McGraw-Hill/Irwin

Packaging and Materials Handling

Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

The Future of Paper and Packaging

• Video link (11:02 min.) starting at 16:45 http://www.youtube.com/watch?v=djSWPET40Ro 11-2

Overview of packaging and materials handling

• Packaging Perspectives • Packaging for Materials Handling Efficiency – Package design – Unitization – Communication • Materials handling – Basic handling considerations – Mechanized systems – Semiautomated systems – Automated systems – Information-directed systems – Special handling considerations 11-3

Packaging perspectives

• Packaging is typically viewed as – Consumer - marketing focus – Industrial – logistics focus • Master cartons are containers used to group individual products • Containerization or unitization refers to grouping master cartons into larger units for handling • Grouped master cartons are called unit loads 11-4

Marketing Focused

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Packaging perspectives

• Packaging is typically viewed as – Consumer - marketing focus – Industrial – logistics focus • Master cartons are containers used to group individual products • Containerization or unitization refers to grouping master cartons into larger units for handling • Grouped master cartons are called unit loads 11-6

Role of packaging in logistics

• Unitization—modular packaging • Handling—appropriate for automation?

• Security—can package be sealed to detect break-in • Stowability—cube efficiency • Information—identification and tracking • Protection—spoilage or damage 11-7

Packaging for material handling efficiency

• Package design using standard configurations and order quantities facilitates efficiency – Cube out of vehicle results in shipping “full” without reaching weight limit – Weigh out of transport vehicle results in shipping air in space that can’t be filled with product – Cube and weight minimization are special challenges of mail order and e-commerce • Unitization is the process of grouping cartons into unit loads • Communication role is to identify package contents for all channel members 11-8

Illustration of four standard master carton sizes to achieve modular compatibility

Figure 11.1 Example and Benefits of Modular Packaging

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• Sobe • Teas • Water cases • 20 oz • Cans • 2 Liters

PEPSI

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Unitization has the basic objective of increasing handling and transport efficiency

• Unit loads take 1/5 the time required for manual loading and unloading • Unitization methods – Rigid containers • Air Freight Containers • Sea-Land Containers • Returnable Racks – Flexible containers • Pallets • Slipsheets 11-11

Slipsheet

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Benefits of rigid containerization from Table 11.1

• Improves overall material movement efficiency • Reduces damage in handling and transit • Reduces pilferage • Reduces protective packaging requirements • Provides greater protection from environment • Provides a shipment unit that can be reused many times – Reduces waste – Reduces need to dispose of the container 11-13

Illustration of a hardwood pallet

Figure 11.2 Example of Hardwood Pallet

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Illustration of four basic patterns to tier master cartons

Figure 11.3 Basic Pallet Master Carton Stacking Patterns

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Communication functionality of packaging is increasingly critical to identify and track packages

• Identification displays key logistical info – Manufacturer, product, container item global type, count, UPC, and EPC • Tracking provides the ability to determine the exact location of an • Special handling instructions – For example, glass, temperature restrictions, stacking considerations, or environment/safety concerns • Technologies facilitating communication include – Bar Coding, RFID, GPS – “Nested RFID” for items in a unit load 11-16

Basic handling considerations

• Method depends on the materials!

• Bulk materials are handled without master cartons – E.g. powders/liquids, – Need specialized equipment • Unit loads, containers and master cartons can be handled many ways 11-17

Principles of materials handling from Table 11.2

   Equipment for handling and storage should be as standardized as possible When in motion, the system should be designed to provide maximum continuous product flow Investment should be in handling rather than stationary equipment    Handling equipment should be utilized to the maximum extent possible In handling equipment selection the ratio of dead weight to payload should be minimized Whenever practical, gravity flow should be incorporated in system design 11-18

Material handling systems require different amounts of labor and capital investments

• Manual sorting • Mechanized • Semi-automated • Automated • Information-directed

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Manual systems for picking, sorting and movement of inventory

• Labor-intensive • Slow • Human Limitations – Repetitive motion – Strain injuries • Higher error rates 11-20

Mechanized systems employ a wide range of handling equipment

• Most mechanized systems combine different handling devices • Moderate fixed and variable cost with good flexibility • Examples – Forklift – Rider pallet trucks – Towlines – Tractor trailers – Conveyors – Carousels • Paperless picking 11-21

Semiautomated systems often supplement mechanized equipment

• High fixed cost, low variable cost with low flexibility • Examples – Automated guided vehicles (AGV) – Sortation systems – Robotics (see video) • Build and breakdown unit loads – Live racks Video link (1:03 min.) http://www.youtube.com/watch?v=xT_sLWA5pq0 &feature=related 11-22

Automated systems now focus on high-rise storage and retrieval

• Highest fixed cost, lowest variable and labor cost with low flexibility • Potential to automate is the elimination of direct labor by substituting capital equipment • Guiding principles from Table 11.2 do not apply • Examples – Order selection systems – Automated storage and retrieval system (AS/RS) Video of Andersen AS/RS system (2:44 min.) http://www.youtube.com/watch?v=giaf76zBoYU 11-23

Illustrated concept of a high-rise AS/RS warehouse

Figure 11.4 AS/RS High-Rise Warehouse

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Information-directed systems combine controls of automated handling with flexibility of mechanized

• Moderate fixed and variable cost with high flexibility and utilization • Offers selected benefits of automation without substantial capital investment • Main drawback is accountability regarding work assignment • Examples – RF wireless (Wi-Fi) • Use lift trucks, RFID scanners and data collection terminals – Pick-to-light carousel system Video link (0:49 min.) http://www.youtube.com/watch?v=0zVfZbwx1vs 11-25

Completely robotic facilities exist for specialized situations

• Some bulk and container loading/unloading facilities have gone completely robotic – Example is the Port of Brisbane in Queensland, Australia Video link (2:58 min.) http://www.youtube.com/watch?v=OAHoCI-IAMA 11-26

Special handling considerations

• E-fulfillment – Places special demands on a firm’s warehousing and materials handling • Environmental concerns – Impact of equipment or hazardous materials • Regulatory environment – OSHA is extending its regulatory influence over warehouse operations and technology • Returns processing – Traditionally done using manual methods 11-27

E-fulfillment demands influence warehousing and materials handling in four ways

• Large volume of small orders – Difficult to achieve economies of scale in picking operations • Wide range of products requires large inventories – Requires ability to receive and merge a large number of small orders rapidly • People-intensive facilities needed to provide flexibility in picking • Consumer expectations require many activities within the warehouse to be electronically scanned and tracked 11-28

Special handling considerations

• E-fulfillment – Places special demands on a firm’s warehousing and materials handling • Environmental concerns – Impact of equipment or hazardous materials • Regulatory environment – OSHA is extending its regulatory influence over warehouse operations and technology • Returns processing – Traditionally done using manual methods 11-29