Ten Principles for - MHI

1 The Ten Principles ofMaterial HandlingThe Key to Greater Productivity, Customer Service, and ProfitabilityFor Further Information on the MaterialHandling Institute Please Contact or Write:Material Handling Institute8720 Red Oak Blvd., Suite 201 Charlotte, NC 28217-3992 Phone: 704-676-1190 Fax: PRINCIPLEAll material handling should be theresult of a deliberate plan where theneeds, performance objectives and func-tional specification of the proposed meth-ods are completely defined at the : A plan is a prescribed courseof action that is defined in advance ofimplementation. In its simplest form amaterial handing plan defines the mate-rial (what) and the moves (when andwhere); together they define the method(how and who).

2 KEY POINTS: The plan should be developed inconsultation between theplanner(s) and allwho will use and benefit from the equipmentto be in planning large scale materialhandling projects generally requires a teamapproach involving suppliers, consultants whenappropriate, and end user specialists frommanagement, engineering , computer andinformation systems, finance and material handling plan shouldreflect the strategic objectives of the organiza-tion as well as the more immediate plan should document existingmethods and problems, physical and eco-nomic constraints, and future requirementsand plan should promote concurrentengineering of product, process design,process layout, and material handling meth-ods, as opposed to independent and sequentialdesign handling methods.

3 Equip-ment, controls and software shouldbe standardized within the limits of achiev-ing overall performance objectives and with-out sacrificing needed flexibility , modular-ity and of changingfuture requirementsDefinition: Standardization means lessvariety and customization in the methodsand equipment POINTS:The planner should select methods andequipment that can perform a variety of tasksunder a variety of operating conditionsand inStandardization applies to sizes ofcontainers and other load forming componentsas well as operating procedures and , flexibility and modu-larity must not be PRINCIPLEM aterial handling work should beminimized without sacrificing pro-ductivity or the level of service required ofthe : The measure of work ismaterial handling flow (volume, weight orcount per unit of time) multiplied by thedistance POINTS.

4 Simplifying processes by reducing,combining, shortening or eliminating unnec-essary moves will reduce each pickup and set-down, orplacing material in and out of storage, as distinctmoves and components of the distance methods, operation sequences andprocess/equipment layouts should be prepared thatsupport the work minimization possible, gravity should be usedto move materials or to assist in their move-ment while respecting consideration of safetyand the potential for product shortest distance between twopoints is a straight line123 ERGONOMICPRINCIPLEH uman capabilities and limitationsmust be recognized and respected in the de-sign of material handling tasks and equip-ment to ensure safe and effective : Ergonomics is the sciencethat seeks to adapt work or workingconditions to suit the abilities of POINTS:Equipment should be selected thateliminates repetitive and strenuous manuallabor and which effectively interacts withhuman operators and ergonomic principle embraces bothphysical and mental material handling workplace andthe equipment employed to assist in that workmust be designed so they are safe for peopleUNIT LOAD PRINCIPLEUnit loads shall be appropriatelysized and configured in a way whichachieves the material flow and inventory ob-jectives at each stage in the supply.

5 A unit load is one that canbe stored or moved as a single entity atone time, such as a pallet, container ortote, regardless of the number of indi-vidual items that make up the POINTS:Less effort and work is required tocollect and move many individual items as asingle load than to move many items one at size and composition may changeas material and product moves through stages54of manufacturing and the resulting distribu-tion unit loads are common both preand post manufacturing in the form of rawmaterials and finished manufacturing, smaller unitloads, including as few as one item, yield lessin-process inventory and shorter item through-put unit loads are consistent withmanufacturing strategies that embraceoperating objectives such as flexibility.

6 Continuous flow and just-in-time loads composed of a mix ofdifferent items are consistent with just-in-timeand/or customized supply strategies so long asitem selectivity is not UTILIZATIONPRINCIPLEE ffective and efficient use must bemade of all available : Space in material handling isthree dimensional and therefore iscounted as cubic POINTS:In work areas, cluttered and unorga-nized spaces and blocked aisles should storage areas, the objective ofmaximizing storage density must be balancedagainst accessibility and transporting loads within afacility the use of overhead space should beconsidered as an PRINCIPLEM aterial movement and storageactivities should be fully integratedto form a coordinated, operational systemwhich spans receiving, inspection, storage,production, assembly, packaging, unitizing,order selection, shipping, transportation andthe handling of : A system is a collection ofinteracting and/or interdependent entitiesthat form a unified POINTS.

7 Systems integration should encompassthe entire supply chain including reverselogistics. It should include suppliers, manu-facturers, distributors and levels should be minimized atall stages of production and distribution whilerespecting considerations of process variabil-ity and customer flow and physical materialflow should be integrated and treated asconcurrent activitiesMethods should be provided for easilyidentifying materials and products, fordetermining their location and status withinfacilities and within the supply chain and forcontrolling their requirements andregardingregarding quantity, quality, and on-timedelivery should be met without and predictability, regardingquantity, quality, and on-time delivery shouldbe met without POINTS.

8 Pre-existing processes and methodsshould be simplified and/or re-engineeredbefore any efforts at installing mechanized orautomated material handlingsystems should be considered where appropri-ate for effective integration of material flowand information all interface issues as critical tosuccessful automation, including equipment toequipment, equipment to load, equipment tooperator, and control items expected to be handledautomatically must have features that accom-modate mechanized and automated Environmental impact and en-ergy consumption should be considered ascriteria when designing or selecting alter-native equipment and material handling : Environmental consciousnessstems from a desire not to waste naturalresources and to predict and eliminate thepossible negative effects of our dailyactions on the POINTS.

9 Containers, pallets and other productsused to form and protect unit loads should bedesigned for reusability when possible and/orbiodegradability as design should accommodatethe handling of spent dunnage, empty contain-ers and other by-products of material specified as hazardous havespecial needs with regard to spill protection,combustibility and other handling operationsshould be mechanized and/or automatedwhere feasible to improve operational effi-ciency, increase responsiveness, improveconsistency and predictability,789 NOTESNOTESLIFE CYCLE COSTPRINCIPLEA thorough economic analysisshould account for the entire life cycle ofall material handling equipment and result-ing : Life cycle costs include allcash flows that will occur between thetime the first dollar is spent to plan orprocure a new piece of equipment, or toput in place a new method, until thatmethod and/or equipment is POINTS:Life cycle costs include capital invest-ment, installation, setup and equipmentprogramming, training, system testing andacceptance, operating (labor, utilities, etc.)

10 ,maintenance and repair, reuse value, andultimate plan for preventive and predictivemaintenance should be prepared for theequipment, and the estimated cost of mainte-nance and spare parts should be included inthe economic long-range plan for replacement ofthe equipment when it becomes obsoleteshould be measurable cost is a primaryfactor, it is certainly not the only factor inselecting among alternatives. Other factors ofa strategic nature to the organization andwhich form the basis for competition in themarket place should be considered andquantified whenever HANDLING INSTITUTEThe Material Handling Institute is a not-for-profit affiliate of Material Handling Industry of America(MHIA), developing and maintaining extensive educational and training programs for the industry,users and educational institutions.