Warehouse

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE
UNIVERSITI KUALA LUMPUR

MALAYSIAN INSTITUTE OF INDUSTRIAL TECHNOLOGY (MITEC)
JLB20903 WAREHOUSE MANAGEMENT
LECTURERS NAME: MR HILMI BIN ABD RAHMAN
STUDENT NAME:
STUDENT ID:
SHAFIQ MUZAKIR BIN MOKTAR
57212215244
SHEIKH MUSTA ALI BIN SALIM
57212215050
AFIF BIN AZIZAN
57212215273
MUHAMMAD NOOR AFIQ BIN ANUAR
57212215080
MOHAMMAD FAIZ BIN RAMLI
57212215185
MADDAH BIN TAHIR
57212213683
MUHAMMAD AFFIQ AIZAT BIN AZIZ
57212215225
Contents
Chapter 1............................................................................................................... 2
Introduction........................................................................................................ 2
1.1
Background of study..............................................................................4
1.2
Problem statements...............................................................................5
1.3
Objectives.............................................................................................. 7
1.4
Expected Result..................................................................................... 8
CHAPTER 2............................................................................................................. 9
LITERATURE REVIEW........................................................................................... 9
2.0
Definition of Warehouse.........................................................................9
2.1
Roles of warehouse.............................................................................. 10
2.3
Problems occur.................................................................................... 12
2.4 The solution regarding to the problem....................................................12

CHAPTER 3........................................................................................................... 25
RESEARCH METHODOLOGY............................................................................... 25
3.1 Introduction............................................................................................. 25
3.2 Research Sources Data Collecting...........................................................25
3.3 Research Instruments..............................................................................26
3.4 Research Procedure.................................................................................26
3.5 Conclusion............................................................................................... 26
CHAPTER 4........................................................................................................... 28
FINDINGS AND ANALYSIS.................................................................................. 28
4.1
Material Handling Equipment (MHE)....................................................28
4.2
Racking System.................................................................................. 32
CHAPTER 5........................................................................................................... 35
DISCUSSION AND CONCLUSION........................................................................35
5.1 Discussion............................................................................................... 35
5.2 Conclusion............................................................................................... 37
References........................................................................................................ 38
Chapter 1
Introduction
Storage defines as keep something in the places for a temporally for future use.
However, storages are only occurs if there has any space provided such as stores or
warehouse. It can be imagine like houses nowadays has it stores which used to kept things for
a long and short period. However, in business activities storage that they use are called
warehouse. By them, having a warehouse is like having money. There are many things that
they can do with the warehouse depending on how they manage the space area of the
warehouse. Basically, warehouse is a place to keep or handling product, goods, inventories,
finish goods, or semi-finished goods. In facts, warehouse is one of the important elements in
logistics activities which consist of storage from raw material to the final distribution (AR,
2015). There are many ways of warehouse concept which can be in the small area to the
wider area by depending on what type and size of the warehouse it is. It is importance needs
to make sure that the products, goods, or semi-finished goods are safely managed in term of
quality and safety. Types of warehouse could be either public warehouse, bonded warehouse,
private warehouse or licensed warehouse. Students observed that complete components in
warehouse management may increase the level of efficiency to the warehouse management.
Thus, to achieve high level of customer satisfactions warehouse or companies need to invest
or spent money either to equipment or the managing itself.

Warehouse also can be a place for production from raw material to finished goods or
semi-finished goods. In fact, according to (Secbuscour, 2011) the need of warehouse in a
company due to the demand as its directly either in production, quick supply, continuous
production and price stabilization. In order to make these activities work, there must be
involves in some basic warehouse equipment that helps the management to manage the
storage or space capacity such as the pallets, forklifts, racks, and other equipment. In general,
equipment of the warehouse is sources which use for the operation activities. The use of
equipment should be used wisely for decreasing the cost of running the operation. Initially,
the amounts of required equipment are based on the amount of inventory flow in and out of
the warehouse. In addition, to ensure the smooth performance work a warehouse, the
equipment have to be in proper stored when it is not in use and need a regular maintenance.
Staffs also plays a role in making sure the equipment is well maintained due to the safety
practices daily (LogCluster, 2011).
However, warehouse faces with some challenges which one of the major common
problem in warehouse is insufficient space. Based on the writer Supply Chain & Logistics:
Top 5 Warehouse Challenges and How to Overcome Them (Dave.Blanchard, 2013) explains
that insufficient space would occur due to inventory accuracy, the space application,
inventory location, redundant procedures or picking optimization. In addition, during
students storms thinks that most of the companies faced the issue on insufficient space in the
warehouse are due to lacking of time managerial, equipment handling, the materials handling
and due to uncontrolled demands from supplier during the seasonal season. However, these
issues should be supported with proves and reading research for the case study.

