MATERIAL HANDLING (MHE & OMH)

• Apple (1977) notes that

material handling can account
for up to 80 percent of
production activity.
• Although material movement
does not add value in the
manufacturing process, half of
the company’s operation
costs are material handling
costs (Meyers 1993).“keeping the material handling activity
at a minimum is very important”
 Material Handling Devices (MHDs)

• There are a number of different types of material

handling devices (MHDs), most of which move
materials via material handling paths on the shop floor.

• However, there are some MHDs—such as cranes,

hoists, and overhead conveyors—that utilize the
space above the machines.
Consideration MHDs
weight, size,
space
cost, and volume
availability
of the loads

Integrated
types of
with another
workstations
systems
 Types of MHDS
• There are seven basic types of MHDs (Heragu 2008):
conveyors,
palletizers,
trucks,
robots,
automated guided vehicles,
hoists cranes and jibs,
warehouse material handling devices
 MATERIAL HANDLING EQUIPMENT
• Basic Handling Equipment Types
– Conveyors

conveyors should be considered only when the volume of parts or

material to be transported is large and when the transported
material is relatively uniform in size and shape
 MATERIAL HANDLING EQUIPMENT
• Basic Handling Equipment Types
– Cranes and Hoists
 MATERIAL HANDLING EQUIPMENT
• Basic Handling Equipment Types
– Cranes and Hoists
 MATERIAL HANDLING EQUIPMENT
• Basic Handling Equipment Types
– Industrial Trucks
Trucks are particularly useful
when
• the material moved
varies frequently in size,
shape, and weight
• the volume of the parts
or material moved is low,
• when the number of trips
required for each part is
relatively small
 MATERIAL HANDLING EQUIPMENT

• AGV
• It can be found in
Autonomous Vehicle
Storage and Retrieval
System AVS/RS
 MATERIAL HANDLING EQUIPMENT

• Jibs
 MATERIAL HANDLING EQUIPMENT

• robot
complex repetitive tasks
automatically and they
can work in hazardous
and uncomfortable
environments that a
human operator
cannot work.
 MATERIAL HANDLING EQUIPMENT

• Palletizers
 MATERIAL HANDLING EQUIPMENT

• Warehouse devices
• E.g : scale, trolley
 MATERIAL HANDLING EQUIPMENT
• Equipment is not always required in order to solve a handling
problem
• The equipment selected should:
– Fit into the handling system
– Combine handling with other functions
– Optimize material flow
– Be as simple as is practicable
– Utilize gravity wherever possible
– Require a minimum of space
– Be flexible, adaptable
– etc.
 QUESTION?

• WHICH
MHDs
SHOULD BE
PICKED?
 The Material Handling System Equation

WHY ?

WHAT ? WHERE ? WHEN ? HOW ? WHO ? WHICH ?

MATERIALS + MOVES + METHODS PREFERRED

SYSTEM

Materials + Moves + Methods = Recommended System

 Material Handling Principles
1. Planning Principle
2. Standardization Principle
3. Work Principle
4. Ergonomic Principle
5. Unit Load Principle

6. Space Utilization
7. System Principle
8. Automation Principle
9. Environmental Principle
10. Life Cycle Cost Principle
AGV Example
Material Handling Cost
 Material Handling Cost Estimation

• Total MHC = [Equipment Cost per meter movement x

stations distance x movement frequency per day]
• Equipment Capacity= volume of equipment/volume
material
• Frequency = output (number of product to be
moved/day)/ equipment capacity
 Material Handling Cost Estimation

z=
Where : fij = movement frequency between station i and j
cij = material handling cost per-unit distance
dij = distance between station i and j

Distance between station can be calculated after the position of each

station already determined in production floor. If the sequence of the
station is ABCD, then distance of station A to B is:

Distance A to C =
 Material Handling Cost Estimation

• Equipment Cost per meter movement = (Machine

Cost + Operator Cost) / MHE distance
• MHE Cost = Maintenance cost+ Fuel Cost +
Depreciation
• Depreciation is a reduction in the value of an asset
with the passage of time, due in particular to wear
and tear

Depreciation = Equipment price/economic lifetime x 1 year/

number of work day = Rp / day
 Example
• volume material A 20X15X15cm, while the volume of the
forklift is 120x120x120 cm. Output material A is 300
products/day. while fuel cost is Rp 1.000.000 per month (25
workday, 8 work hour). The mileage of forklift per day is 300
meter.
• The salary for Material Handling Operator is Rp 800.000 per-
month, and there is 25 work days in a month, 8 workhours
perday.
• The price of forklift = 30 million with economic life is 10 years.
• Maintenance cost of the equipment is 500.000 per month.
• Total distance between stations is 200m. Calculate the Total
MHC!
• Equipment capacity= volume equipment/volume material
• C = 120x120x120 cm / 20X15X15cm = 384 unit load
• Frequency = output/ capacity
• = 300/384 = 0,78 ~1
• Fuel Cost = (1.000.000/ 25) = Rp 40.000 /day
• Maintenance Cost = 500.000/25 days = Rp 20.000/day
• Depreciation = 30 million /(10 years x 300days) =Rp
10.000 / day
• Operator cost = 800.000/ 25 days = Rp 32.000 / day
• MHE Cost = Maintenance cost+Depreciation+ Fuel Cost +
• = 20.000 + 10.000 + 40.000 = Rp 70.000 / day
• Equipment Cost per meter movement = Machine Cost + Operator Cost
• = (70.000 / day + Rp 32.000 / day) / 300m = Rp 340 / day / m

Total MHC = [Equipment Cost per meter movement x stations

distance x movement frequency]
= Rp 340/day/m x 200m x 1 = Rp 68.000/day
THANK YOU ☺