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Better Hqndling Mefhods cqn Turn Loss fo profir
This is a story about United States Gypsum Company's Customer Service and Materials Handling program. It starts with a problem in simple arithmetic.
Building materials dealer ,'A,' unloads 40,000 sq. ft. of gypsum lath from a boxcar in 28 man-hours at a cost of $35.
Building materials dealer "B" unloads the same shipment in 4 man-hours at a cost of $5.
Assuming that all factors, aside from materials handling, are equal-which dealer shorvs the greatest profit on his operations ?
Dealer "B," of course. He has achieved a savings of about 85/o in this phase of materials handling because he has "mechanized" this unloading job.
In this instance, his mechanization cost him $9O, the cost of a special hand truck. Saving $30 an unloading over oldfashioned manual methods, he paid for the truck after three unloadings. The fourth and subsequent unloadings cost him only g5 each.
The above example, and many more, are set forth in USG's Customer Service bulletins to put across the point that materials handiing methods can be the difference between profit and loss in a building material dealer's operations.
As the last "big tool" of cost control, an efficient program of materials handling offers the building materials dealer (and the manufacturer, too) reduction in handling costs, increase in capacity, improvement in rvorking conditions and better distribution. Safety is a plus factor.
Experience and study of materials handling in recent years has "revolutionized" handling operations, which have meant savings, too, to customers, directly and indirectly.
Building materials dealers profit directly from new handling methods, since dealers may specify "unit lifts" on their orders. Unit sizes are based on lifting capacity of the dealers' fork truck. lfere's an example of how the nerv "unitizing" system works:
A dealer specified that he u'anted his order of asbestos shingles "tinitized" (packaged) according to USG recommendations into seven squares per lift. The order was packaged to specifications. Soon after, a letter from the dealer stated in part: l. Is the dealer's yard served by a railroad? Does the rail siding enter the yard, or inust material be trucked from the rail siding to the yard ?
"Formerly, 24 man-hours were required to hand unload a car of asbestos shingles. Our unitized car was unloaded in lrl man-hours Our yard men certainly prefer the unitized type of shipment, as the units are easily handled n'hen reloading on delivery trucks."
OF OID-FASHIONED YARD defeorr cftcicnr building moteriol3 hdndling, -ofiice ir nol imprersive ond olt moteriols hovs to be riucked into yord from the rcilrocd rcqm rrqck. Hond piling methodr ond generol cluttcr rciuce slo:oge spscoi ordcr picking is done in opon yord. Thcre ir no Guatom.r quto porking areo ond much time is to{t in looding outgoing huckr. Worchousc locotion on lot and irr fsciliries qre nor conducive ro cort-control in hondling.
Indirectly, building materials dealers can profit by studies of materials handling by availing themselves of the free consultation service, which analyzes the materials handling problem in the dealer's yard and warehouse, and recommends procedures for the individual case.
Z. Is it feasible for the dealer to operate mechanical handling equipment ? Does the physical layout of the yard and warehouse provide enough room for the operation of mechanical handling equipment rvithout sacrificing valuable storage space?
3. Are the warehouse doors high and wide enough to permit mechanical equipment plus its load to pass through ?
4. Are the warehouse floors smooth enough to accommodate mechanical equipment; are the floors strong enough to support mechanical equipment and its load?
HOW SAilE YARD CAN BE IIODEINIZED to improvc msrsriob hondling: Thc now oficc inviter otlention. Tcom trocl hqr bccn cxtcndcd into yord. Roilrood Gdrs qr. unlosdcd ot worchouse or fron bolh sidcr of trock in opcn yord. Clccr-:pon iloroga rhed wifh l2-foof conopy prot.cl3 lurnbcr binr from wrothcr. Worchourc fcr boggcd goodr ond unitlrrd motcriols i: plcced for ncoipi ond rhipnant. Abb rpocc for mcchonicol llft ond mqtoriolr rtockrd for quick hmfiqf.-"lrfr goodwilt curtomer perhing.
If all the above questions are answered in the negative, it does not mean that the dealer cannot mechanize his handling operations to some extent. lle can utilize inexpensive hand trucks to unload shipments, move materials to storage areas and reload orders on delivery trucks, rvith considerable savings in handling costs.
Ffotvever, in most cases, it will be profitable to the dealer