What is Operations Management?

Operations management (OM) is the administration of business practices to create the

highest level of efficiency possible within an organization. It is concerned with converting
materials and labor into goods and services as efficiently as possible to maximize the profit of
an organization.

Definition of Operations Management

The definition of operations management (OM) is the process of overseeing,

coordinating, and designing business operations to improve efficiency and effectiveness. It is
what drives the entire production process, from start to finish. The responsibilities of an
operations manager include planning, organising, directing, and controlling the resources needed
to produce a company’s products or services.

Objectives of operations management:

1. Efficiency and Productivity
One of the primary objectives of operations management is to achieve efficiency and
productivity within an organization’s processes. This involves finding ways to minimize waste,
reduce costs, and maximize output. Operations managers strive to streamline operations by
optimizing workflows, eliminating bottlenecks, and improving resource allocation. By enhancing
efficiency and productivity, organizations can increase their competitiveness, deliver products
and services in a timely manner, and achieve higher levels of customer satisfaction.

2. Quality Management
Maintaining and improving product or service quality is another vital objective of
operations management. Quality management involves implementing processes and systems to
ensure that products and services consistently meet or exceed customer expectations. Operations
managers work to develop and enforce quality standards, conduct inspections and tests, and
implement continuous improvement initiatives such as Six Sigma or Total Quality Management
(TQM). By focusing on quality, organizations can enhance their reputation, build customer
loyalty, and gain a competitive edge in the market.

3. Cost Control and Cost Reduction

Controlling costs is a critical objective of operations management, as it directly impacts
an organization’s profitability. Operations managers analyze cost structures, identify areas of
inefficiency or waste, and implement strategies to reduce costs without compromising quality.
They may explore options such as lean manufacturing, just-in-time inventory management, or
outsourcing to optimize cost-effectiveness. By effectively managing costs, organizations can
improve their financial performance and allocate resources more efficiently.

4. Supply Chain Management

In today’s interconnected business landscape, effective supply chain management has
become a key objective of operations management. Operations managers oversee the
coordination and integration of activities across the entire supply chain, from raw material
sourcing to final product delivery. They focus on optimizing inventory levels, managing supplier
relationships, ensuring timely transportation, and minimizing supply chain risks. Effective
supply chain management helps organizations achieve operational resilience, reduce lead times,
and enhance overall customer satisfaction.

5. Innovation and Continuous Improvement

Operations management is also concerned with fostering a culture of innovation and
continuous improvement within an organization. Operations managers encourage employees to
identify and implement process improvements, explore new technologies, and seek innovative
solutions to challenges. By embracing a culture of continuous improvement, organizations can
adapt to changing market demands, stay ahead of competitors, and drive long-term growth and
sustainability.

6. Strategic Alignment
Operations management aims to align operational strategies with the overall strategic
objectives of the organization. Operations managers work closely with top management to
understand the organization’s goals and develop operational plans that support those goals. They
ensure that operational decisions are aligned with the organization’s mission, vision, and values.
Strategic alignment enables organizations to focus their resources effectively, seize
opportunities, and respond proactively to market dynamics.

7. Customer Satisfaction
Ultimately, operations management seeks to deliver products and services that meet or
exceed customer expectations. Operations managers continuously monitor customer feedback,
analyze customer preferences, and align operational processes to enhance customer satisfaction.
They strive to improve product quality, delivery speed, responsiveness, and overall customer
experience. By prioritizing customer satisfaction, organizations can foster customer loyalty, gain
a positive reputation, and drive sustainable growth.

Functions of Operations Management Department:

The Operations Management Department within an organization plays a pivotal role in

overseeing and coordinating these functions. It acts as the nerve center that ensures seamless
integration of operations to achieve organizational goals. The department is responsible for:

1. Coordination:
Ensuring that various operational functions work cohesively to meet overall objectives.

2. Communication:
Facilitating effective communication between different departments to streamline
processes.
3. Resource Management:
Allocating and optimizing resources efficiently to enhance overall productivity.

