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Managing lean manufacturing in material handling operations
Article in International Journal of Production Research · May 2010

DOI: 10.1080/00207540902791819
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James C. Green a; Jim Lee a;Theodore A. Kozman a
a
Engineering Management Program, Department of Mechanical Engineering, University of Louisiana
at Lafayette, Lafayette, LA 70504-2250, USA
First published on: 24 April 2009
To cite this Article Green, James C. , Lee, Jim andKozman, Theodore A.(2010) 'Managing lean manufacturing in material
handling operations', International Journal of Production Research, 48: 10, 2975 — 2993, First published on: 24 April 2009
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Vol. 48, No. 10, 15 May 2010, 2975–2993

James C. Green, Jim Lee* and Theodore A. Kozman
Engineering Management Program, Department of Mechanical Engineering, University of

Louisiana at Lafayette, P.O. Box 44170, Room 244 CLR Hall, Lafayette, LA 70504-2250, USA
(Received 17 July 2007; final version received 8 January 2009)
The problem addressed by this research is to implement lean manufacturing in

a material handling system of a petroleum drill bit manufacturing company. Lean
manufacturing has been mandated by higher level management as a tool to be
used in waste reduction. Operational group must define the objectives of lean
manufacturing and deploy the tools to specific work cells. A methodology that
provides operational group with a tool to assist in defining the objectives of lean
Downloaded By: [Lee, Jim] At: 16:04 26 March 2010
manufacturing is developed. A case study is used to demonstrate the lean

implementation in material handling operations.
Keywords: material handling; lean manufacturing; case study; value stream
mapping; diamond drill bit components
1. Introduction
The proper flow of materials through manufacturing processes allows industries to
generate and maintain a competitive edge. This edge is the ability to meet customer
demand for on time delivery, generating good customer satisfaction. The proper selection
of material handling systems and manufacturing concepts such as lean manufacturing
(Hobbs 2004) help to facilitate increases in productivity. Lean manufacturing is based on
the elimination of waste, both value added and non-value added, from the processes that
are used to produce goods and services (Feld 2001). These lean tools also contribute to
creating a safer and more ergonomic work environment.
Material handling is defined, simply, as moving material. This is the popular
perception that many hold, but in fact material handling includes much more than simply
moving material. For a significant number of manufacturers, material handling can
account for more than one-half of the total cost of manufacturing. The flow, movement,
and storage of materials in the manufacturing processes of firms often require a great deal
of resources, both employees and equipment. Material handling is also regarded as being
a non-value added function that is still necessary for the successful completion of the
manufacturing process and can have a marked affect on the ability of a firm to meet
managerial goals (Myers and Stephens 2000). The cost generated by material handling
systems can be reduced if steps can be taken to improve these systems. Productivity and
the incidence rate of injuries, specifically lost time injuries, can also be improved by
positive changes to material handling systems.
*Corresponding author. Email: jlee@louisiana.edu
ISSN 0020–7543 print/ISSN 1366–588X online

ß 2010 Taylor & Francis
DOI: 10.1080/00207540902791819
http://www.informaworld.com
2976 J.C. Green et al.
The problem addressed by this research is to implement lean manufacturing in

a material handling system of a petroleum drill bit manufacturing company. Lean
manufacturing has been mandated by higher level management as a tool that will be used
to assist in waste reduction. Operational group must define the objectives of lean
manufacturing and deploy the tools to specific work cells. A best practice of lean
manufacturing implementations is to approach the event slowly by implementing in
a single pilot cell and then continue to spread to other areas of the organisation (Wilson
2008). Our case study will be limited to the implementation of the developed methodology
and lean manufacturing principles in a single cell to support the use of this best practice.
A review of lean manufacturing literature related to materials handling is presented in
Section 2 of this paper. Based on the methods and tools available, a methodology is
developed in Section 3 which can be used to implement lean concepts in materials handling
systems. The step by step procedure described in the methodology is then followed by
a case study in Section 4. The performance evaluation of the lean implementation is
summarised in Section 5. Our concluding remarks are presented in Section 6.
2. Lean manufacturing in materials handling

