MBA II UNIT IV:

Materials Management: Value Analysis and Value Engineering. Waste disposal,

scrap disposal, classification and codification, variety reduction, material handling
objectives, elements, activities and functions, Principles of just in time,
introduction, 7 wastes, basic elements and benefits of JIT, Case Study.
Materials management is concerned with planning, directing and controlling the
kind, amount, location, movement and timing of various flow of materials used
in and produced by the process.
Objectives:
Primary Objectives:
The primary objectives of material management is to make available supply of
materials in specified quantity and quality at economic cost, and at the same
time, maintaining its continuity. Minimisation of investments in materials and
inventory costs and assuring high inventory turnover are also its objectives.
Secondary objectives:
1. Purchasing of item from a reliable source at economic price.
2. Reduction of costs by using various cost reduction techniques such as
variety reduction, standardization and simplification, value analysis,
inventory control, purchase research, etc.
3. Co-ordination of the functions such as planning, scheduling, storage and
maintenance.
Scope of materials management:
This study encompasses all aspects of materials such as material cost, material
supply and material utilization. It is also concerned with materials planning and
materials control activities such as planning, sourcing, controlling, storing,
handling and distribution.

Value Engineering:
Value Engineering is a concept which originated after World War II, when it
became necessary to reduce cost and at the same time, to distinguish between
good and bad products.
Value Engineering is a tool of management which approaches the question of
saving cost from the point of view of ‘Value’ or in other words, the main aim is to
study the relationship between the design function and cost of a part, keeping in
view the reduction in cost of parts, components through design, modification and
specification of material used.
“ Value Engineering is an organized and creative approach to ensure that essential
functions of a product or service are provided at minimum overall cost without
sacrificing quality and reliability” – Society of American Value Engineers.

Value means a term which has several meanings.

Cost value: It is the sum of all costs incurred in the manufacturing of a product. It
is the sum value of all the costs incurred on raw material, labour cost, tooling cost
and other overheads.
Exchange value: It is the sum total of all the qualities of a product that makes it a
tradable product.
Use value: It is that value of a product that measures its workable aspects.
Esteem value: It is the amount of cost included into the product to enhance the
customer’s appeal or desire to own it.

Value Analysis: This is a technique of cost reduction based on a systematic and

organized examination of every item of cost which goes into the manufacture of
the product in terms of value or customer satisfaction added to the product.
“It is the systematic examination of all factors which contribute to the cost of a
product, part or material with the object of uncovering these possibilities of cost
reduction which will not in any way reduce the quality, performance or any
other attribute of the product which is sought by the customer.”

“ Value Analysis means the exhaustive and organized critical study of a product
in terms of the design, functions and cost with the object of cost reduction”
Approach
Value Analysis requires the cooperation of all functional departments. The team
must keep an open mind to any suggestion and all suggestions should be noted
down in writing and should not be rejected without critical analysis. It is a method
of questioning wherein the questions that are asked are;
1. Can this part be eliminated
2. Can we combine it with other parts
3. Can we separate it into simpler parts
4. Can we use a standard part which is more economical
5. Can we use standard material
6. Can we use cheaper materials
7. Can we buy more cheaply
8. Can we reduce rejects
9. Can we use less material
10.Can we reduce the strict limitations
11.Can we save on finish
12.Can we better the methods
13.Can we reduce risk of error
14.Can we do anything else?
Objectives:
1. To simplify the product
2. To use cheaper and better material
3. To use economical and efficient processes
4. To reduce the cost of product
5. To improve the product design
6. To increase the utility of the product
7. To increase the profit
Advantages of Value Engineering:
1. The most suitable products are manufactured because a careful study is
made to determine the desirable features of each product in terms of
customer’s satisfaction.
2. Each product should be manufactured at the lowest possible cost because
special attention is given to simplification, standardization and improved
methods of production.
3. Quality is maintained at desirable levels because cost will not be reduced
at the cost of quality.
 4. V.E. is based on the principle that management effectiveness can be
measured in terms of cost saving. Any saving in cost is treated as increased
efficiency.
5. The constant search for improvement will lead to greater all round
efficiency.
6. Suggestions received from workers can be analysed and further
improvements may be achieved.
7. Helps employees to understand their jobs better.
8. Prevents over design of components.
9. Motivates employees to come out with creative ideas.

