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Importance of Materials Handling
It is hard to realized how important are material handling in the cost of operation because it is something that is quite common to everyone. But when once its nature is exposed it may be difficult to overlook it as a major potential of effecting cost reduction. Materials handling problems assume importance due to a number of factors;
Various studies made in different industries indicate that cost of handling alone accounts for about 20- 25% of total manufacturing costs in any particular industry may be is largely the result of the methods and equipment used.
1. It is usually found that each part is handled 50- 60 time while passes through the chain of manufacture. Expressed in tones it is found that on an average 59 tons of materials are handled for every tone of finished product.
2. Increased Safety: Materials handling account for 21%of the permanent disabilities and over 25% of the temporary disabilities .
3. Reduce Damage Claimas: Modern handling methods have paid off in the reduction of damage in parts and materials.
4. Ease Drudgery for Men: Most of the jobs done by man huddling are mere drudgery for men in the first place. Some of the mechanized handling jobs being done today would be a sheer physical impossibility for manual labor with in the present economic frame work.
5. The field of materials handling remains still to be fully explored . materials handling techniques are not only industry biggest opportunity they are industry biggest necessity. Competition is beginning to force this new technology upon industry.
FIXED COST=40000, VARIABLE COST=20 PER UNIT, SELLING PRICE=100 PER UNIT. TURNOVER REQUIRED FOR A PROFIT OF RS.30000
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