TO STUDY AND DESIGN NEW MATERIAL

HANDLING SYSTEM AT DIMOND BOART

WAREHOUSE

Prathamesh Naik
Vishal Akarkar
Vaibhav Gaunker

INTRODUCTION
Project deals with the study and design of new material handling system at diamond boart warehouse at
kundaim. the following problems are faced to material flow in warehouse.

Operation is labor intensive.

loading and unloading time is higher compared to normal.
Damages are being done to products while in transit as well as loading and unloading.
proper equipments are not used.

Considering the above points the current material handling system is not the most beneficial one and there
is a need to redesign it to improve warehouse productivity.

Literature Review
In its simplest form, warehousing is the storage of goods until they are needed. The goal of warehouse operations is
to satisfy customers needs and requirements while utilizing space, equipment, and labor effectively. The goods must
be accessible and protected. Meeting this goal requires constant planning and ongoing change.
A warehouse is a large building where goods are stored, and where they may be catalogued, shipped, or received,
depending upon the type. Though in the past, many warehouses, often located in industrial areas sometimes next to
major shipping ports, were teeming with workers, the modern warehouse may be either completely or totally
automated depending upon how advanced the company is. Sometimes a manufacturing facility also has an attached
warehouse, where their manufactured goods are stored until shipped. principal operation of the place is receiving,
getting in new products, and shipping out products already stored.

Paretos Law
80/20 Pareto's rule known as Paretos Law. is a quantitative guideline that simply suggests that 80% of the product
volume is equal to 20% of the active line products in inventory. or that 80% of the material flow may be because of
20% of the type of particular product.

Systems Defined
The word systems as used herein is defined as one or more pieces of equipment used to accomplish the various
warehouse functions. e.g. the storage system, loading unloading system, etc.

The Physical Warehouse Structure

Whether you are making changes to your existing warehouse or completely setting up an empty warehouse, there
are a few factors that must be considered in your plans. If you are building a new warehouse, these factors can
usually be addressed in the construction contract.

The floor must have the load capacity to handle the systems and equipment you plan to use.

Your plans need to accommodate the fixed locations of the structural support poles and if possible to protect
them from damage.

Interior obstructions such as heaters, drain lines, gas lines, water lines, electrical lines, and lighting fixtures must
be safely accommodated.

Local and federal building code restrictions and requirements must be addressed and followed each time there
are major changes made in the warehouse.

Developing a Master Plan for Warehouse Operations

A master plan is an essential tool for managing warehouse operations. The larger the operation, the more important
the master plan becomes. Without knowing where you are now, you cannot effectively plan for where you need to be
in the future. The master plan should be divided into segments that document the procedures, rules, and workflow for
each function in the warehouse. It should have segments that document all space, equipment, and labor resources,
and how each is being utilized by the various functions. To develop your plan, follow these five basic steps in the
sequence listed. Repeat these steps for each function in your warehouse.

Define the function you want or need to accomplish. (Set goals.)

Determine how the function will be accomplished.

Determine the equipment needed to accomplish the function.

Define the functions space requirements.

Estimate the functions support needs (e.g., personnel, software, and capital). Include changes in workflow within
the warehouse and/or other departments in the organization.

Methodology
Methodology is the word used to describe how a function or group of functions will be accomplished. As we decide
how our goals will be accomplished, our reasoning can often become subjective; it is often based on what we have
done in the past.

Locator Decisions
There are three basic locator systems for storage and picking systems:

The human location system. This method is strongly discouraged, but it is an option for short-term/temporary
storage.

The fixed-location system. This system assigns a product to a location. No other product can be stored in the
location, even when it is empty.

The random-location system. This system allows you to place a product in any open location.

Equipment Planning
Alternative brands must be considered if our choices are based on the projected total cost over the long term. though
this may result in dictating how we utilize available space to accomplish our goals. We also should consider and
evaluate the purchase of used versus new equipment. After all, new equipment becomes used the first time we use it.
Used equipment is a valid choice when it comes with a warranty and when the sum of its sale price plus its projected
maintenance costs over three years is less than the sale price of the new equipment.
The overall savings of the used equipment increases in relation to its age, especially when it is over five years old.
Before we lay out the space needs of the warehouse functions, we need to determine the equipment and systems
we will be using to accomplish each function. The characteristics and volume of shipments, the methodology we use
to accomplish each function, and the available investment capital will influence equipment selections. It may also be
influenced by the degree of risk organization are willing to accept when it comes to operating and maintaining
specialized equipment.

