Warehousing Material

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Warehousing

Meaning of Warehousing

We need different types of goods in our day-to-day life. We may buy some of these itemsin bulk and store them in our house. Similarly, businessmen also need a variety of goods for their

use. Some of them may not be available all the time. But, they need those items throughout the

year without any break. Take the example of a sugar factory. It needs sugarcane as raw material

for production of sugar. You know that sugarcane is produced during a particular period of the

year. Since sugar production takes place throughout the year, there is a need to supply sugarcane

continuously. But how is it possible? Here storage of sugarcane in sufficient quantity is required.

Again, after production of sugar it requires some time for sale

or distribution. Thus, the need for storage arises both for raw material as well as finished

products. Storage involves proper arrangement for preserving goods from the time of their

production or purchase till the actual use. When this storage is done on a large scale and in a

specified manner it is called warehousing. The place where goods are kept is called

warehouse. The person in-charge of warehouse is called warehouse-keeper.

Warehousing refers to the activities involving storage of goods on a large-scale in a

systematic and orderly manner and making them available conveniently when needed. In other

words, warehousing means holding or preserving goods in huge quantities from the time of their

purchase or production till their actual use or sale.Warehousing is one of the important

auxiliaries to trade. It creates time utility by bridging the time gap between production and

consumption of goods

Need for Warehousing

Warehousing is necessary due the following reasons.

(i) Seasonal Production- You know that agricultural commodities are harvested during certain

seasons, but their consumption or use takes place throughout the year. Therefore, there is a need

for proper storage or warehousing for these commodities, from where they can be supplied as

and when required.

(ii) Seasonal Demand-There are certain goods, which are demanded seasonally, like

woollen garments in winters or umbrellas in the rainy season. The production of thesegoods takes place throughout the year to meet the seasonal demand. So there is a need to

store these goods in a warehouse to make them available at the time of need.

(iii) Large-scale Production -In case of manufactured goods,now a-days production takes

place to meet the existing as well as future demand of the products. Manufacturers also

produce goods in huge quantity to enjoy the benefits of large-scale production, which is

more economical. So the finished products, which are produced on a large scale, need to be

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stored properly till they are cleared by sales.

(iv) Quick Supply -Both industrial as well as agricultural goods are produced at some specific

places but consumed throughout the country. Therefore, it is essential to stock these goods near

the place of consumption, so that without making any delay these goods are made available to

the consumers at the time of their need.

(v) Continuous Production- Continuous production of goods in factories requires adequate

supply of raw materials. So there is a need to keep sufficient quantity of stock of raw material in

the warehouse to ensure continuous production.

(vi) Price Stabilization-To maintain a reasonable level of the price of the goods in the market

there is a need to keep sufficient stock in the warehouses. Scarcity in supply of goods may

increase their price in the market. Again, excess production and supply may also lead to fall in

prices of the product. By maintaining a balance of supply of goods, warehousing leads to price

stabilization.

Functions of Warehouses

You have learnt that warehouses preserve goods on a large-scale in a systematic and orderly manner.

They provide protection to goods against heat, wind, storm, moisture, etc. and also cut down losses due

to spoilage, wastage etc. This is the basic function of every

warehouse. In addition to this, warehouses now a days also perform a variety of other functions. In this

section let us learn about the various functions of warehouses. We shall now discuss each of these

functions.

Warehouses perform the following functions-

i. Storage of goods

ii. Protection of goods

iii. Risk bearing

iv. Financing

v. Processing

vi. Grading and branding

vii. Transportation

i.Storage of goods- The basic function of warehouses is to store large stock of goods.These

goods are stored from the time of their production or purchase till their consumption or use.

ii.Protection of goods- A warehouse provides protection to goods from loss or damage due to

heat, dust, wind and moisture, etc. It makes special arrangements for different products

according to their nature. It cuts down losses due to spoilage and wastage during storage.

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iii.Risk bearing - Warehouses take over the risks incidental to storage of goods. Once goods are

handed over to the warehouse-keeper for storage, the responsibility of these goods passes on to

the warehouse-keeper. Thus, the risk of loss or damage to goods in storage is borne by the

warehouse keeper. Since it is bound to return the goods in good condition, the warehouse

becomes responsible for any loss, theft or damage, etc. Thus, it takes all precautions to prevent

any mishap.

iv.Financing- When goods are deposited in any warehouse, the depositor gets a receipt, which

acts as a proof about the deposit of goods. The warehouses can also issue a document in favour

of the owner of the goods, which is called warehouse-keepers warrant. This warrant is a

document of title and can be transferred by simple endorsement and delivery. So while the goods

are in custody of the warehouse-keeper, the businessmen can obtain loans from banks and other

financial institutions keeping this warrant as security. In some cases, warehouses also give

advances of money to the depositors for a short period keeping their goods as security.

v.Processing - Certain commodities are not consumed in the form they are produced. Processingis required to make them consumable. For example, paddy is polished, timber is seasoned, and

fruits are ripened, etc. Sometimes warehouses also undertake these activities on behalf of the

owners.

vi.Grading and branding- On request warehouses also perform the functions of grading and

branding of goods on behalf of the manufacturer, wholesaler or the importer of goods. It also

provides facilities for mixing, blending and packaging of goods for the convenience of handling

and sale.

vii.Transportation- In some cases warehouses provide transport arrangement to the bulkdepositors. It collects goods from the place of production and also sends goodsto the place of

delivery on request of the depositors.