For this purpose, students would interested in research and observe on what are the
factors of insufficient space on one of the private warehouse which owned by CTRM Aero
Composites with cases that collected along the research period in 4 weeks. Besides that, study
of the factors of insufficient space in private warehouse helps us in gains knowledge and
experiences in the warehouse environments and would like to recommends the solutions of
the factors issued.
1.1Background of study
Firstly, insufficient space is one of the common major problems in the warehouse
management. Insufficient space refers as a situation where there is lack of area
availability to store things like inventories or goods. However, insufficient space do
comes with inefficient managerial in placing the goods or inventories which knowingly as
material handling. Based on students lecture (Mohd.Hilmi.AR, 2015) inefficient material
handling can affect to the insufficient space occurrences. Space occurrences may refer to
honeycombing and inadequate of material equipment handling. Honeycombing is method
of storage which is only specific item may place to the area. Even though the space is
availability, they are unable to place it with different item. Companies that use the
honeycombing method will face to the insufficient space problem.
Students research, students would like to focus on insufficient space that comes from
in efficient storage method management in term of racking management and material
equipment in private warehouse, CTRM Aero Compositess warehouse.
1.2Problem statements

Warehousing and warehouse management are parts of the logistics management
system, which is a component in supply chain management. Although seen by some as just a
place to store finished goods, the function of providing inbound and outbound goods for
storage unifying function, pack and ship orders provide important economic benefits and
service to both the business and its customers.
Running warehousing operations will need high operating costs. Without sufficient
control operating costs, warehouse owners would incur high losses due to the results obtained
have to be used to cover operating expenses. In business, operating costs are inevitable
because it involves many aspects, which is the cost of labour, utilities, insurance and so on.
In the portion of costs, handling costs will be the highest cost in the warehousing
operation. In order to reduce cost, the first thing need to be counted is space. In CTRM Aero
Composites, there having problem in insufficient space and right now they are renting space
at Konsortium Logistic Berhad (KLB) warehouse and several refrigerator container placed at
in front of CTRM warehouse. KLBs warehouse is situated at Cheng, Melaka and CTRM is
at Batu Berendam, Melaka. Distance between KLB and CTRM is around 25 kilometre and
every time they need to store or pick up goods, they need to travel all that way and pay for
expenses. After do some research, we already identify two major element that effect the
insufficient space at their warehouse. Actually the current size of their warehouse cancater
and occupied for their stock but the factor occurs limit their storage and . The factor that
control the insufficient :
Racking System
Material Handling Equipment
Racking System

Currently in CTRM Aero Composites warehouse are practising random type of
racking system. Their type of racking system are not systematic and arranged. Most of the
goods was placed randomly and not per SKUs. There are using one small deep pallet and it is
just for small goods. They can have better racking system and fully utilise the current space
because most of the goods have same SKU and they also have several size of SKUs. CTRM
Aero Composite also put their goods on floor and randomly staking which is contributed to
honey combing. With that situation CTRM need to outsourcing their space to KLB
warehouse and rent some refrigerator container to place their carbon that incurred more cost
to handle the goods. This is one of the factors that led to insufficient space in warehouse
operation.
This pictures is show CTRM

Aero Composites Warehouse
condition from insideand outside.
Material Handling Equipment
This pictures is show CTRM Aero Composites material handling equipment (MHE),
counterbalance forklift.
For material handling equipment, CTRM Aero Composite need a large space for path
because they are using counterbalance forklift to handle all equipment and it require large
space to operate than other material handling equipment. It need large to place a good and
turnover itself. These situations directly contribute to the insufficient space in that warehouse.
This is one of the factors that led to high operating costs in warehouse operation.
1.3Objectives
In material handling are managed by following its methods that used in companies
which significantly called as Inventory Method (AR, 2015). In addition, it consists of
storage system and retrieval system. Since students founded that one of the common
major problem in CTRM Aero Composites warehouse is insufficient space, students
would like to study:
I.
systems that used in their materials inventory methods managerial.
II.
impact and factors that lead to insufficient space to the warehousing.
III.
share the ideas that may recommends on type of material equipment and the type of
racking system that could reduce the major issue in the companies warehouse.
1.4Expected Result

Our expected result for this task is too fully utilize the current space in warehouse and
no need to outsourcing for extra space. Company can gain more space if they can manage or
decide the best type of racking system and material handling equipment because that is the
factor that contribute the insufficient space occur in that company. Besides that, as we know
the cost of an operation is very important to manage of production in company. We also
expect that in a company should control its cost in used. Thats why rather than spend money
every month to pay for the rent why not the just make an investment for upgrading the
racking and material handling system. When we do our study to overcome the problem how
to optimize the usage of space we can see this issue are very importance in warehouse. This
are means we do to solve this problem and we expected in cost of operation can be minimize
and gain more space.
CHAPTER 2
LITERATURE REVIEW
2.0
Definition of Warehouse
We often define warehousing as the storage of goods. By other meaning, this

definition includes a wide coverage of facilities and locations that provide warehousing,
including the storage of iron ore in open fields, the storage of finished goods in the
production facility, industrial goods, and finished goods while they are in transport. Based on
(Chand, 2015), a warehouse may be defined as a place used for the storage or accumulation
of goods. The function of storage can be carried out successful with the help of warehouses
used for storing the goods.
This picture is shown example of warehouse with systematic storage