Space Planning.
The challenge in space planning is to find ways to utilize effectively and/or to increase usable cubic space in the
warehouse unused space must be properly accounted. as it might have use in the future. Aisles are necessary, but
they do waste a lot of cubic space. Typically they occupy 60% of the total cubic space, and they can occupy much
more. so the number of aisles should be kept to a minimum. Running aisles the length of the building instead of the
width usually reduces the number of required aisles. How narrow the isles can be will depend both on how much the
investment ,and the safety of operating equipment in a narrow-aisle environment.
it is necessary to plan, prepare, and make needed changes needed at now, not when the warehouse or one of its
systems reaches capacity. capacity needs should be projected five years into the future and we should update it
annually. As a rule, expanding an existing warehouse or finding or building a warehouse takes four or five years.

Dock Operations
The dock area may well be the most neglected part of the warehouse plan. All too often we are expected to make do
with what exists, even if no dock is connected to the warehouse. Except in very small operations, at least one dock
door is needed. The number of doors needed will increase is in direct relation to how long it takes to unload or load a
shipment and how many deliveries and pick-ups average each day. there should not be more than one carrier waiting
for a door at any given time, and the wait should not exceed thirty minutes.
The basic dock functions are unloading and loading carrier shipments, checking the shipments for damage, and
verifying the counts stated on the delivery receipt. The driver should note all damage and shortages on the delivery
receipt before the receipt is signed. All delivery and/or shipment paperwork should be routed to the proper
department within the organization.
Basic dock equipment usually includes a hand truck and a pallet jack. If there is a high volume of shipments, the
pallet jack may need to be electric or there may need to be a powered lift truck. In the end, the characteristics of the
shipments usually determine the equipment needed.
Space directly adjacent to the dock doors should be sufficient to accommodate the average daily volume of receipts
and outbound shipments. how much space needed depends on the time taken receiving to check shipments and
move them into the storage systems, ability to control when carriers deliver and/or pick up shipments, and how soon
outbound shipments start being staged each day. There should also be space for empty pallets, containers, carts,
and the like used to hold inbound goods.
Unless we receive inbound shipments continuously throughout the day, it usually makes sense to handle inbound
and outbound shipments in the same area of the warehouse. Doing so usually requires less space, less equipment,
and fewer personnel.

Receiving Operations
Receiving duties often include the dock functions. The receiving function is the starting point for inventory control in
the warehouse. It is also the function best suited for gathering information needed for keeping product details
accurate and current. And if copies of the product are to be routed or stored, receiving should handle their delivery
and storage. Any and all essential data should be gathered at this stage, and it should be documented on the
receiving reports.
The basic functions of receiving include verifying product quantity, preparing receiving reports, and routing those
reports to designated departments. Receiving also should prepare received products for movement into the storage
and picking systems. Receiving also should pull the stock needed to process backorders.
Receiving usually needs a desk, a computer, a filing cabinet, and other furniture or equipment associated with the
duties to be handled. A small office or a designated space near or in the dock area is all the space normally required.

Storage Operations
Storage functions are usually an extension of receiving department duties. The basic functions of storage are the
movement of products from the dock area to a holding location, the recording of the location and quantity, and the
updating of storage records so that the product can be found easily when it is needed. Retrieval of products from
holding locations may also be assigned to storage operations and/or may be a function of picking operations.
There are two basic methodologies for setting up a storage system:

You can simply use the floor, lining pallets up in rows and stacking pallets of like product on top of each other.
This method is usually referred to as bulk storage. This can be a valid option for a warehouse with a very low
ceiling. It can also be a good option for storing many pallets of the same product.

You can install pallet rack and/or shelving in rows. This widely accepted method, usually referred to as rack
storage, usually makes good use of available space and is cost effective so long as the ceiling height allows at
least three levels of full pallet storage. The higher the ceiling, the more cost effective rack storage usually
becomes.