Types of Warehouses

After getting an idea about the need for warehousing, let us identify the different types of

warehouses. You have learnt that warehousing caters to the storage needs of different types of

commodities. In order to meet their requirement various types of warehouses came into

existence, which may be classified as follows.

i. Private Warehouses

ii. Public Warehouses

iii. Government Warehouses

iv. Bonded Warehouses

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v. Co-operative Warehouses

i. Private Warehouses - The warehouses which are owned and managed by the manufacturers

or traders to store, exclusively, their own stock of goods are known as private warehouses.

Generally these warehouses are constructed by the farmers near their fields, by wholesalers andretailers near their business centres and by manufacturers near their factories. The design and the

facilities provided therein are according to the nature of products to be stored.

ii. Public Warehouses - The warehouses which are run to store goods of the general public are

known as public warehouses. Any one can store his goods in these warehouses on payment of

rent. An individual, a partnership firm or a company may own these warehouses. To start such

warehouses a licence from the government is required. The government also regulates the

functions and operations of these warehouses. Mostly these warehouses are used by

manufacturers, wholesalers, exporters, importers, government agencies, etc.

iii. Government Warehouses -These warehouses are owned, managed and controlled by central

or state governments or public corporations or local authorities. Both government and private

enterprises may use these warehouses to store their goods. Central Warehousing Corporation of

India, State Warehousing Corporation and Food Corporation of India are examples of agencies

maintaining government warehouses.

iv. Bonded Warehouses - These warehouses are owned, managed and controlled by government

as well as private agencies. Private bonded warehouses have to obtain licence from the

government. Bonded warehouses are used to store imported goods for which import duty is yet

to be paid. Incase of imported goods the importers are not allowed to take away the goods fromthe ports till such duty is paid. These warehouses are generally owned by dock authorities and

found near the ports.

v. Co-operative Warehouses - These warehouses are owned, managed and controlled by co-

operative societies. They provide warehousing facilities at the most economical rates to the

members of their society.

Site Selection:

Selecting the correct site is crucial to the success of a new development and it is importance that

as many project criteria are satisfied as possible. Here are a couple of points to consider when

making your decision.

* Evaluating Specific Land Parcels--Avoid buying land that is not ready for immediate

development. Obtaining zoning changes or variances and conditional use permit or installing

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major off-site infrastructure improvements tend to require more time and capital than most

wholesalers have available.

It is especially important that water, gas, electricity, telephone, and sewer services with

appropriate capacities be available for the office/distribution facility. The site should be

relatively flat to accommodate the large pads that are needed and should have a minimal amountof ledge rock, groundwater, or peat with soil ground.

* Finding and Acquiring the Site--Real estate brokers specializing in industrial properties are the

best source for potential sites. Wholesalers should first narrow down their target area and then

work with brokers familiar with the area to obtain information on sites listed and those that may

not currently be on the market.

Site acquisition generally takes place in three stages

1. A free look period

2. A period during which earnest money is forfeitable

3. Closing

Rushing into a purchase to find out later that the site has major issues may be too high of a price

to pay to win the property.

** Engineering Feasibility--Preliminary engineering investigations are an integral part of site

selection. Perhaps the most significant aspects of this process are:

** Preliminary site plan including grading, retaining walls and utilities

** Geotechnical investigation with recommendations for foundation, slab, and pavement design

** Government approval process

** Zoning restrictions determine the size and placement of the structures that can be build on a

given site.

Typical zoning requirements include:

** Front, side and rear setbacks

** Height restrictions

** Access requirements

** Parking ratios

** Parking and loading design

** Landscape requirements and screening regulations

** Maximum F.A.R. (floor area ratio)

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** Development and impact fees

** Covenants, Conditions and Restrictions--Covenants, Conditions and Restrictions (CC&Rs)

are private land use controls and standards commonly used for business parks. They supplement

municipal regulations such as zoning and subdivision controls and apply to virtually every aspect

of an industrial park development including site coverage, architectural design, buildingmaterials, parking requirements, signage and landscaping.

Layout design:

The layout of a warehouse may need to be changed to accommodate new product

lines or to add greater flexibility to the warehouse operations. When a new

warehouse layout is proposed a detailed planning process should be followed to

ensure the success of the project. The planning process should include the following

six steps.

Define Objectives

Collect Information

Analysis

Create Plan

Implementation

Post Implementation

Define Objectives: When deciding on the layout for a warehouse, the objectives should clearly

be defined. The objectives should be aligned with the overall warehousing strategy of the

company. Objectives can be defined at a high level such as to reduce warehousing costs or toprovide maximum customer service. Equally the objectives can be more specific, such as

maximizing warehousing space, provide maximum flexibility in the warehouse or to increase

warehousing efficiency without increasing resources.

Collect Information: The specific information of the proposed warehouse should be collected.

