August - Modern Materials Handling
Transcription
August - Modern Materials Handling
PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING mmh.com ® August 2012 LINCOLN INDUSTRIES: Putting a finish on lift trucks 18 EXCLUSIVE RESEARCH SPECIAL SUPPLEMENT Safety first 67 Lift truck user survey 27 INFORMATION MANAGEMENT Lift truck software/ Fleet management 34 SPECIAL REPORT Top 20 lift truck suppliers 43 FREE Industry Resources Stay connected between issues. Email Newsletters Online Like us on Facebook Magazine Follow us on Twitter Customer Service RSS Feeds White Papers P.O. Box 1496 • Framingham, MA 01701 Blogs Webcasts FLOATS LIKE A BUTTERFLY. BUSY LIKE A BEE. How do you pack the most punch while using the least amount of energy? With the Eco-Performance engineered, 7000 Series Reach-Fork ® trucks. Eco-Performance is our design philosophy that delivers reduced energy consumption and increased productivity. In fact, the Raymond ® 7000 Series uses up to 21% less energy and delivers cycle times up to 9% faster than the competition. You get faster lift speeds, quick acceleration, and longer battery life. So you can move more pallets per hour, and minimize maintenance and labor costs. Bottom line, it’s performance without compromise. Your operation will be buzzing with productivity. To learn more, contact your local Raymond Sales and Service Center at 1-800-235-7200 or visit raymondcorp.com/7000-series. See the 7000 Series Reach-Fork trucks in action. Testing conducted by PosiCharge. Comparative data overseen and compiled by the United States Auto Club Properties, Inc. UP FRONT Breaking news you should know MHIA: 24.2% growth in materials handling equipment new orders in 2011 Materials handling equipment orders grew an estimated 24.2% in 2011 and are forecasted to grow 8% to 9% in 2012 and 6% in 2013, according to the latest Material Handling Equipment Manufacturing Forecast (MHEM) released by the Material Handling Industry of America (MHIA). “Consumers’ and investors’ confidence is best characterized as uncertain. Unemployment, industrial production activity and factory operating rates (utilization) are improving modestly,” said Hal Vandiver, MHIA executive consultant. “All are favorably impacting MHEM, but do not indicate robust growth.” The MHEM forecast of materials handling equipment manufacturing is released each quarter by MHIA and looks 12 to 18 months forward to anticipate changes in the materials handling and logistics market. Materials handling equipment orders to grow modestly 30% 25% 20% 15% 10% 5% 0% 2012 2013 Source: Materials Handling Equipment Manufacturing Forecast (MHEM) Pack Expo International 2012 sells out of exhibition space PMMI, owner and producer of the Pack Expo trade shows, announced that Pack Expo International 2012 (Oct. 28-31; McCormick Place, Chicago), has sold out of exhibit space. “The sold out status of Pack Expo speaks volumes to its value as a showcase for the packaging and processing industries,” said Charles D. Yuska, president and CEO of PMMI. “With space completely gone three months out, the show has surpassed even our expectations.” Pack Expo International 2012 will be the largest edition of the show since 2002, with a record 1,800-plus exhibitors showing off the latest in packaging and processing innovation across more than 1.1 million net square feet of exhibit space. MIT Forum launches manufacturing technology advisory board MIT professor David Simchi-Levi, founder of the MIT Forum for Supply Chain Innovation, recently announced the formation of the forum’s Manufacturing Technology Advisory Board. The board will bring MIT academia and research together with major technology providers and industry leaders to collaborate on key issues in the U.S. manufacturing industry, such as technology, process innovation, supply chain risk and reshoring enablers. “The manufacturing industry is in need of process and technology transformation to enable innovation, efficiency and sustainable business growth, and I think this board will help lead that conversation and effort,” said Simchi-Levi. Infosys, a global provider of business consulting, technology, engineering and outsourcing services to the manufacturing industry, has become a strategic partner sponsor of the forum and is joining the technology advisory board. mmh.com 2011 Study finds workers suffering from more hearing loss than they perceive The University of Michigan School of Nursing study found significant differences between measured and perceived hearing loss, and suggests health care providers need better methods of testing and protecting hearing of factory workers. Of the 2,691 noise-exposed automobile factory workers surveyed for the study, 76% reported excellent or good hearing. However, after formal hearing tests, researchers found that 42% of those workers actually suffered hearing loss. This indicates that selfreported hearing loss is poorly related to the results of formal hearing testing. “This finding shows that even workers who are served by a workplace hearing conservation program and receive annual hearing testing may be unaware of their actual hearing ability,” said Marjorie McCullagh, principal investigator and assistant professor. “Consequently, health care providers would be wise to examine methods to help workers develop more accurate perceptions of their hearing, and test more effective methods to protect it.” Modern Mat eria l s Ha ndl ing / A u g u s t 2012 3 YOU NEED A TRUCK THAT GIVES YOU MORE. MORE OPTIONS. MORE PRODUCTIVITY. MORE SAVINGS. THE YALE ® VERACITOR™ VX SERIES. PROBLEM SOLVED. 11YLE3987 The Veracitor™ VX Series is engineered to be versatile, with customizable components that let you build the right truck for your job. Plus, the Veracitor VX Series moves more loads than leading competitors, and it will help you lower operating costs. Find out more at Yale.com. VOL. 67, NO. 8 ® PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING COVER STORY PHOTO: BLAINE FISHER/GETTY IMAGES SYSTEM REPORT 60 seconds with Jim Moran 18 Putting a finish on lift trucks Lincoln Industries’ business is chrome metal parts, but it’s the lift truck program that really shines. 24 The right truck for every application Lincoln Industries’ new fleet of lift trucks includes six different types of trucks. FEATURES EXCLUSIVE RESEARCH 27 User Survey: How customers acquire, maintain and replenish their fleets Lift truck usage survey offers most comprehensive snapshot available of current U.S. fleet management practices. INFORMATION MANAGEMENT 34 The smarter lift truck Fleet management software is evolving from a tool to track maintenance to a platform for the smarter lift truck. SPECIAL REPORT 43 Top 20 lift truck suppliers Continuing an upward climb, the worldwide industrial lift truck market is seeing orders and shipments on the rise again. PRODUCTIVITY SOLUTION 51 52 52 53 Sortation helps speed growth Conveyor handles complexity Rising to the challenge Blessing in disguise for food supplier BEST PRACTICES 55 Beyond the punch clock While adoption remains low, savvy managers are putting engineered labor standards and related labor management systems to work to jumpstart productivity and gain a new level of operational visibility. mmh.com DEPARTMENTS & COLUMNS 3/ Upfront 7/ This month in Modern 14/ Lift Truck Tips: Fuel cells 16/ Packaging Corner: Returnables Management 60/ Virtual Conference Wrap-Up 67/ Supplement: Safety 82/ Focus On: Ergonomics 86/ Product Showcase 90/ 60 seconds with... NEWS 9/ Industry introduces a new pallet pool 10/ Pallet industry mourns loss of Scholnick 11/ Global trends: • Yaskawa America expands in Brazil • Meyers Industries acquires Brazil’s Plasticos Novel • Crown opens first direct sales and service operation in Brazil 12/ RPA announces packaging award Modern Materials Handling® (ISSN 0026-8038) is published monthly by Peerless Media, LLC, a Division of EH Publishing, Inc., 111 Speen St, Suite 200, Framingham, MA 01701. Annual subscription rates for non-qualified subscribers: USA $119, Canada $159, Other International $249. Single copies are available for $20.00. Send all subscription inquiries to Modern Materials Handling, 111 Speen Street, Suite 200, Framingham, MA 01701 USA. Periodicals postage paid at Framingham, MA and additional mailing offices. POSTMASTER: Send address changes to: Modern Materials Handling, PO Box 1496 Framingham MA 01701-1496. Reproduction of this magazine in whole or part without written permission of the publisher is prohibited. All rights reserved. ©2012 Peerless Media, LLC. MODERN MAT ERIA L S HA NDL ING / A U G U S T 2012 5 www.hyundai-ce.com Moving you further! HYUNDAI FORKLIFT TRUCKS FORKLIFT LINE -UP LPG Forklift 1.5 ~ 5.0Ton Diesel Forklift 1.5 ~ 25Ton Battery Forklift (Counter Balanced) 1.6 ~ 5.0Ton Electric Order Picker 10BOP-7 / 13BOP-7 Reach Truck (Pantograph) 1.5 ~ 2.3Ton Reach Truck (Standing) 1 ~ 2.5Ton Reach Truck (Seated) 1.4 ~ 2.5Ton Electric Towing / Platform Truck 40TA-7 / 15PA-7 HEAD OFFICE(SALES OFFICE) 14th FL., Hyundai Bldg. 75 Yulgok-ro, Jongno-gu, Seoul, Korea Tel. 82. 2. 746. 4753 / 4609 Fax. 82. 2. 746. 7444 / 7445 E-mail. sisky@hhi.co.kr This month in ® EDITORIAL OFFICES modern MICHAEL LEVANS 111 Speen Street, Suite 200 Framingham, MA 01701-2000 (800) 375-8015 GROUP EditorIAL DIRECTOR Michael Levans Group Editorial Director mlevans@peerlessmedia.com Bob Trebilcock Executive Editor robert.trebilcock@myfairpoint.net Noël P. Bodenburg Executive Managing Editor npbodenburg@peerlessmedia.com Josh Bond Associate Editor jbond@peerlessmedia.com Sara Pearson Specter Editor at Large sara@saraspecter.com Roberto Michel Editor at Large robertomichel@new.rr.com Jeff Berman Group News Editor jberman@peerlessmedia.com Mike Roach Creative Director mroach@peerlessmedia.com Wendy DelCampo Art Director wdelcampo@peerlessmedia.com Daniel Guidera Illustration daniel@danielguidera.com Brian Ceraolo Group Publisher bceraolo@peerlessmedia.com Peerless Media, LLC www.peerless-media.com Kenneth Moyes President and CEO EH Publishing, Inc. Brian Ceraolo Publisher and Executive Vice President Peerless Media, LLC MAGAZINE SUBSCRIPTIONS Start, renew or update your FREE magazine subscription at www.mmh.com/subscribe. Contact customer service at: Web: www.mmh.com/subscribe Email: mmhsubs@ehpub.com Phone: 1-800-598-6067 Mail: Peerless Media P.O. Box 1496 Framingham, MA 01701 2012 Lift Truck Issue I t would be difficult to find a more comprehensive snapshot of the current state of lift truck usage, best practices and technology than the issue of Modern that you’re holding in your hands at this very moment. This marks the second year in a row that we’re using our August pages to celebrate that piece of equipment that continues to be the backbone of the materials handling industry. Yet all too often fleets are taken for granted or run to the point of exhaustion—as many have been during the last few years of economic turmoil. Starting on page 18, executive editor Bob Trebilcock takes us inside the operations of metal parts finisher Lincoln Industries, a company that depends entirely on its fleet of 32 lift trucks to keep product moving throughout its 334,000-square-foot facility. Lincoln is far from being one of those operations that ran its lift truck fleet to the bone during the recession. At the end of last year, Lincoln, in cooperation with its local distributor, added 26 new trucks, purchased new attachments and installed fleet management software in an effort to improve safety and productivity. “Since then we’ve broken monthly sales records in four of the last six months,” Lincoln’s vice president of operations Bill Ellerbee tells Trebilcock. “At the same time, we’ve kept up with extra production with no additional overhead.” And while Lincoln’s lift truck utilization is impressive, we were curious to find out just how well the U.S. end user market was managing their fleets. To do this, we turned to Judd Aschenbrand, director of research for Peerless Research Group (PRG), to develop Modern’s first annual Lift Truck Usage Study. The goal was relatively straightforward: We set out to find the percentage breakdown of types of trucks currently in use in the United States; where the purchase vs. lease debate stands; the impact the tough economy is having on fleet management; what maintenance best practices are gaining favor; and how far technology has penetrated fleet management. Associate editor Josh Bond puts context behind all of the findings starting on page 28. However, one high-level finding should come as breath of fresh air for suppliers and the industry overall. Of the 64% of respondents who indicated that they would buy or lease a lift truck in the next 24 months, one in 10 said that they planned to add 20 or more units. According to Bond, exactly 30% said that the new equipment would expand the size of their current fleet. But Lincoln’s success and our survey results are just scratching the surface of what we’ve packed into this issue. We also offer the deepest dive available on the evolution of lift truck fleet management software (page 34) and a special report on the Top 20 lift truck suppliers (insert). So if you’re in the process of upgrading your fleet or just kicking the tires, we’re sure that this issue should give you the data you need to make the decision that’s best for your operation. eNEWSLETTER SUBSCRIPTIONS Sign up or manage your FREE eNewsletter subscriptions at www.mmh.com/enewsletters. Member www.peerless-media.com mmh.com Member of Winner Jesse H. Neal Certificates of Merit for Journalistic Excellence Official Publication of Modern Materials H andling / A u g u s t 2012 7 Efficient Picking. Correct item and quantity . . . delivered on time Bare Escentuals is a cosmetic company that is built around the idea that makeup can actually be considered skin care. To improve their warehouse logistics configuration that serves 200 retail store boutiques and 1400 spas, Bare Escentuals implemented an all new process for picking split case items. The results are compelling: no more expedited shipping costs, 5X increase in picking productivity, process improvements, real-time control, increased order accuracy, operational flexibility, annual physical inventory omitted and reduced order processing time. Using Dematic PickDirector® software, Bare Escentuals processes orders for e-commerce, spas and company owned stores in the same distribution center. Both light and voice directed technology support the picking process. Using the browser based interface, supervisors can monitor % orders complete, as well as verify order contents and make adjustments to ensure an order is shipped complete. The software maintains comprehensive statistics so supervisors know exactly how many orders, lines and pieces each operator handles. The number of operators per shift is allocated depending on order volume. If order volume is up, more operators can be assigned to the pick-to-light zones, and more operators can be assigned to the voice directed pick carts thereby making it scalable and flexible. In addition, the system is portable so it is easy to move if the operation is relocated in the future. Discover how Dematic can create a logistics result for your business challenges. Visit www.dematic.us or call 1-877-725-7500 today for more information. Follow Modern Online facebook.com/mmhmagazine Twitter | @modernmhmag Web | mmh.com PALLET POOLING Industry introduces a new pallet pool together a pool managed by pallet producers in October of 2010, about the time Costco announced its plans to convert to a block pallet. The reason: Although CHEP and PECO offer block pallets in their pools, most U.S. pallet manufacturers make PALLET LOGISTICS & UNIT-LOAD SOLUTIONS IS stringer pallets, which would no OFFERING A BLOCK PALLET ON A PER-TRIP RENTAL. longer be accepted by Costco. To stay in that game would require an BY BOB TREBILCOCK, EXECUTIVE EDITOR industry response. “I think there are other major retailers out there who rent, lease or purchase your own pal9BLOC, A NEW PALLET POOL RUN are looking at the Costco model but let inventory, based on your needs, by members of the pallet industry, is have not switched to a block pallet from the 9BLOC participating pallet now offering fully independent pools because there wasn’t a pooling busimaker you select.” of nine block pallets nationwide. ness model that worked for them,” According to Swenby, the NaCreated as a response to thirdSwenby says. “We decided to spend party pallet pools operated by CHEP, tional Wooden Pallet & Container a few months to see what the indusPECO and iGPS, the pool from Pallet Association (NWPCA) had been distry is thinking.” cussing the idea of a national pallet Logistics & Unit-Load Solutions is Out of those discussions came the pool for years. “Within the industry, offering ablock pallet designed to we have been asking what can we do formation of Pallet Logistics & Unit meet the Costco specification in a Load Solutions, a not-for-profit orgato compete with the big pallet poolrent, lease or purchase model. That nization that will oversee the operaing guys,” Swenby says. “If you look means that pallet users can choose tion of the pool, about a year ago. around the globe, Europe has EPAL from a variety of models, ranging As a collaboration of companies that and Canada has the CPC. We don’t from a per-trip rental to outright represent the entire product supply have anything like this in the U.S.” ownership of their own managed chain, the group will work together to While the concept was initially pool. provide a pool of high-quality wood just industry chatter, Swenby says The benefit to pallet producers, block pallets that are manufactured a group of leaders began to invesrecyclers and distributors is an opand repaired to an industry-wide tigate what it would take to put portunity to retain current customers standard along with a using stringer pallets who software asset-tracking may be considering a shift solution to manage the to a block or leased pallet pool. An independent as a result of the Costco third-party inspection serspecification or the shortvice will conduct routine age of cores. inspections of participatThe benefit to pallet ing suppliers to assess users, according to John 9BLOC offers quality standards. Swenby, a member of the a block pallet “There are several 9BLOC development team, designed to meet thousand pallet manuis “the power of choice. Costco specs. facturers located around Now, you can choose to mmh.com MODERN MAT ERIA L S HA NDL ING / A U G U S T 2012 9 the U.S.,” says Swenby. “If there are 500 of them with 100 trailers and 100 employees to manufacture, distribute and repair pallets, that’s a lot of scale. We can use our network to serve customers who are already working with us, but have a need to go to a block pallet.” IN MEMORIAM Pallet industry mourns loss of Scholnick BRUCE N. SCHOLNICK, who led the National Wooden Pallet and Container Association (NWPCA) as its president and CEO through a number of dynamic industry shifts, died of cancer at his home in Alexandria, Va., on July 9. Bruce devoted his considerable energy and astute mind to the wood packaging industry from the moment he joined it in May 2000. Bruce was a warrior on Capitol Hill and with Washington regulators when proposed rules threatened the industry. His tenacious dedication in all he did earned him the respect 10 A U G U S T and affection of NWPCA members. Bruce’s most often repeated quote was “creativity is merely the insightful rearrangement of known elements.” That concept was put into practice on a regular basis. Bruce was preceded in death by his wife Elizabeth in April 2008. He is survived by their son Matthew, sisters Nan Parker and Penny LaPorte, and their husbands and children. NWPCA board chairman James Ruder has asked Sam McAdow of Buckeye Diamond Logistics, in South Charleston, Ohio, to act as interim acting president to serve 2 0 1 2 / MO D E R N MATE R IALS HA NDL I NG Bruce Scholnick as a point of contact for staff and membership. Sam will be operating in an advisory capacity and will report to James Ruder. mmh.com GLOBAL TRENDS Yaskawa America expands in Brazil MOTOMAN ROBÓTICA DO BRASIL and Yaskawa Eléctrico do Brasil, divisions of Yaskawa America (YAI), have jointly announced expansion plans in the Sao Paulo area of Brazil. YAI’s parent company, Yaskawa Electric Corp., is the world’s largest manufacturer of AC drives, motion control products and industrial robots. The two divisions have outgrown their current separate facilities and will co-locate to a newly constructed, larger manufacturing campus in Diadema, featuring total space of more than 100,000 square feet. “With expanded manufacturing and demonstration floor space, new training labs and additional office space, the new infrastructure will provide even closer cooperation between our two divisions allowing us to better serve our customers in this growing market,” states Steve Barhorst, President and COO of Yaskawa America, Motoman Robotics Division. Myers Industries acquires Brazil’s Plasticos Novel MYERS INDUSTRIES recently announced that it has completed the acquisition of Brazil’s Plasticos Novel S.A. The purchase price was $27.5 million, subject to certain adjustments. Additional terms of the acqui- VIEW VIDEO sition were not disclosed. Novel, with projected sales of approximately $38 million for 2012, is Brazil’s leading designer and manufacturer of reusable plastic crates and totes used for closed- PROTECTING YOUR MATERIAL MAKES ® A LOT OF AUTOSENZ When you select a vertical lift to safely move material, you want the best. Only Wildeck VRCs have the patented* AutoSenz® Overload Detection System to protect material from damage should a jam occur. Other VRCs, based on a 40-year-old design, just can’t compete with the product improvements available from Wildeck today. Safety, efficiency and reliability — make your move to standardize on Wildeck VRCs with advanced AutoSenz® technology built in. It’s a level of quality and craftsmanship you won’t find anywhere else. 800-325-6939 | WWW.WILDECK.COM ©Wildeck, Inc. 2012 mmh.com CAPACITY EFFICIENCY SAFETY Get the most out of your space Move inventory with ease Protect your facility S T O R I N G WDK_AutoSenz_HalfPg_MMH.indd 1 *U.S. Patent No. 7,408,317 L I F T I N G G U A R D I N G MODERN MAT ERIA L S HA NDL ING / A WAZ 1207 - AD U G U S T 2012 11 7/16/12 5:27 PM loop shipping and storage in the region’s fast-growing food and agriculture industries. Novel also produces a diverse range of plastic industrial safety products. With strong relationships to major international companies in its markets, Novel complements Myers Industries’ existing materials