The robot benefits have been as follows:
Labor shortage addressed. Vice president of operations Judd Marlatt says the tight labor market in the region at the time (just 3% unemployment) made it very difficult to staff off-shift hours, especially when a third shift was added. “We couldn’t run the lines efficiently some days,” he says.
Brand protection maintained. Labor constraints were compounded by the fact that sales volumes—and production pressures—were increasing. Product shortages at stores were a growing possibility, “and we needed to protect the brand,” Marlatt says.
Rates increased. The overall production rate, which had been 1꼀 cordials per minute when packed manually by 24 operators, is now up to 2검/min done by 24 robotic arms.
Productivity increased. Output was up 30% in 2001.
Payback of $900ꯠ yearly. Marlatt projects a three-year payback for the $3.1 million investment. The figure also includes the casing operations, which are anchored by a pick-and-place robotic case packer on both lines. With the exception of a new facility built in 1978, the capital expenditure represents the biggest project in the history of the company.
See the story that goes with this sidebar: 'Cordial' robots hit savings sweet spot
