Chap 011
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CHAPTER 11 Materials Handling, Computerization and Packaging
Materials Handling Equipment - Manual • Racks – Conventional pallet racks – Drive-in racks – Drive-through racks – High-rise racks – Cantilever racks – Pallet stacking frames – Stacking racks – Gravity-flow racks McGraw-Hill/Irwin
11-2 a
• Shelving • Drawers • Mobile racking or shelving
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Materials Handling Equipment Automated • • • • • •
11-3 b 11-2
Unit load AS/RS Car-in-lane Miniload AS/RS Horizontal carousels Vertical carousels Man-ride machines
McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Advantages of Automated Materials Handling Systems
11-4 11-3
• Operating cost savings • Improved service levels • Increased control through more and better information
McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Disadvantages of Automated Materials Handling Systems • Initial capital costs • Downtime of equipment • Maintenance interruptions • Software-related problems • Capacity problems McGraw-Hill/Irwin
11-5 11-4
• Lack of flexibility • Maintenance cost • User interface/ training • Worker acceptance • Obsolescence
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Operational and Implementation Problems with Warehouse Automation Systems Problem Area 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
Percent Mentioning
Cost of equipment/financial justification Downtime or reliability of equipment/maintenance interruptions Software-related problems, such as poor documentation, incompatibility, failure or modification Capacity problems, such as limited applications/integration of equipment into existing system Lack of flexibility to respond to changing environment/not suitable for high degree of seasonality in business Maintenance cost/ maintenance parts User interface/training to operate system/transition from manual to automated procedure Worker acceptance of automation No problems/ we are adapting well Lack of top management commitment Obsolescence/ need more up-to-date automation/ need more automation
McGraw-Hill/Irwin
11-6 11-5
19.0% 10.0 8.0 8.0 6.0 5.0 5.0 4.0 4.0 3.0 3.0
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Warehousing in a JIT Environment
11-7 11-6
• Total commitment to quality • Reduced production lot sizes • Elimination of non-value-added activities
McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Functions of Packaging • Marketing » Information » Promotion
McGraw-Hill/Irwin
11-8 11-7
• Logistics » Containment » Protection » Apportionment » Unitization » Convenience » Communication
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Benefits of Good Packaging
11-9 11-8
• Lighter packaging may save transportation costs. • Careful planning of packaging size/cube may allow better space utilization. • More protective packaging may reduce damage and requirements for special handling. • Environmentally conscious packaging may save disposal costs and improve the company’s image. • Returnable containers provide cost savings and environmental benefits.
McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Technologies of the Modern Warehouse
11-10 11-9
• • • • • •
Warehouse management systems (WMSs) Radio frequency communication and inventory update Bar-code reading and label generation equipment EDI and the Internet Transportation management systems Interface to enterprise requirements planning (ERP) systems • Productivity tracking software • Activity-based costing software
McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
11-11 11-10
Information Flows in the Supply Chain Order (or complaint) information Order/complaint
Supplier
Supplier warehouse
Inbound carrier
Manufacturer
Delivery information
Supplier warehouse
Carrier
Appointment information
Customer
Order information Pickup schedule
Supplier communication Manufacturer communication Warehouse communication Carrier communication Customer communication McGraw-Hill/Irwin
Source: Arnold Maltz, the Changing Role of Warehousing (Oak Brook,IL: Copyright ©Education 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Warehousing and Research Council, 1998), p. 27.
Materials Handling Equipment - Manual • Racks – Conventional pallet racks – Drive-in racks – Drive-through racks – High-rise racks – Cantilever racks – Pallet stacking frames – Stacking racks – Gravity-flow racks McGraw-Hill/Irwin
11-2 a
• Shelving • Drawers • Mobile racking or shelving
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Materials Handling Equipment Automated • • • • • •
11-3 b 11-2
Unit load AS/RS Car-in-lane Miniload AS/RS Horizontal carousels Vertical carousels Man-ride machines
McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Advantages of Automated Materials Handling Systems
11-4 11-3
• Operating cost savings • Improved service levels • Increased control through more and better information
McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Disadvantages of Automated Materials Handling Systems • Initial capital costs • Downtime of equipment • Maintenance interruptions • Software-related problems • Capacity problems McGraw-Hill/Irwin
11-5 11-4
• Lack of flexibility • Maintenance cost • User interface/ training • Worker acceptance • Obsolescence
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Operational and Implementation Problems with Warehouse Automation Systems Problem Area 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
Percent Mentioning
Cost of equipment/financial justification Downtime or reliability of equipment/maintenance interruptions Software-related problems, such as poor documentation, incompatibility, failure or modification Capacity problems, such as limited applications/integration of equipment into existing system Lack of flexibility to respond to changing environment/not suitable for high degree of seasonality in business Maintenance cost/ maintenance parts User interface/training to operate system/transition from manual to automated procedure Worker acceptance of automation No problems/ we are adapting well Lack of top management commitment Obsolescence/ need more up-to-date automation/ need more automation
McGraw-Hill/Irwin
11-6 11-5
19.0% 10.0 8.0 8.0 6.0 5.0 5.0 4.0 4.0 3.0 3.0
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Warehousing in a JIT Environment
11-7 11-6
• Total commitment to quality • Reduced production lot sizes • Elimination of non-value-added activities
McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Functions of Packaging • Marketing » Information » Promotion
McGraw-Hill/Irwin
11-8 11-7
• Logistics » Containment » Protection » Apportionment » Unitization » Convenience » Communication
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Benefits of Good Packaging
11-9 11-8
• Lighter packaging may save transportation costs. • Careful planning of packaging size/cube may allow better space utilization. • More protective packaging may reduce damage and requirements for special handling. • Environmentally conscious packaging may save disposal costs and improve the company’s image. • Returnable containers provide cost savings and environmental benefits.
McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Technologies of the Modern Warehouse
11-10 11-9
• • • • • •
Warehouse management systems (WMSs) Radio frequency communication and inventory update Bar-code reading and label generation equipment EDI and the Internet Transportation management systems Interface to enterprise requirements planning (ERP) systems • Productivity tracking software • Activity-based costing software
McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
11-11 11-10
Information Flows in the Supply Chain Order (or complaint) information Order/complaint
Supplier
Supplier warehouse
Inbound carrier
Manufacturer
Delivery information
Supplier warehouse
Carrier
Appointment information
Customer
Order information Pickup schedule
Supplier communication Manufacturer communication Warehouse communication Carrier communication Customer communication McGraw-Hill/Irwin
Source: Arnold Maltz, the Changing Role of Warehousing (Oak Brook,IL: Copyright ©Education 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Warehousing and Research Council, 1998), p. 27.