This includes the specifications of the warehouse from the architectural drawings that can affect

storage and material handling. The details should include a physical map of the warehouse space

to show columns, doors, height restrictions, docks and storage racks. External features that can

affect the receiving, storage and shipment of materials should also be noted.

Analysis: After the specific information about the warehouse has been collected the analysis can

commence with respect to the objectives that have been defined for the warehouse layout. The

analysis should determine if the overall objectives can be met and if not how the objectives can

be modified. At this point in the planning process decisions need to be made by warehouse

management to determine what actions need to be taken if the overall objectives cannot be met

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or will need substantial changes. If the objectives can be met based on the analysis of the

information, the detailed implementation plan can be created.

Create Plan: The detailed implementation plan should show all the steps that are required to

create the warehouse layout. The objectives and the analysis of the information gathered should

be used in creating the plan. The plan should first be at a high level showing the major tasks and

then each of those should be sub-divided into the individual tasks that are required. Each task

should be reviewed and an allocated the appropriate resources, as the allocation of estimated

time required to complete the task. The plan should indicate when a task is required to start and

finish based on the availability of resources, either internal or outside contractors, or if it is

dependent on another task. The plan should be checked to ensure that all dependencies have been

correctly linked. Once the plan has been created it should be checked to see if the timeline is

attainable and if there are enough resources are available.

Implementation: Sometimes the warehouse layout that is implemented is not the one that is inthe plan. This can occur due to unrealistic timelines in the plan, lack of resources, unavailability

of outside contractors or poor analysis of the information that was gathered. To ensure that the

plan for the warehouse layout is achieved the implementation should be timed so that there is

little or no movements of materials in the warehouse. An ideal time for this would be during a

plant shutdown or at a weekend, if the implementation was of a smaller size. However in modern

warehouses, this is not always possible so often additional warehouse resources are needed to

keep shipping products during the implementation. If this is the case then this will need to be

factored into the plan. The implementation should ensure that all changes made in the warehouse

are replicated in the warehouse management system that is operated so that each item can be

found. A physical inventory of the products in the warehouse after implementation should be

carried out to ensure that the system accurately reflects the warehouse.

Post Implementation: After the layout has been implemented, there should be a series of checks

to ensure that the layout is exactly as defined by the approved drawings. Every item should be

stored according to the overall plan and this should be checked to ensure the layout is correct. If

there are errors, this could lead to picking errors or lost material within the warehouse. Shipping

could be disrupted if the warehouse systems have not been updated accurately with the correct

layout information or if items have been stored in the wrong locations. For a period of time after

the new layout has been implemented, regular checks should be made to ensure that the layout isworking and that there are no operational problems that have occurred due to the new layout.

Ware house costing:

Warehousing costs are levied by the warehouse owners and are an unavoidable expense for the

companies that use the space. The owners should be conversant with the applicable charges. In

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years to come, users will find it increasingly mandatory to implement nearline storage, to reduce

their data warehousing costs and make data analysis more efficient and effective.

As the warehouses grow in number and provide more services, determining the cost of the

company gets more difficult. Basic costs need to be understood, even if there is a third party

involved. There are generally three types of expenses involved and they should be understood,while calculating the costs.

Overhead Cost: This consists of the cost of space per cubic square foot. It may further include

rent or mortgage, property taxes and utilities. General Overhead Costs also comprise of the cost

of racks, tables and other equipment used in staging areas. They include the cost of various

security devices, as well as the cost of material handling equipment, depreciation and document

destruction services, if necessary and the cost of repairs or shrinkage.

delivery cost: This cost includes freight charges from outside vendors. These costs may also

include the cost of gas, the insurance and the cost of the delivery trucks. These rates are subjectto the time involved in negotiating rates and to select vendors, as well as the time to prepare

shipping documents.

labor cost: This involves the receiving of incoming goods, including entering the relevant data

into the computer and assigning warehouse positions. It includes the time taken to move goods

from shipping to pallet positions. It is necessary for warehouse owners to be informed about the

existing warehousing costs.

Characteristics of Ideal Warehouses

i. Warehouse should be located at a convenient place near highways, railway stations,airports and seaports where goods can be loaded and unloaded easily.

ii. Mechanical appliances should be there to loading and unloading the goods. This reduces

the wastages in handling and also minimises handling costs.

iii. Adequate space should be available inside the building to keep the goods in proper order.

iv. Ware houses meant for preservation of perishable items like fruits, vegetables, eggs

andbutter etc.should have cold storage facilities.

v. Proper arrangement should be there to protect the goods from sunlight, rain, wind,dust,moisture and pests.

vi. Sufficient parking space should be there inside the premises to facilitate easy andquick

loading and unloading of goods.

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vii. Round the clock security arrangement should be there to avoid theft of goods.

Thebuilding should be fitted with latest fire-fighting equipments to avoid loss of

goods due to fire.

