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Supplies management

STANDARD LECTURE NOTES

SUPPLIES MANAGEMENT

FOR

DIPLOMA IN SUPPLY CHAIN MANAGEMENT

MODULE II

Logistics Definition

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The latest definition for logistics by CSCMP: “Logistics is that part of SCM that plans,
implements, and controls the efficient, effective, forward and reverse flow and
storage of goods, services, and related information between the point of origin
and point of consumption in order to meet customers’ requirements.”

Various terms have been used to describe logistics such as:

 Business logistics
 Distribution
 Industrial distribution
 Logistics
 Logistics management
 Materials management
 Physical distribution
 Supply chain management

So what does the definition mean?

1. The definition says that it is part of the supply chain management- this means that
supply chain involves a bigger process which engages different organizations; however,
logistics determines how well or how poor an individual firm can achieve their goals.

2. It is part of SCM that plans, implements, and controls – this means that logistics must
cover all these areas not just one or two.

3. It also mentions the efficient, effective, forward and reverse flow and storage – this
means “How well does the company do what they ay they are going to do?”

4. goods, services, and related information between the point of origin and point of
consumption – this means that information about what you are delivering is as important as
the delivery itself.

5. to meet customers’ requirements – means logistics strategies should be focused on

customers’ needs and wants .

Reverse Logistics (opposite to Forward Logistics) is "the process of planning,

implementing, and controlling the efficient, cost effective flow of raw materials, in-process
inventory, finished goods and related information from the point of consumption to the
point of origin for the purpose of recapturing value or proper disposal.

Mass Logistics is when companies use one logistics approach to target ALL their
customers.

Tailored Logistics is when companies use various logistics approach to target various
groups of their customers.

Reasons for the increased importance of Logistics

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1. A reduction in economic regulation – US was posing less regulation on logistics

activities and this made it possible for logistics managers engage in tailored logistics and
also reduce their transportation costs by leveraging amounts of freight with a limited
number of carriers.

2. Changes in consumer Behavior

- Market Demassification – this means that people more and more have customized wants
and needs so mass logistics cannot be used

- Changing family roles – from the 60’s more women have entered the workforce and they
have pushed to have a convenience shopping experience. This includes home deliveries,
more extended store hours etc.

- Rising customer expectations – People constantly want more, and this means that
satisfactory level of performance must be kept up to date with the customer expectations.

3. Technological Advancements – Development of various technological tools to handle

information have been created so that it is getting easier to control and disperse
information. Here the Internet has increased the importance of logistics because it has
enabled people to communicate all over the world and this has increased the effectiveness
and efficiency of logistics.

4. The growing power of retailers – Powerful retailers such as Wal-mart, Home Depot,
Best Buy have large market share and low costs and they have superior logistics. For this
reason they are considered as “trend-setters” of logistics.

5. Globalization of Trade – it is important to know here that international logistics costs

more time and money than domestic logistic. Globalization of Trade is made possible
because of the globalization of logistic services.

The Systems and Total Cost Approaches to

Logistics
Systems approach – indicates that company’s objectives can be realized by recognizing the
mutual interdependence of the major functional areas of the firm, such as marketing,
production, finance, and logistics.

Implications of the systems approach:

 One logistics system does not fit all companies

 Stock-keeping units (SKUs) or line items of inventory (stocks of goods that are
maintained for a variety of purposes)
o From logistics perspective – the proliferation of SKUs means more items to
identify, store, and track.

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Intrafunctional logistics – coordinating inbound logistics, materials management, and

physical distribution in a cost-efficient manner that supports an organization’s customer
service objectives.

Inbound Logistics: Movement and storage of materials into the firm.

Materials Management: Movement and storage of materials and components within a

firm.

Physical Distribution: Storage of finished product and movement to the customer.

Logistics Managers use the total cost approach to coordinate inbound logistics, materials
management, and physical distribution in a cost-efficient manner. This means that all
relevant activities should be considered as a whole, not individually. Use of this approach
requires understanding of cost trade-offs, in other words, changes to one logistics activity
can cause some costs to increase and other to decrease. This is also referred to as a total
logistics concept.

Logistics Relationships within the Firm

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Logistics vs. Finance – There are a lot of issues where the logistics department must
interface with the finance department mainly because logistical decisions are only as good
as the quality of cost data which they are working.

Example: The logistics department needs forklifts and other materials to do day to day
activities, so they must report to the finance department when they make the capital
investments budget.

Logistics vs. Marketing – Marketing places n emphasis on consumer satisfaction, and

logistics strategies can facilitate customer satisfaction through reducing the cost of
products, which can translate into lower process as well bringing a broader variety of
choices closer to where the customer wishes to buy or use the product. Logistics can be
used to differentiate the company from other companies.

Marketing Mix (4 P’s):

Place: It is very important that products are on the right place. This is important for both
departments the marketing people and the logistics people. If a manufacturer is not able to
provide a certain product at the right time, in the right quantities and in an undamaged
condition, the channel members may end their relationship with the supplier.

Price: a firm cannot be profitable if it does not take into account its logistics costs. The price
of a product must cober production, marketing, distribution, and general admin costs. Some
companies decide to raise the cost of the products in order to include their higher logistics
costs, but this is not very attractive. Another option to this is to decrease the quality of the
product but keep price the same. Or the company can absorb these costs itself.

There are other costs associated here, like inventory costs, transportation costs etc. If you
want to read more go to pg. 15.

Product: Here one should know that there are a lot of interfaces between the marketing
and logistics people in terms of how many units of products they want to have in stock, how
many in the inventory, etc.

Promotion: many promotional decisions require close coordination between marketing and
logistics. One important situation is the availability of highly advertised products when the
company has pricing campaigns that lower the price of certain products. It can be very bad
for a company to have a stock-out when these powerful ads are displayed everywhere about
certain products.

Logistics vs. Production

The most common interface between production and logistic involve the length of
production lines. Do you want long production runs or shorter ones? This means, do you
want to have more inventory and more products in stock, or do you want to risk and produce
less in the short run?

Marketing Channels

Marketing channels are sets of interdependent organizations involved in the process of

making a product or service available for use or consumption.

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The main actors in the marketing channel: manufacturers, wholesalers, and retailers. Each
of them assumes an ownership of the inventory of goods:

o Ownership channel (movement of the title to the good)

o Negotiation channel (buy and sell agreements are reached)
o Financing channel (handles payments for goods)
o Promotions channel (promoting a new or existing product)
o Logistics channel (handles the physical flow of product)

The Logistics Channel:

Sorting function – rearranging the assortment of products as they flow through the channels
toward the customer. It has four steps which take place between the manufacturer and the
customer (performed by wholesaler, retailer, or specialist intermediaries):

- Sorting out – sorting a heterogeneous supply of products into stocks that

are homogeneous

- Accumulating – bringing together similar stocks from different sources

- Allocation – breaking a homogeneous supply into smaller lots

- Assorting – building up assortments of goods for resale, usually to retail

customers

Facilitators or channel intermediaries are people who take part in the communication
process between wholesalers and other actors. One example might be translators.

Activities in the Logistics Channel

Activities that are considered to be logistics related include, but are not limited to:

 Customer service
 Demand forecasting
 Facility location decision
 Industrial packaging
 Inventory management (cost of carrying/holding, cost of ordering, and cost of being
out of stock)
 Materials handling
 Order management
 Parts and service support
 Production scheduling
 Procurement
 Returned products
 Salvage and scrap disposal
 Transportation management
 Warehousing management

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Transport
Definition of transport:

Transport or transportation is the movement of people, animals and goods from one
location to another. Modes of transport include air, rail, road, water, cable, pipeline, and
space. The field can be divided into infrastructure, vehicles, and operations. Transport is
important since it enables trade between people, which in turn establishes civilizations.

Transport infrastructure consists of the fixed installations necessary for transport, including
roads, railways, airways, waterways, canals and pipelines and terminals such as airports,
railway stations, bus stations, warehouses, trucking terminals, refueling depots (including
fueling docks and fuel stations), and seaports. Terminals may be used both for interchange
of passengers and cargo and for maintenance.

Vehicles traveling on these networks may include automobiles, bicycles, buses, trains,
trucks, people, helicopters, and aircraft. Operations deal with the way the vehicles are
operated, and the procedures set for this purpose including financing, legalities and policies.
In the transport industry, operations and ownership of infrastructure can be either public or
private, depending on the country and mode.

Passenger transport may be public, where operators provide scheduled services, or private.
Freight transport has become focused on containerization, although bulk transport is used
for large volumes of durable items. Transport plays an important part in economic growth
and globalization, but most types cause air pollution and use large amounts of land. While it
is heavily subsidized by governments, good planning of transport is essential to make traffic
flow, and restrain urban sprawl.

Transportation may take place via air, water, rail, road, pipeline, or cable routes, using
planes, boats, trains, trucks, and telecommunications equipment as the means of
transportation. The goal for any business owner is to minimize transportation costs while
also meeting demand for products. Transportation costs generally depend upon the distance
between the source and the destination, the means of transportation chosen, and the size
and quantity of the product to be shipped. In many cases, there are several sources and
many destinations for the same product, which adds a significant level of complexity to the
problem of minimizing transportation costs. Indeed, the United States boasts the world's
largest and most complex transportation system, with four million miles worth of roads, a
railroad network that could circle the earth almost seven times if laid out in a straight line,
and enough oil and gas lines to circle the globe 56 times.

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The decisions a business owner must make regarding transportation of products are closely
related to a number of other distribution issues. For example, the accessibility of suitable
means of transportation factors into decisions regarding where best to locate a business or
facility. The means of transportation chosen will also affect decisions regarding the form of
packing used for products and the size or frequency of shipments made. Although
transportation costs may be reduced by sending larger shipments less frequently, it is also
necessary to consider the costs of holding extra inventory. The interrelationship of these
decisions means that successful planning and scheduling can help business owners to save
on transportation costs.

History of Transport
Humans' first means of transport were walking and swimming. The domestication of animals
introduces a new way to lay the burden of transport on more powerful creatures, allowing
heavier loads to be hauled, or humans to ride the animals for higher speed and duration.
Inventions such as the wheel and sled helped make animal transport more efficient through
the introduction of vehicles. Also water transport, including rowed and sailed vessels, dates
back to time immemorial, and was the only efficient way to transport large quantities or
over large distances prior to the Industrial Revolution.

The first forms of road transport were horses, oxen or even humans carrying goods over dirt
tracks that often followed game trails. Paved roads were built by many early civilizations,
including Mesopotamia and the Indus Valley Civilization. The Persian and Roman empires
built stone-paved roads to allow armies to travel quickly. Deep roadbeds of crushed stone
underneath ensured that the roads kept dry. The medieval Caliphate later built tar-paved
roads. The first watercrafts were canoes cut out from tree trunks. Early water transport was
accomplished with ships that were either rowed or used the wind for propulsion, or a
combination of the two. The importance of water has led to most cities that grew up as sites
for trading, being located on rivers or at sea, ofter at the intersection of two bodies of water.
Until the Industrial Revolution, transport remained slow and costly, and production and
consumption were located as close to each other as feasible.