Storage normally occupies most available warehouse space. This being so, you might find it best to lay out the entire
building for storage before you attempt to determine space needs for other warehouse functions. Once the best
storage layout is determined, simply remove parts of it to accommodate the other functions.
Before selecting storage equipment, dimensions and weights of the unit loads to be handled must be determined.
The unit loads will normally be cartons stacked on wood pallets. The pallet used determines the width and depth of
the unit load. The standard pallet is 40 inches wide and 48 inches deep. The height of the pallet plus the height of the
cartons stacked on the pallet determine the height of the unit load. Because the height of cartons usually varies, you
will need to set the height at a level that best accommodates the various carton heights. Once you know the unit load
specs, you can work with equipment vendors to determine which pallet racks and lift trucks best meet your needs.
Generally it is best to select equipment that somewhat exceeds your weight requirements. The added degree of
safety is well worth the slightly higher cost.
The size of the product received usually varies from a few cartons to a few pallets. If this is the situation, we might
consider setting up your storage area to accommodate the various volumes because it will make better use of the
storage space. 80/20 rule in reverse can be applied when it comes to the size of locations in the storage system.
Approximately 20% of full pallet locations have been reduced in height by one foot, and we store less than pallet
loads in them. As previously stated, locator codes allow the full pallet locations to be split for holding up to three
products. These simple changes add locations of the storage system without requiring additional floor space and
enabling the use of existing space more efficiently.

Picking Operations
Picking operations is defined as the assembly of products ordered by customers. This is a simple function, yet it is
time consuming. As you evaluate and/or setup your picking operations, efficiency should be a major goal. After all,
customers expect their orders to be processed quickly, not just accurately.
Experts suggest that there are two basic ways to set up a picking system. At the same time, parts of both concepts
can be combined. Thus there are three ways:

You can move the picker to the stock. This usually means the picker will pull the products directly from the
storage locations. This method works best when the products are shipped in case quantities or when most
orders include a lot of full cases. For reference, we will call this a storage picking system.

You can move the stock to the picker. This usually means the picking system is a stand-alone system, but it
could be in a defined section of the storage area. For reference, we will call this a stand-alone picking system.

You can combine the above. This usually means that the picker pulls fast-moving products from storage
locations and slow-moving products from a separate picking system. For reference, we will call this a hybrid
picking system.

The equipment needed to hold the products will vary according to the picking method you use. Pallet racks likely will
be used in a storage picking system. Static shelving, carton flow racks, and pallet racks might all be used in a standalone picking system. (The use of other equipment, such as a carousel, is also possible.) A hybrid picking system
might use all the equipment mentioned above.
Before you decide how to set up your picking system, you must decide how you will assemble customer orders.
There are two ways to accomplish this:

batch pick, pulling multiple orders at one time. This method is common when pickers must travel long distances
to assemble orders.

pulling one order at a time. This method is common when travel is not a major factor and when customer orders
average one to a few products.

Note: When batch picking is selected, large orders are picked one at a time. The definition of a large order is
determined by the specs used to batch the orders. If the specs used equal 10 orders and 100 total products, a large
order would be any order that has 100 or more products on it.
when it comes to setting up and operating picking operations different individuals may have different preferences. an
evaluation of the following order characteristics offers the best solution.
(1) Determine the percentage of orders that contain a number of full cases:

If the percentage exceeds 50, a storage picking system may be your best option.

If the percentage is 25 to 50, a hybrid picking system should be considered.

If the percentage is less than 25, a stand-alone picking system is likely your best choice.

(2) Evaluate the line-item characteristics of the orders:

Determine the percentage of orders with one line item. If you pick one order at a time, these orders can be
sorted by zone, regardless of the picking system used.

Determine the percentage of orders with two or three line items. If you single pick, most orders can be
assembled without your having to travel through the entire picking system.

Determine the percentage of orders with four or five line items. If you single pick and use a stand-alone pick
system, approximately one-half of the orders can be assembled without your having to travel through the entire
system.

If the sum of the above percentages is 60 or more, picking one order at a time makes good sense. If the sum is
less than 40%, batch picking should be considered. If the sum is 40%-60%, single or batch picking can be
equally effective. I would single pick if I use a stand-alone or hybrid picking system, and I would batch pick if I
use a storage picking system.

After evaluating order characteristics, we would know how we will pick orders and which type of picking system we
use. Before we make decision, the following are the facts considered

The physical equipment that makes up your picking locations should be set up in accord with the 80/20 rule. This
means that at least 20% of picking locations should hold larger numbers of product.

The pick location assigned to each product should be based on the 80/20 rule. This means that fast-moving
products should be in picking locations that hold more stock.

You should be able to move a product into or out of its picking location easily as the level of its activity moves up
or down over time.

The long-term cost of equipment to be used in your picking system will be a major factor. Fixed and nonpowered equipment usually require very little maintenance and most will continue to be functional many years
into the future. Mobile and powered equipment usually require some level of ongoing maintenance and most will
need to be replaced at regular intervals.

The physical setup of the picking system should minimize the travel time of the pickers whenever possible. The
same is true with the method of picking used.

