Objectives of Material Handling

The implementation and management of a material handling (MH) system are driven by several key objectives aimed at improving overall operational performance. These goals guide the design, selection, and operation of MH methods and equipment.

Primary Objectives:

1. Minimize Handling Costs:
   • Goal: Reduce the total expenses associated with moving materials.
   • Includes: Labor wages, equipment purchase/lease, operating costs (energy, fuel), maintenance expenses, and costs arising from material damage during handling.
   • Why Important: MH adds cost but not value, so minimizing this cost directly improves profitability.
2. Reduce Delays and Improve Flow:
   • Goal: Ensure materials are consistently available at the right place and time.
   • Impact: Prevents production bottlenecks, minimizes idle time for machines and workers, supports smooth and continuous workflow (essential for JIT).
3. Increase Production Capacity Utilization:
   • Goal: Maximize the productive use of manufacturing facilities.
   • Method: By reducing handling time and eliminating delays, the effective throughput of the existing machinery and workforce can be increased.
4. Enhance Safety and Improve Working Conditions:
   • Goal: Minimize the risk of accidents and injuries related to material movement.
   • Method: Replace strenuous or hazardous manual handling with appropriate mechanical aids (e.g., lifting devices for heavy items, enclosed conveyors for dusty materials).
5. Maximize Equipment and Space Utilization:
   • Goal: Get the most out of investments in MH equipment and facility space.
   • Impact: Avoids underutilization of expensive equipment and makes efficient use of both floor area and vertical (cubic) space for storage and movement.
6. Prevent Product/Material Damage:
   • Goal: Protect materials from breakage, spoilage, contamination, or other forms of damage during handling and storage.
   • Method: Use suitable handling techniques, protective packaging, and appropriate equipment.
7. Lower Work-In-Progress (WIP) Inventory:
   • Goal: Reduce the amount of inventory held between production stages.
   • Method: Faster and more efficient handling reduces transit time, decreasing the need for large buffer stocks and lowering inventory holding costs.

• Indian Example: A large Indian pharmaceutical company like Sun Pharma or Cipla aims to achieve several MH objectives simultaneously. They need to minimize costs in their competitive market. Ensuring timely delivery of sensitive raw materials to production lines (reducing delays) is crucial. Preventing contamination or damage to high-value products during handling is paramount for quality and safety. Using automated systems can improve safety when handling potent chemicals and also maximize space in expensive, climate-controlled storage areas.

Achieving these objectives requires a systematic approach to planning, designing, and managing the material handling system as an integrated part of the overall operation.