PRESENTATION TITLE

Michel Chiado

President of Americas

Georg Utz, Inc.

Teaming Returnables with

Automation

© 2017 MHI®

. All rights reserved.

Introduction

• Presenter

– Mike Chiado - President of Americas

• Georg Utz, Inc

• Booth # S3818

Industry Slide

Purpose

• Explore the potential opportunities for the integration of

returnable transport devices with automation.

– Why / When / How

Why #1

• To capitalize on the benefits of returnable packaging.

– Reduce packaging cost over time

– Reduce waste management costs – “Green”

– Improve quality

– Improve safety

– Enable standardization

Why #2

• The goal is to do more then just pack and transport the product. We want to add value to the process by tying the manufacturing processes together via a common transport unit (returnable solution).

– Reduction of labor

– Increase throughput

– Improve quality

– Decrease work in process

– Support flexible manufacturing approach

– Optimize logistic costs

– Increase speed to market / Lower investment / Product change over

Supply loops

Device/Product

Manufacturer

External Components

Supplier

Overseas

Component

Suppliers

Buffer

Inventory

Storage

Final

Prep/Pack

OEM/

Distribution

Resale

Internal Supplier or

Local

Typical Supply Loops

Returnables working with Automation

Customer specific System Solutions

Returnable Solutions – typical attributes

• Custom design

• Dimensional integrity

• Precision part fit

• Conveyance friendly

• Stackability

• Automation features – positioning, orientation, identification, stack and de-stack, labeling, RFID.

• Long life

When does it make sense

• Closed supply loops

• High volume

• High value products

• Sensitive products / easily damaged

• Producing families of similar products.

• Replace manual pick and place operations

• Need for buffers between operations - repacking

Execution - Typical Production Processes

• Thermoforming

• Injection molding

Process Overview

Injection Molding Thermoforming

Blister

Packaging Utz Component Holders Thick Gage Dunnage

• PETG

• < 1mm thickness

• Expendable

• Commercial goods

• Large tolerances

• Difficult to use in

automation

• ABS / PC

• 1-6 mm thickness

• Returnable

• Industrial applications

• Tight tolerance

applications

• Highly automation

compatible

• HDPE

• > 6mm thickness

• Returnable

• Industrial applications

• Large tolerance applications

• Difficult to use in automation

Thermoforming Industry Range

Thermoformed Trays Injection Molding

• Lowest investment

• High level for flexibility

• Lower part density

• Shortest lead time 4-6 wks

• Highest piece price

• Highest level of investment

• Flexibility but with cost

• Highest part density

• Tool build 12-18 wks

• Lowest piece price

Break Even

$-

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

0 5000 10000 15000 20000 25000 30000

Tota

l Co

st

Total Units

Thermoforming vs. Injection Molding Cost Comparison

Thermoforming Injection Molding

2 4 1

3 4

16

1

1

1

3

0

5

10

15

20

25

30

Thermoforming Injection Molding

Wee

ks

Timing Comparison

Tray Design Tooling Design Tooling Manufacturing Sampling Tooling Modifications

18 Week

Difference

Development Time

Approaches to Shift the Break Even Point

• Flexible tooling

• Mother Mold - Inserts

• Combination of processes

Case Study – Video Controller

• Automated Assembly of video game controller

• 19 unique components manufactured and placed in trays

with Automation

• 19 Tray loading stations on Assembly equipment

• Initial request from customer was Injection Molded Trays

• Project executed in Thermoforming

Supply loops

Device / Product

Manufacturer

External Components

Supplier

Overseas

Component

Suppliers

Final

Prep/Pack

Distribution Resale

Internal Supplier or

Local

Case Study Supply

Loops

Case Study – Video Controller

https://www.youtube.com/watch?v=uCgnWqoP4MM

Case Study - Business Case

– Concept to production

• 3.5 Months development

– 19 unique trays – average # of trays 7,500 units

• 2 common mold bases - 19 inserts

• Thermoforming was a $1.2 mill save over Injection

molding

Lessons Learned / Things to consider

• Think strategically

• Don’t down play upfront work

• Start the business case early

• Encourage direct communication between automation venders and returnable solution provider.

• Use discipline in the development process

• Develop the returnable in parallel with the Automation

Q&A