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PACKAGING MANAGEMENT
Attempt any four cases
Case No 1 Stretchable Tape
3Mâ€TMs Scotch Brand TM Stretchable Tape (ST) is a 4 or 6 mil Linear Low
Density Polyethylene (LLDPE) backing with a solvent less adhesive. ST is a load
stabilization product which can provide reductions in raw materials and waste
disposal costs while maintaining a stable, breathable load. ST utilizes 3Mâ€TM5
patented Stretch Release adhesive technology which will not damage high intensity
graphic boxes.
3Mâ€TMs Scotch Brand TM Stretchable Tape was tested and proven to conform, by
an Independent Testing Facility, to ASTM D4 169–Standard Practice for Performance
Testing of Shipping Containers and Systems.
Background
A meat packing house was packing 48 to 50 lb. of hams into a 10” high box. These
boxes were interlock stacked 7 layers high on a 40” x 48” pallet. They were using
stretch film and corner boards to stabilize the load for transport to an off site blast
freezer. At the blast freezer the stretch film and corner boards were removed to
improve cold air flow to the hams and reduce freezing time. After the blast freezer,
the pallet was rewrapped with stretch film and corner boards and sent to distribution
warehousing.
The reason the meat packer is investigating ST is to reduce raw material cost,
application cost, and waste disposal cost.
Waste and Cost Savings
3M†TMs Stretchable Tape (ST),
#8886, was used to stabilize the pallet loads of
hams after final packaging. Because ST allowed air flow through the pallet load, it
is not required to be removed during the blast freezer process. The average amount
of stretch film per pallet load was 15.7 oz. Because each pallet was wrapped twice,
the total amount of stretch film used was 31.4 oz. The same pallet configuration
needed only an average of 3.3 oz. of ST for the entire freezing and shipping process
This was a reduction of 28.1 oz. of LLDPE that requires disposal. In addition the
raw material cost savings for the customer was 42.5 percent per pallet load. By
using ST, additional savings in labor were realized by elimination of the second
application of stretch film.
hams after final packaging. Because ST allowed air flow through the pallet load, it
is not required to be removed during the blast freezer process. The average amount
of stretch film per pallet load was 15.7 oz. Because each pallet was wrapped twice,
the total amount of stretch film used was 31.4 oz. The same pallet configuration
needed only an average of 3.3 oz. of ST for the entire freezing and shipping process
This was a reduction of 28.1 oz. of LLDPE that requires disposal. In addition the
raw material cost savings for the customer was 42.5 percent per pallet load. By
using ST, additional savings in labor were realized by elimination of the second
application of stretch film.
Issues to be analyzed
1. Facts of the case.
2. Discuss how proper packaging
leads to Waste cutting and Cost Saving.
Case No 2 Packaging Redesign
Background
Ciscoâ€TMs Small Office/Home
Office (SOHO) products were traditionally shipped
in a corrugated container with a combination of Polyethylene and Polyurethane
foam cushioning. Not only was the pack composed of three different materials, it
was also difficult and time consuming to assemble.
In March of 1995 a new product was added to the SOHO line. The new product did
not fit into the existing package system. An opportunity arose to redesign the pack
based on the following criteria. A system called Korrvu packaging System was
formalized.
1. The new pack would have to accommodate all 4 products
2. The new pack would have to be easier to assemble
3. The new pack should be less expensive
4. The new pack should use less material
Solution
By implementing the Korrvu Packaging system on the SOHO product line, all four
criteria were met in the following manner:
The new pack would have to accommodate all 4 products.. The design of the
package allows all 4 products to fit into the same Korrvu insert. This also allows for
the same shipping carton and accessory kit carton to be used across products.
The new pack would have to be easier to assemble. The old pack required a RELF
mailer and corrugated accessory insert to be assembled. The accessories were
difficult to place in the insert and the mailer was time consuming to close and tape.
The foam inserts required removal of tear-outs to accommodate the various
products. Total pack out time was around 90 seconds.
The new package is considerably easier to assemble. The products are now shipped
in an RSC which is easier to assemble as compatible with automatic taping
equipment. The accessory was changed to a RETT mailer. The mailer comes into
Cisco pre-assembled and stuffed with the generic components of the accessory kits.
The Korrvu insert is easy to fold and place in the RSC. Total pack out time is now
35 seconds.
The new pack should be less expensive. The old package system cost $4.48 per
10,000. The new systems costs $2.20 per 10,000. Cisco typically ships between
20,000 and 30,000 SOHO units per month for a monthly average cost savings of
$57,000.
The new pack should use less material. The old pack was made up of two
corrugated components, one polyethylene component and one polyurethane
component.