Advantages of Warehousing

Warehousing offers many advantages to the business community. Whether it is industry or trade,

it provides a number of benefits which are listed below.

viii. Protection and Preservation of goods - Warehouse provides necessary facilities to

the businessmen for storing their goods when they are not required for sale. It

provides protection to the stocks, ensures their safety and prevents wastage. It

minimises losses from breakage, deterioration in quality, spoilage etc. Warehouses

usually adopt latest technologies to avoid losses, as far as possible.

ix. Regular flow of goods- Many commodities like rice, wheat etc. are produced during a

particular season but are consumed throughout the year. Warehousing ensures regular

supply of such seasonal commodities throughout the year.

x. Continuity in production- Warehouse enables the manufacturers to carry on production

continuously without bothering about the storage of raw materials. It helps to provide

seasonal raw material without any break, for production of finished goods.

xi. convenient location- Warehouses are generally located at convenient places near road,

rail or waterways to facilitate movement of goods. Convenient location reduces the

cost of transportation.

xii. Easy handling- Modern warehouses are generally fitted with mechanical appliances

to handle the goods. Heavy and bulky goods can be loaded and unloaded by using

modern machines, which reduces cost of handling such goods. Mechanical handling

also minimizes wastage during loading and unloading.

xiii. Useful for small businessmen- Construction of own warehouse requires heavy

capital investment, which small businessmen cannot afford. In this situation, by

paying a nominal amount as rent, they can preserve their raw materials as well as

finished products in public warehouses.

xiv. Creation of employment - Warehouses create employment opportunities both for

skilled and unskilled workers in every part of the country. It is a source of income for

the people, to improve their standards of living.

xv. Facilitates sale of goods- Various steps necessary for sale of goods such as

inspection of goods by the prospective buyers, grading, branding, packaging and

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labelling can be carried on by the warehouses. Ownership of goods can be easily

transferred to the buyer by transferring the warehouse keepers warrant.

xvi. Availability of finance- Loans can be easily raised from banks and other financial

institutions against the security of the warehouse-keepers warrant. In some cases

warehouses also provide advance to the depositors of goods on keeping the goods assecurity.

xvii. Reduces risk of loss - Goods in warehouses are well guarded and preserved. The

warehouses can economically employ security staff to avoid theft, use insecticides for

preservation and provide cold storage facility for perishable items. They can instal

fire-fighting equipment to avoid fire. The goods stored can also be insured for

compensation in case of loss.

Material handling equipment

Material handling equipment is all equipment that relates to the movement, storage, control

and protection of materials, goods and products throughout the process of manufacturing,

distribution, consumption and disposal. Material handling equipment is the mechanical

equipment involved in the complete system. Material handling equipment is generally separated

into four main categories: storage and handling equipment, engineered systems, industrial trucks,

and bulk material handling.

Storage and handling equipment

Storage and handling equipment is a category within the material handling industry. The

equipment that falls under this description is usually non-automated storage equipment. Products

such as Pallet rack, shelving, carts, etc. belong to storage and handling. Many of these products

are often referred to as "catalog" items because they generally have globally accepted standards

and are often sold as stock materials out of Material handling catalogs.

Pallet racking:

1. Load beams (also called step beams or box beams).

Most Step Beams are roll formed members with a 1 step along the top inside

edge. This step is used to hold any load support components such as pallet supportsor wire decks.

Box Beams have no inset step, instead have four flat sides like a box. All load

beams typically mount onto an upright frame column with integral rivets or hooks.

Some systems utilize an extra clip or bolt to lock the beam to the upright.

Structural Beams are hot formed structural C shapes with connecting clips at

either end. Structural load beams are generally used with structural uprights but can10
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be used with standard roll formed uprights. Structural load beams offer heavier

weight capacities than step beams or box beams.

2. Upright Frames (also called upright columns oruprights) vary in size and

design depending on load requirements, and styles. The most common upright column is

produced by roll forming flat coil stock steel into a modified "C" shape with returns.

This style is often referred to as open-back roll-formed columns. Holes or slots are

punched during manufacturing up and down the column at standard intervals so that the

load beams can be mounted into the upright columns. Upright frames can also be

constructed utilizing structural C shapes for columns. Structural uprights have an

increased weight capacity over roll formed uprights.

3. Diagonal Braces and Horizontal Braces, commonly referred to as upright frame

lacing is usually welded between two upright columns to form selective upright frames.

The lacing may be bolted to the columns in some cases.

4. Pallet Supports are roll formed channels that are placed front to back between

the load beams to support pallets.5. Wire Decking is commonly used as a safety measure on selective pallet rack to

prevent pallets or the products stored on them from falling through the rack structure.

Wire mesh decking comes in various thicknesses and mesh dimensions. Wire mesh

construction also allows for easy identification of shelf contents and prevents dirt and

other debris from accumulating on the shelves because of the holes in the mesh. Most

wire mesh decking has U-shaped channel supports, also known as struts, to support the

load. With this waterfall decking, the wire mesh extends across the top and down the

front of the beam to provide more support, and is more desirable in the

marketplace. Reverse waterfall decking can provide containment of a loose product to

prevent the product from falling behind the rack system. Lay-in decking rests inside the

step of the beam, and wire mesh does not waterfall over the beam. Some types of

decking are manufactured with solid metal instead of wire mesh. Even though the solid

decking provides a greater distributed weight capacity, it is discouraged by fire

inspectors because sprinkler systems cannot spray through the shelves to levels below.

