Everyone is doing it. And now, so are we! Magnum Systems has produced a series of podcasts, A.I.M., for Automate, Integrate and Manufacture. We hope to be your one source resource for the latest trends and developments in systems integration, by bringing you expert interviews, thought-provoking discussions and real-world case studies. We kicked off our A.I.M. podcast campaign with our host, subject matter expert and technical sales manager, Mike Abare. For A.I.M.’s inaugural episode, Abare looked at return on investment in automated packaging lines, specifically for the three main cost generators: bag placing palletizing, automation of palletizing and stretch wrapping. Listen to Mike's podcast episode.
Understanding Automation in Manufacturing
“Magnum Systems works with customers every day looking to evaluate the feasibility of automating packaging lines,” says Abare. “Some of the common questions are ‘What is the length of time commonly used for determining timelines for ROI evaluations?’, ‘What portions of the packaging line can be automated?’, and ‘Can you elaborate more on the anticipated savings associated with automating bag-placing palletizing and stretch wrapping?’”
But first, what is automation? Abare emphasizes the importance of defining automation as it can mean many different things to different people.
“Customers might say ‘I want a fully automated system.’ This might mean that an operator is currently filling the bag by hand and wants a simple bagging machine to speed up the process or develop more accuracy,” Abare explains. “Or perhaps they are already doing some automation of just the bagging process, and now they're looking for a system that will actually place the bags on the bagging machine.”
Some customers might want a fully automated system that includes taking the bag and hanging it on a bag place or a spout on a bagging machine through the sealing process, production line and palletizing.
“The Robot then actually removes the bag from the process and puts it on a pallet,” he explains. “So when we start defining automation, that's where we need to start understanding what our customers’ needs truly are.”
The ROI of Packaging Automation
From Magnum’s experience working with thousands of customers over the years, most of our customers are looking for a two-year ROI on their projects. Of course, the desired ROI varies by company, some having a higher ROI tolerance when the scope of the project provides other returns or benefits, such as safety, consistency, reliability, compliance or helping to win contracts with potential customers. As mentioned earlier, three areas of a packaging line are most likely to be automated: bag placing, palletizing and stretch wrapping. These areas are commonly automated for several reasons, with the labor force being the largest financial reason.
These types of jobs are repetitious, can be dirty, and quite laborious.
“Given the market these days, fewer people do these jobs,” says Abare. “Rest assured when the line is not producing, owners quickly see the need for automation and often ask ‘Can you elaborate more on the anticipated savings associated with automatic bag placing, palletizing and stretch wrapping?’
Automation in these three areas can lead to significant savings, proving that a desirable ROI is possible. Employees regularly need time off for various reasons, oftentimes last-minute, leaving program managers little time to find a replacement. Automated packaging systems require less maintenance, don’t take sick days, or fail to show up for work, which ensures consistent production. Removing labor can also allow companies to move employees to higher quality or higher paying jobs within the company.
Added Benefits of Automating Your Packaging
There are other intangible benefits that come with adopting automation.
“Sometimes the lines go down due to a lack of staff. These packaging machines show up for work,” he says. “They're dependable. They don't get sick. Machines require maintenance at times, but people also require maintenance as well. Some more than others.”
Automated systems can significantly reduce workers’ compensation claims.
Abare explains how, “Your operators pick up 25, 50, and 80-pound bags all day. What is the ergonomics of their work? The area? Are they designed for employee movement, twisting, turning, lifting and setting down heavy bags? I don't know about you, but my body's not built to lift 50-pound bags all day long. So, what about employee fatigue?”
When people are tired, they are more prone to making mistakes, both mental and physical. This directly impacts the consistency and quality of work. Well-maintained machinery can do the same task accurately time and time again without interruption, and they don't become distracted or tired. When you automate packaging systems, you get reliable, consistent production day in and day out.
“We don't have to worry about the machines being off or missing the mark. Everybody within the organization can see the high quality of work produced with an automated system,” says Abare. “Indeed, the larger the volume of the product to be packaged, the greater the return on your investment.”
Magnum can help walk you through the process of setting up your custom automated system.
“If you're considering automating your packaging system, I would ask you to reach out to an expert in the industry, like a Magnum Systems salesperson, and let them walk you through the process of understanding your application,” Abare urges. “We can help you through the ROI formulas, understand how automation can best serve your needs, and determine the feasibility of automating your lines. I'd encourage you to reach out at your first opportunity to a Magnum expert to find a solution that works within your budget to provide the largest amount of return on investment possible.”
Automation in manufacturing is not just about increasing efficiency; it's about improving the quality of work, reducing labor costs, and mitigating risks. By understanding what automation means for your business, you can make informed decisions that will ultimately boost your ROI. Stay tuned for more insights from Magnum Systems as we continue to explore the future of automation, integration and manufacturing. If you have any questions or would like to learn more about the topic we discussed in this episode, please contact us today.
You can also listen to our podcast here or find A.I.M. on the Spotify and Google apps.
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