Functions of Operations Management:

1. Strategic Planning:
Strategic planning is the compass that guides the operational decisions within a
business.This function requires a deep understanding of market dynamics, industry trends, and
organizational capabilities.

2. Process Design and Improvement:

Process design and improvement are at the heart of operational efficiency.Whether it’s
reengineering existing processes or designing new ones, operations managers play a pivotal role
in ensuring that workflows are not only effective but also agile enough to adapt to changing
business landscapes.

3. Quality Management:
Quality management is more than just meeting industry standards; it’s about exceeding customer
expectations, continuous improvement, and the integration of quality principles throughout the
entire value chain. By mastering quality management, Operations Management professionals
contribute to building a brand’s reputation for excellence.
4. Supply Chain Management:
Supply chain management involves orchestrating a complex network of suppliers,
manufacturers, distributors, and retailers it provide in-depth knowledge of supply chain
dynamics, teaching students to optimize processes, minimize lead times, and create resilient
supply chains capable of responding to unforeseen disruptions.

5. Inventory Control:
Inventory control is a delicate balancing act between meeting customer demand and minimizing
carrying costs, it is the techniques to ensure that businesses maintain optimal stock levels. This
function is essential for preventing stockouts, reducing holding costs, and ultimately improving
the bottom line.

6. Resource Allocation:
Resource allocation is about making strategic decisions on where to allocate people,
technology, and financial resources for maximum impact.analyze resource needs, optimize
workforce utilization, and invest in technology that enhances operational efficiency. This
function ensures that businesses make the most of their available resources.

7. Risk Management:
Risk is inherent in any business operation, and Operations Management professionals
must be adept at identifying, assessing, and mitigating risks. Provides tools and techniques to
conduct risk assessments, develop contingency plans, and create resilient operational strategies.
By mastering risk management, operations managers contribute to organizational stability and
sustainability.

8. Performance Measurement:
Measurement is crucial for improvement. to identify and track key performance
indicators (KPIs) that align with organizational objectives. Through data-driven insights,
operations managers can make informed decisions, identify areas for improvement, and drive
continuous enhancement in operational performance.

What is Plant Location?

Plant location refers to the process of selecting a suitable site or place for establishing a
manufacturing facility or industrial plant. It is a critical decision for businesses, as the location of
a plant can significantly impact the company’s overall success and competitiveness. Plant
location considerations are important across various industries, including manufacturing,
agriculture, energy generation, and more.

Factors Influencing Plant Location

There are several factors that influence plant location. Moreover, moving forward by
resolving all other problems and considering these factors leads to success in business. The
major factors affecting the plant location are listed as follows:

 Availability of Raw Materials

 Proximity to Market
 Transportation
 Availability of Labour
 Availability of Power, Fuel or Gas
 Supply of Water
 Climatic Conditions

Availability of Raw Materials
The source of raw materials is one of the most important factors influencing the selection
of a plant location. Attention should be given to the purchased price of raw materials, distance
from the source of supply, freight and transportation expenses, availability and reliability of
supply, purity of raw materials and storage requirements.

Proximity to Market
The location of markets or intermediate distribution centers affect the cost of product
distribution and time required for shipping. Proximity to major markets is important
consideration in the selection of the plant location because the buyer usually finds advantageous
to purchase from near-by sources.
Transportation
The transportation of materials and products to and from plant will be an overriding
consideration in the selection of plant location. If practicable, a site that it is close to at least two
major forms of transport: road, rail, waterway or a seaport, should be selected. Road transport is
being increasingly used, and is suitable for local distribution from a central warehouse.

Rail transport will be cheaper for long-distance transport. If possible, the plant location
should have access to all three types of transportation. There is usually a need for convenient rail
and air transportation facilities between the plant and the main company headquarters, and the
effective transportation facilities for the plant personnel are necessary.

