Todays Perfect Package?

While we wont be publicizing the environmental aspects of Movingto a top-load wraparound system to the public, we will be informing our switch from Manual to Automated Palletizing
our customers about it

Failure to Mechanize Might Prove the Higher-Cost Solution

e is now better than ever!

by Pat O'Connor Product Manager, Palletizing Systems, FKI Logistex

If you think the price tag to automate your palletizing operation is too high, consider how much youre spending by remaining manual. Thats not just in terms of dollars, either. Manual palletizing is hard on people and limits output. Even if your operation is moving just 20 cases per minute, many benefits can be gained by moving from manual to mechanized. Before exploring the reasons for automating, lets look at why some companies believe its not right for themeven though current technology and careful calculations make most of these arguments moot. Probably the No. 1 reason companies resist making the conversions is that executives believe the capital investment is too high and wont provide sufficient ROI. Footprint restrictions also can prove a factor. Then, there are things such as unusual sheet configurations that can cumulatively raise the cost of automating. In terms of manpower, company leaders might find it difficult to justify automating a one-shift operation or making the conversion in regions of the country where employee-pool surpluses exist. Thats of course, until an employee files a back- or repetitive stress-injury claim resulting from manual palletizing. This difficult work also can contribute to rapid employee turnover (sometimes within weeks of a new hire) and the resultant decreased line efficiency. Understanding why people resist automation only makes the reasons for taking this progressive step that much more obvious: reducing labor; decreasing potential for injuries; and increasing line efficiency. Supplementary benefits include such aesthetic considerations as gentler and neater load building. Any pallet operation can be automated, but like any business move, doing the requisite homework will yield the best outcomes.

"Even if your operation is moving just 20 cases per minute, many benefits can be gained by moving from manual to mechanized."

Know your operation

When considering moving into the automation realm, the first thing to do is quantify the relevant application. Surprisingly, many companies dont actually know the case sizes theyre using or the stacking patterns being utilized or even their true production rate. These companies have been

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engaged in their operations so long, they more than likely dont have that data ready and have simply been going by rote. Quantifying is essential. Some companies operate under the false idea that they cant get an ROI for automating, when, in fact, they had unknowingly escalated their output rates. Once they determine and analyze their true numbers, company leaders often realize they could easily gain an ROI. Its not unusual for a company to claim its manual line is producing 30 cases per minute when it actually is pushing out 15 per minute. Using certain generalized figures will help companies make accurate calculations on the financial benefits of palletizer automation: Utilize fully absorbed annual manpower costs of $20K to $30K per employee. Figure the cost of a fork-lift auto palletizer will start at $80K, while a pallet-jack version will start at $60K. Use a 10 to 15 case-per-minute rate per worker in a manual operation.

Using the above figures, a company operating a low-speed, two-shift operation that consists of two workers each would realize a ROI in 1.5 years. Another important step is eliminating the ifs. Dont anticipate the someday that never comes. An example is a company that only will make the move to automate provided the machinery can run four different pallet sizeseven though 95% of their operation utilizes just one pallet size. Realize what your company truly is outputting. Then, automation will fit that much more snugly into the operation. Once the application is accurately quantified and realistic numbers and scenarios are calculated, the next important step is to make sure the supplier is a reputable one. Its preferred that a supplier will look at a companys total project cost and realize that purchasing an automated palletizer might represent just a portion of the solution. A supplier also should look holistically at the system, including the conveyor system, for example. Its also not unreasonable to expect to see layout drawings. A palletizer might not be best situated where a company had intended it to be, and a reputable supplier should be prepared to suggest alternate locations. Also, its important to request references from the supplier. And, just dont

Its not unusual for a company to claim its manual line is producing 15 cases per minute when it actual is pushing out 30 per minute.

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look at the reference list; contact and visit the companies a vendor offers as a reference. On-site visits to a vendors customers are a great way to learn about a potential supplier. And, before signing that agreement, check into post-installation services. Does the supplier offer a 24-hour crisis phone service? What type of after-sales support is offered? Realistically, most automated palletizers are simple enough that customers wont need on-site repairman visits, but strong support is a nice feature. In addition, while these machines are relatively simple to operate, a few days of employee training should be expected to get the best out of them.

Custom automation
A supplier that respects the individuality of an operation also is a plus. Safety, space, and financial constraints may limit a facilitys options for removal of finished loads. Suppliers should be flexible in their offerings, accommodating manual pallet removal by pallet jack or automated pallet removal by fork-lift truck. With todays technology, a wide range of speeds is available, from rates exceeding 200 cases per minute on the high end down to just two cases per minute on the low end. So, companies really can decide down to a fine detail what equipment will provide the best results. Finally, automated palletizing can be viewed as part of a corporate culture. Certain companies dont want people performing the difficult labor required in a manual-palletizing operation. In such cases, the question is not even one of ROI or output speed, but of employee well-being.

Realistically, most automated palletizers are simple enough that customers wont need on-site repairman visits.

For further information, contact: FKI Logistex North America 9301 Olive Blvd. St. Louis, MO 63132-3207 Phone: 877-935-4564 www.fkilogistex.com