handling business in Brazil and aligns with the company’s materials handling and geographic growth strategy. Crown opens first direct sales and service operation in Brazil CROWN EQUIPMENT, one of the world’s largest materials handling companies, announced the opening of its first company-owned Crown Lift Trucks operation in Brazil. The facility, which is in the Anhanguera Logistics Center in Jundiaí, São Paulo, is located to serve the dynamic growth expansion of the São Paulo region. “This is an exciting time for Crown Equipment as we expand our global network of Crown Lift Trucks retail operations,” said Jim Dicke III, president of Crown. “Our customers are strategically entering this growing market, and it’s important that we’re there with them. The corresponding volume of goods distributed in Brazil means opportunity for Crown products and services.” PACKAGING RPA announces packaging award THE REUSABLE PACKAGING Association (RPA) is accepting submissions for its first annual Excellence in Reusable Packaging Award. The award will recognize companies that have developed, supported or implemented measurable and innovative reusable solutions in a business-tobusiness supply chain. Non-members and members of the RPA are encouraged to enter. Submissions will be reviewed by an independent committee of judges who are not members of the RPA. September 9-12 Park City, Utah S C A S C A S C A THE KNOWLEDGE TO GIVE YOU AN UNFAIR EDGE A 3 day educational conference developed to help you PROPEL your thinking, people, and assets. T Visit H E Kwww.mhlc.com N O W L E D G E T OforGcomplete I V E Y O U programing AN UNFAIR EDGE and to register today! Space is limited to end users only. THE KNOWLEDGE TO GIVE YOU AN UNFAIR EDGE 2012 Keynote Speaker: Steve Forbes Chairman and Editor-in-Chief of Forbes Media “We created this award to increase awareness and understanding of the measurable benefits of reusable packaging and solutions,” said Jerry Welcome, president of the RPA. The deadline for submissions is Sept. 1, 2012. The winner of the award will be announced during Pack Expo 2012 this fall in Chicago. BUILT BETTER, BACKED BETTER MORE PRODUCTIVE IN YOUR OPERATION The Komatsu BX50 is backed with our Customer Advantage Plan Warranty*… 24 Months / 3,000 hours Standard Coverage 60 Months / 6,000 hours on the Drive Train The Komatsu BX50 Not All Forklifts Are Built Alike www.kfiusa.com 1-847-437-5800 *Certain restrictions apply. See warranty certificate for full details. lift truck TIPS Fuel cells check milestone off the list Following impressive sales, forklift fuel cell makers shift gears toward the future. By Josh Bond, Associate Editor F uel cell battery replacement units for electric lift trucks posted a banner year in 2011, when both lift truck suppliers and fuel cell providers saw growth in interest and sales of fuel cell offerings. Plug Power alone took orders for five times as many units as in 2010, according to Reid Hislop, vice president of marketing and investor relations at Plug Power. However, although the latest incarnations of the technology have reached the tipping point for commercial viability, says Hislop, the fuel cell industry must now adjust its focus. Hydrogen infrastructure in a facility—whether it includes on-site hydrogen production or not—remains very costly. This and other forces conspire to make the ideal fuel cell customer a somewhat large one. While larger companies have deeper pockets, they might also bring more scrutiny and skepticism to emerging technologies. Hislop says that more than 7 million hours of runtime data and more than 2,500 units in the field have borne out the promise of fuel cells. “The commercial viability is there, as proven by the number of customers with 100 or more lift trucks running on hydrogen fuel cells,” says Hislop. “This stuff is real, it works, and if it didn’t there would be a world of hurt.” But although the average threshold for viability is a multi-shift fleet of about 30 trucks or more, incremental progress is being made to expand the availability of the fuel cell alternative. The value proposition of fuel cells assumes the elimination of lead-acid battery swaps. Removing that process from the daily workflow creates huge productivity improvements, says Hislop. Energy costs end up being about equal between electric and fuel cells, but big savings are found in productivity and reduced real estate costs. Customers who build a new facility with hydrogen infrastructure can see immediate savings from the first day the facility opens its doors, says Hislop, who estimates the removal of the battery room can reduce new build- 14 Au g u s t 2 0 1 2 / M ode rn M at e ri als Han d li ng ing square footage by between 6% and 8%. Retrofits can take as much as 18 months to produce the same returns, but remain very attractive to some companies. “If the removal of the battery room can enable a company to make better use of available space and postpone investing as much as $100 million into a new building, then there are even further savings,” says Hislop. Hislop says that although the outlook is good for fuel cell technology, it is still subject to lingering criticism from the early 2000s, when fuel cells for materials handling applications enjoyed a meteoric rise and subsequent contraction. “It’s still an emerging technology,” says Hislop. “But we should expect more growth as the technology and access to hydrogen improve.” M Josh Bond is Modern’s associate editor and can be reached at jbond@peerlessmedia.com. mmh.com YOU HAVE TO LOWER OPERATING COSTS. THEN YOU HAVE TO LOWER THEM AGAIN. WITHOUT SACRIFICING PRODUCTIVITY. Lowering operating costs is what the Hyster® Fortis line does best. Hyster Company is proud to be ranked #1 by current customers in Total Cost of Ownership* among several lift truck manufacturers. And when you purchase a Fortis® lift truck, know that each one comes with the Hyster legacy of building tough lift trucks. Lower costs. Better ROI. Tougher trucks. Bring it. For more information, visit hyster.com/TCO. *Peerless Media Research Group, 2011 12HST5231 © 2012 Hyster Company. Hyster, and Fortis are registered trademarks of Hyster Company. hyster.com packaging corner Government regulations for food supply chain to affect handling, pallet use The packaging industry braces for new regulations resulting from the Food Safety Modernization Act. By Sara Pearson Specter, Editor at Large T he coming changes to the food supply chain—prompted by the Food and Drug Administration (FDA) Food Safety Modernization Act (FSMA) signed into law by President Obama in July 2011—are weighing heavily on the minds of companies involved in the manufacture, production, distribution, importation and marketing of food. “This law requires the FDA to create at least 10 new regulations, with the bulk of the proposals due over the next two years,” says David Deal, senior director of marketing for CHEP Americas, one of the world’s largest pallet and container pooling companies. “Food facilities—from harvest to production to transportation to consumption—will be required to develop hazard analysis and risk-based preventive controls in response to those regulations.” Food-handling companies must identify potential points of contamination and put in active countermeasures, adds Deal. “Our industry is going to have to address the two types of materials defined by the FDA: items that touch food directly such as packaging and nonfood contact articles such as pallets.” Because the regulations have the potential to be complex, and the need for companies to understand and adhere to them is so critical, CHEP has partnered with Kelley Drye & Warren, a Washington D.C.-based law firm with a specialized practice in food safety. The law firm is developing a CHEP-sponsored series of educational presentations and whitepapers. The first whitepaper, released in June, outlines the high points of the FSMA. It touches on a variety of requirements: analysis and control, registration, FDA access to records, new harvest safety standards, fee assessment and 16 A u g u s t 2 0 1 2 / Mo d e r n Mate r ials Ha ndl i ng collection, recordkeeping and more. Because most companies are already familiar with the laws that pertain to packaging that touches food, future topics will cover the new regulations affecting the inspection and control of food-associated pallets in general, Deal adds. “Everyone will have to be in compliance, and that will include demonstrating that their pallets or pallet supplier uses current good manufacturing processes (cGMP), particularly when cleaning and conducting inspections, then providing the corresponding documentation to verify pallet safety,” Deal says. “We want to help pallet users understand what the food safety laws are today, as well as how they will continue to develop going forward.” M Sara Pearson Specter is an editor at large with Modern and can be reached at sara@saraspecter.com. mmh.com Putting a Lincoln Industries’ business is chrome metal parts, but it’s the lift truck program that really shines. By Bob Trebilcock, Executive Editor I f materials handling equipment were like athletics, conveyor, sorters and automated storage systems would be like the flashy quarterback who throws the winning touchdown and gets the girls. Lift trucks might be the center—you can’t win a game without one, but few people notice his performance unless he drops the ball. There are no materials handling quarterbacks at metal finisher Lincoln Industries. Instead, a fleet of 32 lift trucks (Yale, yale.com) are the backbone of the materials handling processes in the 334,000-square-foot plant in Lincoln, Neb. There, lift trucks get the glory. “We rely entirely on lift trucks to keep product moving through the facility,” says Lincoln Industries’ vice president of operations Bill Ellerbee. At the end of last year, Lincoln worked with a local distributor (Riekes Equipment Co., riekesequipment.com) to upgrade an aging fleet of 26 trucks. As part of the process, Lincoln Industries not only brought in new equipment, it 18 Au g u s t 2 0 1 2 / Mo d e rn Mate r ials Ha ndl i ng mmh.com modern system report on lift trucks also added lift truck attachments, fleet management software and opportunity charging to improve the operation of the fleet. The result has been improved safety and productivity. “We’ve had the new fleet in place since February 2012,” says Ellerbee. “Since then, we’ve broken monthly sales records in four of the last six months. At the same time, we’ve kept up with the extra production with no additional overhead.” More importantly, adds Ellerbee, “We have the security of knowing our team can do their work day in and day out safely and productively. Our people have the right tools to do their job.” A unique culture Based in Lincoln, Neb., Lincoln Industries is the nation’s largest privately held metal finishing company, providing 29 different metal finishes to world-class manufacturers like Harley-Davidson, Polaris, John Deere and PACCAR. PHOTOGRAPHY BY BLAINE FISHER/GETTY IMAGES mmh.com Modern Mat eria l s Ha ndl ing / A u g u s t 2012 19 MODERN system report Family-owned, the company is as well-known for its unique business culture as it is for the quality of its work. Lincoln Industries has been recognized five times as one of the 25 Best Medium Size Companies to Work For in America. “We are a people-oriented company,” says Ellerbee, explaining that Lincoln Industries doesn’t hire employees, it selects people to be part of its team. The company culture includes a focus on developing individual talent, encouraging the health and wellness of its people, providing opportunities for education and career advancement, and maintaining a safe workplace. Productivity and safety, both related to the business culture, were catalysts for the upgrade of the fleet. The company had 26 trucks, and they were all five years or older. A techni- A fleet management software system has automated the paper operator checklist. The system ensures that only operators with up-to-date licenses can drive a truck. cian was on site 8 hours a day just to avoid downtime. The fleet included three core truck types, but was a hodge-podge of styles and all had basic features. The mast heights were different and the options were different. One truck couldn’t nec- essarily operate in all parts of the plant. Safety was also a concern. To accommodate the many different-sized pallets and containers handled within the plant, drivers had to frequently get off their lifts to adjust their forks. That was unproductive. Last fall, Lincoln Industries called in local forklift providers and asked for bids. The goal was to bring in a new fleet with features that would improve productivity and safety. Lincoln Industries also wanted to make sure that the composition of the fleet matched the duties of the operators who would be using the trucks. Selecting trucks Lincoln Industries’ lift truck operators were a critical factor in the selection process. After all, they would be operating the vehicles and had a stake in how the trucks performed. As the bid process unfolded, drivers were included on the selection team and were involved in every meeting with suppliers. Drivers were also encouraged to test each of the lift trucks brought in for evaluation. Once a brand was selected, Lincoln Industries not only replaced its trucks, Reach trucks were outfitted with a laser positioning device that guides the operator as he handles loads at the top positions of the racks. it brought in a new mix of vehicles with new features. “We wanted to make sure that as we changed the composition of the fleet, we had trucks that matched the operator and the operator’s duties,” says Ellerbee. That included sit-down and stand-up style trucks along with some manual trucks. In total, Lincoln Industries brought in 32 new trucks. New fleet, new trucks One of the first noticeable changes in the new fleet was the style of truck employed in the plant. The sit-down trucks in the old fleet were comprised of higher chassis trucks with cushion tires. The high chassis required a three-step process to get on and off the truck; because of the style of tire, drivers felt every bump going over the dock and every crack in the floor. The new fleet includes low chassis trucks with pneumatic tires and a zeroturn circumference. The trucks were also equipped with a full suspension seat. The combination resulted in a truck that was easier to get on and off, modern system report easier to handle and more comfortable to drive over a long shift. A full suspension floor was installed in standup trucks to reduce operator fatigue. Lincoln also added five manual walkie reach trucks to the fleet. “We used to spend a lot of time moving raw material from the warehouse to the individual production lines,” says Ellerbee. “To make that more efficient, we installed storage rack for high-volume products at the line. With the walkie reach trucks, our production people can get the material they need without waiting for delivery from the warehouse. That saves time.” The new fleet also included several new attachments and features. For instance, side-shifting fork positioners were added to allow drivers to automatically adjust the position of the forks based on the size of the container and without ever getting off the truck. “In receiving, it used to take about 45 seconds every time a driver got on or off a truck to change the position on a fork,” says Ellerbee, adding that each driver was getting on and off a lift 10 Intelligent side-shifting fork positioners allow operators to automatically adjust the position of the fork to fit the container being moved. 22 Au g u s t to 15 times a shift. It also eliminates driver’s risk of pinched fingers positioning the forks. Similarly, automatic scales were added to weigh product in the shipping department. That change not only freed up space on the dock that had been allocated to manual scales, it also saved time since the weight is automatically registered when a driver picks up a load. The weights are saved in memory until the driver enters them into the shipping system. The return on investment was less than one year. Finally, new reach trucks include a laser to highlight where forks are going to be placed on loads that are high up in the air. Lift truck scales have replaced manual scales, freeing up space in the shipping area. Weights are stored in the memory of an onboard computer. Managing batteries and the fleet The upgrades in performance didn’t end with the trucks. Lincoln also implemented new battery and fleet management systems. Prior to the new fleet, operators spent 10 to 15 minutes each shift swapping batteries in a battery room that took up valuable production space. That system was replaced with an opportunity charging system that allows drivers to recharge during breaks or slow times. The space devoted to the battery room is now being used for production. The last improvement was a fleet management software system. It is used to automate the vehicle check list, a process that was done manually before the drivers started their shift. “If there is an issue with a vehicle, the driver enters it into the system and generates an e-mail to a service technician, which saves a telephone call,” says Ellerbee. Since each driver has an identification number, the fleet management system ensures that only operators authorized for that piece of equipment can operate a truck. The system also includes impact management capability. This is a feature in the software that records when a driver bumps into something or there is some other jolt that could cause damage to the truck. The software highlighted a defect in the floor and an opportunity to change operator behavior that is reducing damage to trucks and product. “We noticed that we were getting a number of impact reads,” Ellerbee says. “When we investigated, we learned that drivers were traveling with their forks extended when they were moving loads of bumpers that were 8 feet long. Every time they went over a particular crack in the floor, they were setting off the impact sensors and they were potentially damaging the fork carriages.” Since then, the crack has been fixed and drivers have been retrained to travel with the forks in a lower position. In the six months since the new fleet was put into operation, maintenance costs have been dramatically reduced. “We have a technician who comes in to do planned maintenance and that’s about it,” says Ellerbee. More importantly, lift truck operators have the right tools to perform their jobs safely and productively. M 2 0 1 2 / Mo d e rn Mate r ials Ha ndl i ng mmh.com Man agem e ent s i r rp e t n E You Improve MES Connectivity Fast! Fixing warehouse connectivity issues or improving data accessibility for logistics and distribution operations can be a daring task. Mitsubishi Electric Automation’s MES-IT solution bridges the gap between the warehouse and the office. As an integral part of our e-F@ctory automation solution, MES-IT enables bi-directional data communication from warehouse controls to enterprise IT systems. Solve your connectivity problems fast with the latest in automation technology. • Delivers superior management of material flow and inventory • Optimizes warehouse yield and throughput while ensuring full traceability and containment Information link Enterprise • Reduces network infrastructure, overhead costs and points of failure • Handles large amounts of data without corruption or loss MES Interface Products Warehouse Controls and Equipment MODERN system report The right truck for every application Lincoln Industries’ new fleet of lift trucks includes six different types of trucks. The fleet is comprised of: SIZE: electric sit-down counterbalanced rider trucks are used for loading trucks in the shipping department and to move dunnage. electric standup counterbalanced trucks operate in the receiving department and also move materials within the facility. PRODUCTS: SKUss SKU EMPLOYEES: EMP LOYEES: electric rider reach trucks are used for handling dunnage and odd-shaped material that isn’t easily handled with other trucks. walkie pallet jacks move pallets from a staging area to points of use on the production lines. LIFT TRUCKS: walkie reach trucks move raw materials from point-of-use storage at the line to assembly stations. LIFT TRUCK ATTACHMENTS: internal combustion pneumatic trucks are used indoors and in the yard at off-site facilities. SYSTEMS INTEGRATOR/DISTRIBUTOR: BATTERY CHARGING SYSTEM: Internal combustion pneumatic truck Electric sit-down counterbalanced Walkie pallet jack Walkie reach truck Electric stand-up counterbalanced Electric rider reach truck 24 AU G U S T 2 0 1 2 / MO D E RN MATE R IALS HA NDL I NG mmh.com Choose THIS not that OUR PALLET BUSTER CART PROVIDES SIGNIFICANT ADVANTAGES OVER PALLETS. TM • Maximizes cube space in truck, one cart equals two pallets. Saves on labor and fuel costs. • Eliminates the use of mechanized equipment (pallet jacks, forklifts, etc). • Carts are safer and more ergonomic. • Reduces chronic injuries associated with bending and lifting off pallets. • Carts are not flammable - wood and plastic pallets can be toxic, or flammable. • Carts are sustainable since they are made from steel. • More environmentally friendly, no additional wrapping materials needed. • Carts are more secure, protects load from product damage and reduces product theft. Ask us about our Pallet BusterTM and our automated cart loading machinery! Critical Industry News at Your Fingertips! Modern Materials Logistics Management Supply Chain Management CRITICAL TOPICS Critical Topic areas help you develop strategies and expand your knowledge. Each topic provides you with the news, information, and resources you need — each day. • Automation Modern Materials Logistics Management Supply Chain Management • Conveyors & Sorters • Inventory & Picking • Loading Dock Equipment • Mobile & Wireless • Shipping Pallets • Storage Systems • Containers & Totes • Energy & Sustainability • Lift Truck & Fork Lift • Handling & Warehouse Ergonomics • Packaging • Software & Technology www.mmh.com/criticaltopics Sponsored by Toyota Industrial Equipment By Josh Bond, Associate Editor Modern’s first comprehensive lift truck usage survey frames the decision-making process throughout the economic lifespan of a lift truck. How to acquire and when? How and when to train, repair? What data to collect, and what to do with it? Conducted by Peerless Research Group, the survey captures revealing—and sometimes surprising—information about the many ways a lift truck might make its way from the supplier’s showroom to the warehouse floor. From corporate policies to gut instincts, the results depict a real-world fleet landscape poised for sweeping change. Sponsored by: mmh.com Modern Mat eria l s Ha ndl ing / A Lift truck usage survey modern special report u g u s t 2012 27 Lift truck usage survey Sponsored by Toyota Industrial Equipment How customers acquire, maintain and replenish their fleets T he modern patterns of lift truck usage, acquisition and maintenance would be utterly unrecognizable to the facility manager of 1982. His fleet maintenance staff might be sufficiently qualified if they knew their way around an automobile engine. His finance department, with whom he rarely communicated, might arrange for delivery of a number of new forklifts every five years. The new equipment would join old equipment on the floor, on the dock, and in the truck shop, for as many years as it was on the depreciation schedule. Modern facilities can now select from a range of technologies to improve efficiency, capture data and drive process improvement. That said, there are still companies today that have found success in the older, simpler ways of fleet management, as well as companies that did not have a good experience when they finally decided to give new solutions a chance. From pen-and-paper safety checks to wireless runtime data, the results of a recent lift truck usage survey by Peerless Research Group (PRG) illustrate the modern lift truck landscape while capturing its rapid rate of change. 