The new pack is made up of three corrugated components. The Korrvu component
has polyurethane film adhere to corrugated but is still curb-side recyclable and is
RESY certified.
in a corrugated container with a combination of Polyethylene and Polyurethane
foam cushioning. Not only was the pack composed of three different materials, it
was also difficult and time consuming to assemble.
In March of 1995 a new product was added to the SOHO line. The new product did
not fit into the existing package system. An opportunity arose to redesign the pack
based on the following criteria. A system called Korrvu packaging System was
formalized.
1. The new pack would have to accommodate all 4 products
2. The new pack would have to be easier to assemble
3. The new pack should be less expensive
4. The new pack should use less material
Solution
By implementing the Korrvu Packaging system on the SOHO product line, all four
criteria were met in the following manner:
The new pack would have to accommodate all 4 products.. The design of the
package allows all 4 products to fit into the same Korrvu insert. This also allows for
the same shipping carton and accessory kit carton to be used across products.
The new pack would have to be easier to assemble. The old pack required a RELF
mailer and corrugated accessory insert to be assembled. The accessories were
difficult to place in the insert and the mailer was time consuming to close and tape.
The foam inserts required removal of tear-outs to accommodate the various
products. Total pack out time was around 90 seconds.
The new package is considerably easier to assemble. The products are now shipped
in an RSC which is easier to assemble as compatible with automatic taping
equipment. The accessory was changed to a RETT mailer. The mailer comes into
Cisco pre-assembled and stuffed with the generic components of the accessory kits.
The Korrvu insert is easy to fold and place in the RSC. Total pack out time is now
35 seconds.
The new pack should be less expensive. The old package system cost $4.48 per
10,000. The new systems costs $2.20 per 10,000. Cisco typically ships between
20,000 and 30,000 SOHO units per month for a monthly average cost savings of
$57,000.
The new pack should use less material. The old pack was made up of two
corrugated components, one polyethylene component and one polyurethane
component.
The new pack is made up of three corrugated components. The Korrvu component
has polyurethane film adhere to corrugated but is still curb-side recyclable and is
RESY certified.
Both packs weigh about 1100 grams each, but the new pack contains no foam, takes
up less space volumetrically and is more easily recycled.
Conclusion
The successes achieved with the redesign of Ciscoâ€TMs SOHO product line
packaging show that companies can develop packaging systems that meet what
appear to be a diverse set of criteria. In this particular case, the main objectives
were to develop a single pack that could be used for a variety of products and
simply the pack out process. While pursuing these goals it became apparent that
substantial cost savings could be realized along with a reduction in the amount of
packaging materials used
Issues to be analyzed
1. Facts of the case.
2. Analyze how the new Packaging
system was different from that of the old
system.
system.
Case No 3 Reusable packagin2 for Videotapes
Through packaging innovation, 3Mâ€TMs Audio and Video Products Division has
created enormous industry interest in it†TMs new bulk videotape logistical shipping
container, the 3M Reusable Pak. This new container eliminates the cardboard,
plastic, and foam waste associated with other packaging methods. The 3M Reusable
Pak not only reduces waste and disposal fees, it has saved millions of dollars in
material costs and eliminated over 1.4 million cubic feet of waste from entering area
landfills and incinerators.
Background
As a leading producer of bulk videotape for the film duplication and packaging
industry, 3M was looking into videotape packaging when the Audio Video
Duplicator Association approached 3M and requested help in finding ways to
reduce packaging waste. Previous shipments of videotape in the “pancake” format
lead to the creation of 1 cubic foot of waste for every 8 pancakes shipped. The same
waste stream inflated custornerâ€TMs labor costs by increasing the handling expense
for both incoming shipments and waste disposal. In addition the previous packaging
involved 11 different components to create a standard package for the shipment of 8
pancakes. Because of the complexity of the packaging, 3M incurred increased
expense for both labor and material. As the need to redesign the packaging became
evident, a survey demonstrated that 3M customers rated recyclables, reusability,
environmental impacts and low cost equally when considering package design.
Creating a healthier environment and bottom line became the important fuel for the
challenge of a better package design.
Solution
3M created an innovative patented solution that eliminates all dunnage, reduces the
number of packaging components to 2, saves labor costs and eliminates any
material from entering the waste stream. In this case, the annual 1.4 million cubic
feet of waste is eliminated. The solution involves the use of two identical panels,
blow molded out of HDPE in an interdigitated format that allows for
interchangeability. Each panel collapses to create a stack ratio of 3 to 1 allowing for
the return shipment and reuse by 3M to be economically feasible. Through the
simplicity of the 2 piece design and use of non fiber material, customerâ€TMs
handling costs were also significantly reduced by making the containers safe for
transport directly into clean rooms. In some instances, all hand contact can be
eliminated for additional customer productivity enhancement. The success created
by the 3M Reusable Pak has created significant opportunities for a new system in
logistical packaging. These systems will incorporate design efforts that begin with
the customerá€TMs design process and eliminate dunnage, create better unitized
loads, add enhanced ergonomic designs and increase efficiency. All of which add
money to the bottom line.
