Selection of One-Way packaging for the analysis

This work is analyzing logistic costs in two standard automotive supply chains. In order to achieve broader applicability and potential for generalization, these supply chains must be seen not only from an OEM perspective, but also from a Tier supplier’s point of view. This condition will be reflected in the selection of analyzed one-way packaging. The objective of the selection is not to find the right design or technical solution. The real objective is to estimate the costs of typical packaging to be used as one important component in the analysis. Selection of “standard”

packaging for the analysis will enable us to estimate these costs for calculation.

Important criterion influencing the costs of packaging is the production volume and built-in rate of the shipped parts. A full size automotive plant can produce approx.

300.000 units per year. Usually average production output of an assembly plant is lower. For the purpose of the model calculations and packaging production volumes, yearly production volume of 200.000 units (cars) and a built-in rate of 100%

(200.000 parts per year) will be considered.

Another important factor for the packaging selection and cost estimation is the UL density. This is obviously depending from the type of shipped parts which can vary from very small to very large. Automotive parts can be grouped based on their size and weight, or based on their function and final application into so called parts

Standard Supply Chain

Concept Direct Deliveries Warehouse Deliveries

Selected Standard Automotive

Supply Chain Demand driven Direct delivery (1) Demand driven Multiple warehouse delivery (5)

Types of logistic flows: Direct Full Load Deliveries Intercontinental Multiple Warehouse Deliveries

Typical participants: OEM, Tier supplier, Logistic service provider

OEM, Tier supplier, Logistic service provider

Means of transportation: Road Transport (Trucks) Deep-Sea (Container Ship) and Road Transport (Trucks)

families. Big size parts are usually representing UL density below 30 pcs, medium size parts between 30 and 150 pcs. and small size parts above 150 pcs. Following parts families grouped by size typically packed into one-way packaging can be identified in these three groups (Figure 26):

Automotive Component System

Packed parts’ families based on their size small

(>150 parts / UL)

medium (30-150 parts / UL)

big (<30 parts / UL) Electronics and Electrical wiring harnesses instrument clusters headlamps, rear

lamps Climate Control & Engine

Cooling control units control panels HVAC units, coolers

Engine engine mount

components cam shafts turbochargers, engines Axles, Driveshaft &

Components joints drive shafts steering assy

Braking Systems brake pads brake calipers

Suspensions rods shock absorbers

Figure 26 – Typical Component Systems and Parts grouped by size

These ranges are a good basis for calculation of the production costs both of the external and internal packaging. For internal packaging a standard separator FEFCO 0934 and a layer pad FEFCO 0110 will be considered to separate and protect the parts (see Figure 27). In case of small parts, often no separators and only layer pads are used. For the general applicability of the research results, the most common medium size parts and UL density will be in considered.

Figure 27 – Standard Internal dunnage selected for the analysis¹²³

As stated in Chapter 3, there are different packaging standards existing for both returnable and expendable concepts. General standards were developed by national Automotive associations such as the German VDA or the French Galia.

123 (based on FEFCO 2007)

OEMs have used these standards to develop their own specific ones. All are following the same principle of modularity for maximum loading space utilization.

This principle is followed for both continental and intercontinental shipments. Often standards for expendable (one-way) packaging are based on returnable packaging standards (e.g. VDA-KLT/GLT or Galia). The reason is the maximum standardization and interchangeability in logistic processes. Non modular packaging and way of building unit loads will not be considered, as it is not the common practice in automotive supply chains.

In previous section of this Chapter, we have defined standard unit load footprints based on standard pallets for each road and sea transport concept. Now we have to define how the transport unit loads (UL) are built up for the purpose of the analysis.

Basically we will be working with the most common type of external one-way packaging – cardboard box (see Chapter 3.1.2). We differentiate here between 2 ways of building the unit loads, from a (see Figure 28):

– single modular box or – multiple modular boxes.

Single modular box Multiple modular box

Figure 28 – Two ways of building the Unit loads (UL)¹²⁴

In principle, there is no difference in the UL concept between continental and intercontinental transports. The only difference is in the UL dimensions based on the transport concept and loading space dimensions (truck vs. sea container). The selection will be based on the assumption that the maximum transport efficiency is in focus by optimal usage of space inside the external packaging and also inside the selected means of transportation (truck or container). Therefore, internal dimensions

124 (based on Ford Motor Company 2001)

of each loading space (trailer or container) and typical packaging unit loads will be used to determine the outside dimensions of external packaging.

In terms of the cardboard box(es) used for building the UL, there are different standard (FEFCO) and non-standard (bespoke) types of constructions and closures as well as different numbers of cartons building up the UL. For the analysis of logistic costs, one “single modular box” and one “multiple modular box” will be considered. Material composition and dimensions will be based on the most common parameters as per the standards used in European automotive industry.

