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MHI’s 10 Principles of Material Handling: Warehouse Planning for Efficiency
Warehouse planning a well-designed material handling system drives how materials are received, stored, moved, picked and delivered while balancing productivity, worker safety, available space and long-term operating costs.
The MHI principles of material handling provide a framework for making those decisions.
According to MHI, the ten principles of material handling are planning, standardization, work, ergonomics, unit load, space utilization, system, automation, environmental and life cycle cost. Together, these principles can help warehouse, distribution and manufacturing operations evaluate both individual pieces of equipment and the material handling system as a whole.
What Are the 10 Principles of Material Handling?
The 10 MHI material handling principles are:
- Planning
- Standardization
- Work
- Ergonomics
- Unit Load
- Space Utilization
- System
- Automation
- Environmental
- Life Cycle Cost
Here is how each principle can apply when planning or improving a warehouse or manufacturing facility.
1. Planning Principle
Effective material handling starts with warehouse planning.
Before selecting pallet racks, shelving, workstations or other equipment, consider how products and materials need to move through the facility.
Planning should take into account:
- Receiving and shipping areas
- Inventory volume
- Product dimensions and weights
- Picking requirements
- Material flow
- Employee and forklift traffic
- Storage requirements
- Anticipated growth
2. Standardization Principle
Standardization means creating consistency in the methods and equipment used to handle materials.
Using standardized pallets, containers, shelving configurations and processes can make materials easier to store, locate and move.
Standardization does not mean every part of a warehouse must be identical. Instead, businesses should look for opportunities to reduce unnecessary variations while maintaining the flexibility required by their operations.
3. Work Principle
Every unnecessary movement of material requires time, labor and potentially equipment.
The work principle encourages facilities to minimize material handling work without sacrificing productivity or safety.
For example, warehouse planners may be able to:
- Shorten travel distances
- Eliminate unnecessary handling steps
- Position frequently picked inventory closer to picking areas
- Improve pallet rack layouts
- Use carts or conveyors where repeated manual transportation is inefficient
Reducing unnecessary movement can increase throughput while making better use of employee time.
4. Ergonomic Principle
Material handling systems should account for the capabilities and limitations of the people using them.
Repeated bending, reaching, lifting and twisting can make work more difficult and may contribute to workplace injuries.
Ergonomic material handling solutions can include adjustable workstations, properly positioned shelving, lift equipment, carts and storage systems that keep frequently handled materials within comfortable reach.
A well-designed workstation or storage area should help the employee perform the task rather than require the employee to continually adapt to poorly positioned equipment.
5. Unit Load Principle
Whenever practical, materials should be handled in appropriately sized unit loads instead of moved individually.
A unit load could include products grouped onto a pallet, into a container or within another material handling structure.
Creating appropriate unit loads can reduce the number of individual movements required to transport products through a facility.
However, larger is not automatically better. Load size should be appropriate for the material, storage system, equipment and processes being used.
6. Space Utilization Principle
Warehouse space has three dimensions.
That means businesses should consider not only available floor space but also the usable vertical space within a facility.
Storage solutions such as pallet racks, mezzanines, shelving and modular drawer cabinets can help companies increase storage density without automatically increasing their building footprint.
Greystone Equipment supplies material handling and storage solutions ranging from pallet racks and wire shelving to mezzanines, modular drawer cabinets, workstations and industrial partitions.
The objective is to use available space efficiently while maintaining appropriate accessibility and material flow.
7. System Principle
Material handling equipment should not be evaluated entirely in isolation.
Receiving, storage, production, picking, packing and shipping are parts of a larger system. A change in one area can affect operations elsewhere.
For example, adding more pallet rack capacity may solve a storage problem, but the rack configuration must still accommodate the facility’s forklifts, aisles, inventory and picking processes.
The system principle encourages warehouse planners to consider how each component works with the entire operation.