Lean manufacturing is a tool that many companies focus on for continuous improvement
of processes. Long term strategies as well as short term goals of these firms involve
implementation of lean manufacturing to eliminate waste and boost performance.
However, many of these companies only undertake the initial strategic move of defining
lean manufacturing as a philosophy and never provide functional roadmaps to daily
operational teams for the implementation of lean manufacturing. Biddle (2006) indicates
that the time and resources to sustain lean manufacturing are often not provided by top
management to operational teams.
One of the key areas where a sustained lean manufacturing implementation can have
great affects on the performance of a company is material handling. Flinchbaugh (2005)
points out that lean manufacturing applied to material handling should encompass all
available lean manufacturing tools, consist of a complete view of the technique, and not be
an extension or single facet of a lean manufacturing implementation. Management should
look at the problem completely and consider all key concepts and techniques, regardless of
the focus of the lean manufacturing implementation (Cutcher-Gershenfeld 2002).
Five key steps for implementing lean manufacturing to material handling systems are
defined by Harris and Harris (2006). These steps include:
(1) Develop a plan for every part.
(2) Build the purchased parts market.
(3) Design delivery routes.
(4) Implement pull signals.
(5) Continuously improve the system.
While these steps are valid for many material handling systems, they do not provide
a method for determining specific goals for a lean manufacturing implementation into the
material-handling system.
Schieber (1999) approaches the problem of determining a more effective way of
handling stock packaging materials in a food industry firm. The method used to conduct
the study was focused on employee involvement and reducing the occurrence of back
International Journal of Production Research 2977
injuries by manually handling the stock material. Cochran et al. (2000) states that system
design methods must be tied into the objectives of the system, and piece-wise
implementations are ineffective if the overall objectives are not understood. This point
relates directly back to the need of developing a method to define the specific objectives of
a lean manufacturing implementation.
Review of lean literature indicates that no specific methodology for determining
objectives of lean manufacturing in regards to material handling is available. The
significance of developing such a methodology can help operational teams to determine
what exactly they wish to accomplish when implementing any given cell:
. What does the solution need to provide?
. What waste is to be reduced?
. How will the process be affected?
. What metrics should be used to evaluate the results?
3. Methodology
The methodology used to determine objectives of lean manufacturing in a material

handling system of a machine cell involves several steps. These steps begin with
management input to determine the goals of the business unit and the operational group.
A lean manufacturing assessment must be conducted to determine the potential locations
of waste reduction. Development of a lean manufacturing strategy will help determine how
lean manufacturing assists in the overall implementation strategy and how the potential
solutions can be prioritised for selection and implementation.
The definition of objectives for lean manufacturing are determined as a result of the
prioritisation and comparisons of possible solutions and the overall strategy. The
implementation of lean manufacturing tools and solutions development assists in
determining how the implementation of the tools and solutions will fit into the process
and how several concepts can be followed as guidelines to help ensure the success of the
implementation. Finally, the solution is implemented and monitored through selected
metrics to gauge continuous improvement and reinforce objectives and goals of both the
work cell and business unit.
3.1 Management input

Management input includes the objectives of the organisation as defined by higher
management as well as the business objectives of the operational groups and teams. The
primary goal of the operational group is to define the specific tasks, processes, and
resources that will be used in the production unit to meet the business goals defined by
higher management (Stevenson 2002). The key focus, regardless of what tool is
implemented, is meeting the goals of the operational group so that the higher level
goals of the organisation can be reached and customer needs met.
The input of management is very important. This input lays the basis for deployment
of the methodology and affects the development of any possible solutions. Many facets of
the organisation beyond high level production management affect the overall performance
and objectives of the operational groups. Even though these operational groups or plants
report through the higher level production management group, they also take some
direction and input from other functional groups such as human resources, finance and
accounting, technology and research and health, safety and environmental groups.
3.2 Lean assessment

Once the business unit goals of the operational group have been defined, a lean
manufacturing assessment must be undertaken to determine where areas of opportunity
exist for improvement. With material handling being the focus of this research, the lean
manufacturing assessment should focus on the way that materials flow through the
processes of the organisation and how this material flow affects what is expected of the
operational group. The assessment must be done while keeping in mind that the focus of
any lean manufacturing implementation is the removal of waste from the system.
The lean manufacturing assessment can be carried out in a variety of ways. The two
most effective ways of assessing are (1) value stream mapping, looking at the current
process flow and what is desired in the future flow, and (2) analyse the facility layout,
including logistics used to move products in relationship to where the products originate
and their destination. A typical value stream map would look at all steps of the process as
the product moves from one operation to the next, including all the time that the product
would spend in queue, in transport, being worked on, and waiting for set-ups and
administrative work to be completed. When addressing material handling, value stream
mapping and analysis of facility layout must take into account every movement of the
product regardless of the distance or time that it takes to perform the movement.
3.3 Development of lean strategy

