Vikash Kumar Dubey

M.D. Mahajan

Abstract

The paper industry has been experiencing a competitive environment and striving hard to find methods to reduce manufacturing cost. About 15-20% of the total production cost is spent on material handling. The objective of this study is to determine the factors involving the material handling costs. A research work was initiated to evaluate and improve the material handling process that results from identification of critical factors that optimize time and cost. The study was conducted in two stages which involves historical data analysis means collecting the data of preceding years from a renowned company this data gathered from the company is utilized to built up charts that facilitate in examine the data and proposed new method for improving the layout of factory with the help of method study. The new plant layout suggested which improves the optimum utilization of manpower and machines and the efficient flow of materials which improved the productivity. The cost analysis is performed for the proposed system on the basis of MHEI, so the cost and time is reduced while increase in productivity. MHEI i.e. MATERIAL HANDLING EXPENDTITURE INDEX is index that measures relative cost of handling over time or regions.

Keywords- Material handling expenditure Index, Material handling.