Warehousing can also be defined as assumption of responsibility for the storage of
goods. By storing the goods throughout the year and releasing them as and when they are
needed, warehousing creates time utility.
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2.1
Roles of warehouse
Based on (Chand, 2015), warehouse has its own roles and function which is:
Storage:
This is the basic function of warehousing. Surplus commodities which are not needed
immediately can be stored in warehouses. They can be supplied as and when needed by the
customers.
Price Stabilization:
Warehouses play an important role in the process of price stabilization. It is achieved by the
creation of time utility by warehousing. Fall in the prices of goods when their supply is in
abundance and rise in their prices during the slack season are avoided.
Risk bearing:
When the goods are stored in warehouses they are exposed to many risks in the form of theft,
deterioration, exploration, fire etc. Warehouses are constructed in such a way as to minimise
these risks. Contract of bailment operates when the goods are stored in wave-houses.
The person keeping the goods in warehouses acts as boiler and warehouse keeper acts as
boiler. A warehouse keeper has to take the reasonable care of the goods and safeguard them
against various risks. For any loss or damage sustained by goods, warehouse keeper shall be
liable to the owner of the goods.
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Financing:
Loans can be raised from the warehouse keeper against the goods stored by the owner. Goods
act as security for the warehouse keeper. Similarly, banks and other financial institutions also
advance loans against warehouse receipts. In this manner, warehousing acts as a source of
finance for the businessmen for meeting business operations.
Grading and Packing:
Warehouses nowadays provide the facilities of packing, processing and grading of goods.
Goods can be packed in convenient sizes as per the instructions of the owner.
2.2
Operation in warehouse
CTRM started their business operations with the assemblies and manufacturing of a
two-seater composites light aircraft, Eagle 150B. As for today, CTRM is part of the global
supply chain composites aero structures for major commercial and military aircraft
manufacturing in the world. CTRM company, which is based in Melaka keep rising and
expanding in demand on aerospace product from Aerospace liner company, for an example
Airbus, Sonaca and Boeing. The latest demands are from Europcopter that ask for completing
their tail.
The picture above is shown CTRM Aero Composite Aerospace product demand
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With the increasing of demand, there are also needs to increased their stock to fulfill
their customer order on time. Example of their stock in warehouse is carbon and honeycomb
core that been used directly in production.
The operation of their warehouse started with received goods from suppliers and put
away all those goods in their warehouse before collect by their requestor or until they are
ready to be use in production. After that the stock will be sent out from warehouse into
production line and they will converted into finished goods. Then production will be sent
back to the warehouse for packaging. Last but not least, when the packaging is done, the
related document will be get ready and prepared to shipped out to customer at ease.
2.3
Problems occur
As we all know, warehouse is one of the busiest places in the world because of the
goods coming in and out. The problem is occur when CTRM are increasing in their demand
and they need to gain also their stock. So in process of gaining space, there is problem occur
and it is insufficient space to cater all the stock to be stored in that warehouse. This problem
is quite serious for the company and needs attention to finds out the solutions to solve rather
that rent space at warehouse outside company just what like they do it now. For the problem
occur at their warehouse it is insufficient space, we found out it is because of their space
management. Their racking system is too bad and the material handling equipment is to big
and require big space to operates.
2.4 The solution regarding to the problem.
Warehousing is actively involved in the supply chain and within a demand driven supply
chain the warehouse will mainly constitute the supply of products, sorting and picking
activities which prominently feed the external consumer. Warehouses are therefore a hugely
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integral part of the supply chain infrastructure and the importance of getting your warehouse
right is critical. In layman terms the phrase supply chain is really a process that coordinates and controls the movement of products and materials from a supplier to a customer
to the end consumer. Supply chains involve activities such as buying, sourcing products and
materials, production , moving and selling . It is essential that for you warehouse to work and
be efficient, that alongside all the latest hi tech technological order picking and VoIP
applications available, that the right design of storage system is implemented.
Firstly is for their racking system, we found out based on our studied and research in
todays market there are so many different pallet racking system configurations available that
it can often get confusing in the decisions of which system is the right one for your
warehouse. Some of the most commonly used pallet racking storage systems available and in
use worldwide in all kinds of operations are block stacking, shelving bin, live racking, mobile
racking , single deep pallet , double deep pallet and many more. There are many type of
racking that has been practising worldwide by many people with different type of purpose
and goods handle. They have their own reason to choose type of racking system that they
want to apply at their warehouse
Based on journal we read on Designing a block stacking storage layout by
Christopher Barnes, 12/01/1999, one common method of storing stock is floor pallet stacking
or block stacking. This type of storing stock does not require any type of storage equipment,
and instead loaded pallets are placed directly on the floor and built up in stacks to a
maximum stable storage height. The maximum storage heights or stacking levels are
determined by a number of different factors such as load strength or crushability, load weight,
load stability, pallet conditions, safety limits, weather either humidity or water or wind can
weaken pallets and soften loads and warehousing clearance heights. One key limitation of
block stacking is that SKUs are only accessible in a Last In First Out (LIFO) method.
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Advantages of floor stacking is very low setup costs and flexible. But for the disadvantages
of floor stacking is low density storage that requires a large storage facility to store only a
small amount of stock.
The picture shown is free block stacking