The development of a lean manufacturing implementation strategy that is in line with
operational group objectives is very important. The development of this strategy will show
how lean manufacturing tools are tied into business unit objectives and thus lead to the
definition of operational group objectives.
The first step in the development of the strategy is to decide the location of the initial
implementation within the value stream. The area that this decision will point to will be
based on the results of the value stream, the area that has exhibited the most waste, and
management needs, specifically what areas can or cannot be addressed based on capital
requirements or operational importance.
Once the area, or cell, of the initial implementation is identified every occurrence of
material handling in the cell must be reviewed and compared against the objectives of the
operational group. The business objectives of the operational group can consist of such
things as specific productivity or through-put numbers, engineering and safety goals, raw
materials and consumables projections, direct hours, and overtime hours worked versus
those planned. Management must prioritise them and compare them against any possible
solution that is presented to eliminate waste in material handling from the chosen cell.
3.4 Definition of objectives of lean manufacturing

Once the solutions and their affects on the goals have been prioritised, the decision
to move forward with an implementation can be made. The selected solution will have
a set of steps or processes that must be carried out for successful implementation.
The process steps of the solution, their completion, and the series of metrics selected to
measure them are the objectives of lean manufacturing in regards to material handling
systems of the selected cell. These objectives of lean manufacturing are based on the
operational group and what they must accomplish to meet the greater goals.
3.5 Implementation of lean tools and solution development

The selected solution should be developed using all available lean manufacturing
tools. Both the equipment used as well as the process involved in material handling
should be examined to determine the best steps when applying these tools to the area
that has been selected to eliminate waste. It is most beneficial when a holistic approach
is used.
Feld (2001) stresses that there are five primary elements of lean manufacturing and that
these elements cover the full range of issues that surface during an implementation. These
elements and the tools associated with them give the basis of the tools and measurement
techniques that can lead to a successful solution and implementation. Some examples of
tools that can be applied to the solution or used to implement that solution are cell layout,
operational rules, total productive maintenance and 5S. Each of these tools approaches the
lean manufacturing solution and implementation from either the process standpoint, such
as cell layout and operational rules, or from the equipment layout, such as total productive
maintenance and 5S. When combined with effective metrics for material handling, such as
travel distance, space utilisation or productivity, optimal benefits can be gained in the
elimination of waste.
3.6 Solution implementation and monitoring

The implementation of the specific solution must be performed by the individuals who are
responsible for operations in the pilot cell. If these employees do not have responsibility
for making the improvement, then they will feel that they cannot be held accountable for
its success and therefore will have no vested interest in making it work. The team chartered
with the implementation must keep this in mind and to maximise return when assigning
members of the pilot cell who will assist with the implementation.
To monitor the implementation, metrics should be selected carefully. Each metric
selected should not only correspond to the defined goals and objectives but also to the lean
manufacturing tools and solution component used to meet these goals and objectives. The
importance of monitoring the implementation and recording metrics plays into one of the
most important factors of lean manufacturing, continuous improvement. All metrics
should be recorded and charted to show how the solution is progressing. These charted
solutions need to be made available to all employees, especially to those of the work cell
where the implementation is taking place. The best way to show these metrics to all
employees is to post them in the location of the cell.
By posting the metrics in the work cell, several things can be accomplished. The first is
that the employees in the cell can have constant visibility of how the implementation and
solution are affecting their performance and reaching the objectives of the cell. The second
is that confidence is built in the philosophy of lean manufacturing. The third is that all
members of the organisation can see how and when additional efforts may be needed to
continuously improve the effort to reduce waste in the system.
4. Case study
The case study was performed at a manufacturing facility of the industry leader for
petroleum field diamond drill bits for oilfield services industry. The facility is
approximately 15,000 square feet and accommodates roughly 100 direct employees,
support staff, and management. The facility is divided into a series of heat process and
machine tool cells that allows for the production of a variety of product lines.
The industry focus and use of material handling systems is a result of the need to move
parts and components of parts through a variety of manufacturing processes. Material
handling systems in the industry must be able to blend into this mix of machine tools and
heat process cells, giving operators the ability to bring products to market.
In this case study, top management has prescribed that lean manufacturing needs to be
phased in to complement total quality management in defining the culture of the company.
The purpose of the case study was to develop a solution for a material handling problem
by following the steps outlined in the methodology section for lean implementation in
regards to a selected work cell.
4.1 Management input

