Welcome to this presentation

Logistics and stock management

MUTABAZI Placide, RN, PhD

Topics

1. Introduction to Logistic and Stock Management.

2. Material Handling

1.INTRODUCTION TO LOGISTIC MANAGEMENT • Logistics is the management of the flow of goods between

the point of origin and the point of consumption in order to meet some requirements, for example, of customers or corporations.

• The resources managed in logistics can include physical items, such as food, materials, animals, equipment and liquids, as well as abstract items, such as time, information, particles, and energy.

• The logistics of physical items usually involves the integration of information flow, material handling, production, packaging, inventory, transportation, warehousing, and often security.

• Inbound logistics is one of the primary processes of logistics, concentrating on purchasing and arranging the inbound movement of materials, parts, and/or finished inventory from suppliers to manufacturing or assembly plants, warehouses, or retail stores.

• Outbound logistics is the process related to the storage and movement of the final product and the related information flows from the end of the production line to the end user.

Logistic Processes

CONT’D

• The services performed by logisticians, the main fields of logistics can be broken down as follows:

• Procurement logistics• Production logistics• Distribution logistics• After-sales logistics• Disposal logistics

CONT’D

• Reverse logistics• Green logistics• Global logistics• Domestics logistics• Concierge Service• RAM logistics

CONT’D

• Procurement logistics consists of activities such as market research, requirements planning, make-or-buy decisions, supplier management, ordering, and order controlling. The targets in procurement logistics might be contradictory: maximizing efficiency by concentrating on core competences, outsourcing while maintaining the autonomy of the company, or minimizing procurement costs while maximizing security within the supply process.

CONT’D • Production logistics connects procurement to distribution

logistics. Its main function is to use available production capacities to produce the products needed in distribution logistics. Production logistics activities are related to organizational concepts, layout planning, production planning, and control.

• Distribution logistics has, as main tasks, the delivery of the

finished products to the customer. It consists of order processing, warehousing, and transportation. Distribution logistics is necessary because the time, place, and quantity of production differ with the time, place, and quantity of consumption.

CONT’D • Disposal logistics has as its main function to reduce logistics cost(s) and

enhance service(s) related to the disposal of waste produced during the operation of a business.

• Reverse logistics denotes all those operations related to the reuse of

products and materials. The reverse logistics process includes the management and the sale of surpluses, as well as products being returned to vendors from buyers. Reverse logistics stands for all operations related to the reuse of products and materials. It 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. More precisely, reverse logistics is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. The opposite of reverse logistics is forward logistics.

CONT’D

• Green Logistics describes all attempts to measure and minimize the ecological impact of logistics activities. This includes all activities of the forward and reverse flows. This can be achieved through intermodal freight transport, path optimization, vehicle saturation and city logistics.

Stock management

• It is in direct touch with the user department it provides un interrupted service to the user function.

Material handling: a job, a joke, a potential danger!

Background

• Work accidents attributed to materials handling vary from 20 to 50%,

• Material handling account for 21% of the permanent disabilities and over 25% of the temporary disabilities

• Many accidents still tend to occur during the handling of final products either manually or by fork-lift trucks and cranes

• It is usually found that each part of material is handled more than 50-60 times while it passes through the chain of manufacture.

• The number of people required at transport and handling workplaces is still relatively high, and they are often exposed to the risks associated with such sites

• The consequently high liability of many types of human errors and omissions may create hazardous situations.

• For safety purposes, it is useful to depict materials handling as a system in which the various elements are interrelated.

• It is unavoidable for human to not handle any materials in any sort ( kick moto, car, goods, chair, chemicals, etc) whether you’re logistician or not?

Definition-material handling

• It is that function of logistic that deals with the preparation, placing, and positioning of materials to facilitate their movement or storage.

• It involves movement handling and storage of material during different stage of production.

Objectives

1. Minimize cost of material handling.2. Minimize delays and interruptions by making available the materials at the point of use at right quantity and at right time.3. Increase the productive capacity of the production facilities by effective utilization of capacity and enhancing productivity.

4. Safety in material handling through improvement in working condition.5. Maximum utilization of material handling equipment.6. Prevention of damages to materials.7. Lower investment in process inventory.

Principles of material handling

• 1. Planning principle: All handling activities should be planned.

