LESSON 5: MATERIALS HANDLING, FACILITIES LAYOUT AND DESIGN

MODELS AND WAREHOUSE OPERATIONS

EXPECTATIONS

You will know about materials handling, facilities layout and design models and warehouse
operations. Specifically, this module will help you to

 Explain the materials handling, facilities layout and design models and warehouse
operations.
 Identify the need space available during warehouse operations.
 Make a warehouse diagram for every space available need per courses.
Let us start your journey in Personnel Requirements.

LESSON PROPER

1. MATERIALS HANDLING SYSTEMS

It is the art and science involving the movement, packaging and storing of substances in
any form. In this section we will discuss about the objectives of the material handling system
design, basic types of material handling systems and the procedure for the design and
selection of material handling system while developing a plant layout.

Objectives and Functions

In order to perform the activities of materials handling the basic goal is to minimize the
production costs. This general objective can be further subdivided into specific

objectives as follows:

i) To reduce the costs by decreasing inventories, minimising the distance to be handled and
increasing productivity.

ii) To increase the production capacity by smoothing the-work flow.

iii) To minimise the waste during handling.

iv) To improve distribution through better location of facilities and improved routing.

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v) To increase the equipment and space utilisation.

vi) To improve the working conditions.

vii) To improve the customer service.

The basic materials handling function has to answer a number of questions as follows:

i) Why do this at all? Justifying the necessity of material handling.

ii) What material is to be handled? Giving the type (unit, bulk etc.), characteristics (shape,
dimension etc.) and quantity.

iii) Where and when? Specifying the move in terms of source and destination, logistics,
characteristics (distance, frequency, speed, sequence etc.) and type (transporting, conveying,
positioning etc.)

iv) How? And Who? Specifying the method in terms of the handling unit (load support,
container, weight, number etc.), equipment, manpower, and physical restrictions (column
spacing, aisle width, conjestion etc.)

Basic Materials Handling Systems

The different material handling systems can be classified according to the type of equipment
used, material handled, method used or the function performed.

Equipment-Oriented Systems: Depending upon the type of equipment used, there are several
systems.

i) Overhead systems

ii) Conveyer systems

iii) Tractor-trailor system

iv) Fork-lift truck and pallet system

v) Industrial truck systems

vi) Underground systems.

Material Oriented Systems: These may be of the following types.

i) Unit handling systems

ii) Bulk handling systems

iii) Liquid handling systems

A unit load consists of a number of items so arranged that it can be picked up and moved as a
single entity such as a box, bale, roll etc. Such a system is more flexible and requires less
investment.

Method Oriented Systems: According to the method of handling and method of production,
the material handling systems can be:

i) manual systems
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ii) mechanised or automated systems

iii) job-shop handling systems, or

iv) mass-production handling systems

Function Oriented Systems: The systems can be defined according to the material handling
function performed as follows:

i) Transportation systems

ii) Conveying systems

iii) Transferring systems

iv) Elevating systems

Selection and Design of Handling System

The selection and design of the material handling system should be done alongside the
development of the layout as each one affects each other. Hence, an integrated approach to
the design process is usable. A computerised technique known as COFAD (Computerised
Facilities Design) has been developed for integrated handling system and layout design. The
steps to be followed in the selection and design of handling systems are as follows:

i) Identification of system

ii) Review of design criteria and objectives of the handling system

iii) Data collection regarding flow pattern and flow requirements

iv) Identification of activity relationships

v) Determining space requirement and establishing material flow pattern

vi) Analysis of material and building characteristics

vii) Preliminary selection of basic handling system and generation of alternatives considering
feasibility of mechanisation and equipment capabilities

viii) Evaluation of alternatives with respect to optimal material flow, utilizing gravity, minimum
cost, flexibility, ease of maintenance, capacity utilization and other objectives of the system
design considering various tangible and intangible factors

ix) Selection of the best suited alternative and checking it for compatibility

x) Specification of the system

xi) Procurement of the equipment and implementation of the system

MATERIALS HANDLING EQUIPMENT

After the simplification of the handling method the selection of equipment is important with
respect to the different objectives of speed, efficiency-cost etc. There are both the manual and
powered kind of handling equipments. Apple (1977) has classified the handling equipments
into four basic types, viz., conveyers, cranes and hoists, trucks, and auxiliary equipment.

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Conveyers

These are gravity or powered devices commonly used for moving uniform loads from point to
point over fixed paths, where the primary function is conveying. Commonly used equipment
under this category are:

i) Belt Conveyer

ii) Roller Conveyer

iii) Chain Conveyer

iv) Bucket Conveyer

v) Trolley Conveyer

vi) Screw Conveyer

vii) Pipeline Conveyer

viii) Vibratory Conveyer

ix) Chute.

Cranes, Elevators and Hoists

These are overhead devices used for moving varying loads intermittently between points
within an area, fixed by the supporting and binding rails, where the primary function is
transferring or elevating. Some common examples are:

i) Overhead travelling crane

ii) Gantry crane

iii) Jib crane

iv) Elevators

v) Hoists

vi) Stacker crane

vii) Winches

viii) Monorail

Industrial Trucks and Vehicles

These are hand operated or powered vehicles used for movement of uniform or mixed loads
intermittently over various paths having suitable running surfaces and clearances where the
primary function is manoeuvering or transporting. These include:

i) Fork lift truck

ii) Platform truck

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iii) Industrial tractors and traitors

iv) Industrial cars

v) Walkie truck

vi) Two-wheeled hand truck or trolley

vii) Hand stacker

Auxiliary Equipment

These are devices or attachments used with handling equipment to make their use more
effective and versatile. Some common examples are:

i) Ramps

ii) Positioners

iii) Pallets and skids

iv) Pallet loader and unloader

v) Lift truck attachments

vi) Dock boards and levelers

vii) Containers

viii) Below the hook devices

ix) Weighing equipment

2. FACILITIES LAYOUT AND DESIGN MODELS

Facility layout and design is an important component of a business's overall operations, both in
terms of maximizing the effectiveness of the production process and meeting the needs of
employees. The basic objective of layout is to ensure a smooth flow of work, material, and
information through a system. The basic meaning of facility is the space in which a business's
activities take place. The layout and design of that space impact greatly how the work is done
the flow of work, materials, and information through the system. The key to good facility
layout and design is the integration of the needs of people (personnel and customers),
materials (raw, finishes, and in process), and machinery in such a way that they create a single,
well-functioning system.

FACTORS IN DETERMINING LAYOUT AND DESIGN

Small business owners need to consider many operational factors when building or renovating
a facility for maximum layout effectiveness. These criteria include the following:

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Ease of future expansion or change

Facilities should be designed so that they can be easily expanded or adjusted to meet changing
production needs. "Although redesigning a facility is a major, expensive undertaking not to be
done lightly, there is always the possibility that a redesign will be necessary," said Weiss and
Gershon in their book Production and Operations Management. "Therefore, any design should
be flexible'¦. Flexible manufacturing systems most often are highly automated facilities having
intermediate-volume production of a variety of products. Their goal is to minimize changeover
or setup times for producing the different products while still achieving close to assembly line
(single-product) production rates."

Flow of movement

The facility design should reflect a recognition of the importance of smooth process flow. In
the case of factory facilities, the editors of How to Run a Small Business state that "ideally, the
plan will show the raw materials entering your plant at one end and the finished product
emerging at the other. The flow need not be a straight line. Parallel flows, U-shaped patterns,
or even a zig-zag that ends up with the finished product back at the shipping and receiving bays
can be functional. However, backtracking is to be avoided in whatever pattern is chosen. When
parts and materials move against or across the overall flow, personnel and paperwork become
confused, parts become lost, and the attainment of coordination becomes complicated."

Materials handling

Small business owners should make certain that the facility layout makes it possible to handle
materials (products, equipment, containers, etc.) in an orderly, efficientand preferably simple
manner.

Output needs

The facility should be laid out in a way that is conducive to helping the business meet its
production needs.

Space utilization

This aspect of facility design includes everything from making sure that traffic lanes are wide
enough to making certain that inventory storage warehouses or rooms utilize as much vertical
space as possible.

Shipping and receiving

The J. K. Lasser Institute counseled small business owners to leave ample room for this aspect
of operations. "While space does tend to fill itself up, receiving and shipping rarely get enough
space for the work to be done effectively," it said in How to Run a Small Business.

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Ease of communication and support

Facilities should be laid out so that communication within various areas of the business and
interactions with vendors and customers can be done in an easy and effective manner.
Similarly, support areas should be stationed in areas that help them to serve operating areas.

Impact on employee morale and job satisfaction

Since countless studies have indicated that employee morale has a major impact on
productivity, Weiss and Gershon counsel owners and managers to heed this factor when
pondering facility design alternatives: "Some ways layout design can increase morale are
obvious, such as providing for light-colored walls, windows, space. Other ways are less obvious
and not directly related to the production process. Some examples are including a cafeteria or
even a gymnasium in the facility design. Again, though, there are costs to be traded off. That is,
does the increase in morale due to a cafeteria increase productivity to the extent that the
increased productivity covers the cost of building and staffing the cafeteria."

Promotional value

If the business commonly receives visitors in the form of customers, vendors, investors, etc.,
the small business owner may want to make sure that the facility layout is an attractive one
that further burnishes the company's reputation. Design factors that can influence the degree
of attractiveness of a facility include not only the design of the production area itself, but the
impact that it has on, for instance, ease of fulfilling maintenance/cleaning tasks.

Safety

The facility layout should enable the business to effectively operate in accordance with
Occupational Safety and Health Administration guidelines and other legal restrictions.

"Facility layout must be considered very carefully because we do not want to constantly
redesign the facility," summarized Weiss and Gershon. "Some of the goals in designing the
facility are to ensure a minimum amount of materials handling, to avoid bottlenecks, to
minimize machine interference, to ensure high employee morale and safety, and to ensure
flexibility. Essentially, there are two distinct types of layout. Product layout is synonymous with
assembly line and is oriented toward the products that are being made. Process layout is
oriented around the processes that are used to make the products. Generally, product layout is
applicable for high-volume repetitive operations, while process layout is applicable for low-
volume custom-made goods."

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DIFFERENCES BETWEEN OFFICE AND FACTORY LAYOUTS

Offices and manufacturing facilities are typically designed in much different ways

a reflection of the disparate products that the two entities make. "A factory produces things,"
wrote Stephen Konz in Facility Design. "These things are moved with conveyors and lift trucks;
factory utilities include gas, water, compressed air, waste disposal, and large amounts of
power as well as telephones and computer networks. A layout criterion is minimization of
transportation cost." Konz pointed out, however, that the mandate of business offices is to
produce information, whether disseminated in physical (reports, memos, and other
documents), electronic (computer files), or oral (telephone, face-to-face encounters) form.
"Office layout criteria, although hard to quantify, are minimization of communication cost and
maximization of employee productivity," wrote Konz.

3. WAREHOUSE OPERATIONS

Importance of a Practical Warehouse Layout Design

Designing a practical warehouse layout is a crucial process as it has a direct impact on the
efficiency and productivity of your warehouse. The planned layout should arrange the
processes in a logical sequence that can help streamline operations, boost productivity, and
reduce expenses. A well-executed warehouse layout design can provide easy access to stored
goods, minimize travel time, and improve order fulfillment rates.

Additionally, it is vital to consider all the requirements according to your business needs during
the planning phase itself. This is because altering the planned layout once the construction of
your facility starts is costly due to the additional material and labor costs involved.

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Principles to Consider While Designing Your Warehouse Layout

Considering the principles below can help you design an efficient layout and streamline
warehouse operations. Here are some of the most crucial factors to consider:

Budget Considerations

Before starting with the design of your warehouse layout, it is essential to assess all your
business requirements, review associated budgets, and then plan the layout accordingly.
During this process, you might come across some layout designs that are more comprehensive
and expensive than others, but it is recommended that you consider the most suitable and
cost-efficient solution for your warehouse.

Space Available

Effectively utilizing the warehouse space available can help improve inventory visibility, reduce
travel time, and increase overall operational efficiency. When designing your warehouse
layout, it is crucial to allocate maximum space to storage and inventory processing purposes
while minimizing space for office areas, empty pallets, charging stations, etc. Additionally, how
you decide to allocate space will impact shelving designs, installation capacity, and placement
of goods inside your facility.

Source: Flipkart Tech Blog

Flow

Ensuring the uninterrupted flow of goods, personnel, and equipment is vital to consider in the
design layout for the smooth functioning of your warehouse. You can avoid inefficient routes
and disruptions by strategically planning your warehouse layout design so as to facilitate each
operation in a sequential manner.

Accessibility

While planning your warehouse layout, it is crucial to ensure easy accessibility to all the areas
and products in your facility. The layout should be designed in a way that makes it easy for
personnel to navigate throughout the facility while conveniently locating and picking items
without having to move other products. As a result, your productivity can be enhanced and
orders can be fulfilled at a faster rate.
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Equipment

The use of different types of equipment in your warehouse, such as lifting & packing tools,
pallet racks, or conveyors, that can influence the layout design. By identifying the equipment
needed, you can evaluate and design the most suitable layout according to your requirements
and boost the productivity of your facility.

Throughput

Throughput in a warehouse refers to the number of products that are processed and moved
through various warehouse processes such as receiving, putaway, storage, picking, packing,
and shipping. By collecting and analyzing this data, you can design a layout to ensure an
efficient flow of goods and accommodate the necessary equipment for your warehouse.

Personnel

Knowing the number of people required, their current levels of training and shift timings, and
other related factors can help you design your warehouse layout in a way that doesn’t limit
your workforce’s productivity. Also, the layout must be planned in a manner that can safely
accommodate new employees and their needs in the future.

Authority Guidelines

While designing your warehouse layout, it is critical to comply with the guidelines provided by
the local authorities. Abiding by these guidelines not only ensures the safety of your
workers, equipment, or other valuable assets but also helps you avoid fines and legal problems
for your business.

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 ACTIVITIES

WAREHOUSE OPERATION AVAILABLE SPACE

Direction: Make a parking lot design in A4 size of bond paper portrait or landscape
positions.

Name:____________________________ Date:_________

Course/Year/Sec:_______________________ Professor:______________

Example: WAREHOUSE OPERATION AVAILABLE SPACE

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 REMEMBER

Layout requirements can also differ dramatically by industry.

The needs of service-oriented businesses, for instance, are often predicated on whether
customers receive their services at the physical location of the business (such as at a bank or
pet grooming shop, for instance) or whether the business goes to the customer's home or
place of business to provide the service (as with exterminators, home repair businesses,
plumbing services, etc.) In the latter instances, these businesses will likely have facility layouts
that emphasize storage space for equipment, chemicals, and paperwork rather than spacious
customer waiting areas. Manufacturers may also have significantly different facility layouts,
depending on the unique needs that they have. After all, the production challenges associated
with producing jars of varnish or mountaineering equipment are apt to be considerably
different than those of making truck chassis or foam beach toys. Retail outlets comprise yet
another business sector that has unique facility layout needs. Such establishments typically
emphasize sales floor space, inventory logistics, foot-traffic issues, and overall store
attractiveness when studying facility layout issues.

Konz also observed that differences in factory and office layouts can often be traced to user
expectations. "Historically, office workers have been much more concerned with status and
aesthetics than factory workers," he noted. "A key consideration in many office layouts is 'Who
will get the best window location?' To show their status, executives expect, in addition to
preferred locations, to have larger amounts of space. Rank expects more privacy and more
plush physical surroundings." In addition, he stated, "Offices are designed to be 'tasteful' and
to 'reflect the organization's approach to business dealings." Conversely, in the factory setting,
aesthetic elements take a back seat to utility.

Given these emphases, it is not surprising that, as a general rule, office workers will enjoy
advantages over their material production brethren in such areas as ventilation, lighting,
acoustics, and climate control.

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 References
1. http://egyankosh.ac.in/bitstream/123456789/7208/1/Unit-5.pdf

2. Apple, J.M, 1977. Plant Layout and Material Handling, John Wiley & Sons: New York.

3. Haynes, D.O. 1958. Materials Handling Applications, Chilton Company: Philadelphia.

4. Imrner, J.R., 1953. Materials Handling, McGraw Hill Book Company: New York.

5. https://www.inc.com/encyclopedia/facility-layout-and-design.html

6. Sherali, Hanif D., Barbara M.P. Fraticelli, and Russell D. Melle. "Enhanced Model

7. https://articles.cyzerg.com/warehouse-layout-design-principles

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