Availability of Labour
Labour will be needed for the construction of plant and its operation. Skilled construction
workers will usually be brought in from outside the site, but there should be an adequate pool of
unskilled labours available locally; and labour suitable for training to operate the plant. Skilled
tradesmen will be needed for plant maintenance. Local trade union customs and restrictive
practices will have to be considered when assessing the availability and suitability of labour for
recruitment and training.

Availability of Power, Fuel or Gas

It is important for an organisation to ensure the continuous supply of power, fuel and gas
before selecting a plant location. For example, the location of thermal power plants and steel
plants near coal fields is crucial for reducing cost of the fuel transportation.

Supply of Water
Water is important for survival. It is required for processing in industries like chemical,
sugar and paper industries. Also, water is used for drinking and sanitary purposes. It is important
for an organisation to investigate a quality and probable source of supply. In addition, the
chemical properties like hardness, alkalinity and acidity level of water should be checked. Apart
from that, a thorough study should be conducted related to the disposal of water like effluents,
solids, chemicals and other waste products.

Climatic Conditions
The climate of a region where the plant is to be located has great impact on both capital
and operational costs. Various aspects related to climatic conditions to be considered by an
organisation include the level of snow fall or rain fall in the region, humidity, velocity of wind,
frequency of natural calamities and so on.

Rural Plant Sites:

 In some cases, a rural area is selected to start a production unit. Government provides
various incentives and subsidies to entrepreneurs to start plants in rural areas instead of urban
areas.
Advantages of Rural Plant Sites:
 Land is available in abundance at a cheaper rate.
 Labour is available with a lower salary/wages due to lower standards of living.
 Taxes are lower in rural areas.
 More stable labour is available. Less chances of job hopping due to less job
opportunities in the rural areas.
 Rural environment is healthy. Slum and dirty areas are less present in rural area.

Disadvantages of Rural Plant Sites:

 Less transportation facilities.
 Poor communication facilities. Sometimes, postal, telegraph, telephone services may
not be as efficient.
 Less modernisation.
 Support industries are not as readily available.
 Unskilled labour is in large numbers more than skilled labour.
 Water supply, drainage, fire-fighting facilities may not be in easy reach
 Poor education, entertainment, hospital facilities.

Urban Plant Sites:

Urban areas are the opposite to rural areas. In most countries, large production plants are
not allowed in cities, only offices are allowed.

Advantages of Urban Plant Sites:

 All types of transportation is available.
 Bigger market is available for the products. Most of the companies first introduce
products in city areas.
 Skilled labour is available, so there is less need to train them as much.
 All municipal facilities like water supply, drainage, fire fighting are readily
available.
 More banking and insurance facilities are found in cities(urban areas).
 All types of supporting industries are available.
 Entertainment, education, hospital, postal services are available easily as compared
to rural area.

Disadvantages of Urban Plant Sites:

 Higher land cost.
 Higher labor cost due to high standard of living.
  Due to availability of jobs, employees change jobs consistently. Job snatching also
takes place in cities by competing companies offering higher wages and good
incentives
 Some restrictions are made by councils in case of height of buildings, changes to
building, drainage, etc.
 Strong trade union movement.
 Industrialisation in cities increases slum and dirty areas.

What is Multi-Location Inventory Management?

 Multi-location inventory management is a system used by businesses to track and manage

inventory in multiple locations.

 This system provides a unified view of inventory across all locations, enabling organizations to
more effectively monitor and manage their inventory.

Plant Layout:
The concept of plant layout may be described as follows:
Plant layout is a plan for effective utilisation of facilities for the manufacture of products;

involving a most efficient and economical arrangement of machines, materials, personnel,

storage space and all supporting services, within available floor space.

Define - plant layout:

“Plant layout is a plan of optimum arrangement of facilities including personnel,
equipment’s, storage space, material handling equipment and all other supporting services along
with the decision of best structure to contain all these facilities.”