28 Au g u s t Lift truck usage survey offers most comprehensive snapshot available of current U.S. fleet management practices. By Josh Bond, Associate Editor What type(s) of lift trucks are in use at your facility? Electric-powered rider trucks, including counterbalanced, sit-down, and stand-up types (Class 1) 70% Electric-powered narrow-aisle trucks, including orderpickers, side-loaders, turret trucks, stackers, and reach trucks (Class 2) 43% Electric-powered pallet trucks, including walkies, riders, low and high lift, and reach types (Class 3) 56% IC-powered counterbalanced lift trucks with cushion tires (Class 4) 36% IC-powered counterbalanced lift trucks with pneumatic tires (Class 5) 28% Electric-powered and IC-powered rider-type tow tractors (Class 6) 8% Rough terrain lift trucks (Class 7) 12% Other 6% 2 0 1 2 / Mo d e rn Mate r ials Ha ndl i ng Source: Peerless Research Group (PRG) mmh.com Lift truck usage survey Sponsored by Toyota Industrial Equipment ment would expand the size of their fleet. The survey also contains cautionary data on how suppliers could lose business, with one in three respondents indicating they have removed a supplier from their short list. About half of respondents claimed to have such a list, which consists of those companies they find to be most competitive, responsive and dependable. “One of the messages here is that when users talk about reliability, they’re talking about it on two levels,” says Aschenbrand. “One is the equipment itself and the other is the company. If the customer feels disappointed in either, the supplier risks losing the business.” For this article, we selected a few of the most telling study results and asked Michael McKean, fleet management sales and marketing manager for Toyota Material Handling, for his take on what the numbers say about the past, present and future of lift truck usage. Designed to gauge activities and trends in lift truck usage, maintenance and management, this survey gives insight into the usage of fleet management technology, the impact of the economy on lift truck acquisition, and the types of trucks in use. In June 2012, a survey was sent by e-mail invitation to Modern Materials Handling magazine subscribers. A total of 348 qualified responses were received from readers who are personally involved in the evaluation and purchase of lift trucks in their facility. According to Judd Aschenbrand, director of research for PRG, the survey indicates a level of market activity that should be very encouraging to lift truck suppliers. Of the 64% of respondents who indicated they would buy or lease a lift truck in the next 24 months, one in 10 said they planned to buy 20 or more, and the average number was slightly more than six units. Exactly 30% said the new equip- Types of trucks in use According to figures from the Industrial Truck Association (ITA), electric lift trucks in classes 1, 2, 3, and 6 comprised 66% of shipments in 2009, a full 7% higher than in any year since the figures were recorded beginning in 1988. The figure fell by a percentage point to 65% in 2010. Today, survey respondents indicated Class 1 trucks alone make up 70% of their fleets, with internal combustion (IC) classes 4 and 5 at 36% and 28%, respectively. “It’s an electric market,” says McKean. “It used to be a 60/40 split between IC and electric. Now it has flipped the other way, and it’s never going back.” More companies are moving away from internal combustion, he says. The recession prompted both increased electric sales and a relative shift in market share as electric applications tended to center on more recessionresistant industries. Developments in Current state of purchase vs. lease Do you typically buy or lease your lift trucks? Reasons to lease • Cash flow, capital conservation • It’s a corporate policy • Gives flexibility while reducing upfront investment • Less maintenance/service in ncluded in lease • Allo lows us to use current technology Buy 60% Reasons to buy • Cheaper/cos ost/financial decision bettter ROI • Corporate polic licy • Accounting purpo rposes • Low hour usage • It’s what we’ve always done Average percent of lift trucks bought Average percent of lift trucks leased Lease 21% Both 19% Reasons to buy and lease Re 52% 48% • Cost/cash flow • Have a lease-to-buy program • Depends on the situation– sometimes lease, sometimes buy Source: Peerless Research Group (PRG) mmh.com Modern Mat eria l s Ha ndl ing / A u g u s t 2012 29 Lift truck usage survey Sponsored by Toyota Industrial Equipment battery and charging technology as well as government incentives helped stimulate that growth, says McKean. “There are still and will always be applications that can only be served by IC,” says McKean, “But I see the electric market continuing to grow in coming years.” Aschenbrand says the survey joins a number of other data points in the industry that illustrate the rise of electric lift trucks, but as with any single data point the results do not necessarily tell the whole story. “For all we know, a large number of respondents bought or expanded their fleets right before the economy hit the skids,” says Aschenbrand. “These numbers are interesting, but get even more interesting when you combine and cross-reference them. Then you can put some qualitative meat on the quantitative bones.” Purchase vs. lease For instance, 60% of respondents indicate they typically buy equipment outright, although the average number of units acquired through direct purchase is 52%. However, the average number of leased units is 48%, although just 21% of respondents say they typically lease. McKean predicts the third group of respondents, the 19% who said their decision to buy or lease depends on the lift truck and the situation, will likely grow in coming years. “Those are the companies that are thinking as opposed to reacting,” says McKean. Some respondents cited cor- Impact of economy on acquisition Influences to some extent • Cash flow, available capital “Budget constraints would hold us up on needed acquisitions.” Has little or no impact on how we acquire 47% To some extent 30% • Business conditions “Depending on the business volume and activity, the busier we are (the better the economy) the more often we consider updating the fleet..” “If “ f the econom my is sluggish and sales are down do company wide then there is no revenue to o buy new lifts.” To a great extent 23% IInfluences to a great extent • Cash flow, available capital “When the economy is weak we w tend to reduce our capital expenditures even if we are not directly impacted.” • Business conditions “If business is down we need d fewer trucks and we will postpone replacement. If business is good, we may get more.” “In a down economy, we are more likely to retain our lift trucks, and not replace them until we see clear signs that the market is picking up. Also if the market drops, the cost of lift trucks may drop with it.” Source: Peerless Research Group (PRG) 30 Au g u s t 2 0 1 2 / Mo d e rn Mate r ials Ha ndl i ng porate policy to only buy or only lease equipment, a practice McKean strongly cautions against. “One of the good things about financing is it forces someone to plan for an end, when each lift truck needs to be retired, replaced or recycled,” he says. “Buying does not require that discipline and you can end up with customers with equipment from companies that no longer exist. For some customers, a lift truck might have 20,000 hours and $100,000 in repairs, but if it is on a long-term depreciation schedule then it is locked-in and those numbers are irrelevant.” As opposed to blanket policies, McKean recommends customers with more than two trucks establish a core fleet. “They should be thinking about planning in one way for the core fleet and planning in a different way for whatever else might be needed to support seasonal fluctuations in demand,” he says. “There are not enough companies looking at the concept of a core fleet, which can save a lot of time and money.” Pairing the right acquisition practice to the right truck begins with improving fleet visibility, which can often require capital outlays, process improvements and new technology. The study reflects a tepid growth in customer interest in fleet management technology, yet a budding interest that McKean has also seen among his clients. “When a customer who has always bought suddenly comes in and asks about financing, something has happened within their corporation,” says McKean, who says these decisions typically follow the customers’ collection of new fleet metrics. “In the past five years, we have customers that are looking for data beyond the hour meter for the first time.” How far has technology penetrated fleet management? According to survey results, tracking the hour meter or age of the lift truck is third on the list of most popular uses of fleet management technology. It follows mmh.com Lift truck usage survey Sponsored by Toyota Industrial Equipment Current state of maintenance arrangements Reasons to handle in-house • Cost effective Reasons to outsource to service contractor • Convenience • Cost • Expertise and reliability Outsource to mainte enance/ service contractor or 15% Other Handled by in-house staff 34% 4% • Better control “Having our own mechanic shop cuts down on downtime and from inventorying extra equipment if we have to wait for third-party firms to do repair.” “Puts our lift truck back in service quicker.” “Keeps employees involved with upkeep.” “More consistent service; better coverage for multi-shift operations.” “We have the capacity to handle ourselves.” Outsource to lift truck dealer 47% Reaso sons to outsource to lift truck dealer • Less expensive • More knowledgeable/expertise “Consistency of service provided; d Superior knowledge of equipment being serviced.” “Don't have the manpower/knowledge/resources to handle in house.” • Part of the lease contract. Source: Peerless Research Group (PRG) maintenance history and cost in the top slots, at 90% and 77%, respectively. Just 43% of respondents have implemented or plan to implement some kind of technology to help manage their fleets; a number McKean says is certainly on the rise, but not at the pace he would have expected. “Some companies are trying to embrace technology, but some companies are making what might be irrational decisions,” says McKean. “If a customer has technology, or a tool to measure, then they can come to a vendor and ask, ‘What can you save me?’” For those companies who have yet to get into fleet management, not being able to “see” the savings might be a key reason why they do not explore it, says McKean. Or, they might see marginal savings but question whether the change in processes is worth it. “It might not be that they lack the mmh.com time or resources to make that change,” he says. “They simply don’t see the value.” How does the economy impact fleet acquisition? Time is money, and, especially since the recession, decisions based on future business conditions can be difficult. The survey results grant some insight into the impact of the economy on fleet acquisition, with more than half of respondents saying the economy influences their decisions either to some extent or to great extent. “The economy is a barometer, and it’s more about emotion,” says McKean. Generally speaking, the lift truck market will grow or contract in direct proportion to the state of the economy. But for those customers who claim the economy has little or no impact on their fleet acquisition, one of two things might be happening. The customer might be on a fixed replacement cycle and is comfortable having idle trucks during slow times. “No one ever complains when the lift truck is parked,” says McKean. “They complain when it’s not there.” Or perhaps the customer’s acquisition habits are based on fleet management data, or considerations of the core fleet and seasonal fleet. “Folks who fleet manage might not make wait-and-see decisions or might not consider the economy the direct driver of acquisitions,” says McKean, who says good data can prompt seemingly counter-intuitive buying decisions in an economic downturn. “Say for instance the maintenance costs are up on a high-use lift truck when the economy suddenly slows. A wait-and-see customer might have a hard time justifying the cost to replace that vehicle, but a company with a well-managed Modern Mat eria l s Ha ndl ing / A u g u s t 2012 31 Lift truck usage survey Sponsored by Toyota Industrial Equipment How far has technology penetrated lift truck management? What are you tracking? 90% Maintenance history Have you adopted or do you plan to implement technology to help manage your fleet? 77% 66% 62% 57% 56% Cost to maintain Age of trucks Safety (including accidents, injuries, etc.) Cost to operate (fuel/power consumption, training, etc.) Level of utilization 40% 30% 28% Up-time Yes No Labor: Automated tracking vs. manual tracking 43% Productivity levels 57% How successful is your fleet management software implementation? 40% 46% 5% Extremely successful Very successful Somewhat successful 5% 4% Not very successful Not at all successful Source: Peerless Research Group (PRG) fleet will be able to see the savings that purchase can produce.” Fleet maintenance practices Fleet data can help inform equipment buying patterns as well as help control equipment maintenance costs, where the budget might lack the scrutiny applied to capital expenses. The least common data points captured by fleet management technology adopters include utilization, up-time and productivity levels. Although a customer might set out on the path of fleet technology with those specific purposes in mind, it is instead the visibility into maintenance costs that often proves most rewarding. Just 34% of respondents still primarily service or maintain their fleets in-house. According to McKean, it used to be that job security, whether union or not, was in the maintenance department. 32 Au g u s t “The shrinking of the truck shop came at about the same time the word ‘outsourcing’ entered the business landscape, say, 20 years ago,” he says. “At that time, I’d estimate more than 50% of maintenance was handled in-house. It was a part of how companies did business. And lift trucks were easier to work on. Now, the lift truck technology has changed so much that well-trained technicians are very highly valued.” As a result, maintenance and service contractors account for 15% of outsourcing, and lift truck dealers have managed to capture 47% of the market, according to the study results. Many customers have made the move to eliminate the maintenance bay and free up valuable real estate in their facility. McKean says companies often have difficulty keeping technicians up to speed with current technology, and so they have turned to the dealer’s expertise for cost savings. 2 0 1 2 / Mo d e rn Mate r ials Ha ndl i ng “Some folks say they can’t afford the dealer technicians,” says McKean. “But if their in-house tech is paid a third of the rate and takes five times as long to complete the repair, the customer is not ahead.” This scenario becomes more likely as the complexity of lift truck technologies increases, he says. “Lift trucks have evolved, and so has the process of maintaining them. The number of companies outsourcing to dealers will grow in direct proportion to the evolution of lift trucks.” That process of evolution has been more rapid in the past 10 years than in the half century before. The lift truck usage study affirmed the average lifespan of a lift truck is a little more than seven years, meaning many customers will soon be approaching a crossroads between yesterday’s technology, maintenance, and acquisition practices and those of tomorrow. M mmh.com to Scan now ng your ti la u begin calcsavings. fuel We hate to brag. So we’ll let the United States Auto Club do it for us. In recent independent testing for fuel efficiency, our 5,000 lb. cushion internal combustion lift trucks came out on top. In some cases, by a very wide margin. How wide? Up to $6,200 in fuel costs savings per year wide. So if saving fuel and money, without sacrificing productivity, are important to you, you owe it to yourself to get the whole story today at www.toyotaforklift.com. 800. 226.0009 Reference USAC Properties, Inc. Certification No. 11-CPC-249. MODERN information management The smarter lift truck Fleet management software is evolving from a tool to track maintenance to a platform for the smarter lift truck. By Bob Trebilcock, Executive Editor H igh technology, automatic data collection, sensors and software are probably not the first words you associate with lift trucks. Today’s lift trucks, however, are highly sophisticated pieces of machinery. “Over the last 10 or 20 years, the technology within the lift truck has evolved immensely,” says Mike McKean, sales and marketing manager for Toyota Material Handling USA. “The brains of the lift truck have grown. The dashboards display so much more information than in the past.” That technology is moving beyond the dash. Thanks to sensors, microprocessors and CAN bus technology, today’s lift trucks have the capability to collect and communicate lift truck data in real time. In turn, fleet management software systems can use that data to manage the maintenance of the truck or monitor how a driver is operating the vehicle. It can perform that management for an individual truck or driver, a fleet of trucks, or team of drivers—in one location or across multiple locations. It’s possible to feed that information to other management software systems, such as labor management (LMS), warehouse 34 AU G U S T 2 0 1 2 / MO D E RN MATE R IALS HA NDL I NG mmh.com Ironclad® exclusive square tube technology exposes 22% to 67% more positive surface plate area to the electrolyte than round or flat plate designs. The result is higher sustained voltages – and higher work capacity – throughout the discharge cycle. Better electrolyte circulation produces higher voltages, more power. 