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Moving from Manual to Automated Palletizing 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 you’re spending by remaining manual.

That’s not just in terms of dollars, either. Manual palletizing is hard onpeople and limits output. Even if your operation is moving just 20 casesper minute, many benefits can be gained by moving from manual tomechanized.

Before exploring the reasons for automating, let’s look at why somecompanies believe it’s not right for them—even though current technologyand careful calculations make most of these arguments moot.

Probably the No. 1 reason companies resist making the conversions is thatexecutives believe the capital investment is too high and won’t providesufficient ROI. Footprint restrictions also can prove a factor. Then, thereare things such as unusual sheet configurations that can cumulativelyraise the cost of automating.

In terms of manpower, company leaders might find it difficult to justifyautomating a one-shift operation or making the conversion in regions ofthe country where employee-pool surpluses exist. That’s of course, until anemployee files a back- or repetitive stress-injury claim resulting frommanual palletizing. This difficult work also can contribute to rapid employeeturnover (sometimes within weeks of a new hire) and the resultantdecreased line efficiency.

Understanding why people resist automation only makes the reasons fortaking this progressive step that much more obvious: reducing labor;decreasing potential for injuries; and increasing line efficiency.Supplementary benefits include such aesthetic considerations as gentlerand neater load building.

Any pallet operation can be automated, but like any business move, doingthe requisite homework will yield the best outcomes.

Know your operationWhen considering moving into the automation realm, the first thing to do isquantify the relevant application. Surprisingly, many companies don’tactually know the case sizes they’re using or the stacking patterns beingutilized or even their true production rate. These companies have been

"Even if your operationis moving just 20 cases

per minute, manybenefits can be gainedby moving from manual

to mechanized."

Moving from Manual to Automated Palletizing

engaged in their operations so long, they more than likely don’t have thatdata ready and have simply been “going by rote.”

Quantifying is essential. Some companies operate under the false ideathat they can’t get an ROI for automating, when, in fact, they hadunknowingly escalated their output rates. Once they determine andanalyze their true numbers, company leaders often realize they couldeasily gain an ROI. It’s not unusual for a company to claim its manual lineis producing 30 cases per minute when it actually is pushing out 15 perminute.

Using certain generalized figures will help companies make accuratecalculations on the financial benefits of palletizer automation:

• Utilize fully absorbed annual manpower costs of $20K to $30K peremployee.

• Figure the cost of a fork-lift auto palletizer will start at $80K, while apallet-jack version will start at $60K.

• Use a 10 to 15 case-per-minute rate per worker in a manualoperation.

Using the above figures, a company operating a low-speed, two-shiftoperation that consists of two workers each would realize a ROI in 1.5years.

Another important step is eliminating the “if’s.” Don’t anticipate the“someday” that never comes. An example is a company that only will makethe move to automate provided the machinery can run four different palletsizes—even though 95% of their operation utilizes just one pallet size.Realize what your company truly is outputting. Then, automation will fit thatmuch more snugly into the operation.

Once the application is accurately quantified and realistic numbers andscenarios are calculated, the next important step is to make sure thesupplier is a reputable one. It’s preferred that a supplier will look at acompany’s total project cost and realize that purchasing an automatedpalletizer might represent just a portion of the solution. A supplier alsoshould look holistically at the system, including the conveyor system, forexample. It’s also not unreasonable to expect to see layout drawings. Apalletizer might not be best situated where a company had intended it tobe, and a reputable supplier should be prepared to suggest alternatelocations.

Also, it’s important to request references from the supplier. And, just don’t

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“It’s not unusual for acompany to claim its

manual line is producing15 cases per minute

when it actual ispushing out 30 per

minute.”

look at the reference list; contact and visit the companies a vendoroffers as a reference. On-site visits to a vendor’s customers are agreat way to learn about a potential supplier.

And, before signing that agreement, check into post-installationservices. Does the supplier offer a 24-hour crisis phone service?What type of after-sales support is offered? Realistically, mostautomated palletizers are simple enough that customers won’t needon-site repairman visits, but strong support is a nice feature. Inaddition, while these machines are relatively simple to operate, a fewdays of employee training should be expected to get the best out ofthem.

Custom automationA supplier that respects the individuality of an operation also is aplus.

Safety, space, and financial constraints may limit a facility’s optionsfor removal of finished loads. Suppliers should be flexible in theirofferings, accommodating manual pallet removal by pallet jack orautomated pallet removal by fork-lift truck.

With today’s technology, a wide range of speeds is available, fromrates exceeding 200 cases per minute on the high end down to justtwo cases per minute on the low end. So, companies really candecide down to a fine detail what equipment will provide the bestresults.

Finally, automated palletizing can be viewed as part of a corporateculture. Certain companies don’t want people performing the difficultlabor required in a manual-palletizing operation. In such cases, thequestion is not even one of ROI or output speed, but of employeewell-being.

For further information, contact:FKI Logistex North America9301 Olive Blvd.St. Louis, MO 63132-3207Phone: 877-935-4564www.fkilogistex.com

“Realistically, mostautomated palletizers

are simple enough thatcustomers won’t need

on-site repairman visits.”

Page 3 of 3Moving from Manual to Automated Palletizing