Though the two terms, V.E and V.A. are used synonymously, there is a difference
between the two. Value analysis is applied to the existing product with a view to
improve its value. It is an analysis after the product is made. It is a remedial
process. Value Engineering is applied to the product at the design stage and thus
ensures prevention of bad quality rather than elimination.
WASTE CONTROL:
The unnecessary accumulation of obsolete surpluses and scrap items is said to be
waste . The increase of waste will increase the product cost, which in turn will
reduce the profits. Therefore, efforts are to be made to minimize all wastes.
The various components of wastes are;
1. Surplus: These are materials and equipments which do not have any
immediate use and have accumulated due to faulty planning, forecasting
and purchasing. These may have salvage value.
2. Scrap: These are the leftovers and wastages of a process. They may consist
of turnings, borings, spruces and flashes. These may have an end within the
plant itself due to recycling.
Major causes of surplus or scraps or wastes:
a) Change in product design: Due to change in the design of product or
equipment, some items, which have not been utilized, become obsolete or
surplus.
b) Rationalisation: Sometimes raw materials and equipments are rationalized
for want of simplification. This renders some items as obsolete.
c) Breakdown of machine: When a machine breakdown occurs, sometimes it
is rectified by using components of an identical machine which is not
functioning. This is called cannibalization. By continuous of parts, the
original machine becomes obsolete or only a spare part provider.
d) Faulty planning or forecasting: Materials planning is based on sales
forecast. If anything goes wrong in this planning, there will be leftovers and
a lot of surplus.
e) Faulty purchase procedures: If purchases are made in bulk and
subsequently some machines become obsolete or design is changed, the
materials become redundant and become wastes.
f) Other reasons: Faulty storekeeping and recording, poor materials handling,
improper codification and inadequate manufacturing are some of the other
causes of surplus and scrap items.
Reasons for scraps: These are.
1. Men
i. Carelessness on the part of the operator
ii. Untrained operators
iii. Lack of attention on the part of the attendant, setter, inspector
and supervisors.
iv. Faulty instructions.
v. Misleading and ambiguous instructions and drawings.
2. Machines:
I. Poor condition of plant and material
II. Wrong design of plant and equipments.
III. Non standard tools and gauges.
3. Materials.
i. Material not as per specifications.
ii. Improper solution of materials.
4. Methods:
i. Wrong techniques
ii. Poor work organization.
Scraps cannot really be avoided totally. They can, however, be minimized.
Disposal of surplus material:
a) Send it back to the original supplier, if they are interested
b) Sell them at the best possible price.
c) Sell them at any possible price.
d) Give away free, if there is no use in preserving it.

Disposal of scrap;
a) Use the scrap within the organization, if possible.
b) Dispose it by auction.
c) Dispose it through tender.

Role of management in waste control management:

1. Stock records should be checked and items which have not been consumed
for a a period of one year should be isolated. A list of such items and their
value should be prepared. Similar lists are to be prepared for items that
have not been used for2, 3, 4, 5 years. These lists are then forwarded to top
management for disposal action. This should be done at least once a year.
2. Whenever there is a change in production programme, design and product
lines are undertaken. This should be informed to the Materials Manager.
He will inform top management of the amount of material that is likely to
become obsolete and its value. He may be in a position to guide
management when the change should take place so as to consume the
material as much as possible. He will freeze further order of the material
and negotiate with the supplier to take back the extra material available in
stock.
3. The Effective Point Advice may also be taken. Under this scheme, all
information regarding changes, their likelihood of time and the material
that is likely to become redundant is circulated to all departments The
other departments requisition whatever material is required by them, thus
reducing the stock of obsolete material.
4. It is possible, in some cases to salvage scrap for usage within the
organization, in a profitable manner.
CODIFICATION:
It is an effective tool for inventory control. The system is used to properly identify
and classify equipments, raw materials, components and spares to suit the
particular needs of an organisation. Codification helps to prevent duplication and
multiplicity of stores and the mistakes which are caused by the normal practice of
describing the material.
The main features of codes are;
i. It describes an article objectively.
ii. It is an all-numerical 8-digit code
i. It describes the article progressively fro general to particular.

