Case Study: Packaging Automation with Huge Cost Savings
A Leading Indian Multi National Generic Pharmaceutical Company with US FDA and MHRA Approved plant in India wanted to automate their Blister-Cartoning Line. The packaging line was fully automated with Integrated Blister machine and Vision System and an on-line cartoning system. The cartonator had an on-line check weigher. In continuation, the next operation was packing 10 Individual cartons in one outer carton. This was a completely manual operation deploying about 5 Persons carrying out following activities :
Counting and collation of 10 Individual cartons.
Opening of the Outer Carton and inserting 10 Individual carton in outer carton.
Taping the Outer Carton
The Pharma Company approached M/S. Khimsaria Associates in Mumbai, India who are experts in offering automation solutions for secondary packaging operations.
Application Expert from Khimsaria Associates visited the site and studied the current secondary packaging operation which was as follows:
Output of cartoning machine: 200 cartons per min.
Output of outer cartoning system: 20 outer cartons per min.
Operation: 2 shifts per day and 250 days working per year.
Total Outer Cartons packed per annum : 20 outer cartons per min x 400 min working per shift x 2 shifts per day x 250 working days per annum x 0.90% efficiency = 3,60,000 cartons per annum i.e. 3.6 million cartons per annum.
No of Persons deployed for Outer Cartoning Operation = 5
Application Expert suggested to change the current outer cartoning operation to Bundling (auto collation & Over Wrapping with BOPP Film) and eliminate the outer carton as this will not only automate the secondary packaging operation but also achieve huge savings in packaging material.
Customer accepted the proposal and Khimsaria Associates sourced the appropriate design of a bundling machine from Italy through a design house. The main criteria for the design was compact footprint, easy for operation and change over in less than 20 min with single tool and Khimsaria Associates executed the project in less than 8 months from Design to manufacturing and installation.
Pharma co achieved their objective of fool proof automated solution with huge savings of over Rs. 94,00,000/- ( Rs. 9.4 million) per annum, enabling ROI in less than 8 months for the automatic bundling machine.
Total benefits achieved with the above solution:
Net Savings ( Rs.1,17,00,000 – Rs. 23,00,000 ) of Rs. 94,00,000/- Per Annum i.e. Rs.9.4 million Per Annum which will directly contribute to reduction in Packaging material &labour cost after the Investment on machine is recovered in less than 8 Months.
Saving in labour by 9 persons.
Inventory cost reduction for Outer Cartons.
ROI of less than 8 Months.
Can avail depreciation benefits which will further increase the profitability.