Module 4 - Material Handling
Module 4 - Material Handling
I. Introduction
Material handling involves the movement, protection, storage, and control of
materials throughout the manufacturing, warehousing, distribution, consumption, and
disposal processes. Haynes (1986) defines material handling as: “Material handling
embraces the basic operations in connection with the movement of bulk, packaged, and
individual products in a semi-solid or solid state by means of gravity, manually or power-
actuated equipment, and within the limits of individual producing, fabricating, processing,
or service establishments.”
Material handling does not add value to a product, but it contributes to the overall
cost, which can increase the selling price. Therefore, handling should be minimized to
improve efficiency and reduce costs. In Indian industries, material handling accounts for
nearly 40% of production costs, with 20% of the total production time spent on processing
and the remaining 80% on movement, waiting, and delays. Poor handling can result in idle
equipment and lost productivity.
Another perspective defines material handling as the function that prepares,
positions, and transports materials to facilitate movement or storage, encompassing every
activity except the actual processing of materials. Through scientific material handling,
organizations can reduce costs and production cycle times significantly.
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II. Learning Outcomes
By the end of this module, students should be able to:
1. Define material handling and explain its role in production and logistics;
2. Identify the objectives and principles of material handling in industrial operations;
3. Differentiate between fixed-path and variable-path material handling equipment;
4. Select appropriate material handling equipment based on material properties,
production flow, and cost considerations;
5. Evaluate the effectiveness of a material handling system using efficiency and cost
indicators (e.g., DLHL, MHL ratios);
6. Apply guidelines for efficient utilization of material handling equipment in
practical or simulated production scenarios;
7. Analyze how improper material handling can affect production cost, cycle time,
and workplace safety; and
8. Propose improvements to optimize material flow, reduce unnecessary handling,
and maximize equipment utilization.
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III. Pre-Test
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IV. Definition of Terms
Conveyor: A mechanical system to move materials along a fixed path.
DLHL Ratio: Direct labor handling loss ratio, indicating inefficiency in material
movement.
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V. Lesson Proper
2. Reduce delays by ensuring materials are available at the point of use in the right
4. Unit load principle: Increase quantity, size, or weight per handling unit.
flow.
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9. Mechanization principle: Employ mechanical or automated equipment.
12. Equipment selection principle: Consider all aspects of materials and methods.
15. Idle time principle: Minimize unproductive time for equipment and labor.
Selecting the right equipment is crucial for cost and operational efficiency.
1. Properties of the material: Size, weight, state (solid, liquid, gas), and fragility.
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Evaluation of Material Handling Systems
The cost considerations for material handling equipment include initial investment,
labor expenses, expected annual service hours, equipment utilization, unit load capacity,
loading and unloading characteristics, operating costs, and size requirements. Additional
factors to consider are the power source, operating conditions, and other technical
specifications. Selecting appropriate equipment and applying work study techniques can
enhance the efficiency of the material handling system by increasing the ratio of operating
time to loading time, optimizing palletizing, and eliminating redundant movements.
Outdated handling systems can also be replaced with more efficient alternatives.
The effectiveness of a material handling system can be evaluated by the proportion
of time spent on handling relative to total production time, while cost efficiency can be
measured by the expenses incurred per unit of material handled. However, few
organizations systematically record time and cost data to objectively assess performance
and implement improvements. Additional performance indicators are also used to evaluate
material handling systems, as listed below:
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The effectiveness of the handling methods for transporting a unit of material over
a given distance;
The efficiency of the facility layout, which determines travel distances;
The utilization of material handling equipment; and
The speed at which materials are moved.
In conclusion, an effective material handling system requires careful selection of
equipment and layout planning tailored to the specific production requirements. For large
volumes moving between limited sources and destinations, fixed-path equipment such as
conveyors, belt systems, and overhead cranes are ideal. For operations requiring flexibility
and varied routes, variable-path equipment such as forklifts, mobile cranes, and trucks is
preferred.
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operations with steady material flow. Conveyors can have rollers, belts, or wheels
and may be powered or allow free rolling. Since they are costly and less flexible,
careful planning is needed when multiple conveyors converge, including
coordinating their speeds.
2. Industrial Trucks
Industrial trucks are more flexible than conveyors because they are mobile
and can travel between different points. They are ideal for intermittent production
and for handling materials of various sizes and shapes. Types include petrol-driven,
electric, and hand-powered trucks, with many attachments available to increase
versatility.