The Industrial Revolution in the 19th century saw a number of inventions fundamentally
change transport. With telegraphy, communication became instant and independent of
transport. The invention of the steam engine, closely followed by its application in rail
transport, made land transport independent of human or animal muscles. Both speed and
capacity increased rapidly, allowing specialization through manufacturing being located
independent of natural resources. The 19th century also saw the development of the steam
ship, that sped up global transport.

With the development of the combustion engine and the automobile at the turn into the
20th century, road transport became more viable, allowing the introduction of mechanical
private transport. The first highways were constructed during the 19th century with
macadam. Later, tarmac and concrete became the dominant paving material. In 1903, the
first controllable airplane was invented, and after World War I, it became a fast way to
transport people and express goods over long distances.

After World War II, the automobile and airlines took higher shares of transport, reducing rail
and water to freight and short-haul passenger.[24] Spaceflight was launched in the 1950s,
with rapid growth until the 1970s, when interest dwindled. In the 1950s, the introduction of
containerization gave massive efficiency gains in freight transport, permitting globalization.
[21]
International air travel became much more accessible in the 1960s, with the
commercialization of the jet engine. Along with the growth in automobiles and motorways,
this introduced a decline for rail and water transport. After the introduction of the

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Shinkansen in 1964, high-speed rail in Asia and Europe started taking passengers on long-
haul routes from airlines.

Early in U.S. history, most aqueducts, bridges, canals, railroads, roads, and tunnels were
owned by private joint-stock corporations. Most such transportation infrastructure came
under government control in the late 19th and early 20th centuries, culminating in the
nationalization of inter-city passenger rail service with the creation of Amtrak. Recently,
however, a movement to privatize roads and other infrastructure has gained some ground
and adherents.

Mode of transport

There are five basic means of transporting products utilized by manufacturers and
distributors: air, motor carrier, train, marine, or pipeline. Many distribution networks consist
of a combination of these means of transportation. For example, oil may be pumped through
a pipeline to a waiting ship for transport to a refinery, and from there transferred to trucks
that transport gasoline to retailers or heating oil to consumers. All of these transportation
choices contain advantages and drawbacks.

According to Transportation and Distribution, air cargo remains a comparatively small

segment of total freight transportation volume when measured by tonnage (12.5 billion
domestic ton-miles of freight annually). But L. Clinton Hoch noted in the magazine that
"access to air transportation is expected to become increasingly important since a growing
number of customers (such as hospitals and electronic manufacturers) depend upon 'just in
time' delivery systems as well as the increasing number of high-tech industries (such as
computer manufacturers) adopting the 'build-to-order' strategy." These trends, coupled with
increased pressure on consumer goods manufacturers to deliver products quickly to 1) meet
customer expectations and 2) reduce inventory and other supply chain costs, are expected
to "fuel the demand for expedited services," wrote Hoch. "Accordingly, competition is
heating up among the major air cargo and express carriers who are building specialized
hubs to handle larger aircraft and major sorting facilities."

Rail transportation is typically used for long-distance shipping. Less expensive than air
transportation, it offers about the same delivery speed as trucks over long distances and
exceeds transport speeds via marine waterways. In fact, deregulation and the introduction
of freight cars with larger carrying capacities has enabled rail carriers to make inroads in
several areas previously dominated by motor carriers. But access to the network remains a
problem for many businesses.

A mode of transport is a solution that makes use of a particular type of vehicle,

infrastructure and operation. The transport of a person or of cargo may involve one mode or
several modes, with the latter case being called intermodal or multimodal transport. Each
mode has its advantages and disadvantages, and will be chosen for a trip on the basis of
cost, capability, route, and speed.

Human-powered
Human-powered transport remains common in developing countries.

Human powered transport is the transport of people and/or goods using human muscle-
power, in the form of walking, running and swimming. Modern technology has allowed
machines to enhance human-power. Human-powered transport remains popular for reasons
of cost-saving, leisure, physical exercise and environmentalism. Human-powered transport is

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sometimes the only type available, especially in underdeveloped or inaccessible regions. It is

considered an ideal form of sustainable transportation.

Although humans are able to walk without infrastructure, the transport can be enhanced
through the use of roads, especially when using the human power with vehicles, such as
bicycles and inline skates. Human-powered vehicles have also been developed for difficult
environments, such as snow and water, by watercraft rowing and skiing; even the air can be
entered with human-powered aircraft.

Animal-powered

Animal-powered transport is the use of working animals for the movement of people and
goods. Humans may ride some of the animals directly, use them as pack animals for
carrying goods, or harness them, alone or in teams, to pull sleds or wheeled vehicles.

Air
A fixed-wing aircraft, commonly called airplane, is a heavier-than-air craft where movement
of the air in relation to the wings is used to generate lift. The term is used to distinguish
from rotary-wing aircraft, where the movement of the lift surfaces relative to the air
generates lift. A gyroplane is both fixed-wing and rotary-wing. Fixed-wing aircraft range from
small trainers and recreational aircraft to large airliners and military cargo aircraft.

Two things necessary for aircraft are air flow over the wings for lift and an area for landing.
The majority of aircraft also need an airport with the infrastructure to receive maintenance,
restocking, refueling and for the loading and unloading of crew, cargo and passengers. While
the vast majority of aircraft land and take off on land, some are capable of take off and
landing on ice, snow and calm water.

The aircraft is the second fastest method of transport, after the rocket. Commercial jets can
reach up to 955 kilometres per hour (593 mph), single-engine aircraft 555 kilometres per
hour (345 mph). Aviation is able to quickly transport people and limited amounts of cargo
over longer distances, but incur high costs and energy use; for short distances or in
inaccessible places helicopters can be used. As of April 28, 2009 The Guardian article notes
that, "the WHO estimates that up to 500,000 people are on planes at any time."

Air transportation offers the advantage of speed and can be used for long-distance
transport. However, air is also the most expensive means of transportation, so it is generally
used only for smaller items of relatively high value—such as electronic equipment—and
items for which the speed of arrival is important—such as perishable goods. Another
disadvantage associated with air transportation is its lack of accessibility; since a plane
cannot ordinarily be pulled up to a loading dock, it is necessary to bring products to and
from the airport by truck.

Rail
Rail transport is where a train runs along a set of two parallel steel rails, known as a railway
or railroad. The rails are anchored perpendicular to ties (or sleepers) of timber, concrete or
steel, to maintain a consistent distance apart, or gauge. The rails and perpendicular beams
are placed on a foundation made of concrete, or compressed earth and gravel in a bed of
ballast. Alternative methods include monorail and maglev.

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A train consists of one or more connected vehicles that run on the rails. Propulsion is
commonly provided by a locomotive, that hauls a series of unpowered cars, that can carry
passengers or freight. The locomotive can be powered by steam, diesel or by electricity
supplied by trackside systems. Alternatively, some or all the cars can be powered, known as
a multiple unit. Also, a train can be powered by horses, cables, gravity, pneumatics and gas
turbines. Railed vehicles move with much less friction than rubber tires on paved roads,
making trains more energy efficient, though not as efficient as ships.

Intercity trains are long-haul services connecting cities; modern high-speed rail is capable of
speeds up to 350 km/h (220 mph), but this requires specially built track. Regional and
commuter trains feed cities from suburbs and surrounding areas, while intra-urban transport
is performed by high-capacity tramways and rapid transits, often making up the backbone of
a city's public transport. Freight trains traditionally used box cars, requiring manual loading
and unloading of the cargo. Since the 1960s, container trains have become the dominant
solution for general freight, while large quantities of bulk are transported by dedicated
trains.

The rail transportation network in the United States included about 120,000 miles of major
rail lines in the late 1990s, on which carriers transported an estimated 1.3 million tons of
freight annually. Trains are ideally suited for shipping bulk products, and can be adapted to
meet specific product needs through the use of specialized cars—i.e., tankers for liquids,
refrigerated cars for perishables, and cars fitted with ramps for automobiles.

Road
A road is an identifiable route, way or path between two or more places. Roads are typically
smoothed, paved, or otherwise prepared to allow easy travel;[5] though they need not be,
and historically many roads were simply recognizable routes without any formal construction
or maintenance. In urban areas, roads may pass through a city or village and be named as
streets, serving a dual function as urban space easement and route.

The most common road vehicle is the automobile; a wheeled passenger vehicle that carries
its own motor. Other users of roads include buses, trucks, motorcycles, bicycles and
pedestrians. As of 2002, there were 590 million automobiles worldwide.

Automobiles offer high flexibility and with low capacity, but are deemed with high energy
and area use, and the main source of noise and air pollution in cities; buses allow for more
efficient travel at the cost of reduced flexibility. Road transport by truck is often the initial
and final stage of freight transport.

Water
Water transport is movement by means of a watercraft—such as a barge, boat, ship or
sailboat—over a body of water, such as a sea, ocean, lake, canal or river. The need for
buoyancy is common to watercraft, making the hull a dominant aspect of its construction,
maintenance and appearance.

In the 19th century the first steam ships were developed, using a steam engine to drive a
paddle wheel or propeller to move the ship. The steam was produced in a boiler using wood
or coal and fed through a steam external combustion engine. Now most ships have an
internal combustion engine using a slightly refined type of petroleum called bunker fuel.
Some ships, such as submarines, use nuclear power to produce the steam. Recreational or
educational craft still use wind power, while some smaller craft use internal combustion

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engines to drive one or more propellers, or in the case of jet boats, an inboard water jet. In
shallow draft areas, hovercraft are propelled by large pusher-prop fans.

Although slow, modern sea transport is a highly efficient method of transporting large
quantities of goods. Commercial vessels, nearly 35,000 in number, carried 7.4 billion tons of
cargo in 2007.Transport by water is significantly less costly than air transport for
transcontinental shipping; short sea shipping and ferries remain viable in coastal areas.

Water transportation is the least expensive and slowest mode of freight transport. It is
generally used to transport heavy products over long distances when speed is not an issue.
Although accessibility is a problem with ships—because they are necessarily limited to
coastal area or major inland waterways—piggybacking is possible using either trucks or rail
cars. However, industry observers note that port terminal accessibility to land-based modes
of transportations is lacking in many regions. The main advantage of water transportation is
that it can move products all over the world.

Other modes
Pipeline transport sends goods through a pipe, most commonly liquid and gases are sent,
but pneumatic tubes can also send solid capsules using compressed air. For liquids/gases,
any chemically stable liquid or gas can be sent through a pipeline. Short-distance systems
exist for sewage, slurry, water and beer, while long-distance networks are used for
petroleum and natural gas.

