1 Packaging and Materials HandlingCHAPTER 11 Packaging and Materials Handling Copyright © 2015 Pearson Education, Inc.

2 Copyright © 2015 Pearson Education, Inc.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 Copyright © 2015 Pearson Education, Inc.

3 Copyright © 2015 Pearson Education, Inc.Learning Objectives To learn about unit loads and the unit load platform To explain materials handling principles and materials handling equipment Copyright © 2015 Pearson Education, Inc.

4 Protective Packaging and Materials Handling Key TermsBuilding-blocks concept Closed-loop systems Cube out Ergonomics Globally Harmonized System of Classification and Labeling of Chemicals (GHS) Materials handling (material handling) Copyright © 2015 Pearson Education, Inc.

5 Protective Packaging and Materials Handling Key TermsPallet (skid) Part-to-picker system Picker-to-part system Shrink-wrap Slip sheet Unit load (Unitization) Weighing out Copyright © 2015 Pearson Education, Inc.

6 Product CharacteristicsPhysical 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 Pearson Education, Inc.

7 Product CharacteristicsCopyright © 2015 Pearson Education, Inc.

8 Product CharacteristicsCopyright © 2015 Pearson Education, Inc.

9 Packaging FundamentalsBuilding-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 goods1 1Logistics Dictionary, Copyright © 2015 Pearson Education, Inc.

10 Packaging FundamentalsSome of the many packaging fundamentals include: Functional trade-offs Packaging testing and monitoring Labeling Copyright © 2015 Pearson Education, Inc.

11 Packaging FundamentalsFunctional trade-offs Packaging serves three general functions To promote To protect To identify (label) the relevant product Packaging design decisions involve a number of departments within an organization -Engineering -Quality Control -Manufacturing -Transportation -Marketing -Warehousing Copyright © 2015 Pearson Education, Inc.

12 Packaging FundamentalsPackage 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 Pearson Education, Inc.

13 Packaging FundamentalsPackage testing Vibrations Dropping Horizontal impacts Compression Overexposure to extreme temperatures or moisture Rough handling Copyright © 2015 Pearson Education, Inc.

14 Packaging FundamentalsLabeling 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 Pearson Education, Inc.

15 Packaging FundamentalsLabeling 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 Pearson Education, Inc.

16 Packaging FundamentalsLabeling - 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 Globally Harmonized System of Classification and Labeling of Chemicals (GHS) is a global system to classify and label hazardous materials. Copyright © 2015 Pearson Education, Inc.

17 Packaging FundamentalsCopyright © 2015 Pearson Education, Inc.

18 Copyright © 2015 Pearson Education, Inc.Issues in Packaging 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 Pearson Education, Inc.

19 Copyright © 2015 Pearson Education, Inc.Issues in Packaging 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 Pearson Education, Inc.

20 Copyright © 2015 Pearson Education, Inc.Issues in Packaging 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 Pearson Education, Inc.

21 Copyright © 2015 Pearson Education, Inc.Issues in Packaging Copyright © 2015 Pearson Education, Inc.

22 Copyright © 2015 Pearson Education, Inc.Issues in Packaging 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 Pearson Education, Inc.

23 Copyright © 2015 Pearson Education, Inc.Issues in Packaging Copyright © 2015 Pearson Education, Inc.

24 Unit Loads in Materials HandlingA 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: Handling efficiency can be facilitated by mechanical devices (pallet jack or forklift) as well as by using a pallet or skid. Copyright © 2015 Pearson Education, Inc.

25 Unit Loads in Materials HandlingCopyright © 2015 Pearson Education, Inc.

26 Unit Loads in Materials HandlingAdvantages Additional protection Pilferage is discouraged More fragile items can be stacked inside the load Mechanical devices can be substituted for manual labor Copyright © 2015 Pearson Education, Inc.

27 Unit Loads in Materials HandlingDisadvantages 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 Pearson Education, Inc.

28 Unit Loads in Materials HandlingThe 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 Pearson Education, Inc.

29 Unit Loads in Materials HandlingCopyright © 2015 Pearson Education, Inc.

30 Unit Loads in Material HandlingBeyond 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 Pearson Education, Inc.

31 Unit Loads in Material HandlingCopyright © 2015 Pearson Education, Inc.

32 Unit Loads in Material HandlingCopyright © 2015 Pearson Education, Inc.

33 Copyright © 2015 Pearson Education, Inc.Materials Handling 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, 8th ed. (Mason, OH: South-Western Cengage Learning, 2009), Appendix 11-A. How the products are handled depends on whether they are packaged or in bulk Handling may change the characteristics of the product Copyright © 2015 Pearson Education, Inc.

34 Copyright © 2015 Pearson Education, Inc.Materials Handling 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,” Copyright © 2015 Pearson Education, Inc.

35 Copyright © 2015 Pearson Education, Inc.Materials Handling Two categories of material handling equipment Storage equipment Shelves Racks Bins Handling equipment Conveyor systems Lift trucks Carts Cranes Copyright © 2015 Pearson Education, Inc.

36 Copyright © 2015 Pearson Education, Inc.Materials Handling 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 Pearson Education, Inc.

37 Copyright © 2015 Pearson Education, Inc.Materials Handling 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 Pearson Education, Inc.

38 Materials Handling EquipmentAn 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 Pearson Education, Inc.

39 Copyright © 2015 Pearson Education, Inc.Copyright Notice All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2015 Pearson Education, Inc.