Hypertherm cuts costs with enterprise labeling

U.S. manufacturer saves $1.5 to $5 million by implementing a browser-based labeling system that improves production uptime.

PRINT JOB. A Hypertherm employee initiates a print job through barcode scanning.
PRINT JOB. A Hypertherm employee initiates a print job through barcode scanning.

Hypertherm Inc. is a global manufacturer of advanced plasma, laser and waterjet cutting systems, with its products used for cutting any type of metal in applications for a variety of industries including shipbuilding, manufacturing, and automotive repair. Its client list includes Ford, Volvo, Harley Davidson, and Caterpillar.

With operations and partners worldwide, Hypertherm was experiencing significant growth, yet its existing consumables product label printing system was not accommodating this growth, and was presenting considerable risks to the company’s operations in a lean manufacturing environment. The company’s “home-grown” labeling system was complex and customized with layers of third-party applications, posing connectivity issues for suppliers, and representing a single point of production failure.

Additional software licenses were no longer available to enable Hypertherm to grow or upgrade its existing deployment, and there were inherent issues with mislabeling. The system was also prone to breaking, ultimately causing significant downtime issues, representing a loss of productivity, with five to 10 hours of troubleshooting and fixing the label system each week. All of this resulted in customer dissatisfaction, brand integrity issues, and lost revenues, equaling $25,000 to $100,000 worth of productivity each week due to labeling issues.

Legacy system difficulties

Additionally, there were a variety of connectivity issues, which caused synching errors when trying to replicate data to local stations, which also resulted in more downtime.

Inability to print represented a critical issue, because when Hypertherm’s labeling process stopped, production stopped, and it was unable to get product out the door. Unfortunately, due to complexity of the legacy labeling system, it would take excessive amounts of time to figure out where the problem resided and get the system back up and running. This resulted in orders being delayed and lost credibility.

The existing system required a reliable network connection because it was synching information from an FTP server to a local database that resided on each workstation. If a failure occurred, there was no notification to the user and the labeling process continued, producing labels with incorrect data. Mislabeling or printing with the wrong data resulted in missed delivery deadlines, customers receiving incorrect parts, and costly returns. Incorrect labels had a downstream impact on customers, which could ultimately cause brand credibility issues and dissatisfaction.

And when a user selected a wrong printer and the job went to print, Hypertherm would need to start the print process over. Hypertherm realized that it needed to establish a good technology foundation to eliminate, or at least reduce the role of human error in the occurrence of mislabeling.

The company wanted to simplify its labeling approach so that it could configure a single enterprise application. Hypertherm sought an automated approach that would allow it to simply scan a part number so that it would automatically pick the appropriate label template, the printer and the media, rather than requiring manual entry, which added more failure points. It also wanted a “poke-yoke”-compliant system, meaning that workers could simply scan a tray to establish the appropriate part number rather than manually typing in part numbers to avoid mislabeling.

Single-person responsibility

Coding, Marking, and Labeling Innovations Report
Explore our editor-curated report featuring cutting-edge coding, labeling, and RFID innovations from PACK EXPO 2024. Discover high-speed digital printing, sustainable label materials, automated labeling systems, and advanced traceability solutions that are transforming packaging operations across industries.
Access Report
Coding, Marking, and Labeling Innovations Report
Pharmaceutical Innovations Report
Discover the latest breakthrough packaging technologies shaping the pharmaceutical sector. This report dives into cutting-edge innovations, from smart containers that enhance patient safety to eco-friendly materials poised to transform the industry’s sustainability practices. All from PACK EXPO. Learn how forward-thinking strategies are driving efficiency and redefining what’s possible in pharma packaging.
Learn More
Pharmaceutical Innovations Report