3. Cranes and Hoists
Cranes and hoists are designed to move heavy materials through overhead
space. They usually serve a limited area, but multiple types exist, each with
different load capacities. They can be used for both intermittent and continuous
production operations.
4. Containers
Containers are classified as “dead” containers (like cartons, barrels, pallets)
that only hold materials and do not move themselves, and “live” containers (like
wagons, wheelbarrows, or self-driven units) that both contain and transport
materials. These are often manually operated.
5. Robots
Robots vary in size, function, and maneuverability. Many are used for
handling and transporting materials, while others perform operations such as
welding, spray painting, or picking tasks. A major advantage of robots is their
ability to operate in hazardous or challenging environments, performing repetitive
or heavy tasks efficiently.
Material Handling Equipment for Agricultural Enterprises
1. Conveyors
Used for moving crops or materials between two points, especially in post-harvest
processing.
Belt conveyors: Transport grains, vegetables, or fruits.
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Screw conveyors: Move bulk grains, seeds, or feed.
Bucket elevators: Lift grains or fertilizers vertically.
Example Use: Moving harvested lettuce from the field to a processing area in a hydroponic
farm.
2. Industrial Trucks and Carts
Flexible transport equipment for moving materials around the farm.
Handcarts / wheelbarrows: Transport harvested crops or seedlings.
Motorized trucks / tractors with trailers: Move bulk produce, soil, compost, or
fertilizer.
Electric or diesel-powered trolleys: Used in greenhouses or storage warehouses.
Example Use: Transporting cabbage heads from the field to the cooperative packing area.
3. Cranes and Hoists
Used for heavy materials or equipment in farm infrastructure.
Overhead gantry cranes: Lifting heavy machinery or bulk storage bins.
Hoists: Lifting sacks of fertilizer or feed.
Winches: Raising irrigation equipment or water tanks.
Example Use: Handling heavy hydroponic nutrient tanks or bulk sacks of organic
fertilizer.
4. Containers
Equipment that holds or moves agricultural materials.
Dead containers: Crates, pallets, bins, barrels for fruits, vegetables, or grains.
Live containers: Wagons, trolleys, or self-propelled bins for handling crops.
Example Use: Using pallets for transporting harvested hydroponic lettuce to market.
5. Robots / Automated Equipment
Increasingly used in precision agriculture and controlled environment farming.
Automated harvesters: For crops like lettuce, tomatoes, or strawberries.
Robotic seeders / planters: For accurate sowing of seeds in greenhouses.
Drones: For spraying, monitoring, and mapping farm fields.
Example Use: Robot-assisted picking in vertical hydroponic farms.
6. Specialized Agricultural Equipment
Designed for specific farm tasks.
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Seeders / planters: For uniform seed distribution.
Irrigation pumps and nutrient dosing systems: Handling water and fertilizers.
Grain handling equipment: Threshers, silos, augers for bulk grain storage and
movement.
Composting equipment: Rotary Composter (Turners) and shredder for production
of organic fertilizers.
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Table 10. Summary of material handling equipment for agricultural enterprises.
Agricultural Enterprise / Type of Material
Purpose Example / Use Case
Operation Handling Equipment
Move harvested crops from Transporting lettuce from growing
Greenhouse / Hydroponics Conveyors (belt or roller)
production to packing trays to packing area
Transport materials within Moving seedlings, nutrient tanks, or
Industrial trolleys / carts
greenhouse growing media
Robots / automated Pick crops with minimal Robotic lettuce picking in vertical
harvesters labor hydroponic farms
Field Crop Farming (e.g., Tractors with trailers / Transporting cabbage heads to
Move bulk harvested crops
cabbage, corn, rice) motorized trucks storage or market
Moving harvested produce within
Handcarts / wheelbarrows Short-distance transport
the farm
Grain elevators / screw Move grains into silos or Lifting and storing rice or corn
conveyors storage kernels
Lift heavy feed bags or Raising bulk feed bags into storage
Livestock Farming Hoists / cranes
equipment areas
Automated feed distribution in
Feed mixers / trolleys Distribute feed to animals
poultry or pig farms
Palletized fruits and vegetables for
Post-Harvest / Storage Pallets / bins / crates Store and transport produce
market
Automated packing Packing tomatoes or peppers
Streamline packing
machines / conveyors efficiently
Composting / Organic Compost turners / Move and aerate organic Handling crop residue for
Farming spreaders material composting
Spray, monitor, or transport Mapping fields or spraying
Precision Agriculture Drones / robotic sprayers
light materials nutrients/pesticides
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Guidelines for Effective Material Handling System Design
The following guidelines are essential for designing an efficient and cost-effective
material handling system:
1. Minimize Handling: Since material handling does not add value but increases
production time, eliminate unnecessary handling whenever possible. Ideally,
materials should move directly from one process to the next.