6. Footplates, also known as footpads or baseplates, are at the base of columns and

serve as anchors to give the rack more stability: anchor bolts are inserted through the

baseplates holes to attach the column to the concrete floor. Footplates are made of

thicker steel and in some geographic locations, they must be of a certain size and seismic

rating. Footpads increase the pallet racks overall stability and weight-bearing capacity.7. Shims are used when the uprights are resting on uneven floors; the shims, equal

in size to the base of the uprights, are installed beneath the uprights to level the rack.

8. Row spacers are sometimes used if uprights are arranged in back-to-back rows;

the spacers are mounted between adjacent columns to ensure that the rows are kept

straight and to give the pallet racks even more strength and steadiness.

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9. Wall ties may be used for further support if the uprights are arranged in a row

along a wall.

10. Column protectors, also known as post protectors, are protective shields that can

be installed around the base of an upright to minimize damage where forklifts might hit

the upright. Damage to the base of a column can weaken the entire frame and could

cause it to collapse. Column protectors are made of various materials such as

polyethylene, ductile iron casting, and other durable materials.

11. Guard rails are installed to increase protection for upright columns and for

human safety when platforms or steps are attached to pallet racks.

Other Common Types of Pallet Rack

Desired storage density Floor space and building height

Placement of building doors and columns

Inventory accessibility

Inventory rotation

Item/load size and weight

Optimal storage design

Cost of materials and installation.

Engineered systems

Engineered systems are typically custom engineered material handling

systems. Conveyors,Handling Robots, AS/RS, AGV and most other automated material handling

systems fall into this category. Engineered systems are often a combination of products

integrated to one system. Many distribution centers will optimize storage and picking by utilizing

engineered systems such as pick modules and sortation systems.

Equipment and utensils used for processing or otherwise handling edible product or ingredients

must be of such material and construction to facilitate thorough cleaning and to ensure that their

use will not cause the adulteration of product during processing, handling, or storage. Equipmentand utensils must be maintained in sanitary condition so as not to adulterate product.

AS/RS:

A man-aboard AS/RS offers significant floorspace savings. This is due to the fact that the storage

system heights are no longer limited by the reach height of the order picker. Shelves or storage

cabinets can be stacked as high as floor loading, weight capacity, throughput requirements,

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and/or ceiling heights will permit. Man-aboard automated storage and retrieval systems are far

and away the most expensive picker-to-stock equipment alternative. Aisle-captive

storage/retrieval machines reaching heights up to 40 feet cost around $125,000. Hence, there

must be enough storage density and/or productivity improvement over cart and tote picking to

justify the investment. Also, because vertical travel is slow compared to horizontal travel, typical

picking rates in man-aboard operations range between 40 and 250 lines per person-hour. The

range is large because there is a wide variety of operating schemes for man-aboard systems.

Man-aboard systems are typically appropriate for slow-moving items where space is fairly

expensive.

conveyor belt :

A conveyor belt (orbelt conveyor) consists of two or morepulleys, with a continuous loop of

material - the conveyor belt - that rotates about them. One or both of the pulleys are powered,

moving the belt and the material on the belt forward. The powered pulley is called the drivepulley while the unpowered pulley is called the idler. There are two main industrial classes of

belt conveyors; Those in general material handling such as those moving boxes along inside a

factory andbulk material handling such as those used to transport industrial and agricultural

materials, such as grain, coal, ores, etc. generally in outdoor locations. Generally companies

providing general material handling type belt conveyors do not provide the conveyors for bulk

material handling. In addition there are a number of commercial applications of belt conveyors

such as those in grocery stores.

Thebelt consists of one or more layers of material they can be made out ofrubber. Many belts in

general material handling have two layers. An under layer of material to provide linear strengthand shape called a carcass and an over layer called the cover. The carcass is often a cotton or

plastic web or mesh. The cover is often various rubber or plastic compounds specified by use of

the belt. Covers can be made from more exotic materials for unusual applications such as

silicone for heat or gum rubber when traction is essential.

Material flowing over the belt may be weighed in transit using abeltweigher. Belts with

regularly spaced partitions, known as elevator belts, are used for transporting loose materials up

steep inclines. Belt Conveyors are used in self-unloading bulk freighters and in live bottom

trucks. Conveyor technology is also used in conveyor transport such as moving

sidewalks orescalators, as well as on many manufacturing assembly lines. Stores often have

conveyor belts at the check-out counterto move shopping items. Ski areas also use conveyor

belts to transport skiers up the hill.

A wide variety of related conveying machines are available, different as regards principle of

operation, means and direction of conveyance, including screw conveyors, vibrating conveyors,

pneumatic conveyors, the moving floorsystem, which uses reciprocating slats to move cargo,

and roller conveyor system, which uses a series of powered rollers to convey boxes orpallets.

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Industrial trucks

Industrial trucks usually refer to operator driven motorized warehouse vehicles, powered

manually, by gasoline, propane or electrically. Industrial trucks assist the material handling

system with versatility; they can go where engineered systems cannot. Forklift trucks are themost common example of industrial trucks but certainly aren't the extent of the category. Tow

tractors and stock chasers are additional examples of industrial trucks.