Here are some examples of the limitations used in the industry:

 Max. height of UL incl. pallet:

o GALIA: 1.350mm in continental transports when stacking 2 high (1+1) and 900mm when stacking 3 high (1+2)

o VDA (4525) GLT: 1.040mm for intercontinental transports and 2 high stacking (1+1)

o FORD: 1.100mm for intercontinental transports when stacking 2 high (1+1) o GM Europe: 1.000mm and ability to stack 4 high (1+3) in a warehouse o GM Global: 1.125mm and maximum height of 2.200mm and 4 high stacking

in a sea container at dynamic loading

o Renault: 850mm and max. 2.550mm when stacked 2 high in transport (1+2)

 Maximum weight of one single carton for manual handling = 15kg (all OEMs)

 Maximum loading weight in one single pallet box in kg.

o VDA (4525) GLT one-way containers: max 450kg o GALIA: 800kg

o FORD: 600kg o GM Europe: 300kg

o Renault: 800kg for continental and 1.500kg for CKD intercontinental packaging

From all the standards and limitations, we can see that the maximum height of a UL is moving between 850mm and 1.350mm. The maximum weight of the load in one UL varies between 300kg and 800kg and the maximum weight of one single box for manual handling is limited to 15kgs. In order reach a general applicability of the results, the max.load limitation will be based on the German VDA standard (4525), i.e. maximum loads of 300kgs and 450 kgs will be used in DFLD flows and 450kgs

in IMWD flows. The height of the UL for the calculation and modeling purposes will be adjusted so that a 1+1 stacking will be possible inside the selected loading space (truck and/or container).

From all the above defined criteria the following standard packaging concepts for the original analysis and further calculations will be applied:

Production volume: 200.000 cars/year Built-in rate: 100% = 200.000 parts

Shipped parts: medium size (30-150 parts per UL)

DFLD flow: weekly deliveries

o UL footprint: 1.200x800mm or 1.200x1.000mm o Nr.of ULs per truck: 68 or 54 (max. 1+1 stacking) o UL density: 64 parts over 4 layers (4x16)

o Max.UL weight: 300kg (1.200x800mm), 450kg(1.200x1.000mm) o Max.UL height: 1.144mm (with pallet)

IMWD flow: weekly deliveries

o UL footprint: 1.140 x 790 mm or 1.140 x 980 mm

o Nr.of ULs per container: 62 or 50 (FEU), 30 or 24 (TEU), max.1+1 stacking

o UL density: 100 parts over 5 layers (5x20)

o Max.UL weight: 450kg (1.140x790mm and 1.140x980 mm) o Max.UL height: 1.100mm (with pallet)

The last parameter to finalize the selection of packaging for the analysis is the material, from which the cardboard boxes are produced. Again, different board compositions with different parameters exist and can be used. For the selection, mainly the BCT (Box Compression Test) parameter must be considered¹²⁵. This parameter is coming from a calculation based on the maximum load of a UL and required stackability (static and dynamic). In many cases however, the stacking factor is defined and limited by the BCT parameter. For the logistic costs calculations both single level (1+0) and multiple level (1+n) stacking factors must be considered to see the impacts on total logistic costs. For the basic calculation, a

125 BCT – parameter indicating the compressive strength of containers, in our case cardboard box expressed in kN (Kilonewton).

stacking factor 1+0 (dynamic) will be considered as this is often a case also in real life situation. The selected material for the external packaging will consider this fact.

Based on these parameters, the following types of one-way packaging will be used for the analysis (Figure 29):

UL composition Characteristics Type of logistic flow

Direct Full Load

Deliveries

Intercontinental Multiple Warehouse

Deliveries Single cardboard box External dimensions 1.200x800x1.000mm 1.140x790x966mm

1 box per UL 1.200x1.000x1.000mm 1.140x980x966mm

FEFCO type 201 201

Max.loading weight 300kg/450kg 450kg

Stacking in warehouse (static)

1+1 (2 high) Separators construction 16 nests x 4 layers 20 nests x 5 layers

FEFCO type 0934 0934

Layer pad FEFCO type 0110 0110

Wooden pallets IPPC (ISPM 15) treatment NO YES

dimensions 1.200x800mm

1.200x1.000mm

1.140x790x140 mm 1.140x980x140mm Multiple cardboard box External dimensions 600x400x250mm 560x480x240mm

(no internal dunnage) FEFCO type 201 201

16 boxes per UL Max.loading weight 15kg 15kg

Stacking in warehouse (static) 1+2 (3 high) 1+2 (3 high) Stacking in transit (dynamic) 1+1 (2 high) 1+1 (2 high)

Figure 29 – One-way packaging specification for the practical research