Material handling is one of the most important ingredients of any production activity and is also regularly implemented all the time. The process ensures that the right material is provided at the right time, at the right place, in the right condition, in the right position and at the right cost, through the right method. Material handling broadly involves picking, moving and lying down of materials until the manufacturing stage. This is applicable in the event of moving raw materials, parts-in-process, finished goods, packaging materials, and dumping of scraps. Basically, several tons of materials are handled on everyday basis that further requires using more manpower, whilst the materials movement takes place from one department to another for processing. The material handling costs account for significant portion of the total manufacturing costs.
In today’s cosmopolitan era, material handling has occupied a crucial place in response to the growing importance for reducing the cost of manufacturing, particularly in those industries, where the material handling cost’s ratio is much greater to the processing cost. A well-designed, integrated material handling system is regarded as an integral component for cost reduction and improvement in customer services.
Material handling is of absolute importance due to several reasons:
- Different studies of the past pertaining to different industries indicated that the handling costs alone accounts for ~20-25% of the entire manufacturing costs, as the result of use of methods and equipment.
- It is generally found that each part component is handled about 50 times, passing through the manufacturing chain. Usually, about 59 tons of materials are handled for every single ton of finished goods.
- Material handling ensures increased safety from permanent and temporary disabilities.
- The methodology reduces claims for damages in parts and materials.
- Material handling in the mechanised way relieves the drudgery for men having had busy with man handling jobs.
Objectives of Material Handling
Material handling is of five prime objectives:
- Reduction in Manufacturing Cost – Material handling involves 50 percent of the total manufacturing cost and an effectual material handling system can only help reduce this cost. The minimization of handling costs also reduces the overall unit costs directly. The known management theories, such as supply chain management, and JIT production, are closely related to material handling.
- Increase in Warehouse Capacity – If the materials have not been stored properly in a warehouse, the facility is majorly wasted that further adds up to the expenditure. Therefore, efficient storage in cubic space as well as floor space is quite necessary. Reduction in aisle space is also equally important to increase the storage space. Nevertheless, in either case, material handling should be effectively used to lessen the warehousing costs of materials.
- Enhancement in Layout for Waste Reduction – An efficient material handling rests on a thorough analysis of the material flow among volumes, operations, flow paths and timing. This further seeks the space requirements to be optimized and travel times to be reduced through effective handling system and equipment. This ensures improved productivity.
- Optimum Utilisation of Equipment – Expensive equipment mostly fail to operate at full capacity because the material handling system does not allow so. For instance, the rate at which materials are removed or supplied could lead to a drop in the equipment performance by just making it stand idle. With an efficient execution and control of a material handling system, the equipment utilisation can also be optimised.
- Increase in Safety – In an organization, safety is and should be of prime concern. Only an efficient material handling system can contribute directly towards the workers’ safety and that of related materials and equipment, leading to reduction in accident costs, material damage, loss of time, and the like.