Bulk material handling

Bulk material handling equipment is used to move and store bulk materials such as ore, liquids,

and cereals. This equipment is often seen on farms, mines, shipyards and refineries. This

category is also explained in Bulk material handling. Bulk material handling is

an engineering field that is centred around the design of equipment used for the transportation of

materials such as ores and cereals in loose bulk form. It can also relate to the handling of

mixed wastes.

Bulk material handling systems are typically composed of moveable items of machinery such

asconveyor belts,stackers, reclaimers,bucket elevators,shiploaders, unloaders and

variousshuttles,[disambiguation needed]hoppers and diverterscombined with storage facilities such

as stockyards,storage silos orstockpiles.

The purpose of a bulk material handling facility is generally to transport material from one of

several locations (i.e. a source) to an ultimate destination. Providing storage and inventory

control and possibly material blending is usually part of a bulk material handling system.

Bulk material handling systems can be found on mine sites,ports (for loading or unloading ofcereals, ores and minerals) and processing facilities (such as iron and steel, coal fired power

stations refineries).

In ports handling large quantities of bulk materials continuous ship unloaders are replacing gantrycranes.

Role of Material Handling in Logistics

Material handling cannot be avoided in logistics, but can certainly be reduced to minimum

levels. The productivity potential of logistics can be exploited by selecting the right type ofhandling equipment. The selection of material handling equipment cannot be done in isolation,

without considering the storage system. Investment in the material handling system will be sheer

waste if it is not compatible to the warehouse layout plan. The layout will create

obstacles for free movement of equipment and goods, resulting in poor equipment

productivity. Recent trends indicate preference for automated system with higher logistics

productivity to enhance the effectiveness of human energy in material movement.

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http://en.wikipedia.org/wiki/Forklift_truckhttp://en.wikipedia.org/wiki/Bulk_material_handlinghttp://en.wikipedia.org/wiki/Engineeringhttp://en.wikipedia.org/wiki/Orehttp://en.wikipedia.org/wiki/Cerealhttp://en.wikipedia.org/wiki/Wastehttp://en.wikipedia.org/wiki/Conveyor_belthttp://en.wikipedia.org/wiki/Stackerhttp://en.wikipedia.org/wiki/Reclaimerhttp://en.wikipedia.org/wiki/Bucket_elevatorhttp://en.wikipedia.org/wiki/Shiploaderhttp://en.wikipedia.org/w/index.php?title=Unloader&action=edit&redlink=1http://en.wikipedia.org/wiki/Shuttlehttp://en.wikipedia.org/wiki/Wikipedia:WikiProject_Disambiguation/Fixing_linkshttp://en.wikipedia.org/wiki/Wikipedia:WikiProject_Disambiguation/Fixing_linkshttp://en.wikipedia.org/wiki/Chute_(gravity)http://en.wikipedia.org/wiki/Diverterhttp://en.wikipedia.org/wiki/Stockyardhttp://en.wikipedia.org/wiki/Silohttp://en.wikipedia.org/wiki/Stockpilehttp://en.wikipedia.org/wiki/Mininghttp://en.wikipedia.org/wiki/Porthttp://en.wikipedia.org/wiki/Refineryhttp://en.wikipedia.org/w/index.php?title=Continuous_ship_unloader&action=edit&redlink=1http://en.wikipedia.org/wiki/Gantry_cranehttp://en.wikipedia.org/wiki/Gantry_cranehttp://en.wikipedia.org/wiki/Forklift_truckhttp://en.wikipedia.org/wiki/Bulk_material_handlinghttp://en.wikipedia.org/wiki/Engineeringhttp://en.wikipedia.org/wiki/Orehttp://en.wikipedia.org/wiki/Cerealhttp://en.wikipedia.org/wiki/Wastehttp://en.wikipedia.org/wiki/Conveyor_belthttp://en.wikipedia.org/wiki/Stackerhttp://en.wikipedia.org/wiki/Reclaimerhttp://en.wikipedia.org/wiki/Bucket_elevatorhttp://en.wikipedia.org/wiki/Shiploaderhttp://en.wikipedia.org/w/index.php?title=Unloader&action=edit&redlink=1http://en.wikipedia.org/wiki/Shuttlehttp://en.wikipedia.org/wiki/Wikipedia:WikiProject_Disambiguation/Fixing_linkshttp://en.wikipedia.org/wiki/Chute_(gravity)http://en.wikipedia.org/wiki/Diverterhttp://en.wikipedia.org/wiki/Stockyardhttp://en.wikipedia.org/wiki/Silohttp://en.wikipedia.org/wiki/Stockpilehttp://en.wikipedia.org/wiki/Mininghttp://en.wikipedia.org/wiki/Porthttp://en.wikipedia.org/wiki/Refineryhttp://en.wikipedia.org/w/index.php?title=Continuous_ship_unloader&action=edit&redlink=1http://en.wikipedia.org/wiki/Gantry_cranehttp://en.wikipedia.org/wiki/Gantry_crane


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Everyone wants more control. The more control you have, the better you perform. Similarly

good material handling systems give you control on productivity. Distribution, manufacturing,

and warehousing are the areas where material handling plays a major role. To do these things

well, you need control of processes, of equipment, of personnel, of space and also of time. The

basic questions frequently asked are:

When do things get done?