Next, based journal we read one of the most favourites racking system is single deep
pallet. Single-deep pallet racking is a simple construction of metal uprights and crossmembers providing immediate access to each load stored that is, no honeycombing. Unlike
block stacking, when a pallet space is created by the removal of a load, a pallet opening is
immediately available in single-deep racking and multiple SKUs can be stacked in the same
vertical column of storage space. Single deep pallet is particularly suitable for storing ranges
with large quantities per article and heavy goods. Advantages of this racking system is direct
access to all ,random storage space allocation and operator-friendly order picking.
The picture shown is single deep pallet racking system

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Then is, Double-deep racking system is an excellent method for improving storage
density when multiple pallets of the same SKU need to be stored. Double deep pallet racking
is configured such that pallets are stored four deep, with two pallets accessible from each
aisle. Normally, each pallet will be an identical SKU, improving storage density by 15%20%. This design doubles storage, but it limits access and flexibility. To access the rear pallet
load, the front pallet position must be empty. Double handling is necessary unless pallets are
stored on a last-in first-out basis.
The picture shown is double deep pallet racking system

After that based on journal A Cost Effective Solution to High Density Storage is
drive-in or drive-through racking, load units are stored on the racking depth one behind the
other on two continuous beams. When stacking or retrieving, a cycle per racking bay from
top to bottom or vice versa must be observed. The fork lift trucks have the opportunity to
drive into the racking bays. With drive-in racking, the racking can only be serviced from one
side or last in first out method. Benefit by using this type of racking system is high level of
space optimization and particularly suitable for seasonal warehouses.
The picture shown is drive in o drive through racking system

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Next type of racking system that can improve space is pallet flow rack are also known
as gravity flow racks and are generally ideal for high-density storage. Loads are stored at the
higher end and removed at the lower end point, employing the FIFO loading system. As the
products are loaded, the rotation becomes automatic due to the flow of the racks. These
systems feature a gravity roller that generates movement based on the rack load, as items are
moved on a sloped plane. Flow rack allows easy rotation of inventory on a first-in/first-out
basis, making it a good choice for storing dated products. It can be used for picking by the
piece, carton or pallet.
The picture shown is pallet flow racking system

Other type pallet racking system based on journal Pallet Racking 101: Which Type
Do You Need? written by Mitch Smith that are most likely same to pallet flow rack is Push
Rack system. The first pallet is placed on the top cart, when the second pallet is delivered, it
pushes back the first pallet, exposing the second cart, and so on. Unlike flow rack, push-back
rack manages inventory on a last-in first-out basis. Push-back rack requires less space than
flow rack because rear access is not necessary. They are ideal for bulk storage, as they are
capable of storing products that occupy or run several pallets deep and typically measure
several levels high and are considered suitable for large storage systems.
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The picture shown is push back racking system

Based on journal The Better Dynamic, High-Density Pallet Storage Solution ,
Mobile Racking system can increase storage density by as much as 70% while providing
100% selectivity. Mobile racking systems comprise pallet racking or cantilever racking,
which is mounted on mobile stands. Equipped with motors, the racking can then be moved
via rail guidance so that the required racking aisle can be opened. The total logistical solution
achieves significant time savings in the warehouse and with the handling of goods and also
facilitates a high level of space optimization and first-in-first-out possible.
The picture shown is mobile racking system
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Last but not least is based on journal Bins and shelving system saves valuable
minutes by Josh Bond, Senior Editor on September 01, 2015 is shelving racking system.
Dependent on the type of goods, operational capacity and available picking time, a
combination of two existing systems often provides an economic solution. Best example is
order picking platforms, it is combination of shelving and storage platform. This multi-tier
construction has the main advantage of operators being able to retrieve stored goods on
several levels simultaneously. Order picking platforms incorporate the upper levels into the
order picking zone. The utilization of vertical order pickers is therefore not required.
Advantages of shelving are optimum space utilization and short order picking route.
The picture shown is shelving and bin racking system

Based on the journal (Liftek Company), they are producing a remarkable product of
Multi Handler. This Multi handler has more features than the other ordinary multi handler
which will bring plenty of benefits to whom invested in it. The multi handler are future
oriented and has been innovated by this company. This innovation has led the increasing of
efficiency in handling loads. It also has some extra features which is optimized visibility. This
innovation shows that the multi pallet handlers are designed to provide the driver with a clear
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view of the fork tips to ensure safe and precise operation. Next will be the durability of the
multi handler. This multi pallet handler are designed with KAUPs double T-profiles, Cprofiles and round profiles (depending on the model) to provide a highly stable and reliable
operation, even under tough conditions. Last but not least, it is upgradeable. The multi pallet
handlers can be fitted with vary of options to suit ones operation. The options will be load
stabilizers, forks and load backrests, load end stop, custom fitting and pantograph T149Z.
These options have their own features depending on the operation required.
The picture shown is multi handle equipment