For eg:
03 01 15 15 Radian 12 SWg
First two digits 03 indicates Arc Welding electrodes
Second two digits 01 indicates Manual electrodes (local M-S)
Third two digits 15 indicates Radian
Last two digit 15 indicates 12 SWg (Size)
The code has got enough flexibility to absorb all the materials of the
concerned type and has the provisions for unforeseen contingencies also.
The first two digits indicate the main group, that is, all the materials are
divided into 100 main groups, say for instance, 10 – gases, 20- chemicals, 42-
screws, 64- hand tools, etc.
The third and fourth digits indicate the type of article. For example,
21 XX Iron and Steel
21 10 Steel Mild
21 01 Steel Alloy WJQ
The Fifth and sixth digits indicate the shape and metallurgical conditions
For example:
21 10 10 XX Wire, Mild Steel
21 10 10 10 Wire, Mild Steel, 0.116”
Thus, the last two digits indicate the size
In this way, with the help of codification materials are specified at every
stage that is in the main groups, types, shapes and metallurgical conditions and
sizes. For materials, the code length is constant and is useful for the use of
punched cards and computers.
Now codification is applied to all purchased items, ie., raw materials, semi-
finished products, finished products, saleable products and components.
Codes can be defined as concise representation of items by digits and/or
alphabets. The aim of a code structure is to uniquely identify an item.
Some of the methods of codification are;
1. Alphabetical codification: This is also known as letter codification. In this
system, alphabetical symbols or letters are used to identify stores or items.

2. Mnemonic Codification: In this system, letters are allotted in such a way so

that they can be remembered , for example;
Symbols Type of stores
S Screws
R Rubber stamps
B Bearings

3. Numerical Codification: In this system, numbers 0 to 9 are used to

represent items of stores. This is quite a popular system Eh.,
Symbols Types of stores
1 Raw materials
2 Capital Stores
3 Bought out items
4 Tools and gauges
5 Instruments

4. Decimal Codification: This system is similar to the numerical codification

system and uses letters for identifying. The number before a decimal point
indicates sub-assembly and those following the decimal indicate part
numbers. This system has the advantage of flexibility. But a little
carelessness in the placement of the decimal or misplacement causes a
great deal of misunderstandings and change.
 5. Block System: Under this system, a block of numbers are earmarked for
particular types of materials, eg., the number 1000 to 1099 may be
reserved for lubricants and greases.
6. Combination System: In this system, more than 2 out of the above systems
are combined depending upon the convenience.

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1

Selective Control Techniques:

A-B-C Analysis: It is not possible, nor is it advisable or cost effective to give equal
attention to all items that are stored or bought. The ABC analysis is a means of
analyzing inventory to give maximum attention to those items which are critical
and pertain to the maximum cost.
If all stores items are analysed, it will be found that nearly 10% of the items,
sometimes even less, are responsible for nearly 70% of total annual consumption
cost, about 20% of items will require about 25% of total consumption cost and the
rest 70 % of the items require only 5% of total annual consumption cost. The first
category of items are known as A items; the second category are known as B
items and the third category of items are known as C items.
It is to be understood that the A-B-C analysis does not depend on the unit cost
but on its annual consumption. Neither does it indicate the importance of an
item. Each and every item is important for production. A,B,C items are based on
two principles,
i. To keep capital tied up on inventory as little as possible.
ii. To ensure that all material is available whenever required.
Policies of A items:
1. Since A items consist of 70% of the total value, more number of orders
should be placed or smaller ordering quantities should be adhered to. This
avoids locking up of capital.
2. The requirement of such items must be planned in advance for expected
future consumption so that only a little quantity arrives a little before they
are actually required for consumption.
 3. Purchase of A items should be looked into by the top executive of the
Purchase Department because they are very expensive and a little saving
on each item will add up to a great degree of savings.
4. Since A items should be stocked as little as possible, maximum effort should
be made to ensure proper and timely delivery.
5. More than one supplier for each item should be retained to safeguard
against failure by one supplier.
6. Ordering quantities, re-ordering levels should be revised frequently.

