The efficiency of material handling could be judged by the following principles: 1. “Equipment built for motion should be kept in motion; idle Equipment should be kept inexpensive”. 2.”Continuous material movement is most economical” This principle states that materials handling efficiency is Greatest when it approaches a steady flow of materials, in as straight as possible, with minimum interpretations and minimum backtracking and where movements approach continues rather than intermittent flow. It is not; always possible, in practice, to completely achieve the objective of this rule. However, it is the target towards which we Aim our thinking. Conveyors systems, both overhead and floor types, are excellent examples of the application of this idea. 3. “Materials’ handling economy is generally directly Continue reading
Materials Management Concepts
Principles of Material Handling
Material Handling is the art of implementing movement of materials-economically and safely. In the classic sense, Material Handling is the act of creating Time and Place utility, as distinct from Manufacturing, which creates form utility. The proper application of Material Handling knowledge will result in the smooth integration of all the process in an enterprise into one efficient Production Machine. The principles presented here represent an accumulation of experience equivalent to untold years of practice. They are adapted from those stated in the literature, with certain changes made for clarification and with several new one added to round out the coverage of the field. In reviewing the principles it will be found that nearly every one applies to several aspects Continue reading
Objectives of Material Handling
Materials handling may be defined as the art and science of movement, handling and storage of materials during different stages of manufacturing considered as material flow into, through and away from the plant. It is in fact, the technique of getting the right goods safely, to the right place, at the right time and at the right cost. All tangible and intangible benefits can be reduced to four major objectives. The application of material handling methods and equipment to be of greatest benefits should be governed by the following: 1) Reduced Costs: Cost-Reduction programs have two broad goals; either to reduce the cost of Material Handling or to reduce total production cost; by improved handling procedures. The latter concept net Continue reading
Concept of Material Handling – Definition and Functions
Material Handling involves the movement of material, manually or mechanically in batches or one item at a time within the plant. The movement may be horizontal, vertical or combination of horizontal or vertical. Material Handling is the movement, storage, control and protection of materials, goods and products throughout the process of manufacturing, distribution, consumption and disposal. The focus is on the methods, mechanical equipment, systems and related controls used to achieve these functions. Briefly, Material Handling is the moving of materials from the raw stage through production to ultimate Customer with the least expenditure of time and effort so as to produce maximum Productive Efficiency at the lowest Material Handling cost. Material Handling is concerned with motion, time, quantity and Continue reading
Recent Trends and Developments in Purchase Management
Many companies are now confronted with diminishing growth opportunities, which results in a situation where an increase in turnover can only be realized at the expense of the competition and only with a great deal of effort. This leads to increased pressure on sales prices and consequently on cost prices and margins, which causes two developments. On the one hand it has resulted in shifts of power between purchasing and selling parties in many markets. Due to the fact that in many cases the market has changed from seller’s market to buyer’s market, the role of the buyer is now more dominant than a number of years ago. On the other hand the increasing pressure on sales prices and margins Continue reading
Vendor Managed Inventory (VMI)
Vendor Managed Inventory (VMI) is a supply chain practice where the inventory is monitored, planned and managed by the vendor on behalf of the consuming organization, based on the expected demand and on previously agreed minimum and maximum inventory levels. In its simplest form, Vendor Managed Inventory is the process where the vendor assumes the task of generating purchase orders to replenish a customer’s inventory. VMI is a term that is used to describe many types of supply chain initiatives. Traditionally, success in supply chain management derives from understanding and managing the trade off between inventory cost and the service level. The Vendor Managed Inventory Approach Vendor Managed Inventory reduces stock-outs and reduces inventory in the supply chain. Some features Continue reading