Next, will be reach truck. Based on the journal (Crown company), these reach truck
have some features that other company might not have. It is a RD 5700 series. Operators can
easily move up and down aisles and on and off the truck due to superior comfort design and
flexibility. Moreover, with this RD series, which has a double-deep reach pantograph, will let
the user to substantially increase the racking storage without building new facility. Thus, this
will improve the productivity and optimizing spaces in warehouse. These reach truck also
offer S productivity. It means that the reach truck has more space or room for the operator
and has a flip-up seat, which the operator can choose whether to sit, lean or stand. The RD
series offer an optimized control which is optimizing speed, breaking based on weight on
forks, fork height, tyre slip, direction of travel and other operation. Thus, this will provide
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maximum allowable travel speed for all load levels. Last but not least, flat out traction.
Thanks to Ontrac Anti-slip Traction Control, these series offer you in reducing tire spin
during acceleration, plugging and braking.
The picture shown is reach truck

Based on the journal (adaptalift), turret trucks are designed to operate in very narrow
aisle truck. The turret truck also known as (VNA) which is stand for very narrow aisle truck.
These machine were operated by battery which is used both the electric engine, battery and
operator compartment to counterweight heavy loads. The ultimate mast lift the operator
heights of up to 14 meters depending on the model. A turret truck is an extremely specialized
machine and hence should only be used for high volume handling applications. They are the
fastest option in terms of load handling per hour. The actual forks of the turret truck are
located in front of the driver. The forks are mounted on a smaller front mast that can rotate
180 degrees, giving the operator access to both sides of the racking aisle without the unit
having to move. The advantages of using turret truck is it significantly faster pallet handling
in narrow aisle applications hence providing significant productivity gains. Last but not least,
it also has the highest racking solution up to 16 meters, compared to 8-12 meters for
articulated forklift or reach trucks.
21
The picture shown above is turret truck

Based on to the website (Bastian Solution), Automated Storage and Retrieval Systems
(ASRS) are generally used in applications where high volumes of inventory are moved into
and out of a manufacturing or distribution operation. Typically considered an alternate way to
fork lift or other manual material handling approaches, AS/RS Systems are often described as
a way of saving space and reducing building costs. The most significant description for ASRS
systems are that they are faster and more accurate than manual operators because they take
less space and induce no human error. Most ASRS project planners are concerned about
process stability, capital effectiveness, and the elimination of non-value adding cost. Properly
applied, the AS/RS technology family provides a consistent, highly responsive and perfectly
accurate alternative to human based solutions. The benefits of using this system are almost
100% accurate, real time information about the inventory on hand allowing achievable
commitments to be made to customer. Next, there will be no interruptions, distractions, and
break vacations while any operation occurred. Last but not least, the ASRS is gentler
handling of the inventory with less product damage from process of transit, misplace or
collisions.
22
The picture shown is Automated Storage and Retrieval Systems

Based on (Debra Hall, 10 April 2002), Overhead Hoisting system is a machinery unit
that is used for vertical lifting service involving material handling of freely unguided loads.
Overhead hoists are a basic piece of equipment used in manufacturing, warehousing,
construction, and numerous applications to aid workers in the handling and moving of heavy
loads. Lifting mediums include wire rope or it can be also chain. Operation types include
manual, electric, or air power. The benefit of using this system is reducing the need for
manual handling. By implementing it in the warehouse, there will be a major deduction in
terms of the amount of bodily force required to operate the hoists carry bar into the required
position for hoisting. This reduces the pushing and pulling forces that can be involved in
moving a mobile hoist into position. Next, the other benefits ease of storage. The constant
presence of an overhead hoist in the area where it will be required negates the need for a
separate storage facility. By being situated on the ceiling, or otherwise above the client on a
gantry, the hoist does not take up valuable floor space.
Last but not least, easy in
accessibility. Assumed it is correctly maintained and batteries are properly charged, an

overhead hoist is always available and ready for use in the environment where it will be
required. This can reduce the time needed for staff to locate a mobile hoist, particularly in a
large environment or where hoists are shared between different areas.
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The picture shown is example of Overhead hoisting equipment

The most basic pallet truck available is the hand pallet truck. It is operated manually,
as the name suggest. They can be fitted with brakes for ultimate safety and can transport
tonnes of materials from one point to another with ease. By placing the two prongs of the fork
underneath the load and using the jack to raise them off the floor, the goods can then be
steered to their destination and lowered with no difficulty. Hand pallet trucks are perfect for
transport and distribution companies, where the name of the game is to get goods from A to B
in the most efficient and cost-effective way.
The picture shown is of pallet truck

If space is at a limited in your warehouse or factory, a manual stacker should be top of
the shopping list. Manual stackers are mainly considered a cheaper alternative to a forklift
truck, and are great for use in size-restricted areas or loading bays. They can be used to lift
items off the ground and load them into storage or onto a vehicle for possible distribution or
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delivery. Again, for new buyers who are worried about the safety of their workforce when
working with machinery, the manual stackers require no training or special certificates to
operate, they are easy, safe, reliable and cheap.
The picture shown is example of manual stacker