Objectives/Advantages of Plant Layout:

 Streamline flow of materials through the plant
 Minimise material handling
 Facilitate manufacturing progress by maintaining balance in the processes
 Maintain flexibility of arrangements and of operation
 Maintaining high turnover of in-process inventory
 Effective utilisation of men, equipment and space
 Increase employee morale
 Minimise interference (i.e. interruption) from machines
 Reduce hazards affecting employees
 Hold down investment (i.e. keep investment at a lower level) in equipment.
Principles of Plant Layout:
(i) Principle of Minimum Movement:
Materials and labour should be moved over minimum distances; saving cost and

time of transportation and material handling.

ii) Principle of Space Utilization:

All available cubic space should be effectively utilized – both horizontally and

vertically.

(iii) Principle of Flexibility:

Layout should be flexible enough to be adaptable to changes required by

expansion or technological development.

(iv) Principle of Interdependence:

Interdependent operations and processes should be located in close proximity to

each other; to minimize product travel.

(v) Principle of Overall Integration:

All the plant facilities and services should be fully integrated into a single

operating unit; to minimize cost of production.

(vi) Principle of Safety:

There should be in-built provision in the design of layout, to provide for comfort

and safety of workers.

(vii) Principle of Smooth Flow:

The layout should be so designed as to reduce work bottlenecks and facilitate

uninterrupted flow of work throughout the plant.

(viii) Principle of Economy:

 The layout should aim at effecting economy in terms of investment in fixed

assets.

(ix) Principle of Supervision:

A good layout should facilitate effective supervision over workers.

(x) Principle of Satisfaction:

A good layout should boost up employee morale, by providing them with
maximum work satisfaction.

Types of Plant Layout:

Two basic plans of the arrangement of manufacturing facilities are – product layout and

process layout. The only other alternative is a combination of product and process layouts, in the

same plant.

Following is an account of the various types of plant layout:

(a) Product Layout (or Line Layout):
In this type of layout, all the machines are arranged in the sequence, as required to

produce a specific product. It is called line layout because machines are arrange in a straight line.

The raw materials are fed at one end and taken out as finished product to the other end.

Product layout is depicted below:

Advantages:

1. Reduced material handling cost due to mechanized handling systems and straight flow

2. Perfect line balancing which eliminates bottlenecks and idle capacity.

3. Short manufacturing cycle due to uninterrupted flow of materials

4. Simplified production planning and control; and simple and effective inspection of
work.

5. Small amount of work-in-progress inventory

6. Lesser wage cost, as unskilled workers can learn and manage production.

Disadvantages:
1. Lack of flexibility of operations, as layout cannot be adapted to the manufacture of any
other type of product.

2. Large capital investment, because of special purpose machines.

3. Dependence of whole activity on each part; any breakdown of one machine in the
sequence may result in stoppage of production.

4. Same machines duplicated for manufacture of different products; leading to high

overall operational costs.

5. Delicate special purpose machines require costly maintenance / repairs.

Suitability of product layout:

Product layout is suitable in the following cases:
1. Where one or few standardized products are manufactured.

2. Where a large volume of production of each item has to travel the production process,
over a considerable period of time.

3. Where time and motion studies can be done to determine the rate of work.

4. Where a possibility of a good balance of labour and equipment exists.

 5. Where minimum of inspection is required, during sequence of operations.

6. Where materials and products permit bulk or continuous handling by mechanical parts.

7. Where minimum of set-ups are required.

b) Process Layout (or Functional Layout):

In this type of layout, all machines performing similar type of operations are grouped at

one location i.e. all lathes, milling machines etc. are grouped in the shop and they will be

clustered in like groups.

A typical process layout is depicted below:

Advantages:

1. Greater flexibility with regard to work distribution to machinery and personnel.

Adapted to frequent changes in sequence of operations.