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This represents an evolution of fleet management software over the last few years. Tracking maintenance The earliest iterations of fleet management software were used to keep track of maintenance. Indeed, that is still the most common use of the technology, aiding equipment manufacturers to improve their products as much as end users. “Using fleet management software, we know what repairs were made on what trucks and at what intervals of usage,” says Joe LaFergola, marketing manager of business and information solutions for Raymond. “If we see a trend developing around the failure of parts, we can do a root cause analysis on the affected parts and implement programs to reduce the cost there.” For end users, maintenance systems are used to schedule planned maintenance events and to track unplanned and exception repairs. Those repairs can also be compared against the hours of use to see if a truck is getting more or less hours between repairs than is expected or if the truck is getting more maintenance than is necessary for the hours of operation. Together, they provide a snapshot of how the truck is performing and how it is being maintained. Taken to the next step, the systems can be used to automate the components of a maintenance transaction. With intelligent dispatching, for instance, either the system itself or the end user can provide information that allows some problems to be solved without ever sending a technician. In the alternative, the system may ensure that a technician has the right tools and parts to address an issue on the first call. “This allows us to obtain as much information as possible before a service call even gets to the dealer,” says Pat DeSutter, who is with Yale’s fleet management program. “We can then make sure we’re dispatching a technician based on the skill required and the availability of parts.” Fleet management programs are used to schedule and track all maintenance events over the life of a vehicle. Right sizing the fleet With sensors tracking when a lift truck is in motion, when it is at rest, or when the forks are engaged in lifting and lowering, information is now available to track the utilization of a fleet. “If you measure how a truck is being used and how much of the time it’s idle, you might find that instead of 10 trucks in the shipping department, you only need Owens & Minor maximizes fleet with management software Facing pressure to reduce costs and improve its operations, Owens & Minor turned to a forklift fleet management program (Crown Equipment Corp., crown.com) to collect information being generated at the forklift level. The goal was to gain visibility into how many trucks were in operation, how and when those trucks were being used, and the levels of productivity of the trucks and their operators. “We wanted a system that would provide greater visibility into our forklift fleet operation, allowing us to objectively determine the true utilization of our fleet,” says Charlie Winnagle, director of corporate operations. The software system was installed in December 2010 on a fleet of 33 electric forklifts at a facility in Richmond, Va. The fleet included stockpickers, reach trucks and walkie riders. By January 2011, just one month 36 Au g u s t after the installation, Owens & Minor had begun to uncover opportunities to increase efficiencies. For instance, it determined that two stockpickers were not being used and could be removed immediately with no changes in productivity. Operations managers were also able to determine that there was a narrow window of time when most of the equipment was in use. With a little tweaking of processes, Owens & Minor was able to eliminate an additional two trucks only four months into the installation. In addition to right sizing the fleet, the fleet management system is also being used to monitor workplace safety regulations compliance and impact from operator errors. “With the system, we can permit truck access only to those operators with the required certification,” says Ron Smarsh, general manager of the 2 0 1 2 / Mo d e rn Mate r ials Ha ndl i ng Richmond DC. “Because inspection checklists are integrated into the management console, we can ensure that equipment is properly inspected every day, and we can quickly produce the proper documentation, if needed.” The system also helps Owens & Minor track impacts. “We set up the truck so it automatically stops after an impact occurs, and an e-mail alert is sent to our management team,” Smarsh says. “The truck can only be restarted by a supervisor, allowing us to immediately find out what happened.” Owens & Minor is so pleased with the ongoing results from its installation that the company is currently expanding the use of the system to its Baltimore, Detroit and Louisville facilities. The company is optimistic the system can help reduce the high maintenance costs the facilities are experiencing with their fleets. mmh.com Your Ultimate BUY ONE GET ONE FREE Program Every Kenwood two-way radio comes with the best BOGO offer ever made. With every Kenwood radio you buy, you also get a local Kenwood Authorized Dealer who understands your business, really knows wireless and only offers the products and services tailored to businesses in your community, instead of choices dictated by a national plan. No matter what your voice or data communications requirements are, your Kenwood Authorized Dealer can help. Each is a partner dedicated to finding the right product fit for you. Each is your neighbor and your local wireless expert. Steve Keller is one of the founders of Radio One, Inc., based in Atlanta, Georgia, a Kenwood Authorized Dealer with a mission statement that “providing total customer satisfaction and exceeding expectations is always our number one goal.” 1-800-950-5005 Scan with your phone for information and current promotions. ADS#35012 modern information management eight,” says Toyota’s McKean. In many facilities, managers assume their fleet is being fully utilized throughout a shift because of the activity that typically takes place within a plant or distribution center. Facilities may also have a mix of equipment based on how work was once performed in the facility, even if products, processes and lines have changed. They might even have more trucks than they realize. Fleet management software provides hard data to back up or refute those assumptions. “One of our customers told us he needed more trucks,” recalls Jim Gaskell, director of global Insite prod- ucts for Crown Equipment. “When we installed the software, he discovered he had two more trucks than he thought he had. They weren’t being used at all.” In fact, it’s not uncommon for a facility to learn that the fleet is only being utilized at 50% or so of capacity. “For instance, we can learn how many operational hours are being used for lift and travel or how many trucks are being used simultaneously,” Gaskell says. “There may be peak periods when New software applications can automate the data collection process and eliminate the need to hand scan bar codes. they are using all of their equipment, but if that peak only lasts 10 or 20 minutes a shift, you can ask whether they really need those trucks or if they should change their processes.” Operational information can also provide a real-time view of where in a facility trucks are being used. That allows a supervisor to shift idle drivers in one area to a busy area during peak periods. Managing operators The same tracking systems that monitor the performance of the trucks can also be tied to the performance of the operator. “The wireless tracking devices 38 Au g u s t 2 0 1 2 / Mo d e rn Mate r ials Ha ndl i ng mmh.com “One of our customers told us he needed more trucks. When we installed the software, he discovered he had two more trucks than he thought he had. They weren’t being used at all.” —Jim Gaskell, director of global Insite products for Crown Equipment that monitor the usage of a truck also allow us to put operator check lists online, to manage operator licenses or to monitor the hours required by a particular operator to perform a task,” says Raymond’s LaFergola. If an operator is picking an order, for instance, the system can track how much travel there was between pick stations or how much time was required to lift or drop off a load. “If a task should take 30 seconds and it’s taking longer, we can take steps to increase productivity,” LaFergola says. “Among the customers that have implemented the system, we’ve seen 3% to 5% increases in productivity.” In addition to managing labor, the system can be used to ensure that only qualified operators are on a particular piece of equipment or working in authorized areas. If an operator’s license is past its renewal date, for instance, the system can lock that operator out of a truck. Similarly, if an operator travels into an area where he isn’t authorized to work or impacts something with enough force to damage the truck, the product or a structure, the system can shut down the truck and send an alert to a supervisor to address the situation. Similarly, the system can be used to control the performance of an operator. “If you have a new operator who is learning to drive, you can limit the travel and lift speeds,” says Gaskell. “No matter what truck he gets on, he’ll be at that reduced performance level until he gets experience.” Here today, used tomorrow Despite those capabilities, fleet management software is not yet widely used beyond a tool for managing maintenance. The problem, say the experts, is that the available data being collected by the trucks is like drinking from a fire hose. “End users are overwhelmed,” says Raymond’s LaFergola. “They don’t know where to start.” Yale’s DeSutter concurs. “We expected that telemetry and sensors would equip the customers to act on driver accountability and training and to use the data to avoid mmh.com Doosan is committed to protecting and preserving the environment in which we live. Protecting the environment in whichh we live is one of Doosan’s key objectives when building forklifts. Our product line ranges from 3,000 lb to 36,000 lb capacity forklifts. Doosan’s Internal Combustion forklifts boast fuel efcient engines that are certied compliant to meet EPA standards, aiding in the reduction of harmful emissions. Additionally, Doosan’s Electric forklifts feature AC control technology for improved efciency of its drive and hydraulic systems. Preserving the environment is what works to keep our customers safe and secure because at Doosan, Orange is the new Green. To learn about our company, products, or to contact an authorized dealer near you, visit www.doosanlift.com. Take a look and discover that there is a lot more to Doosan. Think Doosan. Doosan works. MODERN MAT ERIA L S HA NDL ING / A U G U S T 2012 39 modern information management costs,” he says. “So far, we haven’t seen that.” LaFergola sees an opportunity for the lift truck industry to provide consultative services: Suppliers and distributors can sift through and analyze the data to show their customers how they can alter their processes to make their operations more efficient. “Our heart and soul is in making lift trucks,” he says. “But we recognize that there is this need. We are working with dealers to move into this solution.” One example of how this might be done is using data from a customer’s labor or warehouse management systems in combination with the data collected from the fleet management system to improve labor standards. Toward a smarter lift truck While few end users are ready to use lift truck data to drive process improvements, lift truck software is already evolving toward a platform for smarter operations. A combination of software and hardware, for instance, can automate the data collection process and eliminate hand scanning. Available systems use optical scanning technology to automatically scan and read pallet labels when they are picked up by the truck, associating that specific pallet with that specific truck in the fleet management software. Since the system is tracking the location of the truck as it moves through the facility, the system can record a putaway or drop location to within the inch without the driver scanning the bar code. That information can then feed the inventory management module in a WMS. Fleet management software may also be used to improve task interleaving within the warehouse. “Since we know the real-time location of every truck and pallet, we believe we can feed higher quality data to a WMS for better decision making,” says Total Trax’s Van Wormer. Meanwhile, Jungheinrich has developed several types of Fleet management programs can also track the performance of operators. New applications combine fleet management with RFID and GPS technology to automatically determine the most efficient route to a picking location. warehouse navigation technology for its lift trucks. “We’re integrating the truck with the WMS to help drivers find the most direct routes to get their work done,” explains Michael Wiesenegg, product line manager of warehouse systems for MCFA, which markets Jungheinrich trucks in North America. In these applications, the layout of the warehouse is programmed into the fleet management software. When the WMS sends a task to an operator, it also sends a file to the truck, telling it where it needs to go. Using the layout drawing, the truck provides turn-by-turn directions to the driver, similar to the GPS system in an automobile. For narrow-aisle guided truck applications, trucks are outfitted with RFID readers that read transponders installed in the floor in the aisles. When a truck passes a transponder, it knows exactly where it is and calculates the fastest combination of driving and lift speeds to safely and productively get to the right pallet position for the pick. The system is accurate to within 0.4 inches to 1.2 inches. “We are seeing productivity gains of up to 25% in narrowaisle systems based on pallet moves per hour,” says Wiesenegg. More importantly, he says, these types of advancements ensure that lift trucks remain an integral part of operations, even as automation makes strides further. “We are always looking at how we can improve product flow in a warehouse,” he says. “As software and lift truck technology advances, we will incorporate more solutions into our trucks.” M Companies mentioned in this article Crown Equipment: crown.com MCFA/Jungheinrich: mcfa.com Raymond: raymondcorp.com Total Trax: totaltraxinc.com Toyota Material Handling USA: Yale: yale.com toyotaforklift.com modern special report TOP Lift truck suppliers By Lorie King Rogers, Associate Editor Continuing an upward climb, the worldwide industrial lift truck market is seeing orders and shipments on the rise again. mmh.com I t was onward and upward for the 2011 worldwide industrial lift truck market. Once again, order and shipment figures were up from the previous year, despite economic conditions that remained unchanged from 2010 into 2011. To get an insider’s take on what the numbers tell us about the last year’s lift truck market and what we might expect going forward, Modern reached out to Jim Moran. Moran, who recently retired as senior vice president of Crown and continues to serve as chairman of the Industrial Truck Association (ITA, indtrk.org), said he’s optimistic about the current state of the world lift truck market, but still somewhat cautious about making predictions. “There are a lot of reasons to be very cautious, and it’s tough to predict,” he says. “Everybody knows the economy is growing, but at a slow pace.” Modern Mat eria l s Ha ndl ing / A u g u s t 2012 IT’S 10 O’CLOCK. DO YOU KNOW WHAT YOUR LIFT TRUCK IS DOING? iWAREHOUSE® KNOWS. DO YOU KNOW WHO IS OPERATING YOUR LIFT TRUCK? ARE YOUR LIFT TRUCK OPERATIONS OSHA COMPLIANT? ARE YOU LOSING PROFIT DOLLARS AS A RESULT OF IMPACTS? ARE YOU BEING CHALLENGED TO INCREASE PRODUCTIVITY AND DECREASE COSTS? iWAREHOUSE answers these questions. It automates lift truck and operator data capturing as part of a warehouse optimization system. Get better productivity, less downtime and increased ROI. For everything from compliance to warehouse optimization, choose iWAREHOUSE — the industry’s most powerful and comprehensive fleet optimization solution. WAREHOUSE OPTIMIZATION FLEET OPTIMIZATION Expert Consulting Warehouse Metrics Warehouse Metrics Optimization Plan Labor Savings Labor Savings ACCOUNTABILITY AND RISK MANAGEMENT Fleet Sizing Fleet Sizing Maintenance Maintenance Impact Management Impact Management Impact Management Access Control Access Control Access Control Get your questions answered with iWAREHOUSE at raymondcorp.com/iwarehouse. iWAREHOUSE BY modern special report That said, Moran explains that the first five months of 2012 saw lift truck market figures up 20% compared to 2011. Moran expects the pace of growth to taper off through the rest of the year, adding, “There’s all kinds of uncertainty in the economy, and it would surprise me if the growth rate was bigger than 7% to 10% by the time all the dust settles.” That sentiment is shared by ITA members, who are surveyed each quarter about what they expect to happen over the current year and into the next. According to feedback, members felt demand would increase about 3% on average in 2012 over 2011. Growth by region While ITA member surveys currently reflect a conservative outlook, the lift truck market statistics of last year reflect positive growth domestically and around the world. According to ITA’s worldwide industrial truck figures, orders were up 22.67% and shipments were up 27.15% in 2011. (See the “Worldwide lift truck market” table.) Each of the five reporting geographic regions also experienced growth in orders and shipments. • The Americas were the stars of 2011, with shipments up 36.35% and orders up 24.12%. The region went from shipping 152,160 units in 2010 to shipping 207,485 units in 2011. But the Americas weren’t the only bright spot. • Oceania had a shipment increase of 33.8%. After shipping 14,468 units in 2010, the region shipped 19,359 units last year. • Europe shipped 324,073 units in 2011, which resulted in an increase of 28.45% over 2010’s 252,290 units. • Asia shipped 373,697 units in 2011, up from 307,529 units in 2010. Shipping more units than any region, Asia experienced a 21.51% increase over 2010. • Africa reported a 20.71% increase, shipping 17,194 units in 2011, up from 14,243 units in 2010. In total, worldwide shipments rose from 740,690 in 2010 to 941,808 in 2011 and orders climbed to 974,582 units ordered. And, while the worldwide lift truck markets experienced growth collectively, the Top 20 lift truck suppliers experienced growth independently. The Top 10 It’s like déjà vu all over again. This year’s top five suppliers are last year’s top five suppliers (See the table on right for the complete list of Top 20 suppliers). Toyota remains at the head of the pack, with $5.9 billion in revenue. At the No. 2 spot, the Kion Group posted Worldwide lift truck market Orders Region 2010 Europe (53 countries/territories) 267,436 330,616 Americas (55 countries/territories) 181,060 224,733 Asia (43 countries/territories) 315,449 15,534 Africa (56 countries/territories) 2011 Shipments % Increase 2010 2011 % Increase 23.62% 252,290 324,073 28.45% 24.12% 152,160 207,485 36.35% 379,696 20.36% 307,529 373,697 21.51% 17,587 13.21% 14,243 17,194 20.71% Oceania (29 countries/territories) 14,973 21,677 44.77% 14,468 19,359 33.80% Total (236 countries/territories) 794,452 974,582 22.67% 740,690 941,808 27.15% Source: These figures are provided by the World Industrial Truck Statistics (WITS) organization. ITA’s lift truck classifications 45 Class 1, Lift Code - 1 Class 1, Lift Code - 4 Class 1, Lift Code - 5 Class 1, Lift Code - 6 Class 2, Lift Code - 1 Counterbalanced Rider Type, Stand Up Three Wheel Electric Trucks, Sit Down Counterbalanced Rider, Cushion Tires, Sit Down Counterbalanced Rider, Pneumatic or Either Type Tire, Sit Down High Lift Straddle Au g u s t 2 0 1 2 / Mod e rn Mate rials Hand l ing mmh.com Top 20 industrial lift truck suppliers in 2011 Rank Company 2010 Rank 2011 Revenue* World headquarters North American brands 1 Toyota Industries Corp. 1 $5.9 billion Toyota, Raymond Aichi, Japan 2 Kion Group 2 $5.6 billion Linde Wiesbaden, Germany 3 Jungheinrich AG 3 $2.7 billion Jungheinrich (sold in NA by MCFA) Hamburg, Germany 4 NACCO Industries 4*** $2.5 billion Hyster, Yale Cleveland, Ohio 5 Crown Equipment Corp. 4*** $2.1 billion Crown, Hamech New Bremen, Ohio 6 Mitsubishi Caterpillar Forklift 6 $1.4 billion Mitsubishi, CAT, Rocla, Jungheinrich (NA only) Sagamihara, Japan 7 Komatsu Utility Co. 7 $1.1 billion Komatsu, Tusk Tokyo, Japan 8 Nissan Forklift Corp. 8 $1 billion Nissan, Barrett, Atlet Tokyo, Japan 8 Anhui Forklift Group 10 $1 billion Heli Hefei, Anhui, China 10 Nippon Yusoki Co. 11 $879 million Not available in North America Kyoto, Japan 11 TCM Corp. 9 $746 million TCM Tokyo, Japan 12 Clark Material Handling 12 $677 million Clark Seoul, South Korea 13 Doosan Infracore 13 $532 million Doosan Infracore Seoul, South Korea 14 Zhejiang Hangcha Engineering Machinery Co. 14 $381 million** HC Hangzhou, China 15 Hyundai Heavy Industries 15 $374 million Hyundai Ulsan, South Korea 16 Tailift 16 $152 million** Tailift, World-Lift Taichung, Taiwan 17 Combilift 17 $125 million Combilift Monaghan, Ireland 18 Hubtex 18 $91 million** Hubtex Fulda, Germany 19 Godrej & Boyce Manufacturing 20 $64 million Not available in North America Mumbai, India 20 Paletrans Equipment N/A $58 million Paletrans Cravinhos, Brazil *Fiscal year 2011 worldwide sales revenue - Figure based on foreign exchanges rates as of 12/31/11 **Figure based on industry estimate Class 2, Lift Code - 2 Class 2, Lift Code - 3 Class 2, Lift Code - 4 Class 2, Lift Code - 6 Class 3, Lift Code - 1 Order Picker Reach Type Outrigger Side Loaders, Turret Trucks, Swing Mast and Convertible Turret/Stock Pickers Low Lift Pallet and Platform (Rider) Low Lift Platform mmh.com Modern Material s Handl in g / A u g u s t 2012 46 ITA class of trucks manufactured Class 1 Class 2 Class 3 Class 4 Class 5 x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x 47 $5.6 billion. That represents a 23% increase in revenue over 2010 and is closing the gap between the first and second supplier positions. Jungheinrich, which holds the No. 3 position again, reported $2.7 billion, up 13% over 2010. Holding on to the No. 4 ranking is NACCO Industries, with $2.5 billion in revenue. Crown Equipment Corp. rounds out the top five, reporting $2.1 billion in 2011. Last year NACCO and Crown both reported $1.8 billion and shared the No. 4 position. The remaining top 10 suppliers include Mitsubishi Caterpillar Forklift, which holds on to the No. 6 ranking with $1.4 billion, up 19% over last year. Komatsu is also in a repeat position at No. 7, with $1.1 billion. Nissan Forklift and Anhui Forklift share the No. 8 position with $1 billion. Rounding out the top 10, and moving up one position in the ranking, is Nippon Yusoki, which was up 12% to $879 million. Changes to the list This year’s Top 20 welcomes Brazilian lift truck supplier Paletrans Equipamentos at the No. 20 position. Headquartered in Cravinhos, a municipality in São Paulo, Brazil, Paletrans reported $58 million in revenue last year, up from $56 million in 2010. Off the Top 20 list this time around is China’s Hytsu lift truck supplier, which manufacturers forklift brands Hytsu and T&U. The company reported $38.48 million in revenue last year, down from $69 million in 2010. The decline was attributed to a decrease in its main European market and a factory closing. Making Modern’s list For a lift truck supplier to make Modern’s top 20 list this year, the company had to report at least $58 million in revenue for 2011. Together, the top five companies reported a com- Class 3, Lift Code - 2 Class 3, Lift Code - 3 Class 3, Lift Code - 4 Class 3, Lift Code - 5 Class 3, Lift Code - 6 Low Lift Walkie Pallet Tractors (Draw Bar Pull Under 999 lbs.) Low Lift Walkie/Center Control Reach Type Outrigger High Lift Straddle Au g u s t 2 0 1 2 / Mo d e rn Mate rials Han d l ing mmh.com How the suppliers are ranked To be eligible for Modern’s annual Top 20 lift truck suppliers ranking, companies must manufacture and sell lift trucks in at least one of the Industrial Truck Association’s seven truck classes: electric motor rider; electric motor hand trucks; internal combustion engine; pneumatic tire; electric and internal combustion engine tow tractors; and rough terrain lift trucks. Rankings are based on worldwide revenue from powered industrial trucks during each company’s most recent fiscal year. Revenue figures submitted in foreign currency are calculated using the Dec. 31, 2011 exchange rate. bined revenue figure of $18.8 billion in 2011, up 13.25% from a combined $16.6 billion figure in 2010. The top ten 2011 lift truck suppliers reported revenue of nearly $24.2 billion, which is up from $24.17 billion in 2010 and $20.17 billion in 2009. Also on the rise is the number of companies crossing the billiondollar threshold. Nine of the top 10 suppliers reported revenue in the billions, compared to seven in 2010 and five in 2009. What to watch While we watch to see if revenue figures continue to grow, we’re also watching the green trend grow. “There’s no question that there’s an ongoing interest in protecting the environment, and we’re seeing more people using fuel cells,” says Moran. Moran also says that end users are asking more questions about green initiatives and environmental impact as they pursue requests for quotes, but there has to be a balance. “Most green things end up making business sense, meaning they take cost out of doing business, or they don’t last. Users want to protect the environment but keep their business hats on while doing it.” Looking