Based
on
(Toyota.Forklift,
2014),
they
are
provides
an
engine-powered
counterbalance truck for material handling. Has two design of counter balance with different
characteristics. Why some warehouses choose counterbalance lift truck rather than other
types of lift truck? Based on (Raymondhandling, 2013), counterbalance lift truck is a forklift
that balances the weight of the capacity with a weight. Next, it is considered as a multipurpose utility truck which is able to operates on docks or in aisle at least 10-12 feet wide.
Last but not least, counter balance lift truck usually use in shipping and receiving for ease in
moving pallets to the storage or from the storage.
The picture shown above is counterbalance truck
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CHAPTER 3
RESEARCH METHODOLOGY
3.1 Introduction
This section is discusses about the methodology of the research study. The main
purpose of this research study is to investigate and solving the problem on Optimize Usage
Of Space In Ctrm Aero Composites Warehouse in terms of equipment operation racking
system. To assess and evaluate this research problem, various research journal are collecting
regarding on type of racking system and material handling equipment in warehouse . Data for
this research were collected through the observation from the reading of the journal.
3.2 Research Sources Data Collecting
Warehousing is nothing more than the management of space and stock. The space
management is portion of storage . How to get ensure that you are fully utilised your space
and also have to handle your space properly. Stock management is how you manage your
stock in order to maintain the space and the cost, . Handling also includes all costs associated
with the equipment used to handle product in the warehouse, such as the depreciation of
equipment cost, and the cost of fuel, or electricity to power the equipment.
For this research study purpose , we were using Secondary Data as our sources of information
regarding to the information gain from the journal reading that we are collected from various
journal. Secondary data are the data collected by a party not related to the research study but
collected these data for some other purpose and at different time in the past. If the researcher
uses these data then these become secondary data for the current users. These secondary data
may be available in written, typed or in electronic forms.
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3.3 Research Instruments
From the research we were conduct , we were collecting the data and information
from the reading through journal that we were through reading that we do, we take all the
information about how to increase storing space and also how to implicate these solutions to
warehouse as well as the advantages and disadvantages as well that can help solve this
research study from the journal of the different parties.
3.4 Research Procedure
After we be recognized with profound questions, we started to discuss the problems

arising from the insufficient space incurred. Then we divide into specifics problem or element
that affect the insufficient space in that warehouse which is the type of racking system and
type of material handling equipment. After that we started to look for journals from various
parties to find solutions to optimize space in warehouse. After that we identify several ways
to resolve this problem.
3.5 Conclusion
In conclusion, we used the method of observation and reading and also take
information from the selected journal to solve the problem occur in CTRM Aero Composites
warehouse. We started with identifying the problem and then analyse the factor that
contribute to the insufficient space.
27
CHAPTER 4
FINDINGS AND ANALYSIS
Based on 20 journals that we have read and study based on problem that we already
identify. Two factor that affecting insufficient in CTRM Aero Composites warehouse is type
of racking system and type of material handling equipment. We already fine and short listed
from our list to overcome the problem occur from journal are:
4.1
Material Handling Equipment (MHE)
As CTRM has a premium or limited space in their warehouse, some Material Handling
Equipment could be used to tackle this constraint. Even the weight of the goods stored is a
variable for choosing the proper MHE. Some MHE might be very costly or unnecessary
depends on the situation. Example, CTRM only stores below 2 tan goods, with some
exception. Thus, Multi Handler would be out of question since it consumes a lot of space and
its unnecessary since the goods stored are only small ones compared to what it usually lifts.
I.
Reach Truck
For the first material handling equipment, we are suggesting a reach truck for the most
appropriate MHE in this warehouse.. This truck could be used in the narrow isle perfectly
without disrupting the drivers incapability of handling it perfectly. Operators can easily
move up and down aisles and on and off the truck due to superior comfort design and
flexibility. The size of this reach is smaller than counterbalance forklift used by CTRM right
now and is easier and also minimizes the risk of damaging the racking system and also
reduces the time taken for storing and discharging.
28

It means that the reach truck has more space or room for the operator and has a flip-up seat,
which the operator can choose whether to sit, lean or stand.
This photo is shown picture of reach truck

II.
Turret Truck
Besides, turret truck could also be an appropriate choice. These machine is operated by
battery which is used both the electric engine, battery and operator compartment to
counterweight heavy loads. Its often used in narrow isled warehouse. Its specialized for that
kind of condition. Make it a perfect choice. This truck could save time for storing and
discharging. They are the fastest option in terms of load handling per hour. The actual forks
of the turret truck are located in front of the driver. The forks are mounted on a smaller front
mast that can rotate 180 degrees, giving the operator access to both sides of the racking aisle
without the unit having to move cost.
This photo is shown picture of turret truck