Cable transport is a broad mode where vehicles are pulled by cables instead of an internal
power source. It is most commonly used at steep gradient. Typical solutions include aerial
tramway, elevators, escalator and ski lifts; some of these are also categorized as conveyor
transport.

Spaceflight is transport out of Earth's atmosphere into outer space by means of a

spacecraft. While large amounts of research have gone into technology, it is rarely used
except to put satellites into orbit, and conduct scientific experiments. However, man has
landed on the moon, and probes have been sent to all the planets of the Solar System.

Suborbital spaceflight is the fastest of the existing and planned transport systems from a
place on Earth to a distant other place on Earth. Faster transport could be achieved through
part of a Low Earth orbit, or following that trajectory even faster using the propulsion of the
rocket to steer it.

Elements of Transport
Bridges, such as Golden Gate Bridge, allow roads and a railway to cross bodies of
water.Infrastructure is the fixed installations that allow a vehicle to operate. It consists of a
way, a terminal and facilities for parking and maintenance. For rail, pipeline, road and cable
transport, the entire way the vehicle travels must be built up. Air and water craft are able to
avoid this, since the airway and seaway do not need to be built up. However, they require
fixed infrastructure at terminals.

Terminals such as airports, ports and stations, are locations where passengers and freight
can be transferred from one vehicle or mode to another. For passenger transport, terminals
are integrating different modes to allow riders to interchange to take advantage of each
mode's advantages. For instance, airport rail links connect airports to the city centers and

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suburbs. The terminals for automobiles are parking lots, while buses and coaches can
operates from simple stops. For freight, terminals act as transshipment points, though some
cargo is transported directly from the point of production to the point of use.

The financing of infrastructure can either be public or private. Transport is often a natural
monopoly and a necessity for the public; roads, and in some countries railways and airports
are funded through taxation. New infrastructure projects can involve large spending, and are
often financed through debt. Many infrastructure owners therefore impose usage fees, such
as landing fees at airports, or toll plazas on roads. Independent of this, authorities may
impose taxes on the purchase or use of vehicles.

Vehicles

A vehicle is any non-living device that is used to move people and goods. Unlike the
infrastructure, the vehicle moves along with the cargo and riders. Vehicles that do not
operate on land, are usually called crafts. Unless being pulled by a cable or muscle-power,
the vehicle must provide its own propulsion; this is most commonly done through a steam
engine, combustion engine, electric motor, a jet engine or a rocket, though other means of
propulsion also exist. Vehicles also need a system of converting the energy into movement;
this is most commonly done through wheels, propellers and pressure.

Vehicles are most commonly staffed by a driver. However, some systems, such as people
movers and some rapid transits, are fully automated. For passenger transport, the vehicle
must have a compartment for the passengers. Simple vehicles, such as automobiles,
bicycles or simple aircraft, may have one of the passengers as a driver.

Motor carriers are accessible and ideally suited for transporting goods over short distances,
trucks are the dominant means of shipping in the United States. In fact, motor carriers
account for approximately $120 billion in annual revenue, much of it due to local shipments
(shipments to and from business enterprises in the same community or local region). This
industry sector underwent tremendous change in the 1990s with the introduction of
deregulation measures that removed most state and federal regulations in the areas of
pricing and operating authority. "With few exceptions, motor carriers are now free to
operate wherever they wish and to charge any rates that are agreeable to the shipper and
the carrier.

Operation
Private transport is only subject to the owner of the vehicle, who operates the vehicle
themselves. For public transport and freight transport, operations are done through private
enterprise or by governments. The infrastructure and vehicles may be owned and operated
by the same company, or they may be operated by different entities. Traditionally, many
countries have had a national airline and national railway. Since the 1980s, many of these
have been privatized. International shipping remains a highly competitive industry with little
regulation but ports can be public owned.

Function
Relocation of travelers and cargo are the most common uses of transport. However, other
uses exist, such as the strategic and tactical relocation of armed forces during warfare, or
the civilian mobility construction or emergency equipment.

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Passenger

Passenger transport, or travel, is divided into public and private transport. Public transport is
scheduled services on fixed routes; while private is vehicles that provide ad hoc services at
the riders desire. The latter offer better flexibility, but has lower capacity, and a higher
environmental impact. Travel may be as part of daily commuting, for business, leisure or
migration.

Short-haul transport is dominated by the automobile and mass transit. The latter consists of
buses in rural and small cities, supplemented with commuter rail, trams and rapid transit in
larger cities. Long-haul transport involves the use of the automobile, trains, coaches and
aircraft, the last of which have become predominantly used for the longest, including
intercontinental, travel. Intermodal passenger transport is where a journey is performed
through the use of several modes of transport; since all human transport normally starts and
ends with walking, all passenger transport can be considered intermodal. Public transport
may also involve the intermediate change of vehicle, within or across modes, at a transport
hub, such as a bus or railway station.

Taxis and Buses can be found on both ends of Public Transport spectrum, whereas Buses
remain the cheaper mode of transport but are not necessarily flexible, and Taxis being very
flexible but more expensive. In the middle is Demand responsive transport offering flexibility
whilst remaining affordable.

International travel may be restricted for some individuals due to legislation and visa
requirements.

Freight

Freight transport, or shipping, is a key in the value chain in manufacturing. With increased
specialization and globalization, production is being located further away from consumption,
rapidly increasing the demand for transport. While all modes of transport are used for cargo
transport, there is high differentiation between the nature of the cargo transport, in which
mode is chosen.[18] Logistics refers to the entire process of transferring products from
producer to consumer, including storage, transport, transshipment, warehousing, material-
handling and packaging, with associated exchange of information. Incoterm deals with the
handling of payment and responsibility of risk during transport.

Containerization, with the standardization of ISO containers on all vehicles and at all ports,
has revolutionized international and domestic trade, offering huge reduction in
transshipment costs. Traditionally, all cargo had to be manually loaded and unloaded into
the haul of any ship or car; containerization allows for automated handling and transfer
between modes, and the standardized sizes allow for gains in economy of scale in vehicle
operation. This has been one of the key driving factors in international trade and
globalization since the 1950s.

Bulk transport is common with cargo that can be handled roughly without deterioration;
typical examples are ore, coal, cereals and petroleum. Because of the uniformity of the
product, mechanical handling can allow enormous quantities to be handled quickly and
efficiently. The low value of the cargo combined with high volume also means that
economies of scale become essential in transport, and gigantic ships and whole trains are
commonly used to transport bulk. Liquid products with sufficient volume may also be
transported by pipeline.

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Air freight has become more common for products of high value; while less than one percent
of world transport by volume is by airline, it amounts to forty percent of the value. Time has
become especially important in regards to principles such as postponement and just-in-time
within the value chain, resulting in a high willingness to pay for quick delivery of key
components or items of high value-to-weight ratio. In addition to mail, common items sent
by air include electronics and fashion clothing.

Impact of Transport
Economic
Transport is a key component of growth and globalization, such as in Seattle, Washington,
United States

Transport is a key necessity for specialization—allowing production and consumption of

products to occur at different locations. Transport has throughout history been a spur to
expansion; better transport allows more trade and a greater spread of people. Economic
growth has always been dependent on increasing the capacity and rationality of transport. [26]
But the infrastructure and operation of transport has a great impact on the land and is the
largest drainer of energy, making transport sustainability a major issue.

Modern society dictates a physical distinction between home and work, forcing people to
transport themselves to places of work or study, as well as to temporarily relocate for other
daily activities. Passenger transport is also the essence of tourism, a major part of
recreational transport. Commerce requires the transport of people to conduct business,
either to allow face-to-face communication for important decisions or to move specialists
from their regular place of work to sites where they are needed.

Planning

Transport planning allows for high utilization and less impact regarding new infrastructure.
Using models of transport forecasting, planners are able to predict future transport patterns.
On the operative level, logistics allows owners of cargo to plan transport as part of the
supply chain. Transport as a field is studied through transport economics, the backbone for
the creation of regulation policy by authorities. Transport engineering, a sub-discipline of
civil engineering, and must take into account trip generation, trip distribution, mode choice
and route assignment, while the operative level is handled through traffic engineering.

The engineering of this roundabout in Bristol, United Kingdom, attempts to make traffic flow
free-moving

Because of the negative impacts made, transport often becomes the subject of controversy
related to choice of mode, as well as increased capacity. Automotive transport can be seen
as a tragedy of the commons, where the flexibility and comfort for the individual deteriorate
the natural and urban environment for all. Density of development depends on mode of
transport, with public transport allowing for better spacial utilization. Good land use keeps
common activities close to peoples homes and places higher-density development closer to
transport lines and hubs; minimize the need for transport. There are economies of
agglomeration. Beyond transportation some land uses are more efficient when clustered.
Transportation facilities consume land, and in cities, pavement (devoted to streets and
parking) can easily exceed 20 percent of the total land use. An efficient transport system
can reduce land waste.

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Too much infrastructure and too much smoothing for maximum vehicle throughput means
that in many cities there is too much traffic and many—if not all—of the negative impacts
that come with it. It is only in recent years that traditional practices have started to be
questioned in many places, and as a result of new types of analysis which bring in a much
broader range of skills than those traditionally relied on—spanning such areas as
environmental impact analysis, public health, sociologists as well as economists who
increasingly are questioning the viability of the old mobility solutions. European cities are
leading this transition.

Environment
Traffic congestion persists in São Paulo, Brazil despite the no-drive days based on license
numbers.

Transport is a major use of energy and burns most of the world's petroleum. This creates air
pollution, including nitrous oxides and particulates, and is a significant contributor to global
warming through emission of carbon dioxide, for which transport is the fastest-growing
emission sector. By subsector, road transport is the largest contributor to global warming.
Environmental regulations in developed countries have reduced individual vehicles'
emissions; however, this has been offset by increases in the numbers of vehicles and in the
use of each vehicle. Some pathways to reduce the carbon emissions of road vehicles
considerably have been studied. Energy use and emissions vary largely between modes,
causing environmentalists to call for a transition from air and road to rail and human-
powered transport, as well as increased transport electrification and energy efficiency.

Other environmental impacts of transport systems include traffic congestion and

automobile-oriented urban sprawl, which can consume natural habitat and agricultural
lands. By reducing transportation emissions globally, it is predicted that there will be
significant positive effects on Earth's air quality, acid rain, smog and climate change.

Material Handling Systems/Methods

One of the basic components of any manufacturing system is its Material Handling Systems.
We shall first study the different types of material handling systems that are currently in
use. Next, we shall pick a common type of MH system, a conveyor, and look at some details
of how to go about designing a conveyor system for a factory.

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Definition: Material Handling refers to activities, equipment, and procedures related to the
moving, storing, protecting and controlling of materials in a system.

Why study MH ?

In a typical factory, MH accounts for 24% of all employees, 55% of the space, and 87% of
the production time.

It accounts for between 15% to 70% of the cost of a product.

Definition:

MH means providing

the right amount of

the right material

at the right place

at the right time

in the right position

in the right sequence

for the right cost

Some of the above points are quite obvious, others require careful planning.

