Managing Labor Costs: The Way Forward for Stalwart Manufacturers

You've survived this recession by cutting costs, managing inventories, and likely, reducing labor. Lean companies with low inventories are desiring to remain lean as the economy recovers, yet have the ability to quickly fulfill all demand—a tall order for manufacturers with inefficient production processes.

Companies across all categories are endeavoring to come out of the recession with a renewed commitment to keep labor costs from bloating. For the wood manufacturing segment, the strategy most often stated is "Automation with more flexibility is the key to a healthy bottom line."

In a new economy with shorter lead times and more demand for customization, smart automation is rising again as a promising alternative to both high labor and the massive production runs of the past.

The Quick Changeover Methodology
There has been a trend in recent years toward smaller production runs to accommodate just-in-time production while meeting the customer's requirement for fast order turnaround. Those processors who have been ahead of the curve by adopting Automatic Quick Changeover production are well suited for economic recovery, but it is not too late for any manufacturer to adapt to these demands.

Fixing the Small Order/Higher Labor Issue
A small order environment has traditionally been thought of as a more labor-intensive process. But with current automation technology, production lines can produce more custom orders while reducing labor. Most importantly, this environment can maintain attractive margins.

Today, automatic changeovers can often be done in seconds or even on-the-fly with no time lost whatsoever. They can occur based on setup information received from the plant server, barcode label on the product or by an operator-selected recipe saved in the machine itself.

On many lines we have designed and built, one-piece flow is business as usual, with no one touching these customized orders as they are produced. Products manufactured in this manner could be doors, cabinet components, countertops or windows, to name a few.

More Information
If you are considering changes to your processing environment in preparation for a changing economy, contact Creative Automation at 715-223-6321 to begin discussing how Creative Automation automated processing and material handling can make your small order workflow more profitable.

Creative Automation designed automatic tool changer in a countertop corebuilder machine. All axes on the machine setup automatically based on commands from a plant server or by an operator-selected recipe.

This Creative Automation designed automatic tool changer is part of a countertop corebuilder machine.  All axes on the machine setup automatically based on commands from a plant server or by an operator-selected recipe.

The manufacturing cell above enables just-in-time production of cabinet components by a single operator.
The manufacturing cell above enables just-in-time production of cabinet components by a single operator.  Part recipe to run is selected by the operator.  Automatic setup is fully automatic and fast.  The next run can begin while the previous run is finishing.