29

III.
Automated Storage and Retrieval System (ASRS)
Furthermore, Automated Storage and Retrieval Systems is possible. The most significant
description for ASRS systems are that they are faster and more accurate than manual
operators because they take less space and induce no human error. But we have to mind the
cost and space required to install this system. Properly applied, the AS/RS technology family
provides a consistent, highly responsive and perfectly accurate alternative to human based
solutions. The benefits of using this system are almost 100% accurate, real time information
about the inventory on hand allowing achievable commitments to be made to customer. It
may prove ease and make efficient service in the long run, but the profit margin is too low to
install this system. Unlike Amazon who has a large warehouse and also a large operation with
large profit margin, making ASRS as a crucial system in the warehouse, assisting them in
every way and improving their service. The ASRS helps in moving the goods around the
warehouse and would also help in storing and discharging the goods from the rack.
This photo is shown picture of Automated Storage and Retrieval Systems (ASRS)
30

IV.
Overhead Hoisting System
A great system but rarely used as it has its special purpose. Its not often used in the
warehouse which uses pallet stacking. Its used or vertical lifting involving material handling
of freely unguided loads. The benefit of using this system is reducing the need for manual
handling. By using this, the labour force would be reduced significantly, as it can be operated
by a machine or system handle by one individual. This method is not recommended as the
goods stored in CTRM requires pallet while Hoisting doesnt.
This photo is
shown picture of
overhead hoisting system
31

4
IV.2
Racking System
Rack is a material handling storage aid system designed to store materials on rack. There are
many varieties of racking system are been practising and using all over the world with their
own advantages and disadvantages. In order to have better space and low operating and
handling cost, racking system playing main role to determine them. For racking system, from
on what we have studied, we have define 3 of the best type of racking system that should be
implement in CTRM Aero Composites.
I.
Pallet Flow Racking System
First of all, we are suggesting that CTRM should implement Pallet Flow Rack System in their
racking system. By using pallet flow it will help to prevent honeycombing on their racking
place and it uses the concept of first in and first out. Besides, by using Pallet Flow system it
also help to optimize space available. Next, it can save cost from buying material handling
equipment especially for narrow aisle such as turret truck will cost high investment which
could be prevented by using this racking system
This photo is shown picture of pallet flow racking system

32
II.
Mobile Racking System
Besides by implement pallet flow racking system, CTRM should also implement Mobile
Racking System which is a system that conducts by using electronic machine system. By
using this kind of racking system it can help to reduce labour cost, which is we did not hire a
specialize staff in forklift handling. Besides that, it also helps to optimize space utilization up
to 80% floor space. Furthermore, Mobile Racking System provide emergency stop button
access light barriers, manual release systems, distance sensors, and safety light barriers which
helps to prevent from any accident that cause by human error. Since the new era of electronic
machine implemented, mobile racking system also provide semi auto and automatic system
which is by using automatic system all work is handling by computer thus, semi auto is using
half-staff power and computerize power.
Modular Construction: Systems can be easily
expanded for future growth within the same building.
This photo is shown picture of Mobile Racking System
33
III.
Push Back Racking System
Push back racking system is a system that should be implement in CTRM. This system which
help to reduce space availability by fill the storage cube on different type of SKU. This is the
system that called as a king racking system, that every type of storage cube can be storage
there. Besides, it using Last in First out concept which the first storage cube will be first out
when the last storage cube were place on the racking system. The most important things,
using push back racking system will help to utilize space on the warehouse. It will reduce the
time taken for storing and discharging goods from the rack. Indirectly, reducing the cost and
time. Thus, making sure the service is as efficient as possible
This photo is shown picture of Push back rack
34
CHAPTER 5
DISCUSSION AND CONCLUSION
5.1 Discussion
After analyse and focusing on the problem facing by CTRM and also referring to the
journal that we has been read, we have determine to choose the turret truck for material
handling equipment at CTRM because it was the best fit among the order. If CTRM are
implementing ASRS, there are problem in term of size because ASRS is handling good in
pallet size. But in CTRM their goods are quite big example are their finishing goods. Besides
that, if CTRM implement overhead hoisting equipment, they will face problem in limitation
of workspace. In other work that hoisting equipment can be used only at inside the
warehouse. CTRM need to collect their goods from supplier from loading bay outside from
warehouse area. Next is between turret truck and reach truck. It is a hard decision, but in
order to reduce more space for path and gain more space for storing goods. Turret truck is the
best decision because it have fork that can rotate 180 degree and it is specialised at narrow
area. Even though reach size is much smaller than turret truck but it doesnt have rotate fork
and still need to turn 90 degree faced to rack to place the goods on rack.
Correct material handling equipment doesnt make transformation to a warehouse and
it is just improvement but with great racking system and correct material handling equipment,
that was a transformation. After seeing the requirement, we decided to recommend to CTRM
Aero Composites warehouse to use mobile racking system because it is really fully utilize
the space than other. It comes with the best deal. It can cater all the capacity needed by
35