Policies for B items:

1. B items are generally those items which can be placed between A items and
C items.
2. Orders for these items should be placed less frequently than for A items
Generally 3 to 6 orders are placed per year for such items.

Policies for C items:

1. Since C items do not involve much capital tie up, the stock for such items
can be kept in sufficient quantities.
2. Annual or 6 monthly orders should be placed to reduce the paper work and
ordering costs involved. Discounts may also be availed for bulk purchase.

VED analysis:
VED Analysis is also done to control inventory. V stands for Vital items without
which production would come to a halt, E stands for Essential items without
which there arises problems in production and D stands for desirable item which
do not cause immediate loss to production.
It is only obvious that items coming under V category cannot be allowed to be
stock out and a critical watch must be kept on those items. More number of
suppliers, more number of orders and a buffer stock is called for.

SED Analysis: S stands for Scarce items, D stands for items difficult to get and E
stands for easily available items. Naturally more emphasis has to be laid on Scarce
and then items that are difficult to get.
 Standardisation:
Standardisation is defined as
“The process of formulating and applying rules for an orderly approach to
a specific activity for the benefit and with the cooperation of all
concerned and in particular for the promotion of the overall economy,
taking due account of functional performance, condition and safety
requirements. IInternational Standards Organisation

Standardistaion is helpful not only for ensuring procurement of the right

quality of material but also for cost reduction. It is setting up standards for
any product. Standardisation of products can be achieved by standardizing
tools, equipments, materials, components, methods of production, etc.
Since standardization ensures a particular standard of quality and helps in
reduction in cost, it gives satisfaction to the customer.
It is the process of limiting the number of makes and models of each type
of equipment, spares, items, etc.
Advantages:
1. Interchangeability of parts.
2. Lesser inventory.
3. Lesser standby units.
4. Maintenance is easy.
5. Specialistaion in spares can be maintained.
6. Lesser expenses on training personnel for operations.
7. Lesser purchases.
8. Lesser space required to store material.

Simplification:
Work simplification means making improvement in methods of work by
eliminating unnecessary parts of a job by combining and rearranging other
elements of the job and making them easier and safer to perform. It refers to the
elimination of unnecessary varieties and sizes etc. A systematic approach is
adopted.
Simplification reduces the range of products, their types, sizes and also reduces
the complexity of the manufacturing process. It reducse the number of varieties
of finished products. This is beneficial to both the industry as well as the public.
By eliminating less profitable items and concentrating on the manufacturing of
better-selling products, management can reduce costs and increase sales by
concentrating on limited products.
Of course, there are some disadvantages also. If a manufacturer cuts down
heavily on sizes and shapes, he may lose customers as they might prefer to buy
from a manufacturer who can provide all sizes and shapes to meet requirement
perfectly, and not just approximately.
Simplification can be defined as,
“ A form of standardization consisting in the reduction of the number of types of
products within a definite range, to that number which is adequate to meet
prevailing needs at a given time.”
JUST – IN- TIME:

Just in time is a manufacturing philosophy rather than a technique. By eliminating

all wastes and seeking continuous improvement, it aims at creating a
manufacturing system that is responsive to the market needs.