forward, the biggest industry news is the merger between Nissan and TCM. When Modern went to press, documents were slated to be completed in August for the finalization of the merger which will result in the formation of a new organization known as UniCarrier. Next year, Nissan and TCM will report together under the UniCarrier name, and Modern will continue to watch and see how this business merger affects the lift truck market and the annual Top 20 lift truck suppliers list. M ITA’s lift truck classes The Industrial Truck Association (ITA, www.indtrk.org) has defined seven classes of lift trucks, or forklifts, which are defined by the type of engine, work environment, operator position and equipment characteristics. Forklift classes include: • Class 1: electric motor trucks with cushion or pneumatic tires • Class 2: electric motor narrow aisle trucks with solid tires Class 3, Lift Code - 7 High Lift Counterbalanced mmh.com • Class 3: electric hand trucks or hand/rider trucks with solid tires • Class 4: internal combustion engine sit down rider forklifts with cushion tires, suitable for indoor use on hard surfaces • Class 5: internal combustion engine sit down rider forklifts with pneumatic tires, suitable for outdoor use on rough surfaces • Class 6: electric or internal combustion engine powered, rider units with the ability to tow (rather than lift) at least 1,000 pounds • Class 7: almost exclusively powered by diesel engines with pneumatic tires, these units are suitable for rough terrain and used outdoors. Since mostly classes 1 through 5 are used in materials handling applications inside the four walls, Modern has only specified those on our supplier table. Class 3, Lift Code - 8 Class 4, Lift Code - 3 Class 5, Lift Code - 4 Low Lift Walkie/Rider Pallet Fork, Counterbalanced (Cushion Tire) Fork, Counterbalanced (Pneumatic Tire) Modern Mat eria l s Ha ndl ing / A u g u s t 2012 48 Your BEST source for new products in materials handling! Introducing MHPN.com Your daily source for new products Covering: • Automated Data Capture • Lift Trucks & Accessories • Automated Storage • Conveyors & Sortation • Containers & Totes • Packaging & Pallets • Dock Equipment • And much more MHPN.com, Material Handling Product News’ new Web site, offers the most comprehensive listing of new products in the materials handling industry. Whether you’re looking for the newest innovations in dock equipment or the latest software to control your material flow in the warehouse, MHPN.com is your first stop. Check out MHPN.com today! www.mhpn.com modern productivity solution By Noël P. Bodenburg, Executive Managing Editor Sortation helps speed growth Double-density tilt tray sorter transforms order fulfillment for Oriental Trading Company. O riental Trading Company (OTC), one of the nation’s largest direct-to-consumer retailers and distributors of party supplies, needed high throughput in a compact system footprint to keep up with the exploding growth of orders and SKUs. So it was appropriate when the company built a new 750,000-square-foot distribution center in LaVista, Neb., that it used a new picking methodology that it refers to as “explode and assemble.” One key component of the system is a tilt tray sorter (Beumer Group, beumergroup.com). The system feeds 600 packout stations and was configured to support an increase in OTC’s product offerings—to up to 50,000 SKUs—and improve productivity and order accuracy. In 2011, the DC picked and packed 79 million units, productivity increased by 45%, and order accuracy improved from 99.25% to 99.93%. “The explode and assemble process enables our system to explode customer order items into large unit waves, and then reassemble these orders into packout locations utilizing a high-speed unit sorter,” said Deon Wagner, vice president of fulfillment center operations. The double-density, split-tray design doubles the mmh.com sorter system capacity and was designed to use the DC’s available space with optimal efficiency. And, the chute width at the packout stations was optimized to enable more stations in the same footprint, compared to industry standards. Order processing works like this: To “explode” the orders, four picking and packing subwaves are created from the original wave coming; picking tasks are assigned to an induction location on the sorter, and orders are assigned to a chute leading to the packout locations. For the “assemble” part of the orders, items for a single order are sent to a packout location. After an order is packed into a shipping container, it is scanned again. When the carton is 100% complete, it is sorted to an automated tape-sealing machine and the shipping sorter. Exceptions are conveyed to an exception handling station. According to Wagner, the sorter has enabled OTC to sort more than 400,000 units during its peak day at an accuracy rate of 99.8%. Since the sorter can sort more than 43,000 units per hour, OTC is able to leverage wave size to increase pick density and reduce visits to pick locations to once per wave. Modern Mat eria l s Ha ndl ing / A u g u s t 2012 51 modern productivity solution Conveyor handles complexity Trojan Battery improves efficiency with minimum pressure conveyor system. T rojan Battery is the world’s leading manufacturer of deep cycle batteries. The batteries are built to meet the complex requirements of today’s advancing applications for the renewable energy, golf, heavy duty truck, serial/scissor lift, floor machine, RV and marine industries. But when looking to improve efficiency at its own manufacturing facility, the company realized it had some close axle centers to maximize the system’s capacity and maintain throughput. And, 1.9-inch diameter rollers and heavy duty UHMV guarding were used throughout the system for added strength in the abusive environment. “The conveyors are robust enough for our harsh environment and help us to be as efficient as possible in our manufacturing process,” said Eric Rueter, the company’s director of process engineering. This new system increased Trojan’s battery production, reduced manufacturing costs, and created additional shipping capacity. Rising to the challenge Beverage distributor implements a conveyor and sortation system to process 200,000 bottles a day out of two Michigan warehouses. complex requirements of its own. In its Lithonia, Ga., facility, the company was looking for ways to move the battery cases through machines during the pre-acid fill assembly process. Space was tight, the environment was harsh, and battery weight varied from empty plastic shells to 50-pound, lead-filled cases ready for acid filling and sealing. The solution (Conveyors & Drives, condrives. com; Hytrol, hytrol.com) was a conveyor system that uses tight radius curves to avoid columns located throughout the facility and to keep the line moving efficiently. The minimum pressure conveyors are set on 52 Au g u s t 2 0 1 2 / Mo d e rn Mate r ials Ha ndl i ng W hen the liquor distribution network was privatized in Michigan, National Wine & Spirits became one of three authorized distribution agents to receive deliveries from producers, warehouse the liquor, accept and reconcile orders from more than 12,000 licensees and make approximately 8,000 weekly deliveries. More than 350 suppliers of wine and spirits sell their products to National Wine & Spirits. The company distributes more than 7,000 products through a master warehouse in Brownstown, Mich., and a hyperterminal in Grand Rapids. National worked with a supplier (W&H Systems, whsystems.com) to automate the master warehouse mmh.com REACHING NEW HEIGHTS WITH HEAVIER LOADS and hyper-terminal. High-speed conveyors and sortation systems handle thousands of cases per hour. All of the slowermoving full case and bottle SKUs are picked in Brownstown and loaded onto the trucks so that when they get to Grand Rapids, they can be properly sequenced with the Grand Rapids goods. "As our business in Michigan has evolved and grown, technology has played a major role in managing the costs of distribution and obtaining efficiencies within our warehouses," said John Baker, COO of National Wine & Spirits. The system features a very large split case holding system that holds more than 5,000 split cases that are queued up around the clock, then released in sequence with the full case in the evening when it is time to load the trucks. A warehouse control system manages all the equipment and activities, including order fulfillment from two buildings and one consolidated delivery to the end customer. BLESSING IN DISGUISE FOR FOOD SUPPLIER New real-time manufacturing inventory and pallet tracking solution helps improve efficiency and customer service. R ich’s Products, a global food supplier and solutions provider to foodservice and retail marketplaces, has 33 manufacturing locations on six continents. When the supplier of Rich's logistical and material requirements planning (MRP) technology in its North American plants went out of business, the company was forced to seek out alternatives. Working with a new supplier (PEAK Technologies, peaktech.com), Rich's developed an RF solution that integrated with SAP and real-time inventory and pallet tracking in all of its facilities. The company needed a quick solution for autommh.com The Bendi B55AC-HL provides a superior Narrow Aisle solution for maximum utilization of cubic storage space. Lift Heights to 473” (12M) Stacking Aisle only 84”(2.13M) Capacity of 4,500 lbs. (2,045 kg) Works Inside or Outside Patent Rights Reserved on B55 Forklift LANDOLL CORPORATION MATERIAL HANDLING PRODUCTS 1900 North Street · Marysville, KS 66508 785-562-5381 · Fax 888-231-7863 mhpsales@landoll.com . 800-428-5655 WWW.LANDOLL.COM/MHP modern productivity solution mated inventory tracking to ensure the oldest pallet of raw materials was always used first. The solution: a unique identifier for each pallet of inventory. “We were able to roll the system out without much effort, and we haven’t had any downtime or any big issues,” said Mark Draksic, Rich’s manager of ERP systems and applications support. “We have improved inventory and cycle counting processes, put-away processing, inventory management, PO receipts handling. The list goes on.” Rich implemented wireless hardware that provided fully integrated, real-time updates to the plant. New pallet labels contained the real-time data and could be scanned more easily. Finally, the company purchased bar code label printers that linked to the system. Before the go-live, the warehouse staff reorganized 3,000 pallets of raw materials in a span of 16 hours, over two days. Then, they labeled all the pallets and used the mobile RF devices to scan the information into the system. The entire take-on process was completed ahead of schedule, during the warehouse’s busiest season, without missing a customer order. After implementation, the receiving process has been a lot faster. Once the materials arrive, a label is immediately cre- ated for the inventory pallet. Rich’s associates can now track raw material by vendor, product and lot code. “There are so many improvements to technology and user interface that morale and productivity are both way up,” says Draksic. “Moving away from a paper-based system has been well worth it.” M YOU PERFECT IT. WE’LL PROTECT IT. Buckhorn offers an unmatched selection of reusable packaging solutions designed to protect your products and increase your profitability. Our latest innovation, the BN4845 extra-duty bulk box, has proven that you don’t have to sacrifice quality for a lighter weight design. In fact, it’s the only all-plastic bulk box on the market with a load capacity of 2,500 lbs. Visit the NEW buckhorninc.com for more information, and request a quote today! ©2012 Buckhorn / Myers Industries, Inc. #122011 US: 1.800.543.4454 Canada: 1.800.461.7579 www.buckhorninc.com BULK BOXES | HAND-HELD CONTAINERS | IBCs | PALLETS | SPECIALTY BOXES 54 Au g u s t 2 0 1 2 / Mo d e rn Mate r ials Ha ndl i ng mmh.com MODERN best practices LABOR MANAGEMENT: Beyond the punch clock While adoption remains low, savvy managers are putting engineered labor standards and related labor management systems to work to jumpstart productivity and gain a new level of operational visibility. Here’s how they’re getting it done. By Maida Napolitano, Contributing Editor mmh.com I ntegration with warehouse management systems (WMS)…check. Integration with time and attendance, radio frequency (RF), and voice systems….check. Smart phone and tablet support…check. Web interface and access to cloud computing and storage….check. Clearly, today’s top labor management systems (LMS) are keeping up with the times, evolving from basic stand-alone systems into sophisticated, packaged WMS-LMS solutions geared toward offering real-time visibility of tasks occurring within the four walls of a warehouse or distribution center. In fact, all of these functionalities have been developed just to make it easier for supply chain professionals to manage one of the most complex components of the supply chain: its workforce. As such, Tom Stretar, practice leader for enVista, a supply chain con- MODERN MAT ERIA L S HA NDL ING / A U G U S T 2012 55 MODERN best practices sulting firm and LMS integrator, sees labor management as only growing in importance primarily because of how it improves overall performance. He speculates that operations not using any form of LMS are only operating at 60% to 75% of their capabilities. “Depending on how far you want to go with your standards and incentives, you can get upwards of 115% to 120%,” says Stretar. Given the costs of labor, Larry Parker, principal for Aries Consulting, another LMS firm specializing in the development and maintenance of engineered labor standards, concurs that LMS adoption will only increase. He cites organizations that support Lean and Six Sigma initiatives as other drivers of the technology. With such promising potential, it’s surprising that LMS hasn’t penetrated a larger part of the market—reportedly only 20%, if that. Crystal Welker, director of solutions design and continuous improvement for third-party logistics provider Genco ATC, says in the 50 sites that she oversees in her business unit, there are probably 30% where LMS would actually not make sense. “Those specific sites are simply too small, and it’s relatively expensive to install,” says Welker. “You have to identify all the interfaces and configure it, and you need to do the engineering standards, which take time.” She adds a company typically doesn’t implement LMS at a site unless the team can realize a return on investment within two years. To achieve that, they generally need to have a minimum of 30 to 35 variable employees at the site. However, the experts we spoke with agree that LMS is jumpstarting productivity when it’s put to its fullest potential, going beyond punch clocks and engineered labor standards to track overall performance. Here’s a closer look at how savvy managers are now using the systems to achieve operational visibility, shrink unproductive time, employ incentive programs, plan workforce lev- els, develop true activity-based costs, and simulate what-if scenarios. Achieving real-time visibility Previous systems operated in batch mode, with supervisors going over performance reports at the end of the day, or even at the end of the week. Today’s LMS providers have risen to the occasion, providing Web-based dashboard technology to users in real time on their smart phones and tablets. These dashboards display information regarding labor performance on a single screen and direct the supervisors and managers to where they need to focus their attention. Configurable reports may include the complete listing of tasks along with a measure of the utilization and efficiency of each worker. If performance isn’t up to par, the system can alert supervisors immediately with a text or e-mail so they can initiate action. “We’re moving from ‘we didn’t do so well this week; we need to pick it up next week’ to ‘we’re not doing well right Genco ATC’s labor management edge Genco ATC is the second largest privately held, non-asset based third-party logistics provider (3PL) in North America. The company runs distribution operations for a variety of customers at more than 130 sites, employing about 10,000 “teammates.” Until about four years ago, each site was on its own in terms of labor management, mostly tracking workforce performance manually. In 2008, this 3PL provider recognized the growing need for its customers to focus on more productive labor and to identify opportunities for improvement. It decided to invest in a team that would be responsible for overseeing the implementation of labor management solutions at sites driven to achieve higher levels of workforce efficiency. “Our process is to go to a facility, do an analysis of that operation, and identify the opportunity to put in an LMS,” says Melinda Laake, the 3PL’s director of labor management. 56 AU G U S T “For some of our smaller facilities, if we find that cost prohibitive, we use other technologies to help us systematically track performance.” On occasion, the team would bring in consultants (such as enVista, a supply chain consulting firm and LMS integrator). Since its formation, the team has implemented LMS from three leading software providers at 15 different sites around the country. Many of the sites have engineered labor standards in place, some have gone a step further with the implementation of incentive programs. Aside from tracking labor, sites use the data from the LMS to primarily reduce indirect or nonstandard time. Supervisors run reports on a daily basis, constantly looking for opportunities to reduce and eliminate this nonproductive time. They also export data from the LMS into an Excel format to create budget reports and compare them to where they should be on standard. Any gaps are immedi- 2 0 1 2 / MO D E RN MATE R IALS HA NDL I NG ately addressed. “We’ve also used the LMS to identify potential opportunities for reslotting,” adds Laake. “If we see that picking has gone above a 75% travel component, then it gives us an opportunity to re-slot that area and reduce travel times.” Genco facilities across the country have been reaping the benefits of LMS. On average, labor performance at LMS sites has improved 10% to 25%—with incentives, it’s up 20% to 30%. Before, some sites used to bring in additional temps to handle volume fluctuations. Now, many operations are able to keep the same number of associates and equipment to handle upticks. Laake warns, however, that these systems do not necessarily solve the problems in an operation. “This is a tool to provide the information to solve the problems in the operation— and that’s an important distinction,” she says. mmh.com Labor management systems (LMS) Usage/Plan to buy 100% fabric structures 80% Analysts speculate that operations that are not using some form of LMS are only operating at 60% to 75% of potential. 60% 40% 20% 19% 15% Sustainable Design-Build Solutions FINANCE SOLUTIONS TERMS UP TO 7 YEARS RATES AS LOW AS 0% Buildings available up to 300' wide. Low in cost per square foot. Natural daytime lighting. Easy to relocate. Expandable. Little or no property taxes. EXPIRES 9.30.12. SUBJECT TO APPROVAL. 5% 0% In use Plan to buy/ upgrade Use/plan to buy (NET) Source: Peerless Research Group (PRG) Performance targets that can be achieved at different levels of LMS application. Call one of our ClearSpan specialists at 1.866.643.1010 or visit us at www.ClearSpan.com/ADMMH. www.packmule.com this moment; let’s try to identify why,” adds Stretar. This detail provides a critical layer of transparency to the DC, allowing proactive managers to avoid any dips in productivity. So, what’s the challenge? Some host WMS have difficulty processing data in a near real-time environment, preventing potential corrective actions to be addressed immediately. Identifying unproductive time Pickers may be paid for eight hours, but with reports from the LMS supervisors can see to the element level why there were only six and a half hours of actual productive time. According to Welker, this is where the LMS has been invaluable to her team. “It gives us the ability to really capture that time where we’re not physically picking,” she says. It’s not necessarily because workers are catching up on last night’s game, for example. Pickers may be spending 10 unproductive minutes waiting for pick tickets, doing safety check sheets, or waiting for product to be replenished. “We can find those reasons that they’re not doing productive tasks and eliminate them, making them productive for 7.5 hours per day instead of only 6.5 hours,” says Welker. BUILT in the USA 800 241 2869 Implementing an incentive program While implementing engineered labor standards may improve mmh.com MODERN MAT ERIA L S HA NDL ING / A U G U S T 2012 57 MODERN best practices Levels of LMS performance productivity by identifying those lagging the curve, it’s the implementation of incentives that sells LMS internally to most workers. Let’s say it takes a worker two hours to complete a task. If he completes it in only one hour, then he saves the company an hour of labor time, worth $20 per hour. With incentives, the company takes that $20 and shares a percentage of that with its workers, perhaps keeping $10 then giving the worker $10. “Obviously with incentives, productivity increases,” says Welker. “What we also find is that people then become more creative, with many taking the initiative to improve processes because they want the incentive.” Parker warns that incentive plans may not be as effective in an environment where overtime is commonplace. “Incentive pay must be more lucrative than overtime,” says Parker. “One should minimize overtime for several months (Engineered Performance Management) >115% 95-115% 85-95% 75-85% Incentive compensation Individual productivity reporting with discrete engineered standards, advanced productivity reporting Workload forecasting/manpower planning and individual productivity reporting with multi-variable standards Area productivity reporting and historical standards 60-75% No reporting and no measurements in place Performance targets that can be achieved at different levels of LMS application. Source: enVista before implementing incentive pay.” He also cautions that incentive pay should never be tied to productivity alone. “Quality, service and safety are also part of an effective incentive pay system.” Improving workforce planning Demand volumes can fluctuate seasonally. LMS provide supervisors with a scheduling tool that can define shifts and work schedules. It also allows them to evaluate