The 5 Pillars of a Master Level Overhead Material Handling Solution Volker Schmitz, Ph.D. President, Schmalz Inc. PRESENTATION OUTLINE Speaker Background Company Overview Economic Drivers influencing lift assist device use (5) Factors driving successful implementations & adoptions (3) case studies highlighting actual results March 19th, 2013 2 SPEAKER BACKGROUND PROFESSIONAL: • • 25 years experience in Manufacturing in the Americas & Europe 17 years experience in Factory Automation EDUCATION: • • • Master’s Degree in Economics from Johns Hopkins University Harvard Business School – General Manager Program Ph.D. in Business (Global Contract Pricing) March 19th, 2013 3 COMPANY OVERVIEW Established: 1910 Ownership: Privately held - 3rd Generation Market importance: World's leading supplier of vacuum technology for automation and material handling tasks Sales Growth: double digits every year (except 2009) Employees: 800 worldwide, including 13% trainees Subsidiaries abroad: 15 countries Intl. Sales partners: 45 countries Innovation indicators: 180 + International Patents 8% of annual revenues spent on R & D Distinctions: ENERGY POSITIVE ISO 9001:2000 ISO 14001 March 19th, 2013 (own Wind, Solar, Hydro, wood chips from own forests & bio fuels) (since 1994) World of Vacuum Technology 4 (4) Business Units using VACUUM Automation Components EOAT Robot Tools Overhead Lift Assist Devices & Cranes Only company who is active in both fields CNC Machine hold down clamping World of Vacuum Technology March 19th, 2013 5 Ignore at your own Peril Case order picking of a 70 lbs oversized box Great Ergonomic Form, but its still a Worker Comp Claim waiting to happen 6 March 19th, 2013 REMINDER STATISTICS 2009 55 Million Working Days Lost (29% due to MSD’s) $82 Billion Cost in Wages and lost Productivity Over 32 million workers = 25% of US workforce exposed to body twisting or bending for more than half their time at work Sources: National Safety Council’s Injury Fact Report (2011 Edition) This figure does not include medical, administrative, damage to vehicles, fire loss and employers’ uninsured costs. Ref. Occupational Information Network and Occupational Employment Statistics data; BLS 7 COST DRIVERS • Labor Costs up 500% in last 100 years & trend continues • 30 Million Worker shortage coming by 2030 • Aging Workforce (2020: 25% of workers will be over 55) 40% in W. Europe • Warehouse labor turnover among the highest ANSWER: Need to make jobs less physical • • • • increase productivity existing staff retention accommodate aging staff expand eligible labor pool to pick from 8 WHAT ARE WE TALKING ABOUT: Overhead Lift Assist Devices 9 March 19th, 2013 5 FACTORS for implementation & adoption Include Operator training Run off at Factory Involve Operators (80/20) Customer talking to Factory Supplier Warranty & Guarantee GOAL: 80% adoption rate, 80% risk reduction & 50% productivity gains Case Study #1: Effective at risk & cost reduction Vacuum Tube Lifter used as a Logistics Lift Assist Device (example: airport baggage ramp handling study) – 50% + reduction in injury / workers comp claims after 1 year – Vacuum Tube Lifter capable of handling 90% + of all baggage processed – Practical result: 72% useage by the staff for all baggage processed Source: independent study of Munster airport baggage handling staff (2010) 11 March 19th, 2013 Percent % Case Study #1: (cont.) March 19th, 2013 12 Case Study #2: Higher productivity at low investment cost Vacuum Tube Lifter used as a Logistics Lift Assist Device in a large Internet retailer DC facility (overseas) (3) Systems handling larger sized boxes for outbound shipping – 55% Productivity (thru put) increase – 50% reduction of personnel (re-assigned) – inc retention & satiesfaction March 19th, 2013 Note: Representative Picture only 13 Case Study #3: Higher Quality Standards Custom style lifter (with powered rotation) (2) Systems handling jet engine composite outer housing sections 4 employees 1 Av. 2 damaged housings / M (cost $ 800,000 total cost/M) Now $ 0 after 12 months Better retention & work environment feedback March 19th, 2013 14 • Thank you for attending this session. • If you have any questions, input or feedback • please feel free to contact me. Dr. Volker Schmitz President Schmalz Inc. 5200 Atlantic Ave. Raleigh, NC 27616 Tel: (919) 713-0880 Cell: (516) 768-5079 volker.schmitz@schmalz.us www.schmalz.com March 19th, 2013 15