MARIETTA’S MATERIAL HANDLING HEAVY LIFTER€¦ · used electric forklifts exclusively. According...

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M arietta Corp. is a world leader in hotel amenities and contract manufacturing for consumer packaged goods, operating four facilities around the United States. At its busy Chicago facility, which primarily produces laundry and dishwashing soap, it relies heavily upon forklifts for all operations, including shipping, production, and receiving in the warehouse. COMPANY Marietta Corp. CHALLENGE & SOLUTION To increase productivity, alleviate time constraints, and create more production space within the plant while saving money by switching the company’s 14-forklift fleet from electric-powered to propane- fueled models. RESULT Up-front savings of $25,000 and additional savings because of lower maintenance costs. Outside propane cylinder storage freed up indoor space for valuable production areas. Longer operating time allows the flexibility to run 24 hours a day, seven days a week. Safe, quick, and easy refueling eliminated the need to handle, remove, and dispose of heavy batteries. Its electric forklifts were contributing to productivity lag time and causing space constraints in the plant. Charging and changing out the electric forklifts’ 4,000-pound batteries wasted significant time and battery storage, and charging stations squandered valuable production space. In an effort to resolve these challenges, Marietta’s Chicago facility replaced all 14 of its forklifts with propane-fueled models in 2007, not only increasing productivity but also saving Marietta a considerable amount of money. MAKING THE SWITCH Before 2007, Marietta’s Chicago facility used electric forklifts exclusively. According to Jesse Gomez, logistic distribution manager, the company’s work productivity was limited by the forklifts’ batteries. Its forklifts must run 20 hours per day for maximum efficiency. The Chicago facility could run only one shift before needing a new battery, which required either a time-consuming recharge or a time- and labor-intensive battery switch. When Marietta’s forklift lease expired, Gomez encouraged his team to consider propane-fueled forklifts. The team undertook a cost/benefit analysis comparing propane-fueled forklifts with electric. The results were clear: a propane-fueled forklift fleet would save the company both time and money. After signing a lease with Toyota for 14 new propane-fueled forklifts, an immediate and considerable savings in both upfront and maintenance costs was realized, along with additional savings and environmental advantages. Marietta Corp. is a world leader in hotel amenities and contract manufacturing for consumer packaged goods, operating four facilities around the United States. At its busy Chicago facility, which primarily produces laundry and dishwashing soap, it relies heavily upon forklifts for all operations, including shipping, production, and receiving in the warehouse. Its electric forklifts were contributing to productivity lag time and causing space constraints in the plant. Charging and changing out the electric forklifts’ 4,000-pound batteries wasted significant time and battery storage, and charging stations squandered valuable production space. PROPANE-FUELED FORKLIFTS’ PERFORMANCE, EASY REFUELING INCREASE COST SAVINGS, PRODUCTIVITY A PROPANE CASE STUDY MARIETTA’S MATERIAL HANDLING HEAVY LIFTER

Transcript of MARIETTA’S MATERIAL HANDLING HEAVY LIFTER€¦ · used electric forklifts exclusively. According...

Page 1: MARIETTA’S MATERIAL HANDLING HEAVY LIFTER€¦ · used electric forklifts exclusively. According to Jesse Gomez, logistic distribution manager, the company’s work productivity

Marietta Corp. is a world leader in hotel amenities and contract manufacturing for consumer packaged goods, operating four facilities around the United States. At its busy Chicago facility, which primarily produces laundry and dishwashing soap, it relies

heavily upon forklifts for all operations, including shipping, production, and receiving in the warehouse.

COMPANY

Marietta Corp.

CHALLENGE & SOLUTION

To increase productivity, alleviate time constraints, and create more production space within the plant while saving money by switching the company’s 14-forklift fleet from electric-powered to propane-fueled models.

RESULT

•Up-front savings of $25,000 and additional savings because of lower maintenance costs.

•Outside propane cylinder storage freed up indoor space for valuable production areas.

•Longer operating time allows the flexibility to run 24 hours a day, seven days a week.

•Safe, quick, and easy refueling eliminated the need to handle, remove, and dispose of heavy batteries.

Its electric forklifts were contributing to productivity lag time and causing space constraints in the plant. Charging and changing out the electric forklifts’ 4,000-pound batteries wasted significant time and battery storage, and charging stations squandered valuable production space.

In an effort to resolve these challenges, Marietta’s Chicago facility replaced all 14 of its forklifts with propane-fueled models in 2007, not only increasing productivity but also saving Marietta a considerable amount of money.