Right Amount:

This relates to two fundamental issues: how much inventory we need to maintain for
different parts/components/modules/products ?

How much WIP must be running through the system ?

The first question will be handled in a future lecture. the second is related to lot sizes and
throughput rates:

Exmaple [Hopp & Spearman, p289]

An assembly plant had implemented Manufacturing cells. Castings arrived at the cell from
the foundry, and the operations performed were: drilling, machining, grinding, and polishing.
The total time to process the parts was less than 1 hour. the company was happy that by

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placing the processes in a cell, they could reduce the total cycle time from few days to one
hour.

Quite impressive, until it was noticed that the batch size for the cell was nearly 10,000 parts.
Thus the foundry would deliver 10,000 part batches using a fork lift. Then the cell would
manufacture the parts, at the rate of approximately 250 part per hour. Once the lot was
completed, the fork lift was again called to transfer the lot to the assembly station.

Question: What is the real processing time in the new arrangement ?

Question: Why does this problem arise ?

Answer: Because the Process Batch size is assumed (incorrectly) = Material Handling Batch
Size.

Therefore, one way to reduce the WIP of the Assembly System (not the overall
manufacturing system!) would be to reduce the MH Batch, to,say 1000 parts.

How does this affect the design of the Manufacturing System ? MH equipment used to
transfer smaller batches can be different; MH traffic rate increases to 10 times of the
previous rate.

Trade-offs in Batch sizing for MH:

1. Larger Batch gives lower Setup times.

2. Larger batches in general require less material handling (since carrying one large lot
requires less number of trips).
3. Larger batch size leads to high WIP.

Right Material:

It is important for the MH system to deliver the proper material. Typical cause of problems
may be; Look-alikes (e.g. Red T-shirts of "XL" size and Red T-Shirts of "XXL" size; or M4
screws with slightly different screw head shape etc.)

Methods of identification: Coding, Visual

Techniques for coding: Bar codes, Alphanumeric codes stored and recognized by magnetic
strips or visual recognition.

Visual Techniques: Human vision, Optical camera vision and recognition systems

Right Sequence:

This is an important step in design of manufacturing systems as well as in their operation.

Materials delivered in the wrong sequence will directly result in increased WIP (Why ?)

Conclusion: Product design, and Process Planning should be done, if possible, BEFORE the
layout of the factory and the MH system is planned. For mixed product systems, where
multiple products need to run through the same processing line, the line should be designed
to minimize the total amount of loop-back movement of materials. Similarly, in assembly
lines, the sequence in which the parts arrive at the assembly station should match the

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sequence in which they are assembled. One example where this becomes very important is
palletizing stations where pallets are bing loaded with a particular part/product mix.

Right Orientation:

Especially important for automated MH systems, or assembly systems. Typical assembly

heads can only handle parts presented to them in a given orientation. Often, special devices
and tracks are sued to maintain the parts/WIP in a given orientation as it travels along the
MH system.

Orientation/Feeding for Small parts: vibratory feeders and tracks are commonly used in
mass production. For mixed batch sizes,

our group at HKUST is developing MPATS ( Modular, Parametric, Assembly Tool Set). This
tool set comprises of vibratory feeders, rotary feeders, feed tracks, multi-layer multi gripper
robot end-effectors).

Hardware Details

We now look at the different types of MH hardware. In most cases of MH, we talk in terms of
the handling of a UNIT LOAD. This is one unit of the material that will travel through the
section of the Mfg Sys in which we are interested. Typically, the Unit Load may be one part,
a few parts of the same type, a pallet with a mix of parts, or even a container to be shipped
out of Container Terminal No. 5 in Kwai Chung.

Hardware Categories and Examples

1. Containers and Unitizing Equipment

A. Containers

i. Pallets
ii. Skids and Skid Boxes
iii. Tote Pans

A. Unitizes

i. Stretch Wraps
ii. Palletizers

1. Material Transport Equipment

A. Conveyors

i. Chute conveyors
ii. Belt conveyors

Flat belt, Telescoping belt, Troughed belt, Magnetic belt

iii. Roller conveyors

iv. Wheel conveyors
v. Slat conveyor

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vi. Chain conveyor

vii. Tow line conveyor
viii. Trolley conveyor
ix. Power and Free conveyor
x. Cart on track conveyor
xi. Sorting conveyor

Deflector, Push diverter, Rake puller, Moving slat, Pop-up skewed wheels, Pop-
up belts, Pop-up rollers, Tilting slats, Tilt tray, Cross belt, Bombardier sorter

xii. Powered conveyors and orienters

Rotary feeders

Vibratory bowls

Vibratory linear feeders

MPATS

A. Industrial Vehicles

i. Walking

Hand truck, Hand cart, pallet jack, Walkie stacker

ii. Riding

Pallet truck, Platform truck, Tractor trailer, Counterbalanced lift truck, Straddle
carrier, Mobile yard crane

iii. Automated

Automated Guided Vehicle (AGV) [Unit load

carrier, Small load carrier, Towing vehicle,
Assembly vehicle, Storage/Retrieval vehicle]

Automated electrified monorail

Storing Transfer Vehicle

A. Monorails, Hoists, Cranes

i. Monorail
ii. Hoist
iii. Cranes

Jib crane, Bridge crane, Gantry crane, Tower

crane, Stacker crane

1. Storage and Retrieval Equipment

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A. Unit load storage and retrieval

i. Unit load storage

Block stacking, Pallet stacking frame, Single deep selective rack, Double deep
selective rack, Drive-in rack, Drive through rack, pallet flow rack, Push back
rack, mobile rack, Cantilever rack

ii. Unit load retrieval

Walkie stacker, Counterbalance lift truck, Narrow

Aisle vehicles

A. Small load storage and retrieval

i. Operator-to-stock storage

Bin shelving, Modular storage drawers in cabinets, Carton flow rack,

Mezzanine, Mobile storage

ii. Operator-to-stock retrieval

Picking cart, Order picker truck, Person-aboard automated R/S machine, Robot

iii. Stock-to-operator

Carousels, Vertical lift module, Automatic

dispenser

1. Automatic Identification and Communication Equipment

A. Automatic Identification and Recognition

i. Bar coding
ii. Optical character recognition
iii. Radio frequency tag
iv. Magnetic strip
v. Machine vision

A. Automatic, paperless communication

i. Radio frequency data terminal

ii. Voice handset
iii. Light and computer aids
iv. Smart card

The references I have mentioned carry nice pictures of each of these types of equipment,
along with descriptions: It may be a good idea to know each of these, and understand under
what kind of conditions is it feasible and recommended to use which of them.

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The 20 principles of Material Handling System Design (adapted from the guidelines of the
College-Industry Council on Material handling Education).

1. Orientation Principle. Study the system relationships prior to specification to

determine problems, constraints, goals.
2. Planning Principle. Plan to meet requirements efficiently, but maintain flexibility for
contingencies.
3. Systems Principle. Coordinate and integrate receiving, inspection, storage,
product, assembly, packaging, warehousing and distribution systems.
4. Unit load Principle. Use large but practical Unit Loads.
5. Space Utilization Principle. Effectively use all cubic space.
6. Standardization Principle. Use standard equipment and methods if possible.
7. Ergonomic Principle. Recognize human limitations in human-mechanical systems.
8. Energy Principle. Consider energy consumption in economic analysis.
9. Ecology Principle. Design for environmental friendliness.
10. Mechanization Principle. Automate if possible to increase efficiency.
11. Flexibility Principle. Use methods and equipment that can Performa variety of
tasks.
12. Simplification Principle. simplify and eliminate handling steps if possible.
13. Gravity Principle. Gravity is free. Use it.
14. Safety Principle. Provide safe methods and equipment. Follow safety codes.
15. Computerization Principle. Consider computerization and automation.
16. System Flow Principle. Integrate data and material flows.
17. Layout Principle. Analyze multiple viable sequencing and layout solutions.
18. Cost principle. Compare alternatives in terms of cost per unit handled.
19. Maintenance Principle. Use preventive maintenance on equipment.
20. Obsolescence Principle. Prepare an economic plan for equipment replacement
based on life-cycle costs.

Material Handling Equipments

This is when conveyors are used:

 When material is to be moved frequently between specific points

 To move materials over a fixed path
 When there is a sufficient flow volume to justify the fixed conveyor investment

Conveyors can be classified in different ways:

 Type of product being handled: unit load or bulk load

 Location of the conveyor: overhead, on-floor, or in-floor
 Whether or not loads can accumulate on the conveyor

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1. Chute Conveyor

Unit/Bulk + On-Floor + Accumulate

Inexpensive

Used to link two handling devices

Used to provide accumulation in shipping areas

Used to convey items between floors

2. Wheel Conveyor

Unit + On-Floor + Accumulate

Uses a series of skate wheels

mounted on a shaft (or axle), where
spacing of the wheels is dependent
on the load being transported

Slope for gravity movement depends

on load weight

More economical than the roller conveyor

Difficult to control position of the

For light-duty applications

Flexible, expandable versions available

3. Roller Conveyor

Unit + On-Floor + Accumulate

May be powered (or live) or manpowered (or gravity)

Materials must have a rigid riding surface

Minimum of three rollers must support smallest loads at all times

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Tapered rollers on curves used to maintain load orientation

3(a) Gravity Roller Conveyor

Alternative to wheel conveyor

For heavy-duty applications

Slope for gravity movement depends on load weight

For accumulating loads

3(b) Live (Powered) Roller Conveyor

Belt or chain driven

Force-sensitive transmission can be used to

disengage rollers for accumulation

For accumulating loads and merging/sorting

operations

Provides limited incline movement capabilities

4. Chain Conveyor

Unit + In-/On-Floor + No Accumulate

Uses one or more endless chains on which loads are carried

directly

Parallel chain configuration used to transport pallets

Vertical chain conveyor used for continuous high-frequency

vertical transfers (cf. vertical conveyor used for low-frequency

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intermittent transfers)

5. Slat Conveyor

Unit + In-/On-Floor + No Accumulate

Uses discretely spaced slats connected to a chain

Unit being transported retains its position (like a

belt conveyor)

Orientation and placement of the load is

controlled

Used for heavy loads or loads that might damage

a belt

Bottling and canning plants use flat chain or slat

conveyors because of wet conditions, temperature, and cleanliness requirements

Tilt slat conveyor used for sortation

6. Flat Belt Conveyor

Unit + On-Floor + No Accumulate

For transporting light- and medium-weight loads

between operations, departments, levels, and
buildings

When an incline or decline is required

Provides considerable control over the

orientation and placement of the load.