2. Lower investment due to general purpose machines; which usually are less costly than
special purpose machines.

3. Higher utilisation of production facilities; which can be adapted to a variety of

products.

4. Variety of jobs makes the work challenging and interesting.

5. Breakdown of one machine does not result in complete stoppage of work.

Disadvantages:
1. Backtracking and long movements occur in handling of materials. As such, material
handling costs are higher.

2. Mechanisation of material handling is not possible.

 3. Production planning and control is difficult

4. More space requirement; as work-in-progress inventory is high-requiring greater

storage space.

5. As the work has to pass through different departments; it is quite difficult to trace the
responsibility for the finished product.

Suitability of process layout:

Process layout is suitable in the following cases, where:
1. Non-standardised products are manufactured; as the emphasis is on special orders.

2. It is difficult to achieve good labour and equipment balance.

3. Production is not carried on a large scale.

4. It is difficult to undertake adequate time and motion studies.

5. It is frequently necessary to use the same machine or work station for two or more
difficult operations.

6. During the sequence of operations, many inspections are required.

7. Process may have to be brought to work, instead of “vice-versa”; because materials or

products are too large or heavy to permit bulk or continuous handling by mechanical
means.

(c) Combination Layout:

In practice, plants are rarely laid out either in product or process layout form. Generally a
combination of the two basic layouts is employed; to derive the advantages of both

systems of layout. For example, refrigerator manufacturing uses a combination layout.

Process layout is used to produce various operations like stamping, welding, heat

treatment being carried out in different work centres as per requirement. The final assembly of

the product is done in a product type layout.

(d) Fixed Position Layout:
It is also called stationary layout. In this type of layout men, materials and machines are

brought to a product that remains in one place owing to its size. Ship-building, air-craft

manufacturing, wagon building, heavy construction of dams, bridges, buildings etc. are typical

examples of such layout.

UNIT – II

Meaning of Work Study:

According to ILO — International Labour Organisation — work study is “a term used to
embrace the techniques of method study and work measurement which are employed to ensure

the best possible use of human and material resources in carrying out a specified activity.”

In other words, “work study is a tool or technique of management involving the

analytical study of a job or operation.” Work study helps to increase productivity.

Advantages of Work Study:

1.) Increased productivity and operational efficiency.

2.) Reduced manufacturing costs.

3.) Better manpower planning.

4.) Reduced material handling costs.

5.) Provides a standard of performance to measure the efficiency of work.

6.) Provides better job satisfaction to employees

7.) Increase profit.

8.) Improve the image of the organization.

9.) Reduce wastage.

10.) Better worker - management relations.

Method Study:
According to ILO, method study is “the systematic recording, analysis and critical

examination of existing and proposed ways of doing work and the development and

application of easier and more effective method”. In short, it is a systematic procedure to

analyse the work to eliminate unnecessary operations.

Objectives:
(i) It improves the proper utilisation of manpower, machine and materials;
(ii) It also improves the factory layout, work place, etc.;

(iii) It also improves the process and procedure;

(iv) It develops better physical working environment;

(v) It reduces undesirable fatigue.

Work Measurement

It involves methods and tools used to analyze the time in which work is executed. It
includes examination and developing the standard time in which the work will get completed.
Standard time is the time taken by the well-trained workforce to produce one unit.

Objectives of Work Measurement:

 Target time for each job can be scientifically estimated, with this estimate realistic

schedules and manpower requirements can be prepared.

 Sound comparison of alternative methods is possible by comparing their basic times.

 Useful wage incentive schemes can be formulated on the basis of target times.
 In can lead to proper balancing of the work distribution.
 It can help to analyse the activities for performing a job with the view to eliminate or
reduce unnecessary or repetitive operations so that human effort can be minimized.
 To standardise the efficient method of performing operations.
 To standardise conditions for efficient performance.
 To determine man and machines ratio for effective and efficient utilisation of both.