current and future staffing levels based on both historical and actual work assignment data. “I know that I have 2 million cases coming in next year,” says Welker. “I know my teammates can pick about 200 cases per hour based on my LMS data. I can then determine how many teammates I need on the floor.” Even when initiating a new process, managers can use a combination of historical data and predetermined time standards from the LMS to project the time it takes to complete a task and then calculate the number of workers needed. Developing more accurate costs With an increasing number of value58 AU G U S T 2 0 1 2 / MO D E RN MATE R IALS HA NDL I NG mmh.com MODERN best practices added services being performed at the DC level, many don’t have a good feel for how much they should be charging. More managers are using their LMS to determine exactly how much it costs to ship merchandise through their warehouse and to determine what they need to break even or to realize specific profit margins. “The system allows the operator to apply cost values to the goal or standard times, thereby calculating the true cost of performing the task,” says Parker. Parker notes, however, that most LMS are still limited in their ability to process this data within the system, as providers have yet to build a solid module around activity costing. For now, many simply extract LMS data and enter them into custom spreadsheets to develop detailed budgets and costing reports. Simulating what-if scenarios With input from the LMS, operators can simulate changes in equipment, processes or layouts within a facility in a virtual mode to determine the impact on productivity. “Before investing thousands of dollars,” says Parker, “why not take those same orders, reload them into a test environment in the LMS, and compare how many standard minutes it takes with your new layout?” By simulating within the LMS environment, managers recognize the credibility of the simulation results, making it easier to get approval for any upfront capital. However, Parker notes that not many LMS providers offer this option within their system. “We typically have to extract the data, mimic databases, and request assistance from IT personnel to help process the data.” Tips for implementing According to Stretar, LMS implementations usually involve working closely with employees on the floor to improve the operations. “We usually try to optimize an operation in conjunction with mmh.com implementing the software. We then build and audit the standards for that operation,” he says. Incentive programs can then be initiated once the standardized operations have somewhat stabilized—typically after two to three months. Parker believes that the most important aspect of any LMS implementation is really its change management. “There’s going to be resistance,” he says. “It’s important to educate workers on the system from the very beginning.” Integrated Material Handling Solutions for an Optimized Supply Chain TGW is a global supplier of integrated material handling solutions built on a base of solid, proven technology. TGW solutions offer increased efficiency and productivity to optimize your supply chain. • • • • • Goods to Person Systems Multi-channel Dustribution Buffer/Sequencing Systems Mini-load AS/RS Solutions Conveyor & Sortation Systems Get the most out of your supply chain with TGW. 12 corp ad MMH half page.indd 1 www.tgw-group.com MODERN MAT ERIA L S HA NDL ING / A 59 U G U S T7/26/2012 2 0 1 210:52:36 AM 2012 virtual conference Attend on demand at www.supplychainvirtualevents.com State of materials handling automation Sponsored by: By Bridget McCrea, Contributing Editor M Industry experts discuss the state of materials handling automation and how it’s affecting today’s warehouse and distribution center managers. 60 Au g u s t 2 0 1 2 / Mo d e rn Mate r ials Ha ndl i ng ore companies are looking to materials handling automation and technology to improve processes and lower operating costs, but figuring out which solutions will work best in specific applications isn’t always easy. This year, Modern Materials Handling’s virtual conference tackled this issue, with the goal of helping companies make the best possible materials handling automation and technology decisions for their organization. Group editorial director Michael Levans, Modern’s executive editor Bob Trebilcock, and a select team of materials handling analysts, consultants and practitioners used the virtual backdrop to put the state of materials handling automation into perspective and share how today’s leading supply chain professionals are leveraging automation to improve facility operations and corporate strategies. The conference was divided into four different presentations, each of which delved into what the future of automation might look like based on the products, developments and solutions of today. Here’s a rundown of the key points covered in each session. mmh.com Is your software the complete solution for your manufacturing or distribution business? All ERP software has the basics to get the job done, but only Epicor offers the complete set of tools in one software solution. www.epicor.com Copyright © 2012 Epicor Software Corporation. 2012 virtual conference Attend on demand at www.supplychainvirtualevents.com Keynote State of materials handling automation with his finger on the pulse of the Trebilcock gave other examples of ing and piece picking, all in one facilindustry, Modern’s executive editor Bob firms that have achieved significant ity. “That requires automation,” said Trebilcock said he suspects something results from their materials handling Trebilcock, who pointed to multi-shutis happening in the world of materi- investments. In the multi-channel retail- tles, mobile robotics, stationary robotals handling automation. Just look at the ing realm, he said many companies are ics, AGVs, and automated storage and numbers: While the industry has not yet now looking for designs that can accom- retrieval as the “technologies to watch” recovered to its pre-recession peaks, both modate mixed pallet building, case pick- over the next year or two. the conveyor and automatic guided vehicle (AGV) sectors posted impressive year-over- Session 1 year growth numbers, while the Material Handling Industry of America (MHIA) is anticipating 12% growth in 2012. in this session, Norman E. Saenz, items. Goods-to-person, on the other What’s behind the interest in materials senior vice president and principal hand, can increase productivity rates handling automation and what might the at TranSystems, discussed the com- and enables recovery of lost space. The goods-to-person concept is parfuture of automation look like based on monalities among various sales chanthe products and solutions in development nels, including direct-to-consumer ticularly relevant in store replenishtoday? In this keynote address, Trebilcock order fulfillment, store replenishment, ment models where orders are typically shared his findings from recent inter- wholesale distribution, catalog sales, scheduled based on store volume, store views with 10 of the leading automation television shopping networks and global deliveries vary dramatically by retail and integrated systems suppliers. What distribution. Most retailers have to fill type, and volume is affected by weekly he found was that investment in materi- orders in all of them, even though each ads or promotions. Direct-to-consumer als handling automation has been on the has distinct order profiles, order quanti- works well in scenarios when there is upswing since the recession. The materi- ties and inventory requirements. fast order turnaround, small order proals handling industry grew by 17.1% in Saenz kicked off his session by file, parcel carrier shipment, and “flash” 2011, with continued growth anticipated addressing the goods-to-person con- promotions that can cause significant until 2013, when a leveling off is expected. cept, which relies on a system of bring- short-term spikes in volume. In the meantime, the AGV and auto- ing a product to the order picker versus “I would say that whether you have mated storage and retrieval system (AS/ the traditional method of physically a dedicated place for a direct-to-conRS) sectors posted record years in 2011. walking to the product pick location. sumer in another facility or whether Some of the key driving forces of The former often produces poor slot- you have it in your own retail, that automation today include the need ting results and can lead to an even goods-to-person becomes fairly attracfor better labor management, down- higher percentage of time searching for tive for this channel,” said Saenz. Other good applications stream savings, accuracy and for goods-to-person space, as well as the growth include wholesale disin multi-channel retailing. tribution, catalog sales The top concern is labor, said and television shopping Trebilcock: “Labor drives the networks. decisions in automation.” He Saenz said goods-togave real-life examples of person solutions should companies that have recently be considered when the invested in materials hanfollowing conditions are dling automation, including met: split-case pickSkechers’ consolidation of ing with 5,000 or more five conventional facilities orders per day; a high into one highly automated number of slow-moving facility, and Stihl’s $10 milSKUs; a need for prodlion investment in automauct security and a high tion to double capacity in its Investment in materials handling automation has been on the level of order accuVirginia Beach plant. upswing since the recession. Goods-to-person order fulfillment: The multi-channel retailing effect 62 Au g u s t 2 0 1 2 / Mo d e rn Mate r ials Ha ndl i ng mmh.com improve efficiency With 30 years of warehousing expertise, Honeywell vehicle mount computers improve efficiency with game-changing features that are purpose-built for your enterprise. WATCH A HONEYWELL SOLUTION IN ACTION: Visit www.honeywellaidc.com/MayMMH or scan the QR code on the right to watch a video case study that shows how one company is improving efficiencies by 10% this year. © 2012 Honeywell International Inc. All rights reserved. 2012 virtual conference Attend on demand at www.supplychainvirtualevents.com racy; and when the company is dealing with space constraints and ergonomic issues. “Goods-to-person definitely has its place in a multi-channel environ- ment under one roof,” Saenz added. “The challenge is to justify it, to show that it can handle the volumes and that it can beat out a traditional approach.” session 2 Software: Results of Modern’s 2012 software usage survey for companies in manufacturing, warehousing and distribution, information about the movement of goods throughout the supply chain is as important as the actual movement of the goods. The challenge is harnessing all that information to its fullest competitive advantage. To gain a better understanding of how Modern readers are currently applying supply chain management (SCM) software to gather this data en route to optimizing their warehouse and DC operations, Peerless Research Group (PRG) conducted its 2012 Software Usage Survey in the first quarter of this year. The results were surprising. In this session, technology thought leader John Hill, director at St. Onge, put the findings into perspective. Hill opened the event by discussing the first questions that respondents were asked: How would you best describe your company’s adoption of technology for your materials handling procedures? Answers ranged from “innovators” to “slow” and about half of the participants responded they’re “cautiously embracing change.” When asked how the current economic climate has changed their company’s approach to adopting materials handling management software, the largest percentage of respondents said they were either holding off this year or taking a hard look and thinking about moving forward cautiously. The average plan is to spend $391,600 on such software in 2012, as opposed to $397,000 last year; 58% say they’re going to spend less than $100,000. 64 Au g u s t “This tells me that warehouse control systems (WCS) are gaining ground as viable alternatives to the more robust WMS,” said Hill, “par- ticularly in mechanized operations.” In response to the question, “How has your company’s use of materials handling software changed over the past two years?” more than half of the respondents (about the same as 2011), said that it stayed about the same. Thirty-eight percent said they increased their use of supply chain software. “So it looks as if software is very integral to people’s operations today,” said Hill. “They’re either increasing or doing what they were.” SESSION 3 Automation: The rise of AGVs and AS/RS anyone who assumes automatic becoming “more difficult to distinguish guided vehicles (AGV) and automated between an AGV and a manual vehistorage and retrieval systems (AS/RS) cle.” Those mutations include the addiare only for big manufacturing plants tion of controls that are used to manage should think again. Both industries are the vehicles and moving storage options posting some of their biggest numbers like those produced by Kiva Systems. ever as manufacturers and distributors Looking ahead, Donnelly sees even of all sizes are finding applications for more innovation in the cards for the these technologies on the shop floor AGV and AS/RS industries. Expect and in the distribution center. more complete, system-based soluIn this session, Troy Donnelly, project tions, more niche market-focused soludirector at Peach State, highlighted new tions, increased standardization with developments in the AGV and AS/RS facilities, and improved reliability. industries that have resulted in equip“At the end of the day, everyone’s ment that is more flexible and innova- goal is going to be to completely remove tive than ever. He also looked at how manual fork trucks,” said Donnelly. “I the lines are beginning to blur between think every industry and every market AGVs and AS/RS. Donnelly kicked off is going to be looking at what can they the session by discussing the evolution change in their operation to facilitate of AGVs, which have advanced signifi- automation.” M cantly—namely in their ability to stand upright— over the last few years. “Once AGVs started to reach up and store in racks,” said Donnelly, “the application moved from what has historically been a production support role into a distribution role.” He said there’s an AGV to match up with pretty much every application, and AGV evolution includes the addition of added that the equipment is controls that mange the vehicles and moving mutating to the point where it’s storage options. 2 0 1 2 / Mo d e rn Mate r ials Ha ndl i ng mmh.com Invest In ProductIvIty wIth AutomAtIc GuIded vehIcles If maximizing productivity is your ultimate goal, then installing an Automatic Guided Vehicle (AGV) system for routine material movement is the answer. Whether its storing/retrieving finished goods, delivering raw material or packaging supplies, or loading trailers automatically; AGVs will maximize productivity and safety. It’s not surprising that the AGV industry is experiencing unprecedented growth. That is because new companies are installing AGVs and others are rolling them out enterprise wide. Installing an AGV system is an investment that cannot be delayed any longer and equipment leasing eliminates the capital costs. Call JBT Corporation today to find out more information about how AGVs can help you maximize productivity in your facility! Scan with your smartphone to learn more about JBT. www.jbtc-agv.com/en/solutions/products www.jbtc-agv.com 215-822-4600 A special supplement to Safety first 68Infographic promotes safer warehouse conditions Free downloadable graphic aims to cut productivity loss. 70Four steps to improve ergonomics, productivity Designing the job to meet the worker can increase productivity. 76Mezzanine lift safety Proper configuration, regular inspections keep mezzanine scissor lifts in tip-top shape for safest operation. SAFETY mmh.com Modern Mat eria l s Ha ndl ing / A u g u s t 2012 67 MODERN special report Infographic promotes safer warehouse conditions Free downloadable graphic aims to cut productivity loss. www.storage-solutions.com/warehouse-safety-pg-172.html By Sara Pearson Specter, Editor at Large W that can be done to prevent those accidents—be it education, purchasing special safety equipment, or the configuration of the warehouse operation,” explains Michelle Coleman, director of marketing, online sales and business development at Storage Solutions. “We felt this graphic could generate awareness in hopes of providing a safe work environment.” SAFETY ith more than 145,000 people working in more than 7,000 warehouses throughout the United States, there are myriad opportunities for injury and subsequent loss of productivity. That’s why Storage Solutions (www.storage-solutions.com) has developed the first of a quarterly series of free, downloadable safety infographics: “Warehouse Safety: The Dangers of Modern Warehouses and How to Prevent Them.” “There are a lot of opportunities for accidents in warehouses, but there are also a lot of things 68 A U G U S T 2 0 1 2 / MO D E RN MATE R IAL S HA NDL ING mmh.com A s p e c i a l s up p l e m e n t to M ode rn Mate ri a l s H a n dl i n g Coleman and her team collected key facts from a variety of sources, including the U.S. Bureau of Labor Statistics, Whole Building Design Guide, the Occupational Safety and Health Administration (OSHA) and the National Safety Council. Highlighted areas of concern—and suggested measures to prevent injuries—include lift truck safety, pallet rack storage and ergonomic strains. “There are a lot of risks that come along with working in this industry,” Coleman says. “We hope companies will use this graphic to better educate their employees on how to stay safe in the workplace. Because we constantly work with our customers to ensure that their facilities are as safe as possible, we thought the information would be useful for the general materials handling industry as well.” If improving the safety of personnel isn’t a compelling enough reason to implement some of the tips, the graphic also cites statistics from the National Safety Council, which estimates the average work-related injury results in $38,000 in direct costs and $150,000 in indirect costs. The graphic can be found at: www.storagesolutions.com/warehouse-safety-pg-172.html. SAFETY mmh.com Modern Mat eria l s Ha ndl ing / A u g u s t 2012 69 MODERN special report A S P E C I A L S UP P L E M E N T TO M ODE RN M ATE R I A L S HA ND L I NG Four steps to improve ergonomics, productivity By Sara Pearson Specter, Editor at Large P aying attention to ergonomics by designing the job to fit the worker will pay off in increased productivity, says James Anderson, vertical market manager for Lista International (www.listaintl.com). “Comfortable employees stay at their desks or workstations longer, and complete more work in a given shift,” says Anderson. “By adapting tasks, workstations, tools and equipment to fit the worker, improving ergonomics reduces physical stress and eliminates many potentially serious, disabling work-related musculoskeletal disorders.” According to Anderson, an ergonomic workplace can be achieved in four steps: Step 1: Review tasks for risk factors Predicting what might go wrong and modifying tools and the work environment to make tasks safer for workers is the first step to reducing problems. Table 1 lists the most common risk factors and highlights the potential associated injuries. Step 2: Implement risk factor controls Once the risks have been identified, says Anderson, it’s time to apply engineering and administrative Table 1: Risk factors Force Exertion of excessive force can cause a variety of injuries. Repetition Excessive repetition of movements can irritate tendons and increase pressure on nerves. Awkward postures Positions that stretch physical limits can compress nerves and irritate tendons. Static postures Positions that must be held for long periods of time can restrict blood flow and damage muscles. Quick motions Increased speed or acceleration when bending and twisting can increase the amount of force exerted on the body. Grasping sharp edges (like tool handles) can concentrate force on small areas of the body, reduce blood flow and nerve transmission, and damage tendons and tendon sheaths. SAFETY Compression/contact stress 70 Recovery time Vibration Cold temperatures Inadequate recovery time due to overtime, lack of breaks, and failure to vary tasks can leave insufficient time for tissue repair. Excessive vibration from tools can decrease blood flow, damage nerves and contribute to muscle fatigue. Whole body vibration can affect skeletal muscles and cause low back pain. Working in cold temperatures can adversely affect coordination and manual dexterity, potentially causing a worker to use more force than necessary to perform a task. Source: Lista International, adapted from “Ergonomics: The Study of Work, U.S. Department of Labor, Occupational Safety and Health Administration, OSHA 3125, 2000.” AU G U S T 2 0 1 2 / MO D E RN MATE R IAL S HA NDL ING mmh.com Warehouse Racking Systems Selective Rack Drive-In / Drive-Through Push Back We manufacture Pallet Flow warehouse solutions. 