No smooth accumulation, merging, and sorting

on the belt

The belt is roller or slider bed supported; the

slider bed is used for small and irregularly
shaped items

In 1957, B.F. Goodrich, Co. patented the Möbius

strip for conveying hot or abrasive substances in order to have "both" sides wear equally

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7. Magnetic Belt Conveyor

Bulk + On-Floor

A steel belt and either a magnetic slider bed or a

magnetic pulley is used

To transport ferrous materials vertically, upside down,

and around corners

8. Troughed Belt Conveyor

Bulk + On-Floor

Used to transport bulk materials

When loaded, the belt conforms to the shape of the troughed

rollers and idlers

9. Bucket Conveyor

Bulk + On-Floor

Used to move bulk materials in a vertical or inclined path

Buckets are attached to a cable, chain, or belt

Buckets are automatically unloaded at the end of the conveyor run|

10. Vibrating Conveyor

Bulk + On-Floor

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Consists of a trough, bed, or tube

Vibrates at a relatively high frequency and small amplitude in order to convey individual
units of products or bulk material

Can be used to convey almost all granular, free-flowing materials

An Oscillating Conveyor is similar in construction, but vibrates at a lower frequency and

11. Screw Conveyor

Bulk + On-Floor

Consists of a tube or U-shaped

stationary trough through which a
shaft-mounted helix revolves to
push loose material forward in a
horizontal or inclined direction

One of the most widely used conveyors in the processing industry

Many applications in agricultural and chemical processing

Water screw developed circa 250 BC by Archimedes

12. Pneumatic Conveyor

Bulk/Unit + Overhead

Can be used for both bulk and unit movement of materials

Air pressure is used to convey materials through a system of vertical and horizontal tubes

Major advantages are that material is completely enclosed and it is easy to implement turns
and vertical moves

12(a) Dilute-Phase Pneumatic Conveyor

Moves a mixture of air and solid

Push (positive pressure) systems push material from one

entry point to several discharge points

Pull (negative pressure or vacuum) systems move material

from several entry points to one discharge point

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12(b) Carrier-System Pneumatic Conveyor

Carriers are used to transport items or paperwork (e.g., money from

drive-in stalls at banks)

13. Vertical Conveyor

Unit + On-Floor + No Accumulate

Used for low-frequency intermittent vertical transfers (cf. vertical chain conveyor can be
used for continuous high-frequency vertical transfers

13(a) Vertical Lift Conveyor

Carrier used to raise or lower a load to different

levels of a facility (e.g., different floors and/or
mezzanines)

Differs from a freight elevator in that it is not

designed or certified to carry people

Can be manually or automatically loaded and/or

controlled and can interface with horizontal

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Push-pull systems are combinations with

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conveyors

13(b) Reciprocating Vertical Conveyor

Utilizes gravity-actuated carrier to lowering

loads, where the load overcomes the
magnitude of a counterweight

Can only be used to lower a load

Alternative to a chute conveyor for vertical

"drops" when load is fragile and/or space is
limited

Can be manually or automatically loaded

and/or controlled and can interface with
horizontal conveyors

14. Cart-On-Track Conveyor

Unit + In-Floor + Accumulate

Used to transport carts along a track

Carts are transported by a rotating tube

Connected to each cart is a drive wheel that rests

on the tube and that is used to vary the speed of
the cart (by varying the angle of contact between
the drive wheel and the tube)

Carts are independently controlled

Accumulation can be achieved by maintaining the drive wheel parallel to the tube

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15. Tow Conveyor

Unit + In-Floor + Accumulate

Uses towline to provide power to wheeled carriers such as

trucks, dollies, or carts that move along the floor

Used for fixed-path travel of carriers (each of which has

variable path capabilities when disengaged from the
towline)

Towline can be located either overhead, flush with the

floor, or in the floor

Selector-pin or pusher-dog arrangements can be used to

allow automatic switching (power or spur lines)

16. Trolley Conveyor

Generally
Unit + Overhead + No Accumulate

Uses a series of trolleys supported from or within an overhead track

Trolleys are equally spaced in a closed loop path and are suspended from a chain

Carriers are used to carry multiple units of product

Does not provide for accumulation

Commonly used in processing, assembly, packaging, and storage operations

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17. Power-and-Free Conveyor

Similar to trolley conveyor due to use of discretely spaced carriers transported by an

overhead chain; however, the power-and-free conveyor uses two tracks: one powered and
the other nonpowered (or free)

Carriers can be disengaged from the power chain and accumulated or switched onto spurs

Termed an Inverted Power-and-Free Conveyor when tracks are located on the floor

18.Monorail

Unit + Overhead + Accumulate

Overhead single track (i.e., mono-rail) or track network on which one or more carriers ride

Carriers: powered (electrically or pneumatically) or nonpowered

Carrier can range from a simple hook to a hoist to an intelligent-vehicle-like device

Single-carrier, single-track monorail similar to bridge or gantry crane

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Multi-carrier, track network monorail similar to both a trolley conveyor, except that the
carriers operate independently and the track need not be in a closed loop, and a fixed-path
automatic guided vehicle (AGV) system, except that it operates overhead

Termed an Automated Electrified Monorail (AEM) system when it has similar control
characteristics as an AGV system

19. Sortation Conveyor

Sortation conveyors are used for merging, identifying, inducting, and separating products to
be conveyed to specific destinations

19(a) Sortation Conveyor: Diverter

Stationary or movable arms that deflect, push, or pull a product to desired destination

Since they do not come in contact with the conveyor, they can be used with almost any flat
surface conveyor

Usually hydraulically or pneumatically operated, but also can be motor driven

Simple and low cost

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19(b) Sortation Conveyor: Pop-Up Device

One or more rows of powered rollers or wheels or chains that pop up above surface of
conveyor to lift product and guide it off conveyor at an angle; wheels are lowered when
products not required to be diverted

Only capable of sorting flat-bottomed items

Pop-up rollers are generally faster than pop-up wheels

19(c) Sortation Conveyor: Sliding

Shoe Sorter

Sliding shoe sorter (a.k.a. moving slat

sorter) uses series of diverter slats that
slide across the horizontal surface to
engage product and guide it off conveyor

Slats move from side to side as product

flows in order to divert the product to
either side

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19(d) Sortation Conveyor: Tilting Device

Trays or slats provide combined sorting

mechanism and product transporter

Can accommodate elevation changes

Tilt tray sorters usually designed in

continuous loops with a compact layout
and recirculation of products not sorted
the first time

Tilt slat sorters carry products on flat-

19(e) Sortation Conveyor: Cross-Belt Transfer Device

Either continuous loop, where

individual carriages are linked
together to form an endless loop, or
train style (asynchronous), where a
small number of carriers tied together
with potential for several trains
running track simultaneously

Each carriage equipped with small

belt conveyor, called the cell, that is
mounted perpendicular to direction of
travel of loop and discharges product
at appropriate destination

Gentle and
surface slatgradual
conveyorhandling
and canofhandle

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Automatically separates single line of products into multiple in-line discharge

lines
Identification and Control Equipment

Identification and control equipment is used to collect and communicate the information
that is used to coordinate the flow of materials within a facility and between a facility and its
suppliers and customers. The major types of identification and communication equipment
are:

1. Manual (no equipment) 5. Machine vision

2. Bar codes 6. Portable data terminal
3. Radio frequency (RF) tag 7. Electronic data interchange
4. Magnetic stripe (EDI)/Internet

1. Manual (No Equipment)

The identification of materials and associated communication can be performed manually

with no specialized equipment

Although it is sometimes possible to manually coordinate the operation of a material

handling system, it becomes more difficult to due so as the speed, size, and complexity of
the system increases

2. Bar Codes

Unique bar/space patterns represent various alphanumeric characters

Bar code system consists of bar code label, bar code scanner, and bar code printer

Contact bar code scanners use pen or wand to read labels

Noncontact bar code scanners include fixed beam, moving beam, and omnidirectional

1-D codes are most common; 2-D codes enable much greater data storage capability

3. Radio Frequency (RF) Tag

 Data encoded on chip encased in a tag

 Noncontact: can be read when the tag is within 30 ft. of an antenna
 Tags can either be attached to a container, or permanently or temporarily to an item
 RF tags have greater data storage capability than bar codes

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4. Magnetic Stripe

 Data encoded on a magnetic stripe that is readable in almost any environment

 Requires contact with a reader
 Greater storage capability and more expensive than bar codes

5. Machine Vision

Does not require explicit encoding of data since objects can be identified by their physical
appearance

Noncontact, but typically requires structured lighting

More flexible than other identification equipment, but less robust

6. Portable Data Terminal

Handheld, arm-mounted, or vehicle-mounted data storage and communication device

Communicates with a host computer via a radio frequency or infrared link

Variety of input devices available: keyboard, bar code scanner, voice headset

7. Electronic Data Interchange (EDI)/Internet

Electronic data interchange (EDI) provides standards for inter-corporate transfer of purchase
orders, invoices, shipping notices, and other frequently used business documents

Prior to the Internet, EDI required expensive dedicated value added networks (VANs)

EDI is critical for implementing JIT manufacturing

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Cranes

Cranes are used to move materials over variable paths within a restricted area. The major
types of cranes are:

1. Jib crane
2. Bridge crane
3. Gantry crane
4. Stacker crane

General characteristics of cranes:

 Used to move loads over variable (horizontal and vertical) paths within a restricted
area
 Used when there is insufficient (or intermittent) flow volume such that the use of a
conveyor cannot be justified
 Provide more flexibility in movement than conveyors
 Provide less flexibility in movement than industrial trucks

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 Loads handled are more varied with respect to their shape and weight than those
handled by a conveyor
 Most cranes utilize hoists for vertical movement, although manipulators can be used
if precise positioning of the load is required

1. Jib Crane

Operates like an arm in a work area, where it

can function as a manipulator for positioning
tasks

A hoist is attached to the arm for lifting

Arm mounted on the wall or attached to a

floor mounted support

Arm can rotate 360°

The hoist can move along the arm

2. Bridge Crane

Bridge mounted on tracks that are

located on opposite walls of the facility

Enables three-dimensional handling

Top riding (heavier loads) or underhung

(more versatile) versions of the crane

Underhung crane can transfer loads

and interface with other MHS (e.g.,
monorail systems)

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3. Gantry Crane

Single leg, double leg, and mobile types of gantry cranes

Similar to a bridge crane except that it is floor supported at one or both ends instead of
overhead (wall) supported

Used to span a smaller portion of the work area as compared to a bridge crane

The supports can be fixed in position or they can travel on runways

Can be used outdoors when "floor" supported at both ends

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4. Stacker Crane

Similar to a bridge crane except that,

instead of a hoist, it uses a mast with
forks or a platform to handle unit loads

Considered "fork trucks on a rail"

Used for storing and retrieving unit loads

in storage racks, especially in high-rise
applications in which the racks are more
than 50 feet high

Can be controlled remotely or by an

operator in a cab on the mast

Can be rack supported

III. Unit Load Formation Equipment

Unit load formation equipment used to restrict materials so that they maintain their integrity
when handled a single load during transport and for storage. The major types of unit load
formation equipment are ([+] = more info):

Advantages of unit loads:

 More items can be handled at the same time, thereby reducing the number of trips
required and, potentially, reducing handling costs, loading and unloading times, and
product damage.
 Enables the use of standardized material handling equipment.

