Contemporary Logistics Eleventh Edition Chapter 11 Packaging and

Contemporary Logistics Eleventh Edition Chapter 11 Packaging and Materials Handling Copyright©© 2015, 2012, 2009 Pearson. Education, Inc. All. Rights. Reserved Copyright 1

Learning Objectives • To illustrate how product characteristics affect packaging and materials handling • To discuss packaging fundamentals such as packaging functions and labeling • To identify select issues that affect packaging such as environmental protection and packaging inefficiencies • To learn about unit loads and the unit load platform • To explain materials handling principles and materials handling equipment Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 2

3 Overview of Class • Chapter 11 • In-Class Activities (seen on pwpt) – Participation Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 3

News and Books • Logistics Packaging • Good Read: " • Written to assist anyone who works with webs directly or indirectly, The Plastic Film and Foil Web Handling Guide is a handbook for diagnosing and correcting problems with web handling technology. Covering web handling fundamentals, process-related technologies, troubleshooting, and solutions, it includes sufficient technical information to identify and correct defects in rolls (of film or foil). Readers will appreciate this unbiased look at web handling that also serves as a counterpoint to information from equipment suppliers. Copyright © 2015, 2012, 2009 Pearson© 2015 Cengage Learning Education, Inc. All Rights Reserved 4

Protective Packaging and Materials Handling Key Terms (1 of 2) • Building-blocks concept • Closed-loop systems • Cube out • Ergonomics • Globally Harmonized System of Classification and Labeling of Chemicals (GHS) • Materials handling (material handling) Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 5

Protective Packaging and Materials Handling Key Terms (2 of 2) • Packaging • Pallet (skid) • Part-to-picker system • Picker-to-part system • Shrink-wrap • Slip sheet • Unit load (Unitization) • Weighing out Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 6

Product Characteristics (1 of 3) • Physical Characteristics • Substance form (solid, liquid, and gas) • Density of bulk materials • Ability to withstand exposure to elements • Respiration • Chemical Characteristics • Incompatible products • Characteristics must be made known to consumers Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 7

Product Characteristics (2 of 3) FIGURE 11. 1 Portion of Fabric-Care Label for Levis Jeans Sold in Japan From left to right the pictures say, Wash at 40 degree centigrade, use no chlorine bleach, iron at the medium temperature setting; the jeans can be dry cleaned. The text below the label gives the fabric content, the nation of origin, and the name Levi Strauss. Source: Courtesy of Levi Strauss Japan K. K. Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 8

Product Characteristics (3 of 3) FIGURE 11. 2 Lumber Markings a. Trademark―the identifying symbol, logo, or name of the accredited agency b. Facility Identification―product manufacturer name, brand, or assigned facility number c. Heat Treated mark d. Country Code―the two letter ISO country abbreviation e. Approved International symbol for compliant wood packaging material f. Indication for use as dunnage (may be abbreviated or spelled out fully) Source: American Lumber Standard Committee, Inc. Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 9

Packaging Fundamentals (1 of 10) • Building-blocks concept • Smallest unit is consumer package • Each unit is stocked within the next larger one to protect the product • Packaging • refers to materials used for the containment, protection, handling, delivery, and presentation of goods 1 1 Logistics Dictionary, www. tntfreight. com Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 10

Packaging Fundamentals (2 of 10) • Some of the many packaging fundamentals include: • Functional trade-offs • Packaging testing and monitoring • Labeling Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 11

Packaging Fundamentals (3 of 10) • Functional trade-offs • Packaging serves three general functions • To promote • To protect • To identify (label) the relevant product Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 12

Packaging Fundamentals (4 of 10) • Packaging design decisions involve a number of departments within an organization • Engineering • Quality Control • Manufacturing • Transportation • Marketing • Warehousing Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 13

Packaging Fundamentals (5 of 10) • Package testing and monitoring • Three important kinds of information needed to properly design protective packaging system • Severity of the distribution environment • Fragility of the product to be protected • Performance characteristics of various cushion materials • Advisable to have packages pretested Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 14