866.632.2589 | www.interlakemecalux.com Cantilever SAFETY MODERN special report “Employees should be able to rearrange their workstation components easily, such as adjusting work surface and chair seat height, or changing the elevation of work shelves and work surfaces,” according to James Anderson. controls, as well as implement personal equipment, as a means to mitigate those risks. “Engineering controls might include changing the way parts and materials are transported, moving parts around to make it easier for workers to reach them, or changing workstation layout, tool design, access or assembly sequence,” he explains. Equally important are administrative adjustments to work practices and policies, such as implementation of rest breaks, job rotation or BAG PALLET SOLUTIONS CONVENTIONAL WOODEN PALLET NO NAILS NO SAGGING PRODUCT PROTECTION PRESSWOOD PALLETS ► Do not use nails or staples that can puncture bags. ► Molded deck will catch product spills. ► Solid deck eliminates bag sagging between deck boards. ► ► ► Provides ultimate product protection from fork tine puncture. Solid deck provides lead edge protection from fork tines. Bags settle into solid deck for increased load stability. WHICH PALLET WILL YOU CHOOSE? COMMITTED TO EXCELLENCE SINCE 1962 LITCO INTERNATIONAL INC. 855-296-2891 • www.litco.com 72 A S P E C I A L S UP P L E M E N T TO M ODE RN M ATE R I A L S HA ND L I NG AU G U S T 2 0 1 2 / MO D E RN MATE R IAL S HA NDL ING training to identify signs of ergonomic stress. Outfitting workers with a variety of personal equipment—such as wrist supports, back belts or vibration attenuation gloves—may also reduce the duration, frequency or intensity of exposure. Step 3: Evaluate the workspace A worker’s surroundings, including the task at hand and the equipment used, should be carefully evaluated. To do so, Anderson suggests asking a series of questions: • Does the work involve handling heavy, bulky or awkward products? • Is there a high product mix or frequent daily changeovers? • Will workstations be integrated with material flow, such as racks or conveyors? • Is there frequent job rotation, with employees from different shifts or departments sharing a work area? • Will employees work alone, back-to-back or in teams? • Does a workstation need to include power tools, computer equipment, supplemental lighting or storage space? “Frequent issues include work surfaces that are the wrong size or height, uncomfortable chairs, shelves and bins that are out of reach, and awkward hand tools,” says Anderson. Step 4: Apply workstation design principles When designing workstations, a number of principles (Table 2, on page 74) should be kept in mind, Anderson says. “Work is handled most efficiently when kept within ‘primary reach zones’—approximately a 24-inch radius around the worker—to minimize arm, head or trunk movement,” he says. “Anything outside this range should be considered storage.” mmh.com MORE COVERAGE AIRFENCES LAB TESTED SO ROCK SOLID PROVEN GEARBOX DURABLE YOU’LL RETIRE ENGINEERED COMPLETELY SEALED BEFORE IT TOUGH DOES POWERFOIL X2.0 How do you improve the best fan in the world? You upgrade everything from the ceiling down. You boost performance by more than 28%, improve durability and back it all up with a 15-year warranty*. Introducing the Powerfoil® X2.0: The only fan in the world with its own patented airfoil system — that combines a patented airfoil design and winglets with patent-pending AirFences™ to increase overall coverage area by 28%. 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Locate materials to reduce twisting Give enough space for whole body to turn. Avoid static loads, fixed work postures Avoid long periods of leaning, extending limbs, tilting head, and supporting body on one leg. Set work surface according to type of task Above elbow height for fine visual work. Below elbow height for tasks needing downward force or heavy physical effort. Provide adjustable chairs Include adjustments to seat height, back rest, lumbar support. Padding shouldn’t compress more than an inch. Chair must be stable (five legs). Allow workers to alternate between standing and sitting Floor mats for prolonged standing. Support the limbs Provide elbow, wrist, arm, foot, back rests as needed. Use gravity Consider ways to move materials using gravity rather than lifting. Design for proper arm movements Arm movements should be continuous and curved. Movements should pivot around the elbow rather than shoulder. SAFETY Minimize movements or extensions more than 15 inches. 74 Consider computer monitors Should be adjustable to eye level. Provide simple dials and displays Make sure they are easy to read, reach and operate. Consider environmental conditions Minimize excessive noise, heat, humidity, cold and poor lighting. Source: Lista International, adapted from “Elements of Ergonomics Programs, A Primer based on Workplace Evaluations of Musculoskeletal Disorders, and from checklists developed by Applied Ergonomics Technology.” Au g u s t 2 0 1 2 / Mo d e rn Mate r ial s Ha ndl ing mmh.com The oRiginal PioneeRs RevolutionaRy by Design After laying the foundation for high-frequency charging, HAWKER® continues their tradition of motive power innovation with their patented high-frequency, IONIC smart charging technology. With the greatest efficiency, highest power factor, and highest charge effectiveness available in the industry, HAWKER®’s IONIC patented charge profile reduces your utility consumption and demand while prolonging battery life, reducing water usage, and increasing productivity. Call 1.877.7HAWKER to join the high-frequency ioniC revolution. Leading Edge Power Solutions P.O. Box 808 | 9404 Ooltewah Industrial Drive | Ooltewah, Tennessee 37363 USA PH. (423) 238-5700 | 877-7HAWKER | FAX (423) 238-6060 | www.hawkerpowersource.com MODERN special report A S P E C I A L S UP P L E M E N T TO M ODE RN M ATE R I A L S HA ND L I NG Mezzanine lift safety from top to bottom Proper configuration, regular inspections keep mezzanine scissor lifts in tip-top shape for safest operation. By Sara Pearson Specter, Editor at Large T o maximize the use of overhead space, facilities often install a second-level mezzanine platform for a more efficient cube. Mezzanine scissor lifts offer a mechanical means to transport goods and personnel up to that second level. Like all equipment, it’s critical to follow guidelines both for configuration and for regular inspections of the lifts to ensure safe operation and protection of workers. ANSI MH29.1 is the governing code for industrial scissor lifts. A checklist of inspection items developed in alignment with these standards is on p. 78. The safest mezzanine scissor lifts include the following elements: SAFETY Platform guarding: The platform should be equipped with bevel toe guards and 42-inch-high guardrails with mid rails and 4-inch toe plates. Electrically interlocked gates should prevent platform movement unless the gates are closed. 76 Operation switches: Proximity or limit switches should function for each level. For lifts that transport riders (as well as materials), movement control must be a constant pressure pushbutton. An emergency down valve on the power unit lowers the lift if a power failure occurs. Smooth fascia: To eliminate shear points, the entire surface of the mezzanine—adjaContinued on page 80 AU G U S T 2 0 1 2 / MO D E RN MATE R IAL S HA NDL ING This diagram shows the mezzanine scissor lift at rest (top) and in motion (bottom). The safest lifts include platform guarding, operation switches, smooth fascia, and an enclosure system. mmh.com Puzzled over Workstation Productivity and Efficiency? Let Dehnco Help You Evaluate and Integrate Workstations, Supply Storage and Equipment Needs with Your Automation, Technology and Material Handling Systems . . . AT A PRICE YOU CAN AFFORD W. I. S. E. Workstation Integration System Evaluation Dehnco offers a simple 4 step evaluation process that: • Promotes Ergonomics • Creates Efficiency • Increases Productivity STEP : 1 STEP : 2 Evaluating Flow Identifying the Process Defined as the movement of materials/ products into and out of the work area. NEW Detailing the Step-by-Step Sequence of tasks required to complete the specific work being done in the area. STEP : 3 Integrating the Supplies and Equipment Required to Complete a Task into the work area. STEP : 4 Integrate the Work Area Design with the Process to Maximize the Efficiency of the Operation. Your Workstation Solution Partner • Product Literature • Storage Ideas IMPROVED WORKSTATION DESIGN • Components • Easier to • Expanded Website Assemble • Products • New Color Pallet Contact Us: Call: 888•400•9427 www.dehnco.com m SCAN TO SEE NEW COMPONENTS Let Us HELP Y ou Defi • SPACE • ne and R STORAGE esolve These Issues • HANDLI NG / DESIGN • 300 Lageschulte St ERGONOMICS • WORKFLOW • SPACE P.O. Box 866 Barrington, IL 60010 • Ph: 888•400•9427 • Fax: 847•382•1615 modern special report A s p e c i a l s up p l e m e n t to M ode rn Mate r i a l s Ha nd l i ng Inspection checklist for industrial scissors lifts for mezzanines For use with inspection of both: • Rider mezzanine lifts • Non-rider (material only) mezzanine lifts Prior to beginning inspection, refer to the American National Standard ANSI MH29.1 Safety Requirements for Industrial Scissor Lifts; items on this checklist meet or exceed this standard. Areas for Inspection: 1. General A. The entire base frame of the scissors lift is sitting on a flat and level surface, shimmed and grouted if necessary for continuous support 2. Controls A. Shall be clearly marked as to direction and function B. Shall be protected from inadvertent operation C. If pushbutton is momentary contact type (touch and release to start), then the lift shall be clearly marked “No riders allowed” D. If momentary contact pushbutton, then it shall have an emergency stop button E. Controls shall prevent lift movement when any gate is open F. For rider lifts the control must be constant pressure style and located on lift platform 3. System protection A. Hydraulic systems shall be equipped with flow controls or velocity fuses for hose failure protection B. If electromechanically actuated, the design shall prevent movement if there is a power failure SAFETY 4. Platform guarding (shear point protection) A. Automatic operations with momentary contact controls shall be guarded with skirts, enclosures or other means of personnel protection B. Pit mounted installations shall have one or more of the following: a) 8-inch bevel toe guards b) Solid skirts c) Suspended indicator bar d) Electronic toe sensor e) Solid or mesh enclosure 8 feet high, or full height of platform rise plus top of guardrail, whichever is less C. Above floor installations must have one of the following: a) 4-inch bevel toe guards b) 3-inch vertical toe clearance c) Electronic toe sensor D. For all installations with more than 5.5 feet between the landing and the bottom edge of the fully raised platform, the following items are required: a) Upper landings shall be equipped with enclosures and an automatic landing gate or a landing gate with interlock that prevents opening the gate unless the lift is present b) The entire surface of the mezzanine adjacent to the lift from ground level to top of the mezzanine guardrail shall be equipped with a smooth surface to eliminate shear points c) Sides used for loading at lower landings shall be equipped with an automatic landing gate or a landing gate with interlock. These gates shall be 84 inches, or the full height of the lift, whichever is less 78 Au g u s t 2 0 1 2 / Mo d e rn Mate r ial s Ha ndl ing d) S ides at lower landings not used for loading shall be provided with solid or mesh enclosures 8 feet high, or to the full height of the lift rise plus guardrail, whichever is less e) G ates and enclosures will be positioned no more than 6 inches from the lift platform f) M esh for enclosures shall reject a 2-inch ball and a smooth surface shall be a solid surface or a flattened mesh that will reject a 0.325-inch ball 5. H inged bridges shall conform to the following: A. At raised position, slant bridge back toward platform approximately 20 degrees or lie back flat on the platform or provide chain, latch or other means of security B. At lowered position, bridge angle can not hang more than 45 degrees below horizontal unless shear risk is eliminated C. Bridge purchase on truck beds shall be at least 4 inches D. Split bridge sections shall have 0.75 to 1-inch clearance between sections 6. Guardrail system A. A ll rider lifts must have guardrails on all sides with interlocked access gates that prevent lift movement when a gate is open B. N on-rider lifts shall have guardrails and chains or gates across load access sides C. G uardrails shall be 42 inches high ±3 inches with midrail and 4-inch toe board 7. Maintenance device A. A securely attached maintenance device to hold the empty lift open for maintenance is present 8. Markings A. M anufacturer’s nameplate with name of manufacturer, model number serial number, lifting capacity and edge or axle load ratings is present B. Warning labels in compliance with ANSI Z535.4 9. There shall be an operating/maintenance manual that contains: A. S pecial warnings, cautions or restrictions for safe operations B. Manufacturer’s name and contact information C. Installation and start up information D. Operating instructions E. Maintenance recommendations and instructions F. Replacement parts information G. Owner’s/user’s responsibilities clearly defined 10. Capacity verification A. The lift capacity shall be clearly visible to operators B. M aximum system pressure with lift fully raised and cylinders fully extended against internal cylinder stops (may require overriding electrical limits) is ±150 psi of pressure labeled on the hydraulic pump and/or listed in owner’s manual -or C. F rom fully lowered position, lift is demonstrated to lift rated capacity Source: Advance Lifts Inc. (800-843-3625, www.advancelifts.com). A copy of this checklist (“AL-1020 REV1: Inspection Checklist for Industrial Scissors Lifts At Mezzanines”) may be obtained at: advancelifts.com/SiteFiles/PDFs/ WhitePaper/MezzChecklist.pdf mmh.com This label Speaks volumes you talk... we work Voice Pick solutions for a heads-up, hands-free environment Positive feedback...Every time salesmmh@idlabelinc.com | 800.541.8506 x100 | www.idlabelinc.com WAREHOUSE SIGNS RACK LABELS PREPRINTED LPN LABELS NATIONAL INSTALLATION SERVICES modern special report A s p e c i a l s up p l e m e n t to M ode rn Mate r i a l s Ha nd l i ng SAFETY cent to the lift from ground level to the top of the guardrail on the upper level—must be equipped with a smooth face (such as wallboard, polycarbonate sheets, fine mesh, or interlocked doors and windows). Enclosure system: Sides not adjacent to the mezzanine must be enclosed from ground to the height of the topmost guardrail when the lift is fully raised. The mezzanine guardrail and the enclosure access gates must be electrically interlocked to prevent movement when gates or doors are opened, and mechanically locked so as to not open unless the lift platform is present. Maximum gap between the platform and the mezzanine should be 1 inch, and the gap between the platform and other three enclosure To maximize the use of overhead space, facilities often install a second-level mezzanine platform for a more efficient cube. sides should be 3 to 4 inches. 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IN-STOCK! ON SALE! NEW! Prices listed are subject to change. MMH 0812 V1 FOCUS ON Ergonomics Lift multiple types of loads with versatile vacuum tube lifter The JumboFlex vacuum tube lifter is ideal for frequent and rapid movement of light goods weighing up to 77 pounds. Outfitted with a variety of grippers, the lifter safely and securely handles different styles of workpieces, such as cardboard boxes, barrels, cans, buckets, sacks, solar panels, or rolls of film and foil. Ideal for use in areas with low ceilings, the lifter features a quick-acting non-return valve and large suction pad surface to prevent the load from being dropped, even in a power failure. Schmalz, 919-713-0880, www.schmalz.com. Compact stackers are fully powered with rechargeable batteries Built on a short, stable wheelbase, Stackn-Go fully powered compact stackers in fork-over and straddle models provide maximum maneuverability in tight quarters. Ergonomic and ideal for use in light manufacturing, warehousing, assembly and retail facilities, the machines transport loads on pallets and stack loads up to 7.5 feet high. They can also serve as adjustable workstations for loading and 82 Au g u s t unloading. Features include a narrow, 62-inch-high mast and offset control handles for a blind-spot-free view. To accommodate left- or right-hand operation, the ergonomic handle includes forward- and reverse-drive thumb switches on both sides, while an auto-reversing belly switch prevents injury when walking the unit backwards. When the handle is released, an automatic brake halts travel. The unit is powered by two 12-volt batteries and includes a 110-volt built-in charger standard. Southworth Products, 207-8780700, www.southworthproducts.com. Two-wheeled device with automatic lifting, lowering The Lift’n Buddy mobile lifting device combines two-wheeler durability and functionality with automatic lifting and lowering. Configured for proper operator ergonomics and safety in completing moving and lifting tasks, the unit is fabricated of durable, lightweight, extruded aluminum. Environmentally friendly, the electric hand truck requires no oil, gas, hydraulic fluid or maintenance. Ergologistics, 701-499-5270, www.liftnbuddy.com. Manipulate 275 pounds in low headroom applications For maneuvering of payloads up to 275 pounds, the pneumatic LodeArm lightweight manipulator increases workers’ capacity to perform physically stressful, repetitive lifting tasks. It is equipped with pistol grip metering controls for ease of lift and lower operations. Easily adjustable to fit almost any work cell, the device is ideal for low headroom applications with rigid support and reach-in capability. It is offered in four models and can be mounted in multiple ways, including overhead, trolley, pedestal, wall mount, column, machine or mobile/portable base. The unit lifts loads up to 54 inches high. For large work cell use, the LodeArm II is a trolley-mounted version of the same manipulator. Positech, 800831-6026, www.positech.com. 2 0 1 2 / Mo d e rn Mate r ials Ha ndl i ng Customizable work access lifts facilitate production jobs A line of work access lifts is offered to facilitate production tasks. The lifts can be used in welding, painting, assembly, fabrication, inspection and maintenance applications. Custom-designed to exact requirements, options include multiple sizes, cutouts, platform extensions, platform surfaces, controls, portability and mobility features. Advance Lifts, 800843-3625, www.advancelifts.com. mmh.com Triple scissor hydraulic lift table and up-ender Fan controller app for iPads The BAFWorks iPad app and controller operates an unlimited number of the supplier’s fans from a single location. By eliminating individual controls in large facilities, the centralized controller saves both time and money. The system provides access to real-time fan speed and status to maximize year-round energy savings. For security, a lockout feature includes password protection providing absolute security and control. Included are an iPad, the software’s gateway module and a mounting bracket. Big Ass Fans, 877244-3267, www.bigassfans.com. To elevate an operator in foundry applications, a custom set of triple scissor hydraulic lift tables and up-enders accommodates casting of diesel engine blocks. The crane operator works from the adjustable height lift table. With the 25,000-pound capacity up-ender positioned vertically, overhead cranes stack sand molds upon it. When loaded, the unit tips downward 90 degrees to maneuver the mold into a horizontal position for transfer to an adjacent station. Pentalift Equipment, 519-763-3625, www.pentalift.com. Position, lift heavy rolls into packaging machinery High lift scissor truck handles up to 2,200 pounds Outfitted with a single stage cylinder, automatic stabilizers and ergonomic handle for simple, comfortable operation is the dual power tote lifter. The lifter operates either by hand pump or 12-volt DC power. The high lift scissor truck also features a low center of gravity, built-in charger and painted blue finish. It lifts loads up to 2,200 pounds up to 31 inches high. Vestil, 800-348 0868, www.vestil.com. mmh.com A battery-powered roll handler helps eliminate body strain caused by manual lifting and positioning of 300-pound rolls into packaging machinery. Simple to use, the device incorporates a single column mast for clear operator view. Smooth, precise powered lift height and positioning adjustment is enhanced with built-in safety provisions. Constructed of lightweight aluminum, the handler sports a powered clamp for manipulation of rolls from a vertical load to horizontal unload positions as directed by a push-button pendant. ErgotecH, 877-733-3746, www.ergotechinc. com. Counterbalanced manipulator features working radius of nearly 10 feet The Famatec Friendly ergonomic manipulator is fully counterbalanced and handles up to 1,100 pounds. With a working radius of almost 10 feet, the pneumatically powered manipulator allows an operator to effortlessly suspend, rotate, tilt and transfer loads with precision. The unit is adaptable to the user’s preferred working height and position to progressively place the load during assembly, suspend it for further processing or transfer it from one location to another. When suspended, the load can be moved manually or rotated 90 degrees under power. An intuitive control console adjusts the counterbalance force, rotation, tilt, braking and parking. Mounting options include column, overhead, tracks, wheeled, or with a free standing, fork-truck transportable base. Haeco, 513-722-1030, www.haeco.us/ materialhandling. Copolymer resin vacuum tube lifter has long lifespan The stainless steel UniMove vacuum tube lifter is offered with the Rhino Tube copolymer resin tube—replacing neopreneimpregnated cloth tubes—for improved resilience and reliability. Capable of flexing at 0.039-inch increments, the copolymer material withstands temperature ranges of -40°F to 240°F. It is impervious to moisture and chemicals, and comes in standard lengths of 9 and 10 feet for all existing lift tube diameters. Integral fitted cuffs enable easy, fast mounting. For safety, the tube comes in high-visibility yellow. UniTech Industries, 610-8267855, www.unimove.com. Modern Mat eria l s Ha ndl ing / A u g u s t 2012 83 FOCUS ON Ergonomics tect drum sidewalls during movement, a cushioned belt cradle is included. A foot pedal lifts loads up to 20 inches high in 1-inch increments (32 inches optional) and adjusts lowering speeds. Liftomatic Material Handling, 800-837-6540, www. liftomatic.com. Paper void fill system for ergonomic small-cell packing By activating a footswitch, the FasFil EZ paper void fill system dispenses a continuous length of paper void-fill material. The system is ideal for work cell packaging environments and features an advanced crimping system and programmed length output mode with a timer that stops paper flow. A sturdy, effortless, built-in cutting mechanism allows for desired lengths of paper material to be dispensed without repetitive motion injuries associated with tearing paper by hand. Lightweight and portable, the system comes in tabletop and stand-alone models that are simple to load and fit easily into most packaging areas. The dispensed crimped paper pads are 100% recyclable and decrease product shifting during shipping. Sealed Air, 800-648-9093, www.fasfilez.com, www.sealedair.com. Double clamping drum lifting The Ergomatic 1000-DH-BC drum transporter uses