Packaging and Materials
Handling
McGraw-Hill/Irwin
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
11-5
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
11-9
PEPSI
•
•
•
•
•
•
Sobe
Teas
Water cases
20 oz
Cans
2 Liters
11-10
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
11-12
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
11-14
Illustration of four basic patterns to tier
master cartons
Figure 11.3 Basic Pallet Master Carton Stacking Patterns
11-15
Communication functionality of packaging is
increasingly critical to identify and track packages
• Identification displays key logistical
info
– Manufacturer, product, container
global type, count, UPC, and EPC
• Tracking provides the ability to
determine the exact location of an
item
• 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
11-19
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
Video link (1:03 min.)
http://www.youtube.com/watch?v=xT_sLWA5pq0
&feature=related
– Live racks
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
Video of Andersen AS/RS system (2:44 min.)
http://www.youtube.com/watch?v=giaf76zBoYU
– Order selection systems
– Automated storage and retrieval
system (AS/RS)
11-23
Illustrated concept of a high-rise AS/RS
warehouse
Figure 11.4 AS/RS High-Rise Warehouse
11-24
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)
Video link (0:49 min.)
http://www.youtube.com/watch?v=0zVfZbwx1vs
• Use lift trucks, RFID scanners and
data collection terminals
– Pick-to-light carousel system
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