How many people does it take to do them?

Do your material handling systems increase controlor hinder it? What is cost

involved?

What is the up time of system?

Infact material handling systems power todays efficient distribution and manufacturing

facilities. It is the secret weapon in logistics operations for improving system productivity.

enhancing customer service and speeding up throughputs. By gaining control of your

warehouse, you gain control of your profitability. Effective material handling systems create

savings that helps directly to improve your bottom line. If your business relies heavily on

manufacturing, warehousing, storage or distribution, the potential savings are perhaps your

greatest opportunity. If your suffer from damaged products, slow pick rates, a lack of space,

disorganization, or bottlenecks, dont think throwing more people at it will solve the problem

thats short term help at best, and youll be stuck with ongoing costs which you cannot

eliminate.Role of material handling in supply chain

In the last several years material handling has become a new, complex, and rapidly evolving

science. For moving material in and out of warehouse many types of equipment and system are

in use, depending on the type of products and volume to be handled. The equipment is used, in

loading and unloading operations, for movement of goods over short distances. The handling of

material in warehouse is restricted to unitized forms, which require smaller size equipment.

However, for bulk handling of material at logistics nodes such as shipyards, ports and airports

different type of equipment is used. In warehouses, material handling operation is performed at

the following stages:

Unloading the incoming material from transport vehicle.

Moving the unloaded material to assigned storage place in warehouses. Lifting the

material from its storage place during order picking.

Moving the material for inspection and packing.

Loading packages/boxes/cartons on to transport vehicles.

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The efficiency of material handling equipments adds to the performance level of the

warehouse. The internal movement of goods has a direct bearing on the order picking and

fulfillment cycle. The warehouse, wherein the material handling equipments is in use, is more

sensitive to labor productivity than the manufacturing center as material handling is more laborintensive. There is a scope for reducing labor and enhancing productivity by emerging

technology in material handling. A good material handling system will enhance the speed and

throughput of material movement through the supply chain.

Material handling guidelines

The material handling function reflects on the efficiency and speed of warehouse operation,

which ultimately result in elongated or compressed order completion cycles. Hence the

investment in material handling system is strategic in nature and is always based on long term

requirements, considering product volumes and varieties. For designing an effective andefficient material system, the guidelines normally followed are:

Designing the system for continues flow of material, i.e. idle time should be zero.

Going in for standard equipment, which ensures low investment and flexibility in case of

changes in material handling requirements in the future.

Incorporating gravity flow in material flow system

Ensuring that the ratio of the dead weight to the payload of material handling

equipment is minimum.

Various material handling systems are in use, right from those that are fully manual to the

ones that are fully automatic. However, the selection of a particular system depends in factors

such as:

Volumes to be handled

Speed in handling

Productivity

Product characteristics (weight, size, shape)

Nature of the product (hazardous, perishable, crushable)

Material Handling Systems - Types

Materials handling systems provide transportation and storage of materials, components and

assemblies. Material handling activities start with unloading of goods from delivery

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transportation, the goods then pass into storage, onto machining, assembly, testing, storage,

packaging, storage, and finally loading onto transport. Each of these stages of the production

process requires a slightly different design of handling equipment, and some processes require

integration of multiple items of handling equipment.

Design or selection of the right material handling system is one of the most importantdecisions that a manager can make, because of the effects on the rest of the manufacturing plant.

It affects the material flow and the factory layout. Apart from the initial capital cost for a new

system, the consequences of any misjudgment in material handling will have onsiderable and

long-term effects on operations. In recent years computer based simulation tools have been

developed to simulate material handling systems and their effect on the manufacturing process.

Loading equipment is aimed at providing the capability to load and unload vehicles; it is also

referred to as loading bay equipment. The category can be divided into products that provideaccess from the loading bay to the vehicle and equipment that moves the product from the

loading bay to the vehicle and vice versa. Equipment that falls into the access category are

scissor lifts, goods lifts, dock levelers, loading ramps, doors, dock seals and vehicle restraints,

and equipment that falls into the movement category are pallet trucks, conveyors and fork lift

trucks.

Lifting and Transport Equipment

Lifting and transport equipment is used to move product around the production facility, from

loading bay to storage, from storage to production, around production, from production to

storage, and from storage to loading bay. Equipment that falls into this category are fork lift

trucks, order picking trucks, overhead cranes, tower cranes and belt, chain and overhead

conveyors.

Storage Equipment

Storage equipment, as the name suggests is used to store materials, components and

assemblies. The level of complexity of this type of equipment is wide ranging, from a welded

cantilever steel rack to hold lengths of stock materials to a powered vertical carousel system.

Also within this category are pallet racks, mobile shelf units, and plastic, wood and steel

containers.

Automated Handling Equipment

Manufacturers of automated handling equipment produce automated guide vehicles, storage and

retrieval equipment, conveying systems and product sortation equipment. The level of

automation varies depending on the handling requirements. Fully automated handling systems

ensure that the materials/components/assemblies are delivered to the production line when

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required without significant manual intervention. Semi-automatic handling systems provide less

advanced solutions that deliver materials/components/assemblies to the production line with

some manual intervention.