the double parrot-beak clamping mechanism for safe and effective handling of fiber, plastic and damaged steel drums. It is ideal for moving drums to and from pallets, skids, scales and spill or containment pallets. Capable of handling capacities from 600 to 1,000 pounds, the transporter includes a v-shaped straddle leg configuration with telescopic adjustment settings. To pro- 84 Au g u s t Manipulator’s two different gripping tools handle boxes, cases A line of intelligent industrial manipulators assist in handling, allowing operators to pick boxes and cases effortlessly, safely, quickly and easily. The device picks items that are stocked tightly together, making it impossible to grip from the sides. An aluminum overhead rail and bridge structure supports a trolley that slides the manipulator smoothly along the rails. Two different gripping toolings can be used: a vacuum gripper that lifts boxes from the top with vacuum pads and a linear chuck for cases. Features include a quick coupling device that allows quick and easy tooling exchanges, and an auto balancing feature that accommodates picking cases or boxes of different weights without requiring the selection of a different load presetting each time. Scaglia Indeva SPA, +39 0345 59511, www.indevagroup. com. 2 0 1 2 / Mo d e rn Mate r ials Ha ndl i ng Lifts, positioners bring operator to work A line of operator lifts and work positioners bring the operator to the work, instead of bringing the work to the operator. Each lift’s raised height is adjusted for each operator’s stature, enabling multiple workers to perform tasks in the same location as shifts change. When the operator work platform is adjusted, the operator works more efficiently while the risk of developing a repetitive strain injury is reduced. Both pieces of equipment are ideal for high-production assembly line and manufacturing facilities. Verti-Lift, 502-361-0180, www. verti-lift.com. VRC’s control panel accommodates multiple input, output signals To maximize user friendliness, a new control system has been added to the supplier’s line of vertical reciprocating conveyor lift equipment. The AQLogic control panel uses programmable logic relays for simplified programming flexibility. One controller can be configured to service a variety of applications with multiple input and output signals. Features include numerous programming combinations for signals, alarms, counters, timers, lights and sensors, and expandable memory for additional input and/or output signals for use with any lift system. To communicate system status, a digital display screen facilitates diagnostics. Easier wiring and installation is achieved through use of compact relay components that provide extra working space inside the panel. Autoquip, 405-282-5872, www.autoquip.com. mmh.com Automated Vertical Storage Systems It All Adds Up To VALUE Position, tilt loads at optimum height To tilt containers, tubs, wire baskets and boxes for easier, ergonomic access when retrieving or placing parts into a container, the Max-Ergo Tilt is offered. Tilting of 0 degrees to 40 degrees is achieved by a manual pump. The unit handles capacities from 2,000 to 3,000 pounds. To secure the load, a 4-inch lip is included standard on the hinged ends of all models. The base model has a lowered height of 9 inches, while the adjustable base frame version lifts from heights of 18 to 22 inches. For portability, fork pockets are included, and casters can be added optionally. Lift Products, 877-543-8776, www.liftproducts.com. Transport, elevate loads to heights of 130 inches Offered with manual or electric lifting, the Logiflex Trans-Stacker and TransPositioner transports and elevates loads on forks ranging from 23.5 to 60 inches long. Adjustable to the operator’s optimum working height, the units include an ergonomic handle for a relaxed hold. All control buttons are located on the handle, and a transparent, impact-resistant safety screen is incorporated into the mast. The devices raise loads weighing 2,200 to 3,000 pounds to heights from 36 to 130 inches. Interthor, 708-345-1270, www.interthor.com. Transporter’s oversized casters roll easily Offered in either platform or fork configurations, the versatile Lift Stik lifter transporter distributes a load evenly over four oversized casters that roll easily over thresholds and uneven floors. Each transporter is equipped with a powered, continuous chain in a narrow, single mast. The unit incorporates a hand-held, push-button remote that allows the operator to lift or lower the platform from any side at dual speeds for safe, efficient control. A battery charge indicator is mounted centrally on the push handle, while an auto-cutoff function prevents overcharging. Offered in four models, the device handles load capacities from 185 to 445 pounds to heights from 52 to 65 inches. Presto Lifts, 800-343-9322, www.prestolifts.com. Small parts are expensive. Traditional shelving eats up valuable ßoor space and exposes parts. WhatÕs more, parts can be tough to Þnd and reach; keeping accurate inventories a challenge. The Lauyans Small Parts Storage System (SPSS) is a USA manufactured solution offering high density storage utilizing vertical space for greater footprint capacity, worker safety, security, labor savings and the most competitive pricing available. Before you decide to buy any Automated Storage System, go online and check out our pricing. www.SPSSonline.com It All Adds Up To VALUE Lauyans & Company, Inc. 1-866-LAUYANS (528-9267) USA Manufactured mmh.com Product Showcase Beverage shipping system prevents dents in cans A line of beverage protection products prevents damage to cans caused by crushing under the weight of a pallet or a toppled stack during transport. The Beverage Cover and Beverage Spacer are lightweight dunnage devices that protect cans on pallets or in transit, reducing the chance of damage while improving loading times. Used when prepping shipments, the fully nestable Beverage Cover measures 40 x 48 x 3 inches and supports a static load up to 4,000 pounds. In the the gate features a reciprocating barrier that is interconnected and can’t be opened at the same time. When the outer gate opens to allow pallets to enter the mezzanine level, the inner gate automatically closes, keeping workers out. After the pallet is received, the mezzanine-level workers open the inner gate to remove the material from the work zone. An exclusive link bar ensures that both gates always work in unison, without relying on chains or cables. Rite-Hite, 888841-4283, www.ritehite.com. Track pharmaceuticals throughout cold chain To address stringent data recording for cold chain product transport, a time/ temperature monitoring system enables information to be viewed from different locations. This makes it ideal for complex pharmaceutical distribution networks. Featuring an easy-to-use, Web-based customer interface validated for U.S. Code of Federal Regulations (CFR) 21 Part 11 compliance, the system is a full turnkey solution for cold chain compliance. Incorporating three basic com- On-demand air cushion packaging warehouse, it helps keep pallet packs secure and stable, cushioning against side-to-side movement or direct impact when stacking. To fill the voids created between cases as trucks are emptied along the delivery route and to support stacks in transit, the lightweight Beverage Spacer measures 33.5 x 34 x 7 inches. Two spacers can be combined to fill larger voids. Reusable, the spacer can absorb up to 4,500 pounds of force. Paylode, 877-421-2914, www.paylode.com. Offered as an alternative to off-the-shelf bubble wrap, the AIRplus Bubble is an on-demand protective air cushion packaging system for wrapping products that cuts storage and handling costs. Manufactured on compact machines, the material includes a convenient easy-tear perforation for ergonomics and speed. The perforation allows a packer to divide the cushioning wrap intuitively without searching. Features include narrow individual sections for the efficient wrapping of small-sized items with less waste. A single section contains two rows with seven round air chambers each. Storopack, 513-874-0314, www.storopack.us. Control access to elevated platforms, mezzanines with safety gate The GateKeeper safety gate creates a controlled access area in which workers can safely load and unload from the edge of a mezzanine, pick module or other elevated work platform. Installed on the edge where pallet loads from the floor level are regularly deposited for pick-up, 86 Au g u s t 2 0 1 2 / Mo d e rn Mate r ials Ha ndl i ng ponents—temperature logging cards (optional LED display), optional RFID reader with or without integrated bar code scanner, and the Internet—the software enables ordering, configuring, viewing, sharing, integrating and managing data through a Web browser. TempTRIP, 303-895-3455, www.temptrip.com. Galvanized pallet truck chassis extends vehicle life in wet environments Three models of the supplier’s AC electric pallet trucks and walkie riders may now be specified with a galvanized chassis option to protect the vehicles while operating in wet environments. The vehicles include the 8-Series AC electric walkie pallet truck (6,000 pound capacity), 8-Series end-control walkie rider (6,000 to 8,000 pound capacity) and 7-Series electric walkie pallet truck (4,500 pound capacity). Ideal for use in salty, high-moisture and corrosive environments where resistance to rust is critical, the vehicles mmh.com WORK ACCESS AD 1/4 PAGE 2012_MMH - ADVANCE LIFTS 1/30/12 3:42 WORK ACCESS LIFTS may also be used in cold storage facilities or where frequent wash downs are required. To further extend the life of the pallet truck, other integrated features include heavy duty Teflon coated Polylube bushings that require no lubrication, and a traction motor controller splashguard that deflects debris and moisture. Toyota Material Handling, 800-226-0009, www.toyotaforklift.com. Douse summer heat with misting fan system For enhanced cooling in hot facilities, the 8-foot AirGo and Yellow Jacket fans may be equipped with highpressure, filtered misting systems to produce a cooling effect equivalent to 22 and 11 tons, respectively, of air conditioning. The systems feature an ultra-fine atomized mist that absorbs heat in the air and allows hot outdoor settings to provide a safe cooling zone. Big Ass Fans, 877-244-3267, www.bigassfans.com. SAFER & MORE EFFICIENT THAN LADDERS OR SCAFFOLDING • Advance work access lifts can elevate workers, materials & tools to convenient work heights at the push of a button. • Applications include production, assembly, inspection, maintenance and order picking. we offer THe MoST LIfe Per $ SPeNT 1-800-843-3625 www.advancelifts.com Durable floor labels stand up to traffic With design, in-house manufacturing and a fully managed installation service, a line of hard-wearing floor labels is offered for facilities. Selections include embedded labels, framed labels and high strength adhesive labels. Using a high strength adhesive, a consumable label or floor sign can be applied quickly and without extensive preparation. To help protect the label, an optional metal frame may be added to prevent direct impact with forklift trucks and other traffic in the warehouse. ASG Services, 887-447-9798, www.asgservices.com. Clip label holder onto wood, metal shelving Easy to install, the Clip-Eze label holder clips onto either wood or metal shelving measuring 0.75- to 1-inch thick. The holders are made of durable, non-glare, clear PVC and do not damage the shelving’s finish. A 1.5 x 3 inch insertable laser label is protected by a clear plastic window that presents the information at a highly visible 30-degree angle. Each pack includes 25 holders and inserts. Aigner Label Holder, 800-242-3919, www.aignerlabelholder.com. mmh.com Modern Mat eria l s Ha ndl ing / A u g u s t 2012 87 Product Showcase Improve employee comfort with wind block curtain Power-and-free overhead conveyor transports hanging garments A line of overhead garment on hanger overhead rail systems is offered for use in apparel manufacturing and warehousing. Operating as an overhead conveyor, the system moves trolleys filled with hanging garments over long distances, changing elevations and complex paths. For accumulation and positive control of trolleys at all times and to enable multiple processes and functions, the system includes power-and-free capability, enabling the trolleys to be separated from the power chain to non-powered lines for stopping, switching or diverting to other paths. W&H Systems, 201-635-3471, www.whsystems.com. Recycled pallet can be made from purchaser’s wood, fiber waste Featuring dimensionally stable soliddeck, nine-block construction, the E-Core Pallet is offered as a sustainable, reusable packaging solution. The pallet is made from recycled engineered composite board material in combination with a non-toxic environmental composite adhesive material—both of which are composed of 100% recycled wood and/ or paper fibers. Pallets can be made from the purchaser’s own wood and fiber waste stream to maximize sustainability practices. The pallets can be custom made to any footprint and height, and are compatible with automated storage and retrieval systems. For use with pallet jacks, the bottom deck may be constructed of solid cruciform. Rehrig Pacific Logistics, 800-792-0875, www.rehrigpenn.com. 88 Au g u s t To keep employees comfortable and safe when loading dock doors are opened, the Wind-Block Curtain installs easily in distribution centers, manufacturing plants, warehouses and other facilities where loading docks are in close proximity to work areas. The modular panel curtain acts as a barrier to separate open dock areas from production lines or other worker zones. This prevents cold winds from reaching employees to maintain worker comfort, safety and productivity. Strong and flexible, the curtains can be configured with a series of sliding or stationary, insulated or non-insulated panels. For stability in high winds, they include galvanized drop pins and floor sockets. Zoneworks, 800-553-4834, www.zoneworks.com. Organize, store parts and tools in bin cabinet Offered as an alternative to standard steel storage cabinets, the Ready-ToAssemble AkroBin Cabinet ships unassembled for lower shipping costs. It assembles easily with basic tools and securely stores and organizes valuable tools and parts. Storage options include four adjustable 100-pound-capacity shelves and a louvered back panel. Manufactured from 18-gauge steel with a 16-gauge steel base, the cabinet includes a flush-mount handle with a three-point lock and a durable powder-coated finish. Options include a rooftop that prevents potentially hazardous items from being stored on top of the cabinet, and a dolly 2 0 1 2 / Mo d e rn Mate r ials Ha ndl i ng that converts the bin cabinet to a mobile unit. The cabinet is also offered as a kit, complete with an assortment of AkroBins. Akro-Mils, 800-253-2467, www.akro-mils.com. Scissor lift expandable with options that accommodate changing applications The EnKon A1300 air scissor lift provides flexibility by enabling later expansion with additional, optional components to accommodate changing applications. Options include a platform, rotate, tilt function and casters. The lift raises pallets or containers to the perfect height—from 9 to 42 inches—so workers do not need to strain and bend while unloading or loading material. Virtually maintenance-free, the lift does not require fluid or cylinder replacement. It lifts up to 3,000 pounds with air bag power that produces a direct one-to-one lift ratio to eliminate stress on the scissors. Herkules Equipment, 800-444-4351, www.herkules.us. Specialized rack for barrel beer kegs Ideal for storage of beer kegs, the Keg-Flo storage system increases the number of six-keg SKUs stored in a single space. In addition to increasing warehouse capacity, this improves productivity by reducing the travel time required to pick orders. A 96-inch wide bay outfitted with the system can hold up to seven times as many six-barrel SKUs as a standard keg storage system. Hannibal Industries, 888-246-7074, www.hannibalrack.com. mmh.com Mushroom-based packaging green, sustainable EcoCradle Mushroom Packaging, made from agricultural byproducts and mycelium (also known as mushroom roots), is offered as an environmentally responsible packaging material. The mycelium grows around agricultural by-products—such as buckwheat husks, oat hulls or cotton burrs—into any shape. Heat treatment stops the growth and kills the spores. The material can be formed into protective packaging in a variety of densities, strengths, textures and appearances to match varying performance demands. Its molded shape protects products against damage during shipping. At the end of its use, the material is home compostable. Sealed Air, 201-791-7600, www.sealedair.com. 4 to 33 inches and lengths of 12 to 300 inches, standard caliper options range from 0.060 to 0.200 inches. Laminations, 800-925-2626, www.laminationsonline. com. Multi-paneled paperboard forms crates, self-contained shipping containers With channeled hinges linking multi-paneled walls, FlatCrate engineered paperboard easily folds into a U-shaped crate or selfcontained shipping container in a variety of geometric shapes for product protection. The material ships flat and is recyclable. Its five-panel sides have a layered paper construction that adds strength and creates channeled hinges with voids that enable precision folding and wrapping. The substrate can be die cut, glued, perforated and custom printed. Manufactured in widths of Reusable packaging system Recently honored by the DuPont Awards for packaging innovation, the Cube transport packaging system enables movement of products from factory to store with maximum efficiency and full protection. The packaging system features open architecture crating without wood. It can go from product pack-out at the end of a manufacturer’s production line, into national or international distribution on any transportation mode, then directly to the retailer’s sales floor to eliminate costs. Smart Packaging Systems, 512-423-0226, www. smartpackagingsystems.com. Forklift Monitoring Device classified To advertise or for more information Please contact: Jennifer Drevline 847-223-5225, ext. 11, jenniferd@caseyreps.com Label Holders Components 800.242.3919 www.aignerlabelholder.com info@aignerlabelholder.com mmh.com MODERN MAT ERIA L S HA NDL ING / A U G U S T 2012 89 modern 60 Seconds with... Jim Moran Title: Chairman, Industrial Truck Association (ITA); Board of Directors, Crown Equipment Location: Washington, D.C. Experience: 45-year industry veteran who has held several industry leadership positions and has presented at numerous conferences. He is a 20-year member of the ITA executive committee and a threetime president of the association. Duties: As ITA chairman, Moran works with the executive board to determine the strategic direction of the association. He is also responsible for building a consensus behind that strategic direction and providing a voice to the association’s position on industry issues. Modern: The lift truck industry has had successful back-to-back years. Where does the industry stand today in comparison to the years prior to the recession? Moran: In 2005 and 2006, we had demand for more than 200,000 trucks in North America. In 2009, we had demand for just over 91,000. Last year, demand was back to 164,000 trucks, but that’s still lagging pre-recession demand by as much as 20%. If the last half of 2012 is as good as the first half, we’d be at roughly 180,000. It’s certainly good compared to 2009, but we’re not back to the good old days. Modern: Have there been any significant shifts in the kinds of trucks being purchased today? If so, what’s driving it? Moran: If you look across the market, there have been slight changes in all of the truck classes. I think the most meaningful change has been in Class 3. That includes the smaller, lowerpriced units like walkies and stackers. In 2005, Class 3 was about 25% of the market and now it’s about a third of the market. I think it’s a result of the 90 A u g u s t economy. Where people once just added another lift truck to their fleet, today they’re buying only what they need. I also think that as logistics processes become more sophisticated, customers are looking for task-specific solutions. A department might buy one of these Class 3 vehicles so they don’t need to wait on a roving truck to bring them their material. More thought is going into lift truck selection and that’s been a positive result of the recession. Modern: In our Top 20 article, you mentioned that end users are asking questions about green initiatives and the environment when it comes to lift trucks. How is that playing out? Moran: First, companies are connecting purchases to their own corporate social responsibility initiatives. As part of due diligence, they’re asking their vendors about their sustainability initiatives. They want credible information from their vendors. Beyond that, there’s an increased interest in the energy consumption of the lift truck itself. It started in Europe, but you’re seeing a lot of effort to make trucks more energy efficient, whether it’s an internal combustion truck or an electric. More importantly, I think there’s going to be an interesting debate 2 0 1 2 / Mo d e r n Mate r ials Ha ndl i ng about whether that’s the best way to save energy or whether its more important to focus on the most efficient way to move goods through your DC. Modern: In our information technology story this month, suppliers talked about the move toward the lift truck as a platform for smart technology. How do you see lift truck technology evolving? Moran: The technology developments in lift trucks over the last few years have created tremendous value for our customers and the industry. The controls on trucks today know when the truck is making a very tight turn or the forks are at a certain height to maximize performance and keep the operator out of trouble. We’re into regenerative braking and mast lowering technology which is increasing efficiency and using less energy. When you look at the future, you can think about lift trucks connected in some way to a customer’s warehouse management system (WMS). This allows the lift truck to be used as a labor management tool because it knows what the operator is doing between the time the WMS issues a task and its completion. That’s where the development work is being done by many people in our business. That’s pretty exciting. 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