Packaging Fundamentals (6 of 10) • Package testing • Vibrations • Dropping • Horizontal impacts • Compression • Overexposure to extreme temperatures or moisture • Rough handling Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 15

Packaging Fundamentals (7 of 10) • Labeling • Typically occurs at the end of the assembly process • Boxes must be labeled when contents are hidden • Many regulations govern labeling • Weight • Specific contents • Instructions for use • Regulations differ from country to country and from state to state Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 16

Packaging Fundamentals (8 of 10) • Labeling • Retroflective labels • Batch numbers • Weight • Specific contents • Instructions for use • Information to allow passage through customs • Compliance labeling • One- or two-dimensional bar codes • Smart labels or RFID labels Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 17

Packaging Fundamentals (9 of 10) • Labeling - Hazardous Materials • Governmental regulations address labeling of hazardous materials • Requirements involve • Labeling • Packaging and repackaging • Placing warnings on shipping documents • Notifying transportation carriers in advance Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 18

Packaging Fundamentals (10 of 10) • Globally Harmonized System of Classification and Labeling of Chemicals (GHS) is a global system to classify and label hazardous materials. Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 19

Product Characteristics FIGURE 11. 3 Examples of Shipping Labels Source: Uline. Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 20

Issues in Packaging (1 of 6) • Environmental Protection • Reduce packing materials used • Use packaging materials that are more environmentally friendly with recycled content • Use reusable containers (closed-loop system) • Retain or support services that collect used packaging and recycle it (closed-loop system) Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 21

Issues in Packaging (2 of 6) • Metric System • U. S. , Liberia, and Myanmar (formerly Burma) are the only 3 countries in the world that do not use the metric system of measurement • Increasing pressure on U. S. exporters to market their products overseas in metric units Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 22

Issues in Packaging (3 of 6) • Identifying Packaging Inefficiencies • Building-blocks concept is useful for analyzing packaging inefficiencies. • Packaging inefficiencies can have a number of undesirable logistics consequences including: • Increased loss • Increase damage • Slower materials handling • Higher storage costs • Higher transportation costs Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 23

Issues in Packaging (4 of 6) TABLE 11. 1 A Hypothetical Example of Packaging Inefficiency Product: One (1) Desktop tape dispenser (cube = 30 inches) 12 dispensers per carton Product cube per carton: 30 cubic inches X 12 dispensers = 360 cubic inches Carton dimensions: 1, 140 cubic inches Carton efficiency: Product cube per carton divided by carton cube 360 / 1. 140 = 31. 6% 60 cartons can be put on a pallet Empty Pallet capacity: 1, 140 cubic inches per carton * 60 cartons = 68, 400 cubic inches Pallet load efficiency: Carton cube per pallet divided by pallet capacity 68, 400 / 90, 720 = 75. 4% Carton efficiency times pallet load efficiency = the amount of pallet cube that is actually product: 31. 6% X 75. 4% = 23. 8% Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 24

Issues in Packaging (5 of 6) • Packaging’s Influence on Transportation Considerations • Carrier’s tariffs and classifications influence the type of packaging and packing methods that must be used • Carriers established classifications for two main reasons: • Packaging specifications determined by product density lead to the best use of the equipment’s weight and volume capabilities • Carrier specifications for protective packaging reduce likelihood of damage to products thus reducing the loss and damage claims filed against the carrier Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 25

Issues in Packaging (6 of 6) FIGURE 11. 4 Boxmaker’s Guarantee Source: Courtesy of the American Trucking Association. Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 26

Unit Loads in Materials Handling (1 of 9) • A unit load (unitization) refers to consolidation of several units (cartons or cases) into larger units to improve efficiency in handling and to reduce shipping costs. • Source: http: //cscmp. org/digital/glossary. asp • Handling efficiency can be facilitated by mechanical devices (pallet jack or forklift) as well as by using a pallet or skid. Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 27