Products are assembles just before they are sold, subassemblies and components
are assembled and components are made and fabricated just before sub-
assemblies are made. This leads to lower WIP and lead times. JIT is a
manufacturing system whose goal is to optimize processes and procedures by
continuously pursuing waste reduction.
JIT can be defined as “ Production methodology which aims to improve overall
productivity through elimination of waste and which leads to improved quality”.
- Voss
JIT enables one to conceive, design, implement and operate a manufacturing and
supporting system, as an integrated whole based on elimination of all kinds of
wastes.

SEVEN WASTES:
Shigeo Shingo, a Japanese JIT authority and engineer in the Toyota Motor
Company, identifies seven wastes as being the targets of continuous
improvement in production processes.
1. Waste of overproduction: Make only what is needed now. This will reduce
not only set-up time and synchronizing operations, but will also lead to
better layout and inventory control.
2. Waste of waiting: Bottlenecks and unbalanced movement of material
should be avoided and eliminated because this leads cluttering up of store
in process inventory. This should be done , even if it is required to bring in
additional workforce.
 3. Waste of transportation: Try to eliminate transportation and movement of
material to the minimum. While this is being considered, a thought should
be given to the plant layout and location.
4. Waste of processing itself: It is necessary to know why a particular activity
in a process is required to be done at all. Whether it can be eliminated or
not.
5. Waste of stock: By reducing all wastes, other stocks and inventory are
automatically reduced.
6. Waste of motion: Economy in motion helps to improve quality. Less energy
is wasted. But motion is to be economised and then there should be
automation. Else, the waste will be automated also.
7. Waste of making defective products: Develop and improve the process to
eliminate all defects and wastes. Once the process is developed free of
defects and wastes, there will be no need for inspection . Defects are
neither to be accepted nor made.

Basic elements of JIT:

1. Flow layout: The physical arrangement should be made in such a way that
the flow of the process is systemetised. There should be a minimum of
queuing and no added time value.
2. Smoothed build up rate: The build up rate should be smooth over a
monthly cycle. To achieve this, under capacity scheduling is resorted to so
that in case there is a change in the demand rate, it can be adjusted.
3. Mixed model scheduling: The objective is to match the production rate to
demand as closely as possible. One way of doing this is to increase the
flexibility of production lines to allow concurrent assemblies of different
models on the same line.
4. Small lots and minimum set up time: The objective of minimizing set up
time is to reduce the batch sizes to the minimum possible. This reduces the
manufacturing cycle time as well as inventory.
5. Buffer stock removal: buffer stocks should be kept to the minimum and
fallen back upon only in cases of emergency.
 6. Kanban – Card : It is a pull system of managing material movement
comprising “Kanban-cards” , based on information system. It helps to
trigger the movements of materials from one operation to another. Merely
by altering the frequency of the circulating kanban, the production system
can be made to adjust to fluctuations within limits. The number of card in
the system determine the total inventory. The objective is to minimize the
number of cards.
7. Quality: The achievement of high quality level is a pre requisite of
successful JIT. Zero defect, statistical process control, process data
collection and worker centred quality are commonly used quality
programmes.
8. Product and process simplification: This is achieved through rationalization
of product range, simplification of methods of manufacturing.
Simplification of items through standardization.
9. Standard container: JIT emphasizes small standardized containers. This
simplifies movement of material and use of material handling equipment.
10.Preventive maintenance: JIT requires removal of causes of uncertainty and
waste. Breakdown is a major cause of uncertainty. Rigorous preventive
maintenance attempts to remove the uncertainty.
11.Flexible workforce: This is the critical requirement of JIT. This can be
developed through training of personnel in different disciplines, It is
necessary to match production and demand rate closely.
12.Organisation in modules and cells: Many JIT factories are organized in
small adjacent modules or cells, each cell being totally responsible for its
own production and supply to the next module. The cells are designed in
such a way that material movement from one cell to another is minimized.
13.Continuous improvement: JIT is not a one time effort. It is a philosophy of
continuous improvement.
14.JIT Purchasing: Materials and components are to be purchased in
accordance with well defined requirements in terms of quality, quantity
and delivery.