8. Automation Principle
Automation can reduce repetitive manual processes and improve the consistency of certain material handling operations.
Depending on the facility, automation may involve conveyors, automated storage and retrieval systems, material handling controls, warehouse management systems or other technologies.
However, automation should solve a defined operational problem.
Before automating a process, determine:
- What problem needs to be solved?
- How frequently is the task performed?
- What volume must the system handle?
- Can the process change in the future?
- What will implementation and maintenance cost?
Automation is most effective when it supports a well-planned material handling system rather than compensating for an inefficient process.
9. Environmental Principle
Material handling decisions should also consider their environmental impact.
Opportunities can include reducing unnecessary energy use, selecting reusable materials and containers, improving space utilization and considering how equipment will eventually be recycled or disposed of.
Efficient storage can contribute as well. Using existing vertical warehouse space more effectively, for example, may help a company increase capacity without immediately requiring additional building space.
10. Life Cycle Cost Principle
The purchase price of material handling equipment represents only part of its true cost.
MHI’s life cycle cost principle encourages businesses to consider costs throughout the useful life of a system.
Those expenses can include:
- Initial purchase
- Installation
- Training
- Operation
- Maintenance
- Repairs
- Downtime
- Modifications
- Replacement or disposal
A less expensive solution initially may not always represent the lowest long-term cost.
How Do the MHI Principles Help With Warehouse Planning?
The real value of the 10 principles of material handling comes from using them together.
For example, imagine a warehouse that is running out of pallet storage space.
Simply purchasing additional racks addresses only one part of the problem. Applying the MHI principles encourages the company to ask broader questions:
Planning: What storage capacity will we need several years from now?
Standardization: Can pallet and rack configurations be made more consistent?
Work: Can travel between storage and picking areas be reduced?
Ergonomics: Are products positioned appropriately for employees?
Unit Load: Are products being grouped efficiently?
Space Utilization: Can more vertical warehouse space be used?
System: How will the new rack layout affect receiving, picking and shipping?
Automation: Are repetitive processes candidates for automation?
Environmental: Can the new system reduce waste or unnecessary energy use?
Life Cycle Cost: What will the solution cost to own and operate over its useful life?
That turns a storage-equipment purchase into a broader material handling strategy.
Frequently Asked Questions About Material Handling Principles
What are the MHI principles of material handling?
The MHI principles of material handling are Planning, Standardization, Work, Ergonomic, Unit Load, Space Utilization, System, Automation, Environmental and Life Cycle Cost. They provide a framework for evaluating and designing material handling systems.
Why are the 10 principles of material handling important?
They encourage businesses to consider material flow, employees, equipment, available space, technology and long-term costs as parts of one interconnected system instead of making isolated equipment decisions.
What is the space utilization principle in material handling?
The space utilization principle focuses on making effective use of the available cubic space within a facility. Pallet racks, shelving and mezzanines can help businesses take advantage of vertical space as well as floor space.
What is the life cycle cost principle?
Life cycle cost considers the total cost of material handling equipment throughout its useful life rather than looking only at its initial purchase price.
How can pallet racking support the principles of material handling?
A properly planned pallet rack system can help improve space utilization, organize unit loads, shorten material travel and integrate storage with the larger warehouse workflow.
Put the Principles of Material Handling Into Practice
Understanding the MHI principles is the first step in warehouse planning. Applying them to an actual warehouse requires matching the right storage and material handling equipment to the facility, inventory and workflow.
Greystone Equipment Company has been helping businesses design and install material handling and storage systems since 1996. Greystone offers solutions including pallet racks, mezzanines, wire shelving, modular drawer cabinets, industrial partitions, workstations and other warehouse storage equipment for businesses throughout Pennsylvania, New Jersey, Delaware and the greater Philadelphia region.
If you are planning a new warehouse layout, expanding storage capacity or looking for ways to improve an existing material handling system, contact Greystone Equipment Company to discuss your facility and storage requirements.