Packaging Methods Analysis (Cost Analysis/Time Studies)
Tabletop Customer Fulfillment Center
Situation/Challenge:
Because of a labor-intensive, largely manual bubble wrapping process, a bottleneck
was frequently occurring at the warehouse packing stations and merchandise
was shipped and received by customers with an undesirable presentation.
The introduction of a new packaging method (Packaging Machine) needed to be evaluated
and compared to the manual bubble wrap method. The Unit Per Hour (UPH) and the
Cost Per Unit (CPU) were unknown for both methods and the department’s
performance was inaccurately measured.
Action: FPI performed a time study on associate while they
packed 10 different customer orders using both methods. Appropriate metrics were
determined. Cost Per Units, Unit Per Hour, and labor and supply costs for both
methods were calculated.
Results: The Packaging Machine method was the most efficient
alternative because it provided a better merchandises presentation, the lowest
labor and material costs, and an ergonomically correct workstation layout.
The department throughput increased by 15% while the cost per package dropped
3%.
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