MAKING THE SWITCH

Before 2007, Marietta’s Chicago facility used electric forklifts exclusively. According to Jesse Gomez, logistic distribution manager, the company’s work productivity was limited by the forklifts’ batteries. Its forklifts must run 20 hours per day for maximum efficiency. The Chicago facility could run only one shift before needing a new battery, which required either a time-consuming recharge or a time- and labor-intensive battery switch.

When Marietta’s forklift lease expired, Gomez encouraged his team to consider propane-fueled forklifts. The team undertook a cost/benefit analysis comparing propane-fueled forklifts with electric. The results were clear: a propane-fueled forklift fleet would save the company both time and money. After signing a lease with Toyota for 14 new propane-fueled forklifts, an immediate and considerable savings in both upfront and maintenance costs was realized, along with additional savings and environmental advantages.

Marietta Corp. is a world leader in hotel amenities and contract manufacturing for consumer packaged goods, operating four facilities around the United States. At its busy Chicago facility, which primarily produces laundry and dishwashing soap, it relies heavily upon forklifts for all operations, including shipping, production, and receiving in the warehouse. Its electric forklifts were contributing to productivity lag time and causing space constraints in the plant. Charging and changing out the electric forklifts’ 4,000-pound batteries wasted significant time and battery storage, and charging stations squandered valuable production space.

PROPANE-FUELED FORKLIFTS’ PERFORMANCE, EASY REFUELING INCREASE COST SAVINGS, PRODUCTIVITY

A PROPANE CASE STUDY

MARIETTA’S MATERIAL HANDLING HEAVY LIFTER

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CASE STUDYMARIETTA CORP.ILLINOIS

ANALYZING COSTS

The propane-fueled forklift lease, including all required fleet maintenance, was $105,000 — an up-front savings of $25,000 when compared with the $130,000 electric-powered forklift lease, according to Marietta’s calculations. Marietta also realized an additional savings of $15,766 from reduced maintenance on the propane-fueled forklifts in the first three months alone.

Unlike electric forklifts, propane-fueled forklifts can operate on a flexible schedule without a long delay required for refueling. They also maintain consistent, 100 percent power throughout operation and have faster ground speeds than electric forklifts. It takes less time to fill a propane cylinder than to switch a battery and far less time to fill or switch a propane cylinder than to charge a battery and wait for it to cool.

The Chicago facility was able to repurpose space previously used to store and charge forklift batteries to increase its overall production area. Before Marietta switched to propane, the facility could only run two production lines per day. Today, it runs four or five production lines 20 hours per day, four days per week, and it even has gained the ability to run 24 hours per day, seven days per week, if demand requires. Gomez estimates that sales have increased by $3 million at the plant, in large part from the increased productivity experienced since the switch to propane-fueled forklifts.

“My staff is completing more work in fewer hours, and everyone is excited about that,” he says.

Equally important, Gomez points out Marietta is “going green” by no longer needing to send dead batteries to the landfill and using an environmentally friendly fuel with lower greenhouse gas emissions.

FUELING THE FORKLIFTS

Marietta negotiates with Toyota and its propane provider, every six months to lock in its propane price, allowing for cost savings and consistency. Refueling trucks deliver propane right to the plant, refilling the propane cylinders on site as needed at no extra cost. The cylinders are refilled and not switched out, meaning Marietta pays only for what fuel it consumes. Unlike the electric forklift batteries, no heavy lifting equipment is needed to replace the propane cylinders.

PLANS FOR THE FUTURE

Marietta plans to stay with propane-fueled forklifts. The cost savings, increased productivity, and safer working conditions make it an easy choice to use propane-fueled forklifts instead of electric models.

“I recommend propane-fueled forklifts to other organizations whenever I get a chance,” he says.“I’ve seen companies switch, and they are just as happy with their decision as I am.”

Propane Education & Research Council / 1140 Connecticut Ave. NW, Suite 1075 / Washington, DC 20036P 202-452-8975 / F 202-452-9054 / propanecouncil.org

FOR MORE INFORMATION

To learn more about propane-fueled lawn care equipment and the Propane Education & Research Council, visit: autogasusa.org.

The Propane Education & Research Council was authorized by the U.S. Congress with the passage of Public Law 104-284, the Propane Education and Research Act (PERA), signed into law on October 11, 1996. The mission of the Propane Education & Research Council is to promote the safe, efficient use of odorized propane gas as a preferred energy source.

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