2. Logical Sequencing: Arrange operations so that material flow is smooth and
unidirectional, reducing backtracking and delays.
3. Use Gravity: Wherever feasible, use gravity to move materials, as it conserves
energy and reduces fuel or power usage.
4. Standardize Equipment: Standardizing material handling equipment allows
interchangeable use, better utilization, and lower spare part requirements.
5. Preventive Maintenance: Establish a regular maintenance schedule to minimize
equipment downtime.
6. Versatility and Adaptability: When selecting equipment, prioritize multi-
purpose and adaptable systems to reduce investment in specialized devices.
7. Maximize Unit Load: Ensure each handling trip moves the largest feasible load,
increasing productivity per trip.
8. Work Study: Incorporate techniques such as eliminating unnecessary
movements and combining processes during system installation.
9. Reduce Non-Productive Operations: Minimize operations like slinging or
manual loading through appropriate equipment design, e.g., magnetic cranes for
scrap or excavator-tipper combinations in mining.
10. Strategic Storage Location: Place stores close to the production area to reduce
handling and associated costs.
11. Use Operations Research (OR) Techniques: Methods like queueing analysis
can help optimize equipment utilization.
12. Ensure Safety: Design systems to be simple, safe, and easy to operate for
workers.
13. Eliminate Wasteful Movements: Conduct method studies to identify and remove
unnecessary handling actions.
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14. Coordinate and Train Staff: Ensure proper coordination through careful
equipment selection and training of personnel for efficient operation.
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Building and maintaining strong supplier relationships;
Integrating purchasing with other departments such as production,
engineering, marketing, finance, and HR; and
Training personnel and maintaining efficient records and reporting.
3. Stores Management:
Stores management involves physical control and preservation of
materials, minimizing damage and obsolescence, maintaining records, organizing
storage, and reconciling actual stock with recorded quantities. Effective stores
management supports smooth production and reduces losses.
4. Inventory Control:
Inventory refers to materials held in stock for production or sale. Effective
inventory management ensures that the right amount of stock is maintained,
acting as a buffer between supply and demand to avoid interruptions in production
(Heizer et al., 2020).
5. Standardization, Simplification, and Specifications (3S):
Standardization: Producing a maximum variety of products from a
minimum variety of materials, tools, and processes.
Simplification: Reducing the variety of products, parts, and materials to
simplify production.
Specifications: Detailed statements defining the requirements of materials,
products, or processes.
6. Value Analysis:
Focuses on reducing unnecessary costs due to inefficient or redundant
features of a product, particularly in the later stages of the product lifecycle.
7. Ergonomics (Human Engineering):
Ensures that the design of man-machine systems supports efficient and
safe operations, including control layouts, information displays, and repetitive
material handling tasks.
8. Just-in-Time (JIT):
Materials are supplied exactly when needed, reducing inventory and
storage costs.
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Scope of Materials Management
Store Inventory
Material Planning and Control Purchasing Other Related Functions
Management Management
Standardization
Simplification
Speficifications
Value Analysis
Ergonomics
Just-In-Time
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Techniques of Material Planning
One of the key techniques in material planning is the Bill of Materials (BOM)
explosion. The BOM is a document listing all materials required, their unit consumption,
and location codes for a specific product. Using explosion charts, which organize multiple
BOMs in a matrix form, the combined requirements of various components can be
calculated.
Material planning begins with the forecast of end-product demand. Forecasting
methods such as the weighted average method, exponential smoothing, and time series
analysis are commonly used. Once the demand forecast is established, it becomes possible
to prepare a material requirement plan. This plan guides the development of delivery
schedules and the purchasing of necessary materials, ensuring the production process
runs smoothly and efficiently.
Bill of Materials
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purchasing responsibilities are often handled by the works manager, whereas in large
organizations, a dedicated purchasing department performs this function.
When a purchase order is issued, a significant portion of the company’s financial
resources is committed, directly affecting working capital and cash flow. Therefore, the
purchasing officer plays a crucial role not only in procurement but also in maintaining good
relationships with suppliers, which can influence the company’s reputation and overall
performance.