Time and Motion Study:

 ‘Time Study’ means the determination of standard time that is taken by a worker

of average ability under normal working conditions for performing a job. But ‘Motion Study’

determines the correct method of doing a job to avoid wasteful movements, for which the

workers are unnecessarily tired.

Time study may be defined as “the art of observing and recording the time required to do

each detailed element of an industrial activity/operation.”

In other words, “time study is the art of observing and recording time required to do each

detailed element of an individual operation.” Practically, it studies the time taken on each

element of a job.

Motion study, on the other hand, is the study of the body motion used in performing an

operation, with the thought of improving the operation by eliminating unnecessary motion and

simplifying necessary motion and thus establishing the most favourable motion sequence for

maximum efficiency.

Objectives of Time Study:

1) Target time for each job can be scientifically estimated. With this estimate realistic
schedules and manpower requirements can be prepared.

2) Sound comparison of alternative methods is possible by comparing their basic times.

3) Useful wage incentive schemes can be formulated on the basis of target times.

4) In can lead to proper balancing of the work distribution.

(5) It can help to analyse the activities for performing a job with the view to eliminate or
reduce unnecessary or repetitive operations so that human effort can be minimized.

(6) To standardise the efficient method of performing operations.

(7) To standardise conditions for efficient performance.

(8) To determine man and machines ratio for effective and efficient utilisation of both.
 UNIT – III

Production planning and control :

The terms “production planning” and “control” relate to two approaches that coordinate
key operations effectively throughout the manufacturing process. What to produce, when to
produce it, how much to produce, and other factors are all included within this scope.

To properly optimize the production flow, production planning must be seen from a long-
term perspective. Production planning and control is the process of organizing all business
resources required to meet production requirements efficiently and without any delays. It
outlines the procedure based on which the complete work order preparation in a manufacturing
business will then proceed.

Needs of Production Planning and Control:

 Expert production planning and control results in uninterrupted production thanks to

the elimination of related holdbacks, such as shortage of materials, tools and poor
machine maintenance.
 It leads to cost control, higher productivity, and hence, maximization of profits due to
optimum use of available resources.
 Guaranteed consumer satisfaction and improved client relationships are other
benefits, accomplished due to on-time deliveries.
 Businesses can also achieve a reduction in costs associated with storage and material
handling.
 Production planning and control also reduce idle time across activities, leading to
minimal resource wastage.
 Increased manufacturing capacity with production planning and control ensures that
labour and machinery are also used optimally.
 Businesses can enable better material procurement to indicate when materials should
be bought for production. This promotes financial savings and strengthens
connections with suppliers.
Steps in Production Planning and Control
Forecasting:
Forecasting in production planning and control is the first and most important step.
Analyze historical data, market trends, and customer demand patterns to forecast future demand
for products. This serves as a basis for production planning.

Planning:
The creation of a production plan is assisted by key information from numerous sources,
including data from sales. This consists of data such as order quantity, promised delivery date,
and data from the engineering department, such as any relevant technical specifications. The
planning stage ensures a simplified production process and answers the following questions:

 What shall be produced?

 When shall it be produced?
 How shall it be produced?

Routing:
Routing in production planning and control involves the precise path the raw materials
take to be converted into finished products. The entire process is thoroughly planned and
designed, and the most systematic and reliable order is chosen and approved. Therefore, routing
maximizes the utilization of the resources at hand, including personnel, machinery, and
materials. Full machine capacity, a quick and cost-effective route, and the availability of
alternative routes are the things to be considered during the routing process.
Scheduling:
Scheduling in production planning and control is the process of determining how long it
will take for the completion of a route. The 'when' of the operation is highlighted by scheduling
and it seeks to optimize the time allotted for the operation's completion. In short, specifying the
sequence and duration of the production activities using master schedules, daily schedules, and
operational schedules are important factors in scheduling.
Dispatching:
Dispatching is the process of starting production activities by issuing orders and
instructions in line with the previously scheduled time and sequence, as outlined in route sheets
and schedule charts. Dispatching in production planning and control specifically refers to:
i) Purchasing the necessary tools and other equipment before the workers actually need them.
ii) Giving workers the necessary work orders, guidelines, and blueprints to start the project.