To begin the study, information was collected from the operational group on specific
business goals of the facility. Discussion was also held on how important material handling
is to the facility and the need to make improvements wherever opportunities exist.
Management did, however, discuss the need for any immediate changes to have minimal
negative affects to production due to the current business environment.
To align with best practices of implementing lean in a pilot cell and with a project that
could result in an ‘easy-win’, it was determined that the material handling needs of a single
cell would be initially addressed. It was also determined that the pilot cell would be chosen
by the following factors: the results of the lean manufacturing assessment, business needs,
and management discretion.
Table 1 displays the information collected from the management on business unit
goals. This table also displays the specific goals of the operational group. These goals will
be instrumental in defining the objectives of lean manufacturing in regard to material
handling during the deployment of the methodology.
Table 1. Business unit and operational group goals.
Operational group goal

Focus Business unit goal (research focus)
Operations Improve overall productivity by 10% Improve productivity by 10%

Maintain on-time-delivery rate Improve cycle time by 5% to ensure OTD
rate maintained
Begin lean manufacturing Implement one lean manufacturing project
implementation
Growth Increase overall capacity by 20% Increase capacity by 25%
Reduce recordable incident rate Reduce recordable incident rate by 25%
Safety Identify and mitigate hand safety risks Reduce hand injury rate by 30%
Address material handling risks Mitigate material handling risks
4.2 Lean assessment

Figure 1 shows the general layout of the crown machine cell and a lean assessment was
arranged for the cell. The lean manufacturing assessment included the first stage of value
stream mapping, creation of a current state map, as well as assessing the opportunities that
exist in the current state map. The current state map outlines the steps of the crown
machining process before any opportunities are addressed and aids in identifying waste in
the process.
The current state map is displayed in Figure 2. It is important to keep in mind that this
current state map is based on material handling in the cell and not the actual operations of
the cell, machining and assembly of drill bit components. For this reason a modified value
stream map was used in place of a conventional value stream map.
Value stream maps can be represented in several ways depending upon the scope of the
project. Tapping et al. (2002) indicate that the value stream map can define activities and
measure times from receiving to finishing of parts; it can define activities that take place
from time of order until cash is received; it can define activities and measure time from
conceiving product to its launch; or it can be geared toward the specific scope of the
project. The basis of the value stream map developed is determined based on the ability to
coordinate lean manufacturing tools to the specific details and scope of the lean
manufacturing projects undertaken.
When the value stream map data is tabulated, it helps to show where changes to the
material handling operations may have an impact on waste reduction. Based on the
information collected in Table 2, process stream A has the greatest opportunity for
improvement. The potential areas for improvement or waste locations in Process Stream A
can be summarised as below:
(1) The reduction of time to transport and place shank components in the inventory
area.
(2) The reduction of handling shanks from inventory area to the crown machine cell.
(3) The reduction of staging time in the crown machine cell.
(4) The reduction of handling time to move the component into the machine to attach
to the crown.
Figure 1. Cell layout.

Figure 2. Material handling value stream map – CM cell (CM, crown machine).
With these potential waste locations identified, the next step is to develop a lean
manufacturing strategy based on business unit objectives to remove waste.
4.3 Development of lean strategy

With the decision made to begin the implementation in the crown machine cell and with
the areas of opportunity identified, the methodology leads to developing the lean
manufacturing strategy. The lean manufacturing strategy was developed by reviewing
business unit goals and comparing the potential opportunities to these goals. From the list
of goals for the research location listed in Table 1, the following truncated goals were
selected for the comparison:
(1) Improvements to productivity.
(2) Improvements to cycle times.
Table 2. Value stream map data – current state map.
Process
stream Process step Handling time Queue time Opportunity Comments
A Shank materials arrive to inventory

120 minutes Yes
A Travel to inventory area for storage 30 min/week (15 min 2 deliveries per week)
60 minutes Yes
A Shank storage 180 min/week (90 2 times per week) Yes
1 day
A Travel to crown machine cell as needed 490 min/week (7 min 70 parts) Yes
25 minutes Yes
A Part moved into machine for assembly 350 min/week (5 min 70 parts) Yes
to bit crown
B Bit crown – furnace operation
180 minutes Process
controlled
B Travel to crown machine cell for staging 420 min/week (6 min 70 parts)
25 minutes
B Loaded into machine for processing 280 min/week (4 min 70 parts)
2983
Table 3. Solution comparison.
Business goals
Waste Total impact

Solution location Affected A B C D factor
1. Move location of shank inventory 1 Y Y N N N 1

