Packaging and Materials HandlingCopyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

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The Future of Paper and PackagingVideo link (11:02 min.) starting at 16:45 http://www.youtube.com/watch?v=djSWPET40Ro

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Overview of packaging and materials handlingPackaging Perspectives Packaging for Materials Handling EfficiencyPackage designUnitization CommunicationMaterials handlingBasic handling considerationsMechanized systemsSemiautomated systemsAutomated systemsInformation-directed systemsSpecial handling considerations

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Packaging perspectivesPackaging is typically viewed asConsumer - marketing focusIndustrial logistics focusMaster cartons are containers used to group individual productsContainerization or unitization refers to grouping master cartons into larger units for handlingGrouped master cartons are called unit loads

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Role of packaging in logisticsUnitizationmodular packagingHandlingappropriate for automation?Securitycan package be sealed to detect break-in?Stowabilitycube efficiencyInformationidentification and trackingProtectionspoilage or damage

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Packaging for material handling efficiencyPackage design using standard configurations and order quantities facilitates efficiencyCube out of vehicle results in shipping full without reaching weight limitWeigh out of transport vehicle results in shipping air in space that cant be filled with productCube and weight minimization are special challenges of mail order and e-commerceUnitization is the process of grouping cartons into unit loadsCommunication role is to identify package contents for all channel members

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Illustration of four standard master carton sizes to achieve modular compatibilityFigure 11.1 Example and Benefits of Modular Packaging

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Unitization has the basic objective of increasing handling and transport efficiencyUnit loads take 1/5 the time required for manual loading and unloadingUnitization methodsRigid containersAir Freight ContainersSea-Land ContainersReturnable RacksFlexible containersPallets Slipsheets

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Benefits of rigid containerization from Table 10.1Improves overall material movement efficiencyReduces damage in handling and transitReduces pilferageReduces protective packaging requirementsProvides greater protection from environmentProvides a shipment unit that can be reused many times Reduces waste Reduces need to dispose of the container

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Illustration of a four-way-entry hardwood palletFigure 11.2 Example of Hardwood Pallet

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Illustration of four basic patterns to tier master cartonsFigure 11.3 Basic Pallet Master Carton Stacking Patterns

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Communication functionality of packaging is increasingly critical to identify and track packagesIdentification displays key logistical infoManufacturer, product, container global type, count, UPC, and EPCTracking provides the ability to determine the exact location of an itemSpecial handling instructionsFor example, glass, temperature restrictions, stacking considerations, or environment/safety concernsTechnologies facilitating communication includeBar Coding, RFID, GPSNested RFID for items in a unit load

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Basic handling considerationsMethod depends on the materials!Bulk materials are handled without master cartonsE.g. powders/liquids,Need specialized equipmentUnit loads, containers and master cartons can be handled many ways

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Principles of materials handling from Table 10.2Equipment for handling and storage should be as standardized as possibleWhen in motion, the system should be designed to provide maximum continuous product flowInvestment should be in handling rather than stationary equipmentHandling equipment should be utilized to the maximum extent possibleIn handling equipment selection, the ratio of dead weight to payload should be minimizedWhenever practical, gravity flow should be incorporated in system design

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Material handling systems require different amounts of labor and capital investmentsManual sortingMechanizedSemi-automatedAutomatedInformation-directed

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Manual systems for picking, sorting and movement of inventoryLabor-intensiveSlowHuman LimitationsRepetitive motionStrain injuries Higher error rates

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Mechanized systems employ a wide range of handling equipmentMost mechanized systems combine different handling devicesModerate fixed and variable cost with good flexibilityExamplesForkliftRider pallet trucksTowlinesTractor trailersConveyorsCarouselsPaperless picking

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Semiautomated systems often supplement mechanized equipmentVideo link (1:03 min.)http://www.youtube.com/watch?v=xT_sLWA5pq0&feature=related

High fixed cost, low variable cost with low flexibilityExamplesAutomated guided vehicles (AGV)Sortation systemsRobotics (see video)Build and breakdown unit loadsLive racks

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Automated systems now focus on high-rise storage and retrievalHighest fixed cost, lowest variable and labor cost with low flexibilityPotential to automate is the elimination of direct labor by substituting capital equipmentGuiding principles from Table 10.2 do not applyExamplesOrder selection systemsAutomated storage and retrieval system (AS/RS)Video of Andersen AS/RS system (2:44 min.)http://www.youtube.com/watch?v=giaf76zBoYU

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Illustrated concept of a high-rise AS/RS warehouseFigure 11.4 AS/RS High-Rise Warehouse

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Information-directed systems combine controls of automated handling with flexibility of mechanizedModerate fixed and variable cost with high flexibility and utilizationOffers selected benefits of automation without substantial capital investmentMain drawback is accountability regarding work assignmentExamplesRF wireless (Wi-Fi)Use lift trucks, RFID scanners and data collection terminalsPick-to-light carousel systemVideo link (0:49 min.)http://www.youtube.com/watch?v=0zVfZbwx1vs

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Completely robotic facilities exist for specialized situationsSome bulk and container loading/unloading facilities have gone completely roboticExample is the Port of Brisbane in Queensland, AustraliaVideo link (2:58 min.)http://www.youtube.com/watch?v=OAHoCI-IAMA

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Special handling considerationsE-fulfillmentPlaces special demands on a firms warehousing and materials handlingEnvironmental concernsImpact of equipment or hazardous materialsRegulatory environmentOSHA is extending its regulatory influence over warehouse operations and technologyReturns processingTraditionally done using manual methods

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E-fulfillment demands influence warehousing and materials handling in four waysLarge volume of small ordersDifficult to achieve economies of scale in picking operationsWide range of products requires large inventoriesRequires ability to receive and merge a large number of small orders rapidlyPeople-intensive facilities needed to provide flexibility in pickingConsumer expectations require many activities within the warehouse to be electronically scanned and tracked