Case Studies / Increased Efficiency
Increased Efficiency: Productivity Increased by 300 Percent
A $1B global provider of broadband satellite services and products was manually erecting and sealing cardboard boxes containing electronic equipment. As the company’s production volume increased, the number of employees required to ship the products grew and labor costs increased.
When we saw the increase in demand, we recommended a case erector that could assemble boxes quickly and consistently. We performed a formal ROI analysis to determine the payback and the case erector was a clear solution.
This customer was able to redeploy three employees working three shifts per day and replace them with a single machine operator per shift. By eliminating six positions at an annual burdened labor rate of $35,000, the payback on the purchase was realized in 2.28 months.
Productivity is the key to profitability. That is, the ability to manufacture or produce the most amount of product with the fewest amount of man hours.View Solution