2 Y Y Y Y Y 4
3 Y Y Y Y N 3
4 N N N N N 0
8
2. Change the process of staging shanks 1 Y Y Y Y Y 4
in the crown machine cell 2 Y Y Y Y Y 4
3 Y Y Y Y Y 4
4 N N N N N 0
12
3. Change the way shanks are delivered 1 Y Y Y Y Y 4
and handled in the crown machine cell 2 Y Y Y Y Y 4
3 Y Y Y Y Y 4
4 Y Y N Y Y 3
15
4. Incorporate new lifting and handling 1 N N N N N 0
devices to attach shank to the crown 2 N N N N N 0
3 N N N N N 0
4 Y N Y Y Y 3
3
5. Change the way that shanks are staged 1 Y Y Y Y Y 4
in the crown machine cell 2 Y Y Y Y Y 4
3 Y Y Y Y Y 4
4 Y Y Y Y Y 4
16
Waste locations: (1) the reduction of time to transport and place shank components in the inventory
area. (2) The reduction of handling shanks from the inventory area to the crown machine cell.
(3) Reduction of staging time in the crown machine cell. (4) Reduction of handling time to move the
component into the machine to attach to the crown. Business goals: (A) improve productivity;
(B) improve cycle time; (C) reduce recordable incident rate; (D) reduce hand injuries.
(3) Reduction in recordable incident rate.

(4) Reduction in hand injuries.
The goals of increasing capacity and mitigating a material handling risk were not used
for the comparison. The main reason for this is that because by the nature of this research
the result of any solution will be the implementation of a lean manufacturing project that
will identify and mitigate material handling risks. A second reason is that addition of
resources, such as machines and personnel, is not within the scope of this research.
Therefore, any gains made from a solution will be potential productivity increases,
through-put increases and safety improvements. The research will not focus on gains that
result from adding resources that will have a direct affect on increasing capacity.
The waste locations used in the comparison were those defined through the
value stream analysis. These areas of potential opportunity are included in Table 3,
which displays the comparison. Several generalised solutions for the areas of opportunity
were generated. Each solution was compared for its possible affect on the areas of
opportunity and on the goals of the research location.
The results reported in Table 3 display the areas of opportunity that can be addressed
that will have the greatest impact on meeting managerial goals. These results show the best
potential solution for meeting the requirements of management and also give the general
idea behind any future development of specific solutions.
In examining the potential solution ideas, it is evident that only three unique solutions
have been presented. Solutions 2, 3, and 5 can be combined into the more general potential
solution of ‘Improving shank handling within the crown machine cell’. Table 3 also shows
that these three solutions individually have a greater total impact factor than either of the
other unique potential solutions.
4.4 Definition of objectives of lean manufacturing

Several general solutions were developed that have the potential of addressing the
identified waste locations and meet business goals. Based on the potential solutions listed
in Table 3 and the description of the potential solutions, the following prioritisation was
made:
(1) Improving shank handling and staging within the crown machine cell.
(2) Move location of shank inventory.
(3) Incorporate new lifting and handling devices to attach the shank to the crown.
The prioritisation list provides the priority that lean manufacturing project solutions
should be implemented in the cell. The prioritisation list along with the information
gathered from the comparison, waste locations, and company goals can be used to clearly
define what the objectives of lean manufacturing are in application to material handling
in the crown machine cell.
The top three objectives of lean manufacturing in regards to material handling for the
crown machine cell are:
(1) Develop and implement a solution for improved shank handling and staging in the
crown machine cell.
(2) Reduce the potential for recordable injuries, specifically hand injuries, through
implementing the developed solution for improved storage of shank components in
the crown machine cell by reducing manual handling of the shanks and improving
the ease in which shanks can be identified and retrieved.
(3) Increase the productivity and through-put of cell operators through implementing
a staging device and procedure that will create a Kanban system for operators so
parts can be pulled through the cell.
These priorities call for the development of an improved staging system and
procedure to use in eliminating waste from the material handling system of the crown
machine cell.
Several lean manufacturing tools were used to assist in the development of a storage
device that could place the components for ease of use and conform to reducing the space
demands that the previous method of staging shanks in the cell required. The primary lean
manufacturing tools that were used to develop the staging device and the specifications for
placement and use in the crown machine were centred on the five primary elements of lean
Table 4. Lean manufacturing tools used to develop solution.
Primary element Tool Usage
Manufacturing Process mapping Provide a comparison between the current state and the
flow future state once the solution is implemented. This
tool will assist in gathering metrics for plotting
process improvement.
Metrics Space utilisation Optimise available space and show improvement by
comparing current space with space needed and used
for new system.
Travel distance Offer a metric to use for determining if the exposure to
handling parts has reduced for the goals of minimis-
ing recordable hand injuries and improving
productivity.
Process control Visual control Compare visual signals to determine if the new system
utilises visual cues that signal the need for re-supply
of parts that improve upon current methods.
5S housekeeping Implement 5S to reduce clutter in the cell and improve
cell cleanliness reducing hazards that can lead to
injury.
Organisation Training Cell operators must be trained to properly utilise the