Automated Guided Vehicles (AGVs)

An AGV is a material handling device that is used to move parts between machines or work-

centres. They are small, independently powered vehicles that are usually guided by cables that

are buried in the floor or they use an optical guidance system. They are controlled by receiving

instructions either from a central computer or from their own on-board computer. In

some applications they can be used as mobile workstations to replace the more traditional

conveyor system.

Robotics

Robotics was first introduced 30 years ago. Since then their applications and versatility have

increased dramatically. The basic robotics technology is similar to CNC technology but most

robots have more degrees of freedom. In manufacturing applications, robots can be used for

assembly work, process such as painting, welding, etc. and for material handling. More

recently robots are equipped with sensory feedback through vision and tactile sense. The main

advantage of robots is that they can be used for repetitive, monotonous, mundane tasks that need

precision. They can also be used in hazardous environments that are not suitable for human

operators.

Material handling: designed for safe transportation

Due to globalization of the economies of many countries, companies all over the world aremaking efforts to further expand their business areas. So the need for container transportation is

being increased, and container terminals should satisfy such needs. For example, container

terminals should provide better services to meet needs, should handle materials more

speedily, and should reduce the cost. Since there are the same needs in other countries as well,

the 365-day 24-hour operable container terminals should be constructed. To meet the above-

described needs, companies should establish:

Terminal control systems that can ensure effective operation of the entire terminals.

Automatic container terminals that enable labor saving and ensure high efficiency, after

being unloaded from a container ship, any containers should be speedily transported and useless

movement should be eliminated.

Considering this point, companies are now developing software to enable efficient container

storage and control, and to efficiently operate the transfer equipment. In addition, they are also

developing unmanned gates to shorten the gate passing-through time. Now they are developing

automatic transfer cranes, AGV, and highly efficient container cranes to establish unmanned

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automatic systems in various yards. In addition to the conventional anti-sway control

devices, companies have adopted Magic Eye for the automatic transfer cranes in order to

develop upgraded control systems for realization of automatic stacking. Companies have now

realized low pollution and low fuel consumption by adopting electric motor drive for the AGV.

The electric motor drive enables the AGV to travel freely to oblique directions by 4-wheel drive

mechanism and to realize high efficiency in material handling. Moreover they can provide the

best systems to the customers by proposing the operation management systems together

with the vehicles.

Material handling equipments: Rational use

More demands for environmental protection and safety since engines and power

electronics are the key components for environmental protection; they will place importance

on development of technologies for these key components. Regarding safety, companies will

adopt electronic control method to ensure safety.

Rational use of vehicles concept that material handling vehicles should be "exclusively

used" for certain specified economic purposes is spreading among customers. From the

viewpoint of this concept, it is needed that the maintenance cost should be reduced, and the

vehicle operation conditions should be properly managed in order to improve the

efficiency in material handling. Besides the prolonging maintenance intervals and proving re-

manufactured parts (recycled parts) for maintenance at low prices, it becomesimportant to

further develop the information technology (IT) for material handling, such as collection and

management of vehicle operation data, upgrade of failure diagnosis technology, and

preventive maintenance based on reliability analysis. The vehicle related data accumulated will

be very useful for providing the better services in the future. For example, such data will beused for proposal of optimum maintenance plans and of upgraded services.

New generation material handling system

The new-generation material handling system are highly automated system based on latest

technologies, provided with flexibility capable of changing its own structure or function in

response to changes from manufacturing systems, and autonomous functions to enhance

system reliability. Such system is defined as MMHS - Metamorphic Material Handling

System.(Intelligent Manufacturing Systems, http://www.ims.org)

MMHS Project was the fifth international R&D project in IMS program, and its was to

contribute to industries, optimize life cycle of equipment, produce a system most suited to the

global environment, and respect humanity through research and development activities. MMHS

project perform research and development activities focusing on the following four Points.

Life cycle optimization

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Environmentally conscious manufacturing User-friendliness

Contribution to global industry productivity

Subjects and objectives of MMHS project conceived from this viewpoint were as follows

Responsive: Responsive to changes that may take place in manufacturing technology and

environment, type of product or material to be handled, work schedule and load.

Flexible: Capable of transforming itself and altering its function to meet any change in

handling requirements.

Autonomous: Able to make decisions on its own (to enhance system availability).

Highly automatic: Incorporated with next-generation automation technology

Multi-functional: Having such functions as assembling, packaging and disassembling,

besides transporting.

Figure: Metamorphic Material Handling System

(Source: Project Report MMHS Intelligent Manufacturing June 2003, Intelligent Manufacturing

Systems)

Modularized: Composed of various modules, each with a distinct function; e.g.

planning module, basic module, tool-setting module, communication module, capable

of associating or dissociating one another to organize themselves into a configurationas required

Multi-level: Designed into multi-level sub-systems so as to be capable of cooperating

other independent material-handling equipment including AGVs and mobile robots

Compatible: Capable of adapting itself to other existing material-handling systems.

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