Strategic and operational plan for better material handling

Abstract

Currently the material handling in NPC Singapore is done manually via forklift trucks. As the production volume increases and a new product launches, the current capacity will not be sufficient for 2012. In order to avoid the production loss and increase the operational efficiency, four solutions have been tested, including forklift trucks and labor extension, Kanban redesign in staging areas, conveyor implementation in staging areas and automating the transportation between the warehouse and production via implementing AGVs or transfer cars. In this thesis research we specifically analyze the use of AGVs and transfer cars. By implementing two transfer cars in 2012, the system capacity will remain adequate until 2018. This investment provides a $364,165 net present value and a 29% internal rate of return.