Follow Up:
If a process isn't followed up for updates after completion, it's impossible to determine
how effective it is. This function analyzes the manufacturing process, maintains note of any
inefficiencies, and looks for ways to further enhance the workflow. The cycle then continues
once this process is finished, bringing production closer to its optimum efficiency. So, at this
point, check for any obvious or potential bottlenecks that might affect the smooth flow of
production at any stage. In short, expediting and following up ensures that the task is completed
according to schedule and that delivery deadlines are met.

Quality Control:
Implement quality control measures to maintain product quality and compliance with
standards. Conduct inspections, tests, and audits throughout the production process to identify
and resolve quality issues..

Feedback and Continuous Improvement:

Gather feedback from production activities, customer feedback, and other relevant
sources. Use this information to refine and optimize the production planning and control
processes continuously.

What is Material Handling?

Material handling is the movement of materials and goods from one location to another.
It includes protecting, storing, and controlling the materials, from manufacturing to distribution.

Material handling can be used across industries, but is typically utilized in warehousing,
where goods need to be securely stored, retrieved, and shipped.

Material handling equipment utilizes manual, semi-automated, and automated equipment

to assist the movement and storage of materials within the warehouse.
Functions of Material Handling:

(i) To select machines/equipment and plant layout to eliminate or minimize material

handling requirements. To select most efficient, safe and appropriate material handling
equipment, which can fulfill material handling requirement at minimum cost?

(ii) To minimize the material handling cost by way of:

(a) Minimization of movement of semi finished items during the production process.

(b) Planning movement of optimum necessary places in one unit.

(c) Minimization of distance moved.

(d) Increasing speed of material handling operation through mechanization.

Principles of Material Handling:

1. Planning

2. Standardisation

3. Work

4. Ergonomics

5. Unit Load

6. Space Utilisation

7. System

8. Automation

9. Environment

10. Life Cycle Cost

1. Planning
The planning principle involves identifying the materials that need to be moved,
determining the best way to move them, and ensuring that the process is safe and efficient. When
using the planning principle to assess a material handling task, ask yourself the following
questions:
  What materials need to be moved?

 What is the best way to move the materials?

 How can the process be made safer and more efficient?

2. Standardisation
The standardisation principle involves using the same processes and material handling
equipment for similar tasks to reduce variability and improve efficiency. When considering
standardisation, ask yourself:

Are there any similar tasks that can use the same processes and material handling
equipment?

Can standardisation reduce variability and improve efficiency?

3. Work
This involves minimising the amount of physical work required within material handling
systems to move materials by using equipment and automation, rather than pushing the limits of
human capabilities. When considering the work principle, ask yourself:

 Can equipment or automation reduce the physical work required?

 How can the process be made less physically demanding?

Putting stress and strain on people only creates risk, so reducing manual handling helps to protect
the workforce, keeping them safe, but also empowers them to be more efficient.

4. Ergonomics
The Ergonomic principle involves designing workstations and material handling
equipment to minimise physical strain and fatigue. When considering ergonomics, ask
yourself:

 Is the equipment designed to minimise physical strain and fatigue?

 Are workstations designed to minimise physical strain and fatigue?

 The Ergonomic principle is one we pay close attention to at MasterMover, when designing
material handling equipment, to ensure our electric tugs and tows are easy to use for safe and
effective operations!

5. Unit Load
Looking at Unit loads involves consolidating materials into a single load for more
efficient movement, to maximise physical material flow. When considering the unit load
principle, ask yourself:

 Can materials be consolidated into a single load?

 Can unit loads be standardised for more efficient movement?

