CHOOSING THE RIGHT MATERIAL HANDLING SYSTEM 4: COST ANALYSIS

Selecting the right material handling solution for manufacturing and industrial operations is a complex task. The array of options, from forklifts to cranes, rail systems to transfer carts, wheeled carriers to air cushion carriers, can be overwhelming. In this series, we're simplifying the decision-making process through a series of step-by-step questions. We've previously discussed load weight, maneuverability, and move frequency. Today, we want to delve into another critical aspect of this decision: cost analysis.

1. Initial Cost

To begin, let's naturally examine the initial investment that will come out of your capital, and this can vary significantly. This cost is influenced by the answers you provide to the previous questions in this series. Moving heavier and larger loads generally tends to be more expensive. However, this is not an absolute rule. Avoid assumptions and conduct detailed cost research.

For instance, air cushion carrier equipment can be relatively inexpensive, even for moving substantial loads. Additionally, you must consider the cost-effectiveness of the material handling system over its lifespan. For example, the installation of a rail system might entail a significant initial cost, but when considering the fast and continuous movement of products within the facility versus lower-cost material handling options, the high initial expense can be justified.

2. Operational and Ongoing Costs

Beyond the initial capital expenditures, you should also consider the ongoing operational costs associated with the selected system. Some solutions require trained and certified personnel, such as cranes and forklifts. This includes additional costs like training, certifications, the operator's salary, and potential opportunity costs if the operator is needed in multiple locations.

3. Secondary Costs

In addition to the initial and ongoing operational costs, installing and/or using a specific material handling system may require secondary expenses. For instance, the facility may need internal repairs or reconfigurations to support the system. Uneven or porous floors can disrupt the operation of transfer carts, for example. While these improvements may not be very costly on their own, they are still costs that need to be considered.

Another secondary cost is related to the required maneuverability. If the chosen solution lacks flexibility (perhaps it's a permanent installation like rail systems or cranes), you may need to modify the layout of the floor. The potential costs of these changes must also be taken into account.

4. Growth Costs

An often-overlooked expense is the cost of accommodating growth. Can you increase your load handling capacity without significantly increasing operational and other costs? For instance, if you have cranes or forklifts designed for mid-sized loads but suddenly need to transport larger loads, how much will it cost to adapt to the new weight class? Additionally, even if the weights remain the same, what if your facility needs to accelerate production and move loads faster? How much will it cost to meet these demands without incurring excessive additional expenses?

Please contact us. Our expert team conducts a detailed analysis of various costs and assists in finding the right material handling solution for your operations.

Conclusion

In conclusion, when selecting a material handling system, it's crucial to evaluate costs from multiple perspectives. The initial cost is just the starting point; ongoing operational costs, secondary expenses, and the system's adaptability to growth are all critical factors. By carefully considering these cost dimensions, you can make an informed decision and find the perfect material handling system that suits your specific needs.