Logistics Operations

Sections: 1. Introduction to Logistics 2. Transportation Operations 3. Material Handling 4. Analysis of Material Handling Operations

Chapter 5

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Four Categories of Workers

1. Logistics workers Move things Human components of logistics system Logistic system = work system 2. Production workers 3. Service workers 4. Knowledge workers

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Introduction to Logistics
Origins in military science Procurement, transportation, and maintenance of military supplies, equipment, and personnel Business logistics Acquisition, movement, storage, and distribution of materials and products, as well as the planning and control of these operations to satisfy customer demand May also involve movement of people
Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Two Categories of Logistics

External logistics = transportation and related activities that occur outside of a facility Movement of materials between different geographical locations Five traditional modes of transportation: rail truck, air, ship, and pipeline Internal logistics = material handling and storage within a facility

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

External Logistics

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Internal Logistics

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Logistics Workers Job Titles

Transportation operations Air traffic controller, bus driver, parcel service dispatcher, railroad train conductor, ship captain, teamster Material transport in a facility Airport baggage handler, crane operator, forklift truck operator, material handler Material storage Crane operator in an AS/RS, inventory control manager, order picker, shipping clerk, tool crib stores clerk
Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Work Activities
Various combinations of physical labor and information processing Physical labor Moving materials, work-in-process, and finished products Information processing Planning, coordinating, and controlling the physical movement

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Importance of Logistics
Sometimes viewed as non-value-adding By comparison, manufacturing and assembly activities add value by physically transforming materials Logistics does not alter the product However, logistics operations create a time and place value for customers Having the materials and products available and getting them to customers when needed or wanted
Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

The Logistics System

Consists of five components: 1. Facilities production plants and storage centers 2. Inventory raw materials, work-in-process, finished products 3. Transportation and material handling means of moving inventory 4. Information system integration function 5. Logistics workers - they make the system work
Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Basic Logistics Functions

1. Procurement Acquisition and movement of materials from suppliers to manufacturing and/or assembly plants 2. Logistical support for manufacturing Making raw materials available for processing and moving work-in-process 3. Distribution Moving finished goods to customers

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Functions in Logistics Operations

Model indicating three functional areas in logistics operations

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Transportation Operations
External logistics Transportation expenses consume between one-third and two-thirds of the total costs of logistics Freight transportation industry in the U.S. represents approximately 6% of gross domestic product Approximately $500 billion

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Five Basic Modes of Transportation

1. 2. 3. 4. 5. Rail Truck Air Ship Pipeline

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Rail Transport
Efficient movement of large tonnage over long mileage Disadvantage slow mover Applications: Raw materials located away from waterways (coal, ore, lumber) Low value manufactured goods (paper, wood products) Intermodal freight

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Trucking Operations
Deregulation of the trucking industry Motor-Carrier Act of 1980 - encouraged competition, improved efficiencies Higher intercity tonnage movement than any other transportation mode Suited to high-value finished products and semi-finished items over short and medium distances Movement of merchandise Delivery of components/ subassemblies
Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Truck Transportation Advantages

Door-to-door delivery Service availability and frequency Speed of delivery

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Air Transport
Air passenger travel most visible Freight service also available Major airlines provide freight service UPS and FedEx specialize in movement of Packages Large containerized loads Suited to delivery of high-value items over long distances and time is a factor

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Air Transport
Advantage Speed of delivery over long distances Disadvantages Airports not conveniently located Delivery times include local delivery times: Shipper-to-airport Airport-to-consignee High per ton-mile costs

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Water Transport
Dominant mode of freight transportation in global trade Ships Rivers and canals: flat barges Coastal waters and Great Lakes: deepwater vessels Domestic transport: very large shipments Time: slowest Cost: lowest Supplemental transport usually required
Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Pipelines
Disadvantages Limited in types of materials that can be moved (e.g., gases, liquids, slurries) Slow (e.g., 4 mi/hr in Alaska pipeline) Advantages Material moves 24 hours per day Not affected by weather conditions No empty containers or vessels

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

A portion of the Alaska pipeline near Fairbanks

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Other Forms of Distribution

Intermodal operations - combinations of the five basic modes Parcel delivery services Transportation agencies Internet and similar communication-based distribution modes

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

 FedEx hub in Memphis

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Intermodal Operations
Rail and truck (piggyback) Containerships Truck and ship (fishyback) Train ship Truck and air

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Giant cranes unload containers from a cargo ship in Vancouver, B.C., Canada

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Material Handling
Defined as the movement, storage, protection and control of materials throughout the manufacturing and distribution process including their consumption and disposal (The Material Handling Industry of America) Estimated to represent 20-25% of total manufacturing labor cost in US Internal logistics

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Material Handling Objectives

To move materials within a facility Safely Efficiently At low cost In a timely manner Accurately Without damage Material handling is often an overlooked issue in industry

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Material Handling Equipment

1. 2. 3. 4. Material transport Storage Unitizing equipment Identification and tracking systems

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Material Transport Equipment

Five categories: 1. Industrial trucks 2. Automated guided vehicles 3. Monorails and other rail guided vehicles 4. Conveyors 5. Cranes and hoists

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Forklift Truck

Forks are used to move pallet loads

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Automated Guided Vehicle Systems

Material handling system that uses independently operated, self-propelled vehicles guided along defined pathways in the facility floor Types of AGV: Driverless trains Pallet trucks Unit load AGVs

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Automated Guided Vehicle

A unit-load automated guided vehicle

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Rail-Guided Vehicles
Fixed rail system Overhead monorail - suspended overhead from the ceiling On-floor - parallel fixed rails, tracks generally protrude up from the floor Powered by electrified rail Routing variations: switches, turntables, and other special track sections

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Overhead Monorail

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Conveyor Systems
1. Non-powered Materials moved by human workers or by gravity 2. Powered Power mechanism for transporting materials is contained in the fixed path, using chains, belts, rollers or other mechanical devices

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Roller Conveyor

Common conveyor type Can be powered or unpowered

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

In-floor Towline

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Cranes and Hoists

Cranes Used for horizontal movement of materials Hoists Used for vertical lifting of materials Cranes usually include hoists so that the crane-and-hoist combination provides Horizontal transport Vertical lifting and lowering

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Jib Crane with Hoist

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Storage Systems
Function to store materials (e.g., parts, workin-process, finished goods) for a period of time and permit retrieval when required Used in factories, warehouses, distribution centers, wholesale dealerships, and retail stores Important supply chain component Automation available to improve efficiency

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Conventional Storage Methods

Bulk storage Storage in an open floor area Rack systems Permits vertical stacking of materials Shelving Steel shelving comes in standard sizes Drawer storage Modular storage units are available

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Pallet Rack System

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

AS/RS

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Unitizing Equipment: Containers

Containers used to hold individual items during handling Equipment used to load and package the containers

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Unitizing Equipment for Packaging

Palletizers and Depalletizers Unit Load Principle Simultaneous handling of multiple items Number of trips reduced Reduction in loading and unloading times Higher operating efficiency

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.

Identification and Tracking Systems

Automatic Identification and Data Capture (AIDC) Bar codes Radio frequency tags (RFID) Magnetic stripes The trouble with manual data collection & entry Error rate Time factor Labor cost

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN 0-13-140650-7. 2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.