Tugger trains of trolleys, platforms or dollies are often a good way to way to move more material
in one go, reducing total trips or the number of times a task is carried out.

Principles of Material Handling

The goal of material handling operations is to improve efficiency, productivity, safety,

and profitability while reducing costs and waste.

To achieve these goals, there are ten principles of material handling that everyone
involved in the process should follow, whether reviewing existing methods or looking at new
processes. They include:

1. Planning

2. Standardisation

3. Work

4. Ergonomics

5. Unit Load

6. Space Utilisation

7. System

8. Automation

9. Environment

10. Life Cycle Cost

1. Planning

The planning principle involves identifying the materials that need to be moved, determining
the best way to move them, and ensuring that the process is safe and efficient. When using the
planning principle to assess a material handling task, ask yourself the following questions:

 What materials need to be moved?

 What is the best way to move the materials?
 How can the process be made safer and more efficient?

2. Standardisation

The standardisation principle involves using the same processes and material handling
equipment for similar tasks to reduce variability and improve efficiency. When considering
standardisation, ask yourself:

 Are there any similar tasks that can use the same processes and material handling
equipment?
 Can standardisation reduce variability and improve efficiency?

Our electric tugs and tows are often used for a variety of load movement tasks, helping to drive
standardisation of material handling equipment and maximise efficiency.

3. Work

This involves minimising the amount of physical work required within material handling
systems to move materials by using equipment and automation, rather than pushing the limits of
human capabilities. When considering the work principle, ask yourself:

 Can equipment or automation reduce the physical work required?

 How can the process be made less physically demanding?

Putting stress and strain on people only creates risk, so reducing manual handling helps to
protect the workforce, keeping them safe, but also empowers them to be more efficient.

4. Ergonomics

The Ergonomic principle involves designing workstations and material handling

equipment to minimise physical strain and fatigue. When considering ergonomics, ask
yourself:

o Is the equipment designed to minimise physical strain and fatigue?

 o Are workstations designed to minimise physical strain and fatigue?

5. Unit Load

Looking at Unit loads involves consolidating materials into a single load for more efficient
movement, to maximise physical material flow. When considering the unit load principle, ask
yourself:

o Can materials be consolidated into a single load?

o Can unit loads be standardised for more efficient movement?

Tugger trains of trolleys, platforms or dollies are often a good way to way to move more material
in one go, reducing total trips or the number of times a task is carried out.

6. Space Utilisation

The Space Utilisation principle involves maximising the use of available space for handling
and storage activities. Warehouse space is often at a premium - even in terms of overhead space -
and the same is true in manufacturing environments. When considering space utilisation, ask
yourself:
 Can the available space be better utilised for storage and movement?
 How can the available space be maximised for material handling?

7. System

The Systems principle involves using a coordinated system of processes, equipment, and
people to improve material flow, improve operational efficiency and reduce waste. When
considering the system principle, ask yourself:

 Are there a coordinated system of processes, equipment, and people?

 Can the system be improved to reduce waste and improve efficiency?

A coordinated system is essential to ensure material handling processes, and the wider operation,
runs smoothly.

8. Automation

The Automation principle involves using technology to automate material movement for
improved efficiency and safety. When considering automation in material handling systems, ask
yourself:
  Can technology be used to automate material handling processes?
 How can automation improve efficiency and safety?

9. Environment

This involves considering the impact of material handling processes and material handling
systems on the environment and taking steps to reduce waste and improve sustainability. When
considering the environment, ask yourself:

 What is the impact of a material handling process on the environment?

 How can material handling systems be made more sustainable?

Utilising battery powered material handling equipment instead of ICE diesel equipment is
often a good place to start, with simple charging, zero emissions and a quieter running noise
level.

10. Life Cycle Cost

The Life Cycle Cost principle involves considering the total cost of material handling
processes, including material handling equipment and time to run them. When considering the
entire life cycle cost of material movement processes, ask yourself: