Rising Turnover Costs in Manufacturing: Mitigation Through Automation

Employee turnover can be expensive. In fact, Josh Bersin of Deloitte believes the cost of losing an employee can range from tens of thousands of dollars to 1.5–2.0x the employee’s annual salary. These costs include hiring, onboarding, training, ramp time to peak productivity, the loss of engagement from others due to high turnover, and higher business error rates. (Altman, 2017).

In a time when speed-to-market, low defect rates, and low cost-per-unit levels drive profitability more than ever, manufacturers are particularly affected by employee turnover. In 2016, manufacturers experienced turnover rates of 16%. (Bares, 2017). Doing the math, one can see that if their company turns over 16% of their operating workforce, and turnover costs are 2x the lost workers’ salaries, then annual turnover costs can equal up to 32% of your total operating payroll per year (assuming equal wages for simplicity’s sake). The “learning curve” effect also plays its part in higher defect rates and lower productivity, decreasing product quality and speed-to-market (Argote and Epple, 1990). In other words, turnover can severely affect profitability, especially in manufacturing.

So, what can manufacturers do about it? The psychology and social science on this subject has been published for many years, yet turnover rates are still high and have risen consistently over the past five years. Let R.V. Evans Company take a different approach. If you’re a manufacturer, do any of these activities fall under any of your workers’ job descriptions?

  • Forming cases and boxes
  • Closing and stapling boxes/cases
  • Sealing/taping cases
  • Bagging parts
  • Stretch-wrapping pallets
  • Printing images, date and batch codes, or barcodes on products or cases
  • Applying labels
  • Manually creating void-fill protective packaging for cases
  • Manually shrink-wrapping products
  • Applying strap to bundles, boxes, pallets, etc.

If you answered yes to any of those, there is room for automation.

Automation doesn’t always come in the form of complete robotics; there are ways to semi-automate as well. Semi-automation reduces the amount of laborers required to perform certain tasks in the manufacturing process, particularly in packaging processes. Examples of automation and semi-automation include:

  • Incorporating a WFPS 3290 Combo to allow a single operator to form, pack, and seal up to 30 cases per minute
  • Using an AutoBag 550 to allow a single operator to bag up to 45 parts per minute
  • Install an Orion Flex Series stretch wrapper to wrap pallets much faster than by hand
    • with a 260% pre-stretch that can save up to several thousand dollars in stretch wrap per year
  • Implementing a Samuel Model P715 automatic plastic strapping machine to apply plastic strap to your packages at speeds of up to 60 straps per minute- without an operator
  • Connecting many of these systems and others via conveyor equipment
  • Much, much more

There are numerous ways R.V. Evans and its team of packaging solutions representatives can help you reduce turnover by eliminating some of those high-turnover positions entirely. This is not a recommendation to replace your good, high-quality people that make your operation great. This is a recommendation to allow R.V. Evans to help you find ways to eliminate positions that are difficult to keep occupied due to high turnover. Equip your good workers with the means to produce more and add more value- at a lower total cost. Automating, semi-automating, and/or streamlining your processes can increase your speed to market, decrease your cost-per-unit, lean out your labor force, and make you more money. 

Why R.V. Evans? Because we are a team of experts whose core competencies are creating packaging solutions and giving great customer service. We spend every day staying up to date with the latest technology, studying that technology, and creating ways to implement it in various manufacturing environments. You are the expert in your operation, and we are packaging solutions experts. Team up with us so we can create a packaging solution that is right for you. We will forever follow up with great service.

Here is how to get started. 3 options are included below.

  1. Click here to schedule a site needs analysis with one of our packaging experts
  2. Click here to request general information about a specific product or product line
  3. Call 800-252-5894 to speak to one of our wonderful customer service representatives

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Ways to Reduce, Reuse, and Recycle in Your Packaging & Fastening Process

Ways to Reduce, Reuse, and Recycle in Your Packaging & Fastening Process

Logo courtesy of http://americarecyclesday.org/

Logo courtesy of http://americarecyclesday.org/

November 15th was America Recycles Day so it seems fitting to provide businesses with some ideas that may help them reduce, reuse, and recycle in their industrial packaging and fastening processes.

Not only does the R.V. Evans Company make every effort to reduce, reuse, and recycle in their daily business practices, we also partner with manufacturers to distribute products that help our business partners find sustainable methods of packaging & fastening.  Business’ today are seeking solutions that can help them reduce their environmental footprint and R.V. Evans Company can help provide solutions that will not only minimize environmental impact, but will also provide overall savings in the total cost of ownership.

Following are a few ideas to get you started.  Click on each application category title below and then the Sustainability heading to access additional information including a number of white papers.

  • Bagging Applications – Use baggers with printers to print variable information on bags to reduce inventory of multiple pre-printed bags for multiple SKUs.  There are also a number of biodegradable films available for bagging applications.
  • Shrink Wrapping Applications – A variety of energy-efficient equipment options are available.  There are film down gauging options to help reduce materials. In shrink bundling applications the use of corrugated products can drastically be reduced.  There are also a variety of biodegradable shrink film options available.
  • Stretch Wrapping Applications – There are a number of ways to reduce stretch film consumption such as reviewing the overall application method, analyze film stretch, and load stabilization.
  • Strapping Applications – In many strapping applications there are opportunities to reduce material usage by using a higher strength strap that has been manufactured using fewer raw materials.
  • Carton Forming & Closure Applications – Use energy-saving carton forming and closure equipment with a built-in power save mode.  Review methods of carton closure such as taping, gluing, and stapling.
  • Marking, Coding, & Labeling Applications – Printing directly on a label or carton can drastically reduce wasted packaging materials like preprinted cartons.  Consider energy saved when using electric equipment vs. equipment requiring the use of compressed air.
  • Protective Packaging Applications – There are a number of ways to reduce the amount of packaging used to protect products and fill voids in shipping.  The best way is to measure the savings and reduction using a free “pack-out” test.  Contact R.V. Evans to learn more.
  • Nailing, Stapling, Collated Screw Applications – For those wood & steel recyclers – fasteners are a must.  The use of nails, staples, screws, pins, adhesives, and more make rebuilding, recycling, and reusing a cinch.  R.V. Evans Company has a multitude of creative fastening solutions for those challenging fastening projects.

Let us know how we can help you with your sustainability goals in your packaging and fastening processes in 2014.  Contact R.V. Evans Company today!

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Sustainability in Packaging

The word sustainability in packaging can often times be a scary one. Most manufacturers see it as an overwhelming endeavor and choose to not approach it for fear of failing. The important thing to remember, however, is that attaining sustainability in packaging is not a one-time feat. It is an on-going process and takes time. Although it is an on-going process, studies show that it is important to consumers and can increase your business sales. 29% of Americans now buy Green Products, 74% of people think that a manufacturer that reduces the environmental impact of its production process or product is making a smart business decision, and 75% of people say that they feel good when they take steps to help the environment. These are numbers that shouldn’t be ignored.

One of the first steps that manufacturers can take is using common sense to identify things around the warehouse or production process that require power or produce waste. Odds are there are steps that can be taken to reduce these things to help the environment. One factor that has a large impact on not only the environment, but also a company’s bottom line is compressed air. Compressed air is measured by Cubic Feet per Minute (CFM). The average cost of compressed air is about $0.02 per CFM per hour. Let’s consider an automated label printer/applicator, which is a common piece of equipment in any consumer products manufacturing facility.  A traditional pneumatic powered tamp unit uses about 3 CFM, which equates to about $552.00 per year. There are new technologies available that require no air. These eco-friendly labeling machines require just $48.00 per year to operate. You can easily tell the difference that this solution will make on your expenses, and that is just for one unit! Most manufacturing plants have more.

Another factor that plays into sustainability is wasted material, such as pre-printed boxes. It is a common trend among manufacturing plants to order and stock thousands of pre-printed boxes. Unfortunately, many of these end up in the trash as their pre-printed information becomes out dated or the quality of the box is ruined. An online case printing system eliminates this issue by printing the correct information on the box when you need it, preventing unnecessary waste.

In conclusion, sustainability in packaging is no easy task, but it can be very beneficial, saving your company thousands of dollars a year by taking small, simple steps.

For more information on how you can make your packaging process more eco-friendly, contact the R.V. Evans Company at 1-800-252-5894 or visit our website at www.rvevans.com

You can also email us at sales@rvevans.com or through our social sites.

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source: http://www.rvevans.com/Packaging-Solutions/PDF/FoxJet%20WhitePaper%20Crawl%20Before%20You%20Walk%20-%20Small%20Steps%20Towards%20Sustainability.pdf