new system with the specifications outlined by the
lean implementation
Communication plan Clear communications must exist between management,
cell operators and inventory personnel. This will
allow for the clear flow of information for the
purpose of reporting results, issues and needs.
Roles and responsibilities All personnel involved must know exactly what their
duties and functions are and how they should be
carried out.
Logistics Kanban pull system A pull system can be utilised for the purpose of moving
inventory through the cell instead of having parts
pushed in before they are prepared for processing
Operational rules Clear rules on the operations of the cell must be put in
place. This will ensure that operators, regardless of
shift, know exactly what it is they are expected to do
and conversely inventory personnel and management
know exactly how they must support.
manufacturing defined by Feld (2001). Table 4 displays the five elements and the tools
selected for use from each element. They can be used as a baseline for development of
a handling and staging system that can mitigate material handling issues in the crown
machine cell.
4.5 Implementation of lean tools and solution development

The first project selected to implement was to develop a device that would restructure the
way that shanks were stocked when needed at point of use. The project called for the
development and fabrication of a device that could store shanks vertically, holding
a maximum number of parts safely. A vertical storage arrangement would allow for
optimised space utilisation. The device would also allow the operator to retrieve parts
Figure 3. Proposed staging device.
based on size while keeping to the lean manufacturing concept of point of use, having
everything needed within 30 seconds or 10 steps. The solution also needed to
accommodate safety requirements as well as reinventing the method used for handling
and staging shank components in the crown machine cell. To complement the
implementation of the new staging device, a parts flow plan was created to ensure
smooth flow of materials from inventory and receiving to the staging location.
Figure 3 displays a conceptual drawing of the device. The device was designed to
support the storage of 46 shanks. Each level of storage was designed for various sized
shanks. The top level was designed to support shank sizes 1½ to 4½ inches (38 mm to
115 mm), the middle levels were designed for shank sizes 4½ to 7 f inches (115 mm
to 200 mm) (the most common sizes), and the bottom level was designed for sizes 7 f
to 9 inches (200 mm to 228 mm). Placing the shanks in this manner ensures that the
operator will not have to manipulate the larger parts from high positions. This creates
a more ergonomic location where only small parts, 30 lb (13.5 kg) or less, are handled from
the higher storage positions and the larger heavier shanks are stored lower allowing
for crane rigging or lifting using the legs.
The base was designed at 30 inches (762 mm) square with the top level 52 inches
(1320 mm) above the base and each level approximately 10 inches (254 mm) below the
preceding. Storage arms were approximately 11 inches (279 mm) long spaced 36 degrees
apart and at a 30 degree angle from the base. Each level was designed for 360 degree
rotation. Rotation of each level gives the operator the ability to handle shanks that are
staged at any location on the device from one location in as near a proximity to the
machining controls as possible considering safety and space constraints.
The main thought in the development of the device was the use of the lean
manufacturing tools selected from Table 4. The device was designed vertically to maximise
space utilisation and enable it to be placed as closely as possible to the operator’s control
unit on the NC lathe used in the cell. Each row was configured to hold a specific number of
parts, with the entire device holding enough parts to supply the cell for approximately 3 to
4 days. This would allow for restocking, on average, twice a week, unless customer
demand of specific completed bits forced parts lower in the order queue to be elevated.
This visual cue system that provides specific locations for parts to be stored and pulled as
needed creates a Kanban pull system.
Tiered rows and storing parts by size also provides a visual signal that the operator
can use to determine when the restock needs to occur or if certain sizes that will be
needed have been stocked when required. The implementation of the project provided
the opportunity for the cell to also undergo a rearrangement that could be performed
based on lean manufacturing’s 5S theory. Altering the shank staging method to prevent
the parts from being stored on flat surfaces and on the floor removed a potentially
hazardous situation, which coincides with a portion of this theory. The opportunity to
clean and sort through other cell tools and work spaces fell naturally in line with the
implementation supporting the 5S concept and lean manufacturing project
implementation.
A plan was put in place to train operators once the device was implemented. All
operators, inventory personnel, and management must be fully aware of best practices
when using the device and when manipulating to load or unload the device. To reinforce
the implementation and training, all employees involved must have clear communications
to keep materials flow moving as required. All employees must have clear knowledge of
what their respective roles and responsibilities are based on operational rules of the cell.
To support the creation, a materials flow plan was put in place during the
implementation. The purpose of the materials flow plan was to minimise the amount of
movement out of the cell that operators had to make to retrieve shanks stored in inventory
or not yet moved to inventory from shipping and receiving. Inventory personnel would be
responsible for placing shanks on the device in the cell, placing any excess parts in the
inventory area to use at the next restocking. It would then be the cell operators’
responsibility to inform inventory personnel of any rapid reduction in stock levels so an
accelerated restock could occur. Cell operators also had the responsibility of informing
management of such events so adjustments could be made to supply levels from vendors or
scheduling to maintain process output.
4.6 Solution implementation and monitoring