• 2. Systems principle: Plan a system integrating as many handling activities as possible and co-coordinating the full scope of operations (receiving, storage, production, inspection, packing, warehousing, supply and transportation).

• 3. Space utilization principle: Make optimum use of cubic space.

• 4. Unit load principle: Increase quantity, size, weight of load handled.

• 5. Gravity principle: Utilize gravity to move a material wherever practicable.

• 6. Material flow principle: Plan an operation sequence and equipment arrangement to

optimize material flow.• 7. Simplification principle: Reduce combine or

eliminate unnecessary movement and/or equipment.

• 8. Safety principle: Provide for safe handling methods and equipment.

• 9. Mechanisation principle: Use mechanical or automated material handling equipment.

• 10. Standardisation principle: Standardise method, types, size of material handling equipment.

• 11. Flexibility principle: Use methods and equipment that can perform a variety of task

and applications

• 12. Equipment selection principle: Consider all aspect of material, move and method to be utilised.

• 13. Dead weight principle: Reduce the ratio of dead weight to pay load in mobile equipment.

• 14. Motion principle: Equipment designed to transport material should be kept in motion.

• 15. Idle time principle: Reduce idle time/unproductive time of both MH equipment and man power.

• 16. Maintenance principle: Plan for preventive maintenance or scheduled repair of all handling equipment.

• 17. Obsolescence principle: Replace obsolete handling methods/equipment when more efficient method/equipment will improve operation.

• 18. Capacity principle: Use handling equipment to help achieve its full capacity.

• 19. Control principle: Use material handling equipment to improve production control, inventory control and other handling.

• 20. Performance principle: Determine efficiency of handling performance in terms of cost per unit handled which is the primary criterion.

Factors considered when selecting handling equipment

Selection of material handling is an important decision as it affects both cost and efficiency of handling system. The following factors are to be taken into account while selecting material handling equipment.

• 1. PROPERTIES OF THE MATERIAL Whether it is solid, liquid or gas, and in what

size, shape and weight it is to be moved, are important considerations and can already lead to a preliminary elimination from the range of available equipment under review.

Similarly, if a material is fragile, corrosive or toxic this will imply that certain handling methods and containers will be preferable to others.

2. LAYOUT AND CHARACTERISTICS OF THE BUILDINGAnother restricting factor is the availability of space for handling. Layout itself will indicate the type of production operation (continuous, intermittent, fixed position or group) and can indicate some items of equipment that will be more suitable than others. Floor capacity also helps in selecting the best material handling equipment.

• 3. ACTIVITY FLOWIf the flow is fairly constant between two fixed positions that are not likely to change, fixed equipment such as conveyors or chutes can be successfully used. If, on the other hand, the flow is not constant and the direction changes occasionally from one point to another because several products are being produced simultaneously, moving equipment such as trucks would be preferable.

• 4. COST CONSIDERATIONS The most important considerations. The above factors can help to narrow the range of

suitable equipment, while costing can help in taking a final decision. Several cost elements need to be taken into consideration when comparisons are made between various items of equipment that are all capable of handling the same load.

Initial investment and operating and maintenance costs are the major cost to be considered. By calculating and comparing the total cost for each of the items of equipment under consideration, a more rational decision can be reached on the most appropriate choice.

5. NATURE OF OPERATIONS Selection of equipment also depends on

nature of operations like whether handling is temporary or permanent, whether the flow is continuous or intermittent and material flow pattern-vertical or horizontal.

6. ENGINEERING FACTORS Selection of equipment also depends on

engineering factors like door and ceiling dimensions, floor space, floor conditions and structural strength

Material handling & real life

• Human errors may create hazardous situations in material handling

• Moto vehicles were washed with sand until the Yamaha AG 100 specifications were cleaned up.

• Laptop washed by water(its great enemy)

• Human omissions may create hazardous situations in material handling

• Forgetting car key

• Ineffective material handling may generate signals(smelling, physiological change in body) for which person should pay attention

• Broken halothane inhalator caused mild headache downlaod workers

Conclusion• Material handling is unavoidable and is very cost

in terms of accidents & damage when serious measures are not taken.

• Materials should be handled by a right person in a right place under a thorough supervision of a right person.