Disadvantages of unit loads:

 Time spent forming and breaking down the unit load.

 Cost of containers/pallets and other load restraining materials used in the unit load
 Empty containers/pallets may need to be returned to their point of origin.

1. Self-Restraining (No Equipment)

One or more items that can maintain their integrity when handled as a single item (e.g., a
single part or interlocking parts)

2. Pallets

Platform with enough clearance beneath its

top surface (or face) to enable the insertion of
forks for subsequent lifting purposes

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Materials: Wood (most common), paper, plastic, rubber, and metal

Size of pallet is specified by its depth (i.e., length of its stringers or stringer boards) and its
width (i.e., length its deckboards)—pallet height (typically 5 in.) is usually not specified;
orientation of stringers relative to deckboards of pallet is specified by always listing its depth
first and width last: Depth (stringer length) x Width (deckboard length)

48 x 40 in. pallet is most popular in US (27% of all pallets—no other size over 5%) because
its compatibility with railcar and truck trailer dimensions

3. Skids

Platform (typically metal) with enough clearance beneath its

top surface to enable a platform truck to move underneath
for subsequent lifting purposes

Forks can also be used to handle skids since the clearance of

a skid is greater than that of a pallet

Compared to a pallet, a skid is usually used for heavier loads

and when stacking is not required; a metal skid can lift
heavier loads than an equal-weight metal pallet because it enables a platform truck to be
used for the lifting, with the platform providing a greater lifting surface to support the skid
as compared to the forks used to support the pallet

4. Slipsheets

Thick piece of paper, corrugated fiber, or plastic upon which a

load is placed

Handling method: tabs on the sheet are grabbed by a special

push/pull lift truck attachment

Advantages: usually used in place of a pallet for long-distance

shipping because their cost is 10–30% of pallet costs and
their weight and volume is 1–5% of a pallet

Disadvantages: slower handling as compared to pallets; greater load damage within the

5. Tote Pans

Reusable container used to unitize and protect

loose discrete items

Typically used for in-process handling

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1200 x 800
facility; special
mmlift
"Euro-Pallet"
truck attachment
is the standard
reduces the
pallet
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6. Pallet Boxes/Skid Boxes

Reusable
container used
to unitize and
protect loose
items for
fork/platform
truck handling

7. Bins/Baskets/Racks

Storage equipment that also can be used to unitize and protect loose discrete items

8. Cartons

Disposable container used to unitize and protect

loose discrete items

Typically used for distribution

Dimensions always specified as sequence:

Length x Width x Depth, where length is the
larger, and width is the smaller, of the two
dimension of the open face of the carton, and
depth is the distance perpendicular to the length
and width

Large quantities of finished carton blanks or knocked-down cartons can be stored on pallets
until needed

9. Bags

Disposable container used to unitize and protect bulk materials

Typically used for distribution

Polymerized plastic ("poly") bags available from light weight (1

mil.) to heavy weight (6 mil.) in flat and gusseted styles

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Returnable
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Dimensions of bag specified as: Width x Length, for flat bags, and Width x Depth (half
gusset) x Length, for gusseted bags

10. Bulk Load Containers

Reusable container used to unitize and protect bulk materials

Includes drums, cylinders, etc.

11. Crates

Disposable container used to protect discrete items

Typically used for distribution

12. Intermodal Containers

Reusable container used to unitize and

protect loose discrete items

Enables a load to be handled as a single

unit when it is transferred between road,
rail, and sea modes of transport; e.g., the
container can be unloaded from a cargo
ship and loaded onto a truck as a single
unit

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Used for both distribution and in-process

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It is not as common to use intermodal containers for airfreight transport because of aircraft
shape and weight restrictions

The standard outside dimensions of intermodal containers are: 20 or 40 ft. in length; 8 ft. in
width; and 8, 8.5, or 9.5 ft. in height; less 8 in. of length, 5 in. of width, and 9.5 in. of height
to determine the inside dimensions. Typical sea transport costs per 40-ft container are:
$3000–4000 from Japan to the US west coast, $4000–5000 from Singapore to the US west
coast, and $2500–3500 from Europe to the US east coast; transport costs for a 20-ft.

13. Strapping/Tape/Glue

Used for load stabilization

Straps are either steel or plastic

Plastic strapping that shrinks is used to keep loads

from becoming loose during shipment

14. Shrink-Wrap/Stretch-Wrap

Used for load stabilization

In shrink-wrapping, a film or bag is placed over

the load and then heat is applied to shrink the
film or bag; allows irregular loads to be
stabilized; manual or automatic; most shrink-
wrap applications are being replaced by
stretch-wrapping

In stretch-wrapping, a film is wound around the

load while the film is stretched; allows irregular
loads to be stabilized; manual or automatic; as
compared to shrink-wrapping, stretch-
wrapping has lower material, labor, and energy
costs

container is 70% of the costs of a 40-ft.

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15. Palletizers

Used for load formation.

Three general methods of building (or "palletizing") unit loads:

15(a) Manual Palletizing

Operators arrange items into the desired pattern

used to form the unit load

Since the ergonomics of loading and unloading

are important (e.g., vertically, the prime working
zone is between the knees and the chest;
horizontally, reaches of more than 24 in. with a
load should be avoided), lift and turn tables are
often used

Semi-mechanized palletizers use operators to

arrange items into the desired pattern for each
layer of the unit load and a powered device is
used to transfer layers onto a pallet and then
lower the load for the next layer

15(b) Robotic Pick and Place Palletizers

Fully automated device to build unit loads

Used when flexibility is required (e.g., the

"Distributor’s Pallet Loading Problem")

Greatest limitation is capacity, typically 6 cycles per

minute; capacity is determined by the number of
items handled with each pick operation

Operators arrange items into the desired pattern for

each layer of the unit load and a powered device is
used to transfer layers onto a pallet and then lower
the load for the next layer

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15(c) Conventional Stripper Plate Palletizers

Fully automated device to build unit loads

Used when high throughput of identical loads is required (e.g., the "Manufacturer’s Pallet
Loading Problem")

Capacity is typically greater (30–180 items per minute) than pick and place because an
entire layer is placed on the load at one time; not as flexible as pick and place

Preformed layer of items (cases) are indexed onto the stripper plate (or apron); when
properly positioned over the pallet, the apron is pulled out from underneath the layer to
deposit the layer onto the pallet

"In-line" pattern formation (top picture)—flexible patterns are not possible; ideal for high
speed operation (up to 180 items per minute); takes up more room (larger machine) than
right angle

"Right angle" pattern formation (bottom picture)—very flexible patterns are possible; can
handle a wide variety of case sizes and types; limited capacity (up to 80 items per minute);
compact design

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POTENTIAL HAZARDS

Workers can be injured by falling objects, improperly stacked materials, or by various types
of equipment. When manually moving materials, however, workers should be aware of
potential injuries, including the following:

 Strains and sprains from improperly lifting loads, or from carrying loads that are
either too large or too heavy.
 Fractures and bruises caused by being struck by materials, or by being caught in
pinch points; and
 Cuts and bruises caused by falling materials that have been improperly stored, or by
incorrectly cutting ties or other securing devices.

Since numerous injuries can result from improperly handling and storing materials, it is
important to be aware of accidents that may occur from unsafe or improperly handled
equipment and improper work practices, and to recognize the methods for eliminating, or at
least minimizing, the occurrence of those accidents. Consequently, employers and
employees can and should examine their workplaces to detect any unsafe or unhealthful
conditions, practices, or equipment and take the necessary steps to correct them.

METHODS OF PREVENTION

General safety principles can help reduce workplace accidents. These include work
practices, ergonomic principles, and training and education. Whether moving materials
manually or mechanically, employees should be aware of the potential hazards associated
with the task at hand and know how to exercise control over their workplaces to minimize
the danger.

MOVING, HANDLING, AND STORING MATERIALS

When manually moving materials, employees should seek help when a load is so bulky it
cannot be properly grasped or lifted, when they cannot see around or over it, or when a load
cannot be safely handled.

When an employee is placing blocks under raised loads, the employee should ensure that
the load is not released until his or her hands are clearly removed from the load. Blocking
materials and timbers should be large and strong enough to support the load safely.
Materials with evidence of cracks, rounded corners, splintered pieces, or dry rot should not
be used for blocking.

Handles and holders should be attached to loads to reduce the chances of getting fingers
pinched or smashed. Workers also should use appropriate protective equipment. For loads
with sharp or rough edges, wear gloves or other hand and forearm protection. To avoid
injuries to the hands and eyes, use gloves and eye protection. When the loads are heavy or
bulky, the mover should also wear steel-toed safety shoes or boots to prevent foot injuries if
the worker slips or accidentally drops a load.

When mechanically moving materials, avoid overloading the equipment by letting the
weight, size, and shape of the material being moved dictate the type of equipment used for
transporting it. All materials handling equipment has rated capacities that determine the
maximum weight the equipment can safely handle and the conditions under which it can
handle those weights. The equipment-rated capacities must be displayed on each piece of

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equipment and must not be exceeded except for load testing. When picking up items with a
powered industrial truck, the load must be centered on the forks and as close to the mast as
possible to minimize the potential for the truck tipping or the load falling. A lift truck must
never be overloaded because it would be hard to control and could easily tip over. Extra
weight must not be placed on the rear of a counterbalanced forklift to offset an overload.
The load must be at the lowest position for traveling, and the truck manufacturer's
operational requirements must be followed. All stacked loads must be correctly piled and
cross-tiered, where possible. Precautions also should be taken when stacking and storing
material.

Stored materials must not create a hazard. Storage areas must be kept free from
accumulated materials that may cause tripping, fires, or explosions, or that may contribute
to the harboring of rats and other pests. When stacking and piling materials, it is important
to be aware of such factors as the materials' height and weight, how accessible the stored
materials are to the user, and the condition of the containers where the materials are being
stored.

All bound material should be stacked, placed on racks, blocked, interlocked, or otherwise
secured to prevent it from sliding, falling, or collapsing. A load greater than that approved by
a building official may not be placed on any floor of a building or other structure. Where
applicable, load limits approved by the building inspector should be conspicuously posted in
all storage areas.

When stacking materials, height limitations should be observed. For example, lumber must
be stacked no more than 16 feet high if it is handled manually; 20 feet is the maximum
stacking height if a forklift is used. For quick reference, walls or posts may be painted with
stripes to indicate maximum stacking heights.

Used lumber must have all nails removed before stacking. Lumber must be stacked and
leveled on solidly supported bracing. The stacks must be stable and self-supporting. Stacks
of loose bricks should not be more than 7 feet in height. When these stacks reach a height
of 4 feet, they should be tapered back 2 inches for every foot of height above the 4-foot
level. When masonry blocks are stacked higher than 6 feet, the stacks should be tapered
back one-half block for each tier above the 6-foot level.

Bags and bundles must be stacked in interlocking rows to remain secure. Bagged material
must be stacked by stepping back the layers and cross-keying the bags at least every ten
layers. To remove bags from the stack, start from the top row first. Baled paper and rags
stored inside a building must not be closer than 18 inches to the walls, partitions, or
sprinkler heads. Boxed materials must be banded or held in place using cross-ties or shrink
plastic fiber.

Drums, barrels, and kegs must be stacked symmetrically. If stored on their sides, the bottom
tiers must be blocked to keep them from rolling. When stacked on end, put planks, sheets of
plywood dunnage, or pallets between each tier to make a firm, flat, stacking surface. When
stacking materials two or more tiers high, the bottom tier must be chocked on each side to
prevent shifting in either direction.

When stacking, consider the need for availability of the material. Material that cannot be
stacked due to size, shape, or fragility can be safety stored on shelves or in bins. Structural
steel, bar stock, poles, and other cylindrical materials, unless in racks, must be stacked and
blocked to prevent spreading or tilting. Pipes and bars should not be stored in racks that
face main aisles; this could create a hazard to passers-by when supplies are being removed.

USING MATERIALS HANDLING EQUIPMENT

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To reduce potential accidents associated with workplace equipment, employees need to be

trained in the proper use and limitations of the equipment they operate. This includes
knowing how to effectively use equipment such as conveyors, cranes, and slings.

Conveyors

When using conveyors, workers' hands may be caught in nip points where the conveyor runs
over support members or rollers; workers may be struck by material falling off the conveyor;
or they may become caught on or in the conveyor, thereby being drawn into the conveyor
path.

To reduce the severity of an injury, an emergency button or pull cord designed to stop the
conveyor must be installed at the employee's work station. Continuously accessible
conveyor belts should have an emergency stop cable that extends the entire length of the
conveyor belt so that the cable can be accessed from any location along the belt. The
emergency stop switch must be designed to be reset before the conveyor can be restarted.
Before restarting a conveyor that has stopped due to an overload, appropriate personnel
must inspect the conveyor and clear the stoppage before restarting. Employees must never
ride on a materials handling conveyor. Where a conveyor passes over work areas or aisles,
guards must be provided to keep employees from being struck by falling material. If the
crossover is low enough for workers to run into, it must be guarded to protect employees
and either marked with a warning sign or painted a bright color.

Screw conveyors must be completely covered except at loading and discharging points. At
those points, guards must protect employees against contacting the moving screw; the
guards are movable, and they must be interlocked to prevent conveyor movement when not
in place.

Cranes

Only thoroughly trained and competent persons are permitted to operate cranes. Operators
should know what they are lifting and what it weighs. The rated capacity of mobile cranes
varies with the length of the boom and the boom radius. When a crane has a telescoping
boom, a load may be safe to lift at a short boom length and/or a short boom radius, but may
overload the crane when the boom is extended and the radius increases.

All movable cranes must be equipped with a boom angle indicator; those cranes with
telescoping booms must be equipped with some means to determine the boom length,
unless the load rating is indep

endent of the boom length. Load rati

ng charts must be posted in the cab of cab-operated cranes. All mobile cranes do not have
uniform capacities for the same boom length and radius in all directions around the chassis
of the vehicle.

Always check the crane's load chart to ensure that the crane is not going to be overloaded
for the conditions under which it will operate. Plan lifts before starting them to ensure that
they are safe. Take additional precautions and exercise extra care when operating around
power lines.

Some mobile cranes cannot operate with outriggers in the traveling position. When used,
the outriggers must rest on firm ground, on timbers, or be sufficiently cribbed to spread the
weight of the crane and the load over a large enough area. This will prevent the crane from
tipping during use. Hoisting chains and ropes must always be free of kinks or twists and

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must never be wrapped around a load. Loads should be attached to the load hook by slings,
fixtures, or other devices that have the capacity to support the load on the hook. Sharp
edges of loads should be padded to prevent cutting slings. Proper sling angles shall be
maintained so that slings are not loaded in excess of their capacity.

All cranes must be inspected frequently by persons thoroughly familiar with the crane, the
methods of inspecting the crane, and what can make the crane unserviceable. Crane
activity, the severity of use, and environmental conditions should determine inspection
schedules. Critical parts, such as crane operating mechanisms, hooks, air or hydraulic
system components and other load-carrying components, should be inspected daily for any
maladjustment, deterioration, leakage, deformation, or other damage.

Slings

When working with slings, employers must ensure that they are visually inspected before
use and during operation, especially if used under heavy stress. Riggers or other
knowledgeable employees should conduct or assist in the inspection because they are
aware of how the sling is used and what makes a sling unserviceable. A damaged or
defective sling must be removed from service.

Slings must not be shortened with knots or bolts or other makeshift devices, sling legs that
have been kinked must not be used. Slings must not be loaded beyond their rated capacity,
according to the manufacturer's instructions. Suspended loads must be kept clear of all
obstructions, and crane operators should avoid sudden starts and stops when moving
suspended loads. Employees also must remain clear of loads about to be lifted and
suspended. All shock loading is prohibited.

Powered Industrial Trucks.

Workers who must handle and store materials often use fork trucks, platform lift trucks,

motorized hand trucks, and other specialized

industrial trucks powered by electrical motors or internal combustion engines. Affected
workers, therefore, should be aware of the safety requirements pertaining to fire protection,
and the design, maintenance, and use of these trucks.

All new powered industrial trucks, except vehicles intended primarily for earth moving or
over-the-road hauling, shall meet the design and construction requirements for powered
industrial trucks established in the American National Standard for Powered Industrial

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Trucks, Part ll, ANSI B56.1-1969. Approved trucks shall also bear a label or some other
identifying mark indicating acceptance by a nationally recognized testing laboratory.

Modifications and additions that affect capacity and safe operation of the trucks shall not be
performed by an owner or user without the manufacturer's prior written approval. In these
cases, capacity, operation, and maintenance instruction plates and tags or decals must be
changed to reflect the new information. If the truck is equipped with front-end attachments
that are not factory installed, the user should request that the truck be marked to identify
these attachments and show the truck's approximate weight, including the installed
attachment, when it is at maximum elevation with its load laterally centered.

There are 11 different types of industrial trucks or tractors, some having greater safeguards
than others. There are also designated conditions and locations under which the vast range
of industrial-powered trucks can be used. In some instances, powered industrial trucks
cannot be used, and in others, they can only be used if approved by a nationally recognized
testing laboratory for fire safety. For example, powered industrial trucks must not be used in
atmospheres containing hazardous concentrations of the following substances:

 Acetylene
 Butadiene
 Ethylene oxide
 Hydrogen (or gases or vapors equivalent in hazard to hydrogen, such as
manufactured gas)
 Propylene oxide
 Acetaldehyde
 Cyclopropane
 Dimethyl ether
 Ethylene
 Isoprene, and
 Unsymmetrical dimethyl hydrazine

These trucks are not to be used in atmospheres containing hazardous concentrations of

metal dust, including aluminum, magnesium, and other metals of similarly hazardous
characteristics or in atmospheres containing carbon black, coal, or coke dust. Where dust of
magnesium, aluminum, or aluminum bronze dusts may be present, the fuses, switches,
motor controllers, and circuit breakers of trucks must be enclosed with enclosures approved
for these substances.

There also are powered industrial trucks or tractors that are designed, constructed, and
assembled for use in atmospheres containing flammable vapors or dusts. These include
industrial-powered trucks equipped with additional safeguards to their exhaust, fuel, and
electrical systems; with no electrical equipment, including the ignition; with temperature
limitation features; and with electric motors and all other electrical equipment completely
enclosed.

These specially designed powered industrial trucks may be used in locations where volatile
flammable liquids or flammable gases are handled, processed, or used. The liquids, vapors,
or gases should, among other things, be confined within closed containers or. closed
systems from which they cannot escape.

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Some other conditions and/or locations in which specifically designed powered industrial
trucks may be used include the following:

 Only powered industrial trucks that do not have any electrical equipment, including
the ignition, and have their electrical motors or other electrical equipment completely
enclosed should be used in atmospheres containing flammable vapors or dust.
 Powered industrial trucks that are either powered electrically by liquified petroleum
gas or by a gasoline or diesel engine are used on piers and wharves that handle
general cargo.

Safety precautions the user can observe when operating or maintaining powered industrial
trucks include:

 That high lift rider trucks be fitted with an overhead guard, unless operating
conditions do not permit.
 That fork trucks be equipped with a vertical load backrest extension according to
manufacturers' specifications, if the load presents a hazard.
 That battery charging installations be located in areas designated for that purpose.
 That facilities be provided for flushing and neutralizing spilled electrolytes when
changing or recharging a battery to prevent fires, to protect the charging apparatus
from being damaged by the trucks, and to adequately ventilate fumes in the
charging area from gassing batteries.
 That conveyor, overhead hoist, or equivalent materials handling equipment be
provided for handling batteries.
 That auxiliary directional lighting be provided on the truck where general lighting is
less than 2 lumens per square foot.
 That arms and legs not be placed between the uprights of the mast or outside the
running lines of the truck.
 That brakes be set and wheel blocks or other adequate protection be in place to
prevent movement of trucks, trailers, or railroad cars when using trucks to load or
unload materials onto train boxcars.
 That sufficient headroom be provided under overhead installations, lights, pipes, and
sprinkler systems.
 That personnel on the loading platform have the means to shut off power to the
truck.
 That dockboards or bridgeplates be properly secured, so they won't move when
equipment moves over them.
 That only stable or safely arranged loads be handled, and caution be exercised when
handling loads.
 That trucks whose electrical systems are in need of repair have the battery
disconnected prior to such repairs.
 That replacement parts of any industrial truck be equivalent in safety to the original
ones.

ERGONOMIC SAFETY AND HEALTH PRINCIPLES

Ergonomics is defined as the study of work and is based on the principle that the job should
be adapted to fit the person, rather than forcing the person to fit the job. Ergonomics
focuses on the work environment and items such as design and function of workstations,
controls, displays, safety devices, tools, and lighting to fit the employees' physical
requirements and to ensure their health and well being.

Ergonomics includes restructuring or changing workplace conditions to make the job easier
and reducing/stressors that cause cumulative trauma disorders and repetitive motion

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injuries. In the area of materials handling and storing, ergonomic principles may require
controls such as reducing the size or weight of the objects lifted, installing a mechanical
lifting aid, or changing the height of a pallet or shelf.

Although no approach has been found for totally eliminating back injuries resulting from
lifting materials, a substantial number of lifting injuries can be prevented by implementing
an effective ergonomics program and by training employees in appropriate lifting
techniques.

In addition to using ergonomic controls, there are some basic safety principles that can be
employed to reduce injuries resulting from handling and storing materials. These include
taking general fire safety precautions and keeping aisles and passageways clear.

In adhering to fire safety precautions, employees should note that flammable and
combustible materials must be stored according to their fire characteristics. Flammable
liquids, for example, must be separated from other material by a fire wall. Also, other
combustibles must be stored in an area where smoking and using an open flame or a spark-
producing device is prohibited. Dissimilar materials that are dangerous when they come into
contact with each other must be stored apart.

When using aisles and passageways to move materials mechanically, sufficient clearance
must be allowed for aisles at loading docks, through doorways, wherever turns must be
made, and in other parts of the workplace. Providing sufficient clearance for mechanically
moved materials will prevent workers from being pinned between the equipment and
fixtures in the workplace, such as walls, racks, posts, or other machines. Sufficient clearance
also will prevent the load from striking an obstruction and falling on an employee.

All passageways used by employees should be kept clear of obstructions and tripping
hazards. Materials in excess of supplies needed for immediate operations should not be
stored in aisles or passageways, and permanent aisles and passageways must be marked
appropriately.

TRAINING AND EDUCATION

OSHA recommends using a formal training program to reduce materials handling hazards.
Instructors should be well-versed in matters that pertain to safety engineering and materials
handling and storing. The content of the training should emphasize those factors that will
contribute to reducing workplace hazards including the following:

 Alerting the employee to the dangers of lifting without proper training.

 Showing the employee how to avoid unnecessary physical stress and strain.
 Teaching workers to become aware of what they can comfortably handle without
undue strain.
 Instructing workers on the proper use of equipment.
 Teaching workers to recognize potential hazards and how to prevent or correct them.

Because of the high incidence of back injuries, safe lifting techniques for manual lifting
should be demonstrated and practiced at the work site by supervisors as well as by
employees.

A training program to teach proper lifting techniques should cover the following topics:

 Awareness of the health risks to improper lifting—citing organizational case histories.

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 Knowledge of the basic anatomy of the spine, the muscles, and the joints of the
trunk, and the contributions of intra-abdominal pressure while lifting.
 Awareness of individual body strengths and weaknesses—determining one's own
lifting capacity.
 Recognition of the physical factors that might contribute to an accident, and how to
avoid the unexpected.
 Use of safe lifting postures and timing for smooth, easy lifting and the ability to
minimize the load-moment effects.
 Use of handling aids such as stages, platforms, or steps, trestles, shoulder pads,
handles, and wheels.
 Knowledge of body responses—warning signals—to be aware of when lifting.

A campaign using posters to draw attention to the need to do something about potential
accidents, including lifting and back injuries, is one way to increase awareness of safe work
practices and techniques. The plant medical staff and a team of instructors should conduct
regular tours of the site to look for potential hazards and allow input from workers.

PACKAGING

Packaging is the science, art and technology of

enclosing or protecting products for distribution,
storage, sale, and use. Packaging also refers to the
process of design, evaluation, and production of
packages.

 Packaging is heavily integrated into our daily lives

the main use for packaging is protection of the goods
inside,
 packaging also provides us with a
recognizable logo, or packaging

Designing and manufacturing of packaging materials is a multi- step process and,

involves careful and numerous considerations to successfully engineer the final package
with all the required properties.
● product safety,
● shelf-life extension,
● cost-efficiency,
● environmental issues,
● and consumer convenience

Packaging of a product affects every aspect of its design and performance,

 Flavor,
 Integrity,
 Shelf life,
 minimizing damage resulting from microbial
 Attack,

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 safety
 cost
 and brand image

Not only focusing on developing economic and effective packages for protecting the food
products, But also on the aesthetic value of the packages.

FUNCTION OF PACKAGING

After such as drying and freezing processes, packaging

control the product exposure to the effects of oxygen,
light, water vapor, bacterial and other contaminants

Passive role; protecting and marketing the product

Active role; processing, preservation and in retaining the safety and quality of foods
throughout the distribution chain

selection criteria for packaging materials

 Product Protection
 Convenience
 Sales Appeal and Package Decoration
 Product Package Compatibility
Packaging Machinery
 Package Sealing Efficiency
 Package Strength
 Statutory Requirements
 Material Availability
 Cost

What are the basic packaging techniques?

Good packaging is essential to protect your goods while they are in

transit. Remember that your packages may be on a truck with other
items, and may be loaded or unloaded more than once. Certain basic
guidelines are provided here to help you ensure that all of your
possessions are packed to travel safely.
 Use only sturdy cartons that can be completely closed.
 Make sure that all cartons are firmly packed, but not overloaded.
Cartons should not rattle or bulge when correctly packed. There
should be space between your object and the carton walls to
ensure a safe environment.
 Wrap individual items carefully in paper or cloth and be sure to
provide sufficient cushioning to absorb shock.

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 Pack item in layers, with the heaviest things on the bottom and
the lightest on the top.
 Do not mix hard or heavy items with fragile items in the same
container.
 Seal all cartons tightly with plastic gummed tape (duct tape can
peel off easily under the rigors of transit).
 Label each carton in the event pieces get separated. You may
also want to write the number of cartons that compose the
shipment (e.g., 1 of 4).

Artwork: Artwork of all types requires special containers and packing

materials to provide adequate protection. Bubble wrap and cushioning
material should be used liberally to protect these items within cartons
designed specifically for artwork. If your shipment contains items that
are highly valuable, either monetarily or sentimentally, or are
particularly awkward in shape, they should be packed or crated
professionally. Franchises such as Mail and More can help with these.
Some Van Lines also offer packaging services.

China and Glassware: Wrap all pieces individually in clean paper or

tissue before placing them in the container. Always provide a two to
three inch layer (approx 5 to 8 cm.) of crumpled paper or other
cushioning between the items and the inner wall of the carton. Cups,
dishes, saucers, and shallow bowls should be placed in the carton on
edge. Deep bowls, glasses and serving vessels should be placed in the
carton with their rims toward the bottom of the carton.

Electronics: Televisions, computers, stereo systems and other

electronic devices need special attention during packing in order to
ensure their safe arrival at the destination. It is best to use the original
cartons and packing that the item came in when purchased. If you do
not have this material, anti-static bubble wrap and a lot of extra
cushioning should be used when packaging these items. Contact your
representative for assistance in locating the appropriate materials, or
consider having these items professionally packed.

Fragile Items: Small figurines should be wrapped individually in tissue

or clean paper before being placed in the carton. Be sure to use plenty
of crumpled paper or other cushioning between these articles and the
inner wall of the carton to provide ample protection against shock.

Lamps: Lamps should be dismantled by removing the shade, harp and

bulb before packaging. The base should be wrapped in bubble or foam
wrap and then placed in a carton with two or three inches (5 to 8 cm.) of
crumpled paper between it and the inner wall of the box. More than one
lamp base can be packed in the same container as long as cushioning
material is placed between them. Lampshades should never be wrapped
in newspaper. Use clean tissue or a clean bed sheet to wrap the shade
and place it in a container lined with crumpled paper on the bottom. Do
not place crumpled paper around the side of the shade as this can
stretch the fabric. Small lampshades can be nested inside larger ones as
long as they do not put pressure on the fabric of the outer shade. It is a
good idea to mark the outside of the carton `Lampshades--Fragile` to

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alert anyone handling the carton to its contents.

Small Appliances: Articles such as clocks, radios, and kitchen

appliances should be wrapped individually and packed in cartons lined
with crumpled paper for cushioning. Several of these items can be
packed in the same carton as long as there is ample cushioning between
them and the overall weight does not exceed the weight limits of the
container.

Tools: Small tools should be packed together in small cartons using the
general guidelines outlined in the Basic Packing Techniques section.
Remember to use small cartons for tools, as they are generally heavier
than most other items. Tools with long handles should be bundled
together and packed in sturdy cartons of the appropriate size.

DISTRIBUTION PLANNING
Over the last few years, the demand placed on the distribution and logistics departments of
manufacturing and marketing organizations has been continuously intensifying due to
pressures from increased competition, introduction of new manufacturing methods, and
increased expectations from partners and consumers in terms of low price and high service
levels. Corporations are looking to increase their customer service levels, while
reducing inventory, working capital requirements and distribution costs.

While distribution and logistics planning is gaining importance within corporations,

distribution planners and supply chain managers are still struggling to come to terms with
the increased expectations. The bulk of their time is still spent on short-term operational
problems related to meeting immediate demand requirements, without much
consideration for longer-term costs or strategic issues.

Most of the issues faced by distribution planners and supply-chain planners can be linked to:

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Demand-side Variability
Difference between forecasted and actual demand; hockey stick sales patterns

Supply-side Variability
Delays in supply; lead time variability; campaign production runs; production in lot sizes

Process Variability
Non-standardized planning process; use of intuition, experience, and rule-based heuristics
instead of complete cost based optimization

Lack of information availability and visibility

Delays in conveying forecast changes to Distribution since Distribution and Marketing work
on different forecasts

Conflicting objectives between different departments

Marketing wants to maximize sales and increase product availability, while Distribution
wants to minimize product inventories and distribution costs

Sub-optimal planning
Lack of synchronization between Production and Distribution planning; limitations of the
human mind to process and utilize all available data to make optimal decisions

The highly data-intensive, deterministic and repetitive nature of distribution planning lends
itself well to the use of Decision Support Systems. These systems can leverage the latest
advances in information technology and optimization techniques to manage inventories and
plan dispatches to meet demand at minimum cost.

Distribution Planning systems can address the following operational issues faced by a supply
chain manager

Product dispatching: When and where should a product be dispatched?

Product placement: Which product should be held at each location and in what quantity?

Vehicle loading: What products should be loaded on to a vehicle?

Vehicle choice: Which mode of transportation should be used?

Vehicle planning: How many vehicles of each type would be required on what days in the
next one month?

Distribution Planning solutions should reduce process variability, improve information

visibility and co-ordination between departments, and optimize planning, while responding
to demand and supply side variabilities in real time.

In addition to the above, Distribution Planning solutions can also aid in strategic decision-
making in areas like network planning, warehouse capacity planning, vehicle capacity
planning, and inventory and service level management. These systems facilitate long-term
planning, and creation and analysis of various demand, supply and supply chain structure
scenarios.

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Distribution Planning should be led by Demand Planning and be a driver for Production
Planning to ensure seamless supply chain integration.

Requirements of a good distribution planning system

Minimize total cost of distribution

Increase manager productivity through automated, high-speed planning

Synchronize Distribution and Production planning

Formalize informed decision-making and reduce variability in the Distribution planning

process

Leverage information collected through ERP and other transactional systems for
optimized planning

Improve information visibility and coordination between Marketing, Distribution and

Production.

Improve responsiveness by

 Allowing planners to quickly adjust production and distribution plans

to demand/supply variability (for example, changes in demand
forecasts, supply delays, etc.)

 Generating production and distribution requirements for different

demand and supply scenarios, allowing for contingency planning

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