Benefits of JIT:
The most significant benefit of JIT is to improve the responsiveness of the firm to
the changes in the market. This helps in maintaining competitiveness. The
benefits may be listed as below;
1. Product cost: Due to reduction of manufacturing cycle time, the product
cost is greatly reduced.
2. Quality: Quality is improved because of continuous quality programmes.
3. Design: Since the system envisages quick response to engineering changes,
alternate and better designs can be brought to the shop floor quickly.
4. Productivity Improvement: With the reduction in cost and improvent in
quality and design, there is also improvement in productivity.
5. Higher production system flexibility:
6. Administrative ease and simplicity.

JIT:
1. In JIT systems, material is pulled through production by subsequent work
centres. Material is provided only when there is a subsequent demand.
There is no pushing of materials.
2. JIT is incapable of taking large and sudden variations. JIT is a single unit
production and eliminates inventories.
3. In JIT, there is a great stress on good vendor relationships.
4. JIT is preferred in the case of repetitive and mass production.

IMPLEMENTATION OF JIT:
To facilitate implementation of JIT, the following process or approach are
suggested.
1. Obtain commitment from top management.
2. Prepare an implementation plan.
3. Gain the co-operation of the work force.
4. Create a strong leadership on the shop floor.
5. Guarantee stable employment and engage in training and encourage
participation.
6. Level the production and smoothen the flow.
7. Reduce set up time of machines and work force.
 8. Balance fabrication rates with final assembly rates.
9. Provide spare capacities in all areas.
10.Extend JITs to suppliers.
11.Remove bottlenecks and stabilize delivery schedules.

MATERIALS HANDLING:

“ Materials handling embraces the basis operations in connection with the

movement of bulk, packaged and individual products in a semi-solid state by
means of gravity manually or power-actuated equipment and within the limits
of individual producing, fabricating, processing or service establishment.” -
Haynes.
It is generally seen that materials handling amounts to 15 to 25% of total cost of
product, according to the American Material Handling Society. Material handling
involves handling and storage of materials during different stages of
manufacturing.

Objectives:
1. Minimise cost of materials handling.
2. Minimise delays and interruptions by making available the right material in
the right quantity at the right place.
3. Increase the productive capacity of production facilities by effective
utilization of capacity and enhancing productivity.
4. Safety in material handling through improvement n working conditions.
5. Maximum utilization of material handling equipment.
6. Prevention of damage to materials.
7. Lower investment in in-process inventory.

Advantages:
1. These reduce higher labour cost in handling and therefore, cost of product.
 2. These improve layout by connecting widely located equipments in different
parts of the building.
3. These improve techniques of processing.
4. These make possible the manufacturing large and heavy products.
5. The handling of incoming and outgoing materials shortens the floor area
required to house the material.
6. These allow the material to be stored at a greater height and at a greater
speed.
7. These can change the process from an intermittent to a continuous
process.
8. These greatly increase the efficiency of the plant by reducing the idle time
of equipments, man and machinery.
9. These reduce physical strain on the workers.
10.These increase the safety of materials to be handled and reduce accidents.
Elements of Material Handling:
1. Motion : To move in the most economic, economic and safe manner.
2. Time: To provide materials on time.
3. Quantity: Ensure supply of correct quantity of correct material.
4. Space: To ensure optimum use of space.
Activities:
1. Transportation and handling at supplier’s end.
2. Material handling at manufacturer’s plant.
3. Transportation and handling from warehouse to customer.

Material handling activity starts with the unloading of material after

receipt, and extends throughout the processing of raw material stage till it
is manufactured and stored in the warehouse to be dispatched to the
customer.

The various activities and functions are;

1. Inloading of material
2. Receiving and sending to temporary storage location
3. Storing
 4. Issuing
5. Workplace handling
6. In-process handling and storage.
7. Inter-departmental; transportation
8. Intra plant transportation
9. Warehousing of finished goods
10.Loading and shipping.

