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book entitled, Facility Logistics: Approaches and Solutions
to Next Generation Challenges, published by Auerbach
Publications. Facility logistics is the new phrase being used by
many within the academic community for those activities surrounding
the design and analysis of material fl ow taking place within the
four walls of manufacturing and distribution facilities. Most of the
principles also apply to service facilities such as hospitals.
I’d written the chapter to present several challenges/opportunities
that are facing the industry. Although written independently,
there is a great deal of overlap with the ideas generated at last
summer’s Material Handling Logistics Summit (www.mhia.org/
summit2007). What you’ll fi nd in the rest of this Technology
Watch column is drawn primarily from the beginning and end of
the full chapter.
Role of the Facility
Once considered simply a cost center concentrating on productivity
and quality, facility logistics must now concern itself with
increased challenges related to visibility, security, fl exibility, labor,
globalization, and sustainability to act as a key enabling link
in the global supply chain.
Facilities are traditionally designed to perform value added processes
as one link in a value chain. They manage space, resources
(including people) and time to facilitate the transformation and
fl ow of materials and information. It must be emphasized that
facility design and management does not end at the four walls
of the facility. Many forces “outside the box” affect how facilities
should be designed and operated. Local optimization of processes,
work cells, departments and facilities may work against
the strategic and tactical objectives of the organization and/or the
value chain of suppliers and customers.
End-user consumers and businesses want everything now in
an ever-increasing variety with 24/7/365 visibility into inventory
status and expected delivery dates and times. They also want to
change their mind and their tastes at any time and expect instant
response on the part of their suppliers. Waste is expected to be at
a minimum to get the job done. At the same time, energy, labor
and transportation costs rise and all links in the chain seem to be
exposed to increasing uncertainty due to tight multi-modal capacity
and security concerns.
Along with the rise in costs and risk, service level expectations
continue to increase (e-commerce, next/same day delivery,
By Dr. Michael Ogle
Vice President, Educational & Technical Services
Material Handling Industry of America
CICMHE Welcomes
New Academic Members and
Announces New Offi cers
MHIA’s College Industry Council on Material Handling
Education (CICMHE, www.cicmhe.org) welcomes its
newest class of academic members for the 2008-2011 calendar
years. The new members are:
We would also like to recognize the considerable achievements
of the outgoing members:
Gail DePuy, University of Louisville (2004-2007)
Rakesh Nagi, SUNY-Buffalo (2004-2007)
Spyros Reveliotis, Georgia Tech (2004-2007)
CICMHE thanks the industry for supporting the work of
both the outgoing and incoming members.
CICMHE also elected offi cers and appointed a board liaison
for the 2008-2009 academic years. Ben Montreuil of
Universite Laval will be serving as CICMHE President, Jeff
Smith of Auburn University will be serving as Vice-President,
and Kevin Gue of Auburn University will be serving as
Immediate Past-President. Outgoing Past-President, Russ
Meller of the University of Arkansas will be serving in a
new position as Liaison to the MHIA Board of Governors.
Dr. Andrés L. Carrano
Rochester Institute of Technology
James A. Rumpf
Ferris State University
Dr. Leon F. McGinnis, P.E.
Georgia Institute of Technology
Dr. Donald E. Eisenstein
University of Chicago
Dr. Uday Venkatadri
Dalhousie University
Dr. J. René Villalobos
Arizona State University
acility Logistics:
Forces of Change
http://www.mhia.org 11
always in-stock guarantees, specifi c delivery windows with penalties,
etc.), even as facilities become leaner. All these forces of
change impact how tomorrow’s facilities must be designed to provide
solutions that provide desired customer service levels at the
lowest cost per item, box, pallet or shipment while hedging bets
against future product mixes.
Forces of Change
Today’s most infl uential forces of change, from the perspective
of the facility, are defi ned below:
Facility Visibility
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