Objectives of Purchasing
The primary goal of purchasing is to ensure a continuous supply of materials and
components while minimizing the overall cost of the final product. It is not just about
buying at the lowest price, but about achieving cost efficiency and operational
effectiveness.
The key objectives of the purchasing function include:
1. Minimize Cost of Inputs:
Procure materials, equipment, and services at the lowest possible cost
without compromising quality, thereby improving productivity and profitability.
2. Ensure Continuous Supply:
Maintain a steady flow of raw materials, spare parts, and tools to avoid
interruptions in production.
3. Improve Asset Turnover:
Keep inventory levels proportional to sales volume to maximize the
efficient use of company assets and enhance profitability.
4. Develop Alternative Sources:
Identify and establish multiple suppliers to strengthen bargaining power,
reduce dependency, and ensure supply during emergencies.
5. Maintain Supplier Relationships:
Build and sustain positive relationships with suppliers to secure better
pricing, reliable delivery, and priority allocation during shortages.
6. Promote Interdepartmental Coordination:
Work closely with other departments:
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Production: for specifications and material flow
Engineering: for tools and equipment procurement
Marketing: for demand forecasts
Finance: for budgeting and working capital management
Human Resources: for staffing and training
7. Develop Personnel:
Enhance the skills and capabilities of purchasing staff through training and
development to improve efficiency and decision-making.
8. Maintain Records and Reporting:
Establish standardized documentation and record-keeping systems to
ensure transparency, facilitate audits, and support management decision-making
through regular reports.
Purchasing Parameters
Efficient purchasing is guided by the ten ‘R’s: right material, right quality, right
quantity, right source, right time, right price, right place, right contract, right transportation,
and right attitude (Figure 11).
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Right Attitude
SWOT Analysis
Right Place of
Right Materials
Delivery
Value Analysis
Price
Standardization
Communication
Purchasing
Parameters
Right Quantity
Right Contracts
EOQ and
Legal Aspects
Inventory
Model
Model
Right
Right Price
Transportation
Negotiation
Cost Analysis
Learning
Transportation
Curves
Right Time and Logistics
Reorder Point
Lead Time
Analysis
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Key steps in the purchasing process include (Figure 18):
1. Recognition of Need: Initiated by the department requiring materials through a
purchase requisition form.
2. Supplier Selection: Identifying and shortlisting suppliers based on price, capacity,
reliability, and quality.
3. Placing Orders: Purchase orders are issued with copies sent to relevant
departments for coordination.
4. Follow-Up: Ensures timely confirmation and delivery from suppliers.
5. Receiving and Inspection: Materials are checked for quality, quantity, and
compliance with orders.
6. Payment of Invoice: Verified invoices are approved for payment.
7. Record Maintenance: Maintains historical purchase data for future planning.
8. Vendor Relations: Builds strong relationships with suppliers for trust, reliability,
and favorable terms.
Need
Recognition 1
8
Maintenance Selection of
of Vendors Supplier
2
7
Maintenance
of Records Purchasing Procedure Placing Order
3
6
Payment of
Follow-Up
Invoice
Receiving and
5 Inspection 4
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VI. Activity (Evaluate Material Handling in a Production Setup)
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VII. Post-Test
Name: _______________________ Year and Section: _______________
Instructions: Answer the following.
1. Explain the importance of minimizing material handling in production.
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
2. List at least four principles of material handling.
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
3. Describe the difference between fixed-path and variable-path material handling
equipment.
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
4. Explain how equipment selection can impact production cost and efficiency.
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
5. Suggest three guidelines to improve utilization of material handling equipment
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
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VIII. References
Aljian, A. (Ed.). Purchasing Handbook.
Chopra, S., & Meindl, P. (2020). Supply Chain Management: Strategy, Planning, and
Operation (7th ed.). Pearson.
Haynes, R. (1986). Material Handling: Principles, Practice, and Technology. McGraw-
Hill.
Heizer, J., Render, B., & Munson, C. (2020). Operations Management: Sustainability
and Supply Chain Management (13th ed.). Pearson.
Maynard, H. B. (2012). Industrial Engineering Handbook. McGraw-Hill.
Monczka, R., Handfield, R., Giunipero, L., & Patterson, J. (2016). Purchasing and
Supply Chain Management (6th ed.). Cengage Learning.
Shrotriya, R. & Agarwal, V. (2015). Material Handling and Logistics. New Delhi: PHI
Learning.
Slack, N., Chambers, S., & Johnston, R. (2010). Operations Management (6th ed.).
Pearson Education.
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