All necessary engineering and production drafting was performed for the device and
submitted for quote proposal. Once proposals were returned the best overall solution,
Figure 4. Layout after lean implementation.

a mix of delivery and cost, was chosen and the device was ordered. While waiting for the
device to arrive, all necessary arrangements were made in the cell for installation.
Cell operators were consulted and brought in for a training session in just-in-time with
Kanban pull system and 5S. Cell operators, inventory personnel, and management were
brought together and given explanations and training on how the implementation would
take place and their specific roles and responsibilities. After the initial training cell
operators were coached on how to perform the 5S on the cell with the knowledge that any
necessary support from management would be provided.
Once the device arrived, the 5S exercise had been completed and the installation could
occur. The device was put into place and anchored, stocked with initial parts from
inventory, and placed into service. A brief ‘break-in’ period was allowed for operators,
inventory personnel, and management to become accustomed to the new method of shank
handling and staging in the crown machine cell. Once this ‘break-in’ period was over,
monitoring of key metrics began and a new value stream map created for material
handling in the cell.
The new device was placed in a more strategic location to work in accordance with the
5S exercise performed by the cell operators. The new cell layout is displayed in Figure 4.
The device prevented parts from being stored on the floor and on flat work spaces such
as tables and carts which occupied an enormous amount of space in the cell. The device
put one half weeks worth of shanks in a space 36 inches 36 inches (912 mm 912 mm)
compared with the 30 inches 48 inches (762 mm 1200 mm) work table, two carts
measuring 28 inches 30 inches (712 mm 762 mm) and an area on the floor approxi-
mately 36 inches 36 inches (912 mm 912 mm). Saving this space allowed for easier
passage through the cell and a safer work environment. The new value stream map, or
future state map, is displayed in Figure 5.
5. Performance evaluation
The top three objectives of lean manufacturing in regards to material handling in the
crown machine cell were compared with the metrics that were captured to weigh the
Figure 5. Future state value stream map – CM cell (CM, crown machine).
impact of the implementation of the solution. Table 5 displays the comparison of the
future state map performed after the implementation and the current state map created
before the implementation. As seen from the table, several improvements were made.
The first objective was to develop and implement a solution for improved shank
handling and staging in the crown machine cell. The shank staging device was developed to
facilitate meeting this objective. The device was designed specifically to accommodate the
geometry of the shank allowing for ease of loading as well as ease of shank selection and
retrieval without increasing the time needed to perform these tasks.
Table 5. Comparison of current state and future state maps.
Process stream Process step Current step Future state map Variance
A Shank materials arrive to inventory