CTRM. Besides that, there is no Last in First Out or First in First out because mobile racking
are using and combining single deep pallet racking system.
So, it no need to transfer any good to pick the good you want and that is they reason
why we are not picking up either Push Back Racking System or Pallet Flow Racking System.
It is very impressive racking system and with this racking system, CTRM Aero Composite
doesnt need to outsourcing ore for space to storing good. Besides that, in term of safety and
security, Mobile Racking is the only one racking system that equipment with all those
technology to keep workers safety and accident free example is emergency stop buttons and
access light barriers.
36
5.2 Conclusion
As conclusion, there are several factors that affecting storing space in a warehouse.
Space in a warehouse doesnt stated to the size of warehouse, it is depend on how the space is
manage and for CTRM situation their space are depend on two element. The element that
influences storing space in their warehouse is type of their racking system and material
handling equipment. Currently they are practising single deep pallet and free block stacking
and they are using counterbalance forklift that operates by gas. Their production capacity has
been increase and they need to increase also their stock to cater all the demand on time but
because of insufficient space to keep the stock they have to rent space at warehouse. After do
some research based on journal, we identify that they can put all their stock just in their
warehouse by fully utilize the space. Based on journal we read, they can use mobile racking
at their warehouse to optimise the space because mobile racking can utilize the space up to
70%. For material handling equipment, they need to use handling equipment that equip with
rotate folk because it can save space for truck turning because it doesnt need to turn to put
the good on rack. So, we choose turret truck because it have the requirement and in addition
it is smaller in size and expert in narrow path.
37
References
Chand, S. (2015). Warehousing: Function, Benefits and Types of Warehousing.
Retrieved from http://www.yourarticlelibrary.com/marketing/marketingmanagement/warehousing-function-benefits-and-types-ofwarehousing/27952/
Gablestapler, C. (2009). RD 5700 series. Crown.
Hall, D. (2002). 6 advantages of using an electric hoist. The benefits of using
Overhead Hoist System.
Kay, M. G. (2012). Material Handling Equipment. 1-66.
Midwest, S. (2014). Double Deep Selective Pallet Rack. Retrieved from Speedrack
Midwest: http://speedrackmidwest.com/storage-racks-andshelves/storage-racks-static-pallet-rack/standard-selective-palletrack/double-deep-selective-pallet-rack
Rogers, L. K. (2011, August 1). Equipment 101: Lift truck basics. Retrieved from
Modern Material Hnadling:
http://www.mmh.com/article/equipment_101_lift_truck_basics
Rogers, L. K. (2011, February 1). Pallet rack basics: Behind the backbone.
Retrieved from Modern Material handling:
http://www.mmh.com/article/pallet_rack_basics_behind_the_backbone
Ruriani, D. C. (2013, June). Optimizing Warehouse Operations. Retrieved from
inbound logistics: http://www.inboundlogistics.com/cms/article/optimizingwarehouse-operations/
Smith, M. (2012, November 15). Pallet Racking 101: Which Type Do You Need?
Retrieved from Bastian Solution:
http://www.bastiansolutions.com/blog/index.php/2012/11/15/palletracking-101-which-type-do-you-need/#.VlPdqnYrK01
Steel King Industries, I. (2015). Steel King. Retrieved from steelking.com:
http://www.steelking.com/pushback-rack-p-2005-l-en.html
Toyota.Forklift. (2014). Counter-Balance Forklift. Counter-Balance Forklift.
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UNIVERSITI KUALA LUMPUR

SHAFIQ MUZAKIR BIN MOKTAR

SHEIKH MUSTA ALI BIN SALIM

AFIF BIN AZIZAN

MUHAMMAD NOOR AFIQ BIN ANUAR

MOHAMMAD FAIZ BIN RAMLI

MADDAH BIN TAHIR

MUHAMMAD AFFIQ AIZAT BIN AZIZ

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

2.4 The solution regarding to the problem....................................................12

Material Handling Equipment (MHE)....................................................28

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

This pictures is show CTRM

Material Handling Equipment

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

We often define warehousing as the storage of goods. By other meaning, this

This picture is shown example of warehouse with systematic storage

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

Grading and Packing:

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

The picture shown is free block stacking

The picture shown is single deep pallet racking system

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

The picture shown is double deep pallet racking system

The picture shown is drive in o drive through racking system

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

The picture shown is pallet flow racking system

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

The picture shown is push back racking system

The picture shown is mobile racking system

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

The picture shown is shelving and bin racking system

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

The picture shown is multi handle equipment

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

The picture shown is reach truck

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

The picture shown above is turret truck

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

The picture shown is Automated Storage and Retrieval Systems

Last but not least, easy in

accessibility. Assumed it is correctly maintained and batteries are properly charged, an

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

The picture shown is example of Overhead hoisting equipment

The picture shown is of pallet truck

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

The picture shown is example of manual stacker

The picture shown above is counterbalance truck

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

3.2 Research Sources Data Collecting

OPTIMIZE USAGE OF SPACE IN CTRM AERO COMPOSITES WAREHOUSE

3.4 Research Procedure

After we be recognized with profound questions, we started to discuss the problems