Unit Loads in Materials Handling (2 of 9) FIGURE 11. 5 Automatic Guided Vehicle Source: Courtesy of Dematic Corp. , Rapistan Division, Grand Rapids, MI. Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 28

Unit Loads in Materials Handling (3 of 9) • Advantages • Additional protection • Pilferage is discouraged • More fragile items can be stacked inside the load • Mechanical devices can be substituted for manual labor Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 29

Unit Loads in Materials Handling (4 of 9) • Disadvantages • Provides large quantity that sometimes is of limited value to resellers dealing in smaller quantities • Must use mechanical or automated device to move • Drives need for routine equipment maintenance • Lack of standard pallet size Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 30

Unit Loads in Materials Handling (5 of 9) • The Unit Load Platform • Basic unit is a pallet or skid • Can be constructed from wood, wood composites, plastic, paper, and metal • Each pallet material has advantages and disadvantages • Should be less than 50 pounds • Pallet or skid alternatives • Slip sheet • Shrink-wrap Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 31

Unit Loads in Materials Handling (6 of 9) TABLE 11. 2 ISO Pallet Standards Dimensions Milllimeters (width X length) Dimensions Inches (width X length) 1219 X 1016 48. 00 X 40. 00 1000 X 1200 39. 37 X 47. 24 1165 X 1165 44. 88 X 44. 88 1067 X 1067 42. 00 X 42. 00 1100 X 1100 43. 30 X 43. 30 800 X 1200 31. 50 X 47. 24 Source: ISO Standard 6780: Flat Pallets for Intercontinental Materials Handling. Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 32

Unit Loads in Materials Handling (7 of 9) • Beyond the unit load • Use of load-planning software • Bracing • Inflatable dunnage bags • Load is subjected various forces including • Vibration • Roll • Pitch • Weighing out Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 33

Unit Loads in Materials Handling (8 of 9) FIGURE 11. 6 Computer-Generated Load Plan Source: Courtesy of TOPS Software Corp. Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 34

Unit Loads in Materials Handling (9 of 9) FIGURE 11. 6 Computer-Generated Load Plan Source: Courtesy of TOPS Software Corp FIGURE 11. 7 Inflated Dunnage Bags between Pallets Source: Courtesy of Sea-Land Service Inc. Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 35

Materials Handling (1 of 8) • Materials handling refers to the “short-distance movement that usually takes place within the confines of a building such as a plant or DC and between a build and a transportation service provider. ” • Source: John J. Coyle, C. John Langley, Jr. , Brian J. Gibson, Robert A. Novack, and Edward J. Bardi, Supply Chain Management: A Logistics Perspective, 8 th ed. (Mason, OH: South-Western Cengage Learning, 2009), Appendix 11 -A. Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 36

Materials Handling (2 of 8) • How the products are handled depends on whether they are packaged or in bulk • Handling may change the characteristics of the product Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 37

Materials Handling (3 of 8) 10 Material Handling Principles Include: • Planning • Standardization • Work • Ergonomic • Unit load • Space utilization • System • Automation • Environmental • Life cycle cost Source: “The Ten Principles of Material Handling, ” www. mhia. org. Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 38

Materials Handling (4 of 8) • Two categories of material handling equipment • Storage equipment • Shelves • Racks • Bins Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 39

Materials Handling (5 of 8) • Handling equipment • Conveyor systems • Lift trucks • Carts • Cranes Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 40

Materials Handling (6 of 8) • The choice of handling equipment can influence the type of storage equipment. • The choice of storage equipment can influence the type of handling equipment. Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 41

Materials Handling (7 of 8) • Material handling equipment can also be categorized as: • Labor intensive • Mechanized • Automated • Sufficient volume is needed to justify high cost of automated equipment Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 42

Materials Handling (8 of 8) • An organization’s order picking and assembly system can also influence the type of handling equipment. • Picker-to-part systems • Part-to-picker systems Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 43

44 Next Week • Chapter 12 Copyright © 2015, 2012, 2009 Pearson Education, Inc. All Rights Reserved 44