Principles of Material Handling:

1. Planning principle: All handling activities should be planned.
2. Systems principle: Coordinating the full scope of operations from start to
finish.
3. Space utilization system: Make optimum use of cubic space.
4. Unit load Principle: Increase quantity, size, weight of load handled.
5. Gravity Principle: Utilise gravity to move material, wherever possible.
6. Material Flow Principle: Plan the sequence to optimize material flow.
7. Simplification Principle: Reduce, combine and eliminate unnecessary
movements, wherever possible.
8. Safety Principle: Provide for safe handling of materials and equipments.
9. Mechanisation Principle: Use automated or mechanical methods wherever
possible.
10.Standardisation Principle: Standardise methods, types, size of materials
handling equipments.
11.Flexibility Principle: Use methods and equipments that can do a variety of
work.
12.Equipment Selection Principle: Consider all aspects of material, their
movement and method of production before selecting equipment.
13.Dead-weight Principle; Reduce the quantity of dead weights
14.Motion Principles: Equipment designed to transport material should be
kept in motion.
15.Idle time Principle: Reduce the idle time/ unproductive time of both
equipments and man power.
 16.Maintenance Principle: Plan for preventive maintenance or scheduled
repair.
17.Obsolescence Principle: Replace obsolete handling methods. Equipments
with more effective methods.
18.Capacity Principle: Use material handling equipment to help achieve its full
capacity.
19.Control Principle : Use equipment to improve production control, inventory
control and other handlings.
20.Performance Principle: Determine efficiency of handling performance in
terms of cost per unit handled.
21.Reduce terminal time of power units.
22.An individual may be made responsible for correct handling.
23.Unnecessary mixing of materials must be avoided.
24.Passageways should be kept well lit and clear to avoid accidents and
remove obstructions that would cause delay.

Symptoms of bad material handling:

1. Frequent interruption in production due to delay in handling and supplying
of material.
2. Skilled labour required to do unskilled labour like storing and handling
movement of materials.
3. Damage to material while handling.
4. Accumulation of work-in-process and materials at different locations.
5. Reworking and rejections due to handling defects require improved
material handling programmes..
6. Crowded floor space with scraps and wastes should be looked into
7. Congestion at receipt, production and inspection areas should be
eliminated
8. Long waiting and queues for material handling equipments are to be
avoided
Selection of Materials Handling devices:
There are tow groups in which materials handling devices can be grouped
 i. Manual handling
ii. Mechanical handling.
The selection of materials handling devices depends on the following
factors;
1. Type of product
2. Volume of production
3. Size and shape of product
4. Method of production
5. Sequence of process
6. Production rate of the plant
7. Space available
8. Distance to be covered
9. Number of items to be handled
10.Possibility of future expansion.
11.The type of container
12.The power available
13.First cost of installation, operation and maintenance.
14.The location of assembly, testing and shipment
15.Availability and charges of unskilled labour.
16.Design of the equipment, capacity and rigidity.
(a) Manual Handling devices: When there is a great deal of work of repetitive
nature in a factory, sometimes it is allowed to accumulate till there is
enough work to hire an unskilled labour to transport it, either in pieces,
packs, boxes, etc. This is manual handling of material.
Else, if the manufacturing is of continuous type, and there is a straight line
for transportation, it can simply be pushed down the line. This is also
known as manual handling.

(b) Mechanical handling of devices: There can be three major devisions of

handling equipments, such as;
i. Lifting and lowering devices (Vertical motion) such as block and
tackles, winches, hoists, elevators, etc.
 ii. Transporting devices (Horizontal motion) such as Hand truck,
tractors, pipe lines, skids, etc.
iii. Omnibus devices ( Horizontal motion) such as spiral chute, crane
truck, conveyers, lift truck, etc.

Questions:
1.Define Materials Management. What are the objectives, functions and functions
of Materials Management?
2. What are the functions of Materials Handling?
3. What is the importance of Materials Management?
4. Explain the 7 basic element of wastes.
5. What do you understand by waste? How will you dispose of it?
6. Explain the advantages of Just In time system.
7. What are the principles of Materials Handling?
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