PACKAGING & MATERIALS HANDLING
Industrial Logistics (BPT 3123)Industrial Technology Management Programme
Faculty of Technology
Chapter Outline• Introduction
• Packaging Perspectives
• Packaging For Materials Handling Efficiency
– Unitization
– Communication
– Containers
– Package Design
• Materials Handling
Lesson Outcomes• Understand important of packaging that affects
the cost of every logistical activity • Explain several reasons of material handling that
impact warehouse productivity
Managing logistics must plan the best ways to load, offload, move, sort and select products
Logistics personnel must work closely with engineers to design or select packaging materials that
facilitate materials handling
Packaging Perspectives• Packaging is typically viewed as being either
consumer, focused primarily on marketing or industrial, focused on logistics
• Individual products or parts are typically grouped into cartons, bags, bins or barrels for damage protection and handling efficiency
• Containers used to group individual products are called master cartons
• The weight, cube and damage potential of the master carton determines transportation and material handling requirements
Packaging protects the product and facilitate ease of handling in a number of ways:a. Create one large container out of several smaller
units (known as containerization / unitization)– Eg.: individual soft drinks are frequently
packaged in six-packs
Packaging
b. Packages contain information about the products they contain (communication) – information transfer useful when sorting products and processing orders– Eg.: Automated Storage and Retrieval System
(AS/RS), Radio frequency identification (RFID)
Packaging
c. Packaging concern is the relationship between the boxes size, order quantity and retail display quantity (rigid / flexible containers)
Packaging
The determination of final package design requires a great deal of testing to assure that
both marketing and logistics concerns are satisfied
d. Product packaging in standard configuration and order quantities facilitates logistical efficiency (package design)
– Example : cube utilization can be improved through reduced package size by concentrating products by eliminating air inside packages and by shipping items unassembled
– Total weight can sometimes be reduced by product or package changes
– Example : substituting plastic bottles for glass
Packaging
Principles of Materials Handling1. Equipment for handling and storage should be as
standardized as possible2. When in motion, the system should be designed to provide
maximum continuous product flow3. Investment should be in handling rather than stationary
equipment4. Handling equipment should be utilized to the maximum
extent possible5. In handling equipment, selection the ratio of dead weight
to payload should be minimized6. Whenever practical, gravity flow should be incorporated in
system design
Materials Handling
Classification of Handling Systems:
Materials Handling
Mechanized
• Lift trucks• Towlines• Tractor
Trailers• Conveyors• Carousels• Rider
Trucks
Semi-Automated
• Automated guided Vehicles (AGV)
• Robotics• Live Racks
Automated
• Potential to Automate
• Automated Storage / Retrieval (AS/RS)
Information-Directed
• RF Wireless
• Pick-to-Light
Packaging and materials handling decisions affect value in many ways:
• Material handling costs can be substantial, and improved labor and equipment productivities can significantly improve profits
• Materials handling is usually the number one cause of product damage and loss in logistics – poor handling practices and improperly packaged items lead to scratched, dented and broken products
Packaging & Materials Handling
• How packaging and materials handling affects cost and productivity of logistics?
– Inventory control depends upon the accuracy of manual and automatic identification systems keyed by product packaging
– Handling cost depends upon unitization capability and techniques
– Transportation and storage costs are driven by package size and density
– Customer service depends upon packaging to achieve quality control during distribution
Packaging & Materials Handling
Summary• Order selection speed, accuracy and efficiency
are influenced by package identification, configuration and handling ease
• Significant number of labor hours are devoted to materials handling and materials handling capabilities limit the direct benefits that can gained by improved information technology and automation technology
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