The picking method should minimize the number of times the products must be handled before they are placed
into the final cartons used for shipping

Often the capacity of the picking system is ignored when it comes to storage planning. It holds stock too, and if
carefully planned and managed, it can often be set up to hold all stock on low print-run products. This can help
reduce the pressure on the storage system, and it eliminates the need to pull stock from storage at a later time.

Packing Operations
Packing is the process of packaging for shipment the products ordered by customers. If you batch pick, orders are
separated and checked for accuracy during the packing phase. If you single pick, orders are checked only if you do
not hold pickers accountable for accuracy of the orders. As a general rule, products are packed into shipping cartons,
the air space is filled with a packing media, and the cartons are sealed. If the shipment mode requires it, cartons are
stamped, labeled, and otherwise marked as needed.
If packages are poorly packed, the possibility of damage increases greatly. The shipping carton should be of such
strength that it cannot be bent or crushed easily, and it should be packed so that the products will not shift during
transit. If you want to know how and how not to pack, spend a few days in your customer-returns area monitoring the
condition of packages and their contents in relation to how they are packed. Pay close attention to packages refused
by the customer and returned to you unopened. If your packages are damaged when you get them back, you are not
doing an adequate job in your packing area.
The equipment needed in the packing area includes tape machines, box knives, and various stamps. If you do not
use a conveyor system, you will need a packing table. If you do use a conveyor, you will likely pack on the conveyor
itself. You might also need some equipment to apply or affix labels to the cartonns.

Shipping Operations
Shipping operations is where the final steps are taken to prepare orders for shipment via the requested mode of
transit. The tasks performed usually include weighing each carton, recording shipment information in a manifest
system, and applying address labels generated by the manifest system. If the shipment is going by mail, correct
postage is applied. If the shipment is going by truck or air-freight carrier, a bill of lading is completed. After packages
are processed, they are sorted to pallets or tubs so they can be moved to the shipping dock for carrier pickup.
It is usually considered shippings responsibility to ensure that all shipments are picked up the day they are ready to
ship and that all shipping paperwork is routed to the correct departments at the end of each shipping day.
If you ship many packages a day, it is also essential that you acquire your own manifest system. The manifest system
should support all the modes of shipping you normally use, including truck and US Mail. It should also allow you to
import shipping data from an export file generated from your business software. Setting up your own customer
database in the manifest system is not a good idea because addresses change on a regular basis. Using the export
file from the business software ensures that the address information is correct when a new order for the customer is
processed. This eliminates the need to check all addresses generated by the manifest system against the picking
documents, saving you both time and incorrectly shipped orders.

Other Operations
There can be other operations, functions, or guidelines that impact warehouse operations. Listed below are some for
you to consider:
Backorders. Under receiving operations, it was suggested that stock for backorders be pulled. backorders should not
go through the picking system. Whenever possible, have receiving deliver the backorder stock to a special place in
your packing area, and process them without involving picking operations.
Order Printing. warehouse should be able to print their own picking and shipping documents. This reduces the
down time caused by waiting for another department to fit printing the documents into their own schedule.
Time Goals or Standards standard time for handling all functions in warehouse operations should be set, and
those standards should be well known to staff. The goals set must be realistic and challenging, not easily achieved on
a daily basis.
Storage and Picking Capacity. plans should be laid down to increase storage and picking capacities, once you are
at 80% capacity. Once they reach 90%, appropriate plan should be implemented. When capacity exceeds 90%, you
will use more and more labor to maintain your open locations. This is especially true in the storage system, because
you will need to move and consolidate partial pallets to have enough full pallet space available for the incoming stock.
EDI and Pubnet. If you do not have EDI and Pubnet capabilities, many larger customers will go elsewhere to make
their purchases. More and more customers are placing their orders electronically.
Advanced Shipping Notice (ASN). ASN is essentially a file containing an electronic packing list for each carton
being shipped. Scanning the products as they are packed into the shipping cartons creates the file, and it compares
the contents for the file to the original order file to ensure accuracy. The files created during the day are sent via EDI
to the customers on a daily basis. As with EDI and Pubnet, the number of customers desiring ASN is increasing.
Unlike EDI and Pubnet, however, ASN will not reduce labor costs. In fact, it probably will increase labor costs by
increasing the time required to turn orders. despite this Using ASN capabilities to scan-check all orders should result
in virtually error-free shipping.

Technology in General .despite the higher cost associated , the time has come to create and staff a full-time
information and technology (IT) department, and it would be best if this department serves the whole organization.