Mistakes Local Company’s Materials Handling Process- Step 6- Back to the Warehouse Continue Until Complete 36 Trailers / Day Step 5- Begin Assembly

5. 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?”

6. Electric Lift Hoist Fabric Rolls in Excess of 100# Materials Handling Example

7. 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.

8. Range width 30 in. 30 in. Typical Speed = 60 in. / 18 sec = 200 in. / min 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

9. Range width 30 in. 12 in. Typical Speed = 42 in. / 15 sec = 168 in. / min 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

10. 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

11. 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

12. Benefits of Lean Percentage of Benefits Achieved 0 25 50 75 100 Lead Time Reduction Productivity Increase WIP Reduction Quality Improvement Space Utilization

13. 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