Queue time 120 minutes 30 minutes 90 minutes
Travel to inventory area for storage 30 minutes 30 minutes
Travel to crown machine cell for staging 30 minutes (30 minutes)
Queue time 60 minutes 60 minutes
Shank storage 180 minutes 180 minutes
Shank staging 80 minutes (80 minutes)
Queue time 1 day 1 day None
Travel to crown machine cell as needed 490 minutes 490 minutes
Queue time 25 minutes 25 minutes
Parts moved into machine for assembly to bit crown 350 minutes 210 minutes 140 minutes
Place excess shanks in inventory area 40 minutes (40 minutes)
Total time variance 865 minutes
2991
The second objective was to reduce the potential for recordable injuries by reducing
manual handling of shanks through improved methods to identify and retrieve the
parts from staging. A key metric that can be used to determine exposure time to
handling parts is the amount of time that the parts spend in transit, either during
transfer between work locations or during processing. It is clear from Table 5 that the
implementation of the solution had a marked affect on handling times. The handling
time from inventory to assembly was approximately 1020 minutes per week as
compared to 330 minutes per week.
The third objective of increasing productivity and through-put of the cell can be
measured in a similar way to that of reducing exposure to potential incident. As can be
seen in Table 5, the operations after the implementation of the device saved approximately
865 minutes per week, or 14.4 hours. If conservatively averaged at 14 hours per week
across the entire year of continuous operation, 50 weeks of production time, this adds up
to a time saving of 700 hours.
This is a substantial waste reduction and can be shifted either to improved productivity
or labour cost savings. If this saving is used to affect productivity, the facility can
transform 700 hours into additional throughput. An example is if it takes 50 hours to
produce a completed part, then an additional 14 parts per year can be produced. If the
savings are taken as a direct cost reduction, then if labour rates were charged, for example,
at $30 per hour, a saving of $21,000 could occur. These examples give an idea of how using
the methodology to develop a solution that defines management’s objectives and offers
a way to meet those objectives can positively affect the reduction of waste in the process of
material handling.
6. Conclusions
The manufacturing environment has had many tools available for the act of process
improvement. Lean manufacturing has proved to be one of the most successful tools that
manufacturing facilities can employ. However, this tool is often mandated by higher level
management as a way to reduce waste from manufacturing systems without a specific road
map to carry this out on a case by case basis. Providing this road map is the responsibility
of operational units.
A methodology was developed using several lean manufacturing concepts and the
material handling issues identified through assessing the cell selected for the implementa-
tion. Once the methodology was developed, it was applied to a case study at a leading
manufacturing facility of the drill bit manufacturer. Specific objectives of lean
manufacturing were defined through careful use of the methodology and potential
solution concepts identified.
A specific solution was developed from the process of implementing the project
using many lean manufacturing tools. Key metrics were determined and monitored.
It was clear that the solution provided a method by which to eliminate a great deal of
waste from the material handling system. Due to this, the solution was carried to other
facilities with cells that performed the same or similar processes. By providing
a methodology for management to determine and meet goals, operational groups
can move toward providing road maps for the implementation of lean manufacturing
projects.
References
Biddle, J., 2006. Lean talk doesn’t equal lean walk. Manufacturing Business Technology, April, 36.
Cochran, D.S., Linck, J., Mauderer, M., and Reinhart, G. 2000. Decision support for manufacturing
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systems, 28–30 June, Cambridge, MA. Available from: http://sysdesign.org/pdf/paper03.pdf
[Accessed 31 May 2008].
Cutcher-Gershenfeld, J., 2002. Lean transformation in the US aerospace industry: appreciating
interdependent social and technical systems. Cambridge, MA: Center for Technology, Policy
and Industrial Development, MIT.
Feld, W.M., 2001. Lean manufacturing: tools, techniques, and how to use them. Boca Raton, FL:
St. Lucie Press.
Flinchbaugh, J.W., 2005. Lean material management [online]. Material Handling Management
Online, April 2005. Available from: http://www.mjmonline.com/viewStory.asp?nID¼3978
&;ID¼20910.html [Accessed 15 May 2008].
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cgi-bin/get-newsletter.pl?Lean&20040309&4.html [Accessed 16 May 2006].
Hobbs, D.P., 2004. LEAN manufacturing implementation: a complete execution manual for any size
manufacturer. New York: J. Ross Publishing.
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Managing lean manufacturing in material handling operations

Article in International Journal of Production Research · May 2010

James C. Green Jim Lee

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Managing lean manufacturing in material handling operations

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Managing lean manufacturing in material handling operations

Engineering Management Program, Department of Mechanical Engineering, University of

The problem addressed by this research is to implement lean manufacturing in

manufacturing is developed. A case study is used to demonstrate the lean

*Corresponding author. Email: jlee@louisiana.edu

ISSN 0020–7543 print/ISSN 1366–588X online

The problem addressed by this research is to implement lean manufacturing in

2. Lean manufacturing in materials handling

The methodology used to determine objectives of lean manufacturing in a material

3.1 Management input

3.2 Lean assessment

3.3 Development of lean strategy

3.4 Definition of objectives of lean manufacturing

3.5 Implementation of lean tools and solution development

3.6 Solution implementation and monitoring

4.1 Management input

Table 1. Business unit and operational group goals.

Operational group goal

Operations Improve overall productivity by 10% Improve productivity by 10%

4.2 Lean assessment

Figure 1. Cell layout.

4.3 Development of lean strategy

Table 2. Value stream map data – current state map.

A Shank materials arrive to inventory

Table 3. Solution comparison.

Waste Total impact

1. Move location of shank inventory 1 Y Y N N N 1

(3) Reduction in recordable incident rate.

4.4 Definition of objectives of lean manufacturing

Table 4. Lean manufacturing tools used to develop solution.

Primary element Tool Usage

Organisation Training Cell operators must be trained to properly utilise the

4.5 Implementation of lean tools and solution development

Figure 3. Proposed staging device.

4.6 Solution implementation and monitoring

Figure 4. Layout after lean implementation.

Table 5. Comparison of current state and future state maps.

A Shank materials arrive to inventory

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