In any production system, (either industrial/ Agricultural), the producer is always confronted with a problem of the handling of the material. The necessary raw material has to be transported to the production site or machinery, and after the completion of the production processes the finished goods have to be transported from the production site or machinery to the ware house for storage, or for disposal and marketing. If the production processes consists of more than one processing steps or a number of equipment and machineries, then the producer has to arrange for additional handling facilities to transport material from one production unit to the other.

In a primitive system of production as in the agricultural production in India or in the shop of a village blacksmith, the raw material and finished goods are carried manually or by bullock cart. In a giant structural fabrication shop, or in a large foundry or forging shop, the raw materials and finished jobs may be moved with heavy duty EOT ( Electric Overhead Travelling), Crane or Jib Crane.

In a sophisticated production system, as adopted now a days in the developed countries, there may be complete automation in handling system employing robotics or AGV (Automated Guided Vehicles).

It is necessary in the sense that every production process requires one or the other type of material handling arrangement. But a material handling system does not add to the value of the raw material or finished goods, yet simply increase the cost of production. So while selecting a material handling equipment or arrangement, critically analyze whether the selected equipment or arrangement will yield optimum productivity.

Essential Of Good Material Handling System:

• Efficient and safe movement of materials to the desired place.
• Timely movement of the materials when needed.
• Supply of materials at the desired rate.
• Storing of materials utilizing minimum space.
• Lowest cost solution to the materials handling activities.

Advantages Of Material Handling System:

• Improve efficiency of a production system by ensuring the right quantity of materials delivered at the right place at the right time most economically.
• Cut down indirect labor cost.
• Reduce damage of materials during storage and movement.
• Maximize space utilization by proper storage of materials and thereby reduce storage and handling cost.
• Minimize accident during materials handling.
• Reduce overall cost by improving materials handling.
• Improve customer services by supplying materials in a manner convenient for handlings.
• Increase efficiency and saleability of plant and equipment with integral materials handling features.

Disadvantages Of Material Handling System:

• Additional capital cost involved in any materials handling system.
• Once a materials handling system get implemented, flexibility for further changes gets greatly reduced.
• With an integrated materials handling system installed, failure/stoppage in any portion of it leads to increased downtime of the production system.
• Materials handling system needs maintenance, hence any addition to materials handling means additional maintenance facilities and costs.