Issues to be analysed
1. Facts of the case.
2. Analyze the solution innovated
by 3M.
3. What would be your innovative
input if given a chance?
Case No 4 Recycling of Steel Drum
In June 1991, Fred Honerkamp, Manger of Corporate Packaging for Dow Corning,
the worldâ€TMs largest manufacturer of silicone products, was asked by his
President to get the company out of steel drums within two years. After doing
substantial research, Mr. Honerkamp determined that a shift to other packaging
would be problematic and require significant up-front expense, about 95 percent of
fiber drums are disposed of in landfills and generally do not degrade, and plastic
drums occasionally have compatibility and reuse problems.
Mr. Honerkamp concluded that the apparent problem with steel drums was the lack
of a coherent, company-wide program to guarantee the collection, transport,
cleaning and reuse or recycling of the firmâ€TMs steel drums.
In January 1992, Dow Coming teamed up with a large manufacturer of steel drums,
Van Leer Containers, to establish the Dow Coming Steel Drum Recycling Program.
The program utilizes a network of about 15 reconditioning firms located throughout
the United States, all of which are audited annually by Van Leer or Dow Coming.
The tens of thousands of steel drums (all of which are 18 gauge, i.e., 1.2 mm, steel
throughout) shipped annually by the firm are collected by a participating
reconditioner. The drums, which must be RCRA-empty prior to collection (i.e.,
“drip dry), are then cleaned, refurbished as needed, painted, tested and reused.
Drums that are not capable of being reused are cleaned, crushed and recycled into
new steel products.
According to Mr. Honerkamp, the program has been extremely successful. It diverts
drums from landfills, thus avoiding solid waste problems; conserves substantial
amounts of energy and natural resources by using containers that are capable of
making multiple trips prior to recycling; reduces potential environmental liability
for the company by insuring that all of the firmâ€TMs silicon drums are handled by
reliable reconditioning companies; and, raises considerably customer satisfaction by
guaranteeing that emptied industrial containers are handled efficiently.
Most importantly, the program saves money for Dow Corning and its customers.
Firms can specify a single drum design type, new or reconditioned, which is
commonly available in the market. Handling and storage problems are, therefore,
greatly reduced. Customers share in the savings because they can be certain the
drums are collected at little or no cost, and handled in an environmentally sound
manner.
Issues to he analysed
1. Facts of the case.
2. Discuss how did Mr Fred
Honerkamp dealt with the problem posed by the
president Dow Corning.
president Dow Corning.
3. Describe the Dow Corning Steel
Drum Recycling Program and its effectiveness.
Case No 5 Re cycling Pallets
Background
Since 1943, Dole Fresh Vegetables (DOLE) and its subsidiaries have been leaders
and innovators in agriculture, and are credited with developing many technological
advances in the industry. Dole markets more than 40 fresh vegetables, shipping
throughout North America and the world. A division of Dole Food Co., Inc. Dole
Fresh Vegetables has approximately 4,000 employees.
As a leader in the community, DOLE is very proud of its recycling
accomplishments, having won the WRAP Award four times, in 1993, 1994, 1996,
1997. In 1996 the company earned a special WRAP of the Year Award given for its
outstanding achievements in waste prevention, recycling, buying recycled products,
and promoting waste reduction awareness. In 1992 DOLE won the Salinas Business
Recycling Award commendation for waste reduction.
Success story
DOLE purchases over 1.2 million pallets per year (1,165,296) for use in shipping
various commodities. DOLE operates year round, shipping from the Salinas Valley
in the summer and from Yuma, Arizona in the winter. Over the last few years
DOLE has saved thousands of dollars by recycling pallets. In just the past 12
months DOLE has saved over $226,800 by recycling more than 100,000 pallets.
Dole and the Valley Pallet Company have developed an excellent working
relationship. Valley Pallet handles all of Doles’ pallet recycling, including standard
or odd-sized pallets, and even including the broken pieces of wood. This year
Valley Pallet is coming out with a new product made from some of these broken
pieces of wood. They chip the wood and are turning it into garden ground cover and
erosion protection. The finished product can be colored with an environmentally
friendly substance to resemble redwood bark. The larger size wood chips are burned
for electricity in the Mendoda area.
This is a great success story! But success stories don’t happen overnight.. They can
only happen with the persistent and creative efforts of a company as a whole, no
matter what size.
Issues to be analyzed
1. Describe the success story of
DOLE in your own way.
2. What is the learning element
according to you from the Story.
Need Answer Sheet of this
Question paper, contact
www.mbacasestudyanswers.com
ARAVIND – 09901366442 –
09902787224
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