Material handling has been identified as a key equipment and technology area that is a barrier to the success of Alberta value-added businesses. A project completed in March 2004 identified equipment and suppliers that could potentially resolve some of these issues. Unfortunately, many value-added companies have been reluctant to accept and implement these material handling solutions. This project builds on the 2004 findings by demonstrating the potential benefit of material handling improvements. This was accomplished by developing simulation modules for value-added manufacturing processes and specific material handling solutions, and then applying these modules to a lumber remanufacturer and a bedroom and occasional furniture manufacturer. Detailed equipment designs and costing for material handling equipment and systems were completed. These solutions were then evaluated for their effectiveness and return on investment while many opportunities for improvements to material handling were identified. The simulation of single production line improvements at the remanufacturer indicated increased efficiency and production output of all products by 6 to 31%. At the furniture manufacturer, efficiency and productivity increases were simulated to increase output by up to 115%. Plant wide analysis of material handling improvements at the remanufacturer was simulated to increase production from 7% to 42%, depending on the desired investment in resources and capital improvements. A proof of concept production planning optimization module was also developed. This module significantly enhances the benefit of the simulations by indicating which product options and product lines are most profitable. The results indicate that for one lumber raw material, only one of the production lines was generating significant revenue. The return on investment analysis shows that all of the recommended material handling improvements significantly increased saleable products. At the remanufacturer, an investment of $40,000 on one line could increase saleable product production by $275,000, a return on investment of 6.9:1. At the furniture manufacturer, an $85,000 investment was projected to increase saleable product output by $2 million, a return on investment of 24:1. Simulated plant wide improvements at the remanufacturer also showed significant improvements, with an investment of $750,000 potentially increasing the output of saleable products by $11.3 million. A technology mission to demonstrate advanced material handling solutions currently in use was planned, with trips to Europe and one to Quebec. The companies scheduled on the tour included high-speed producers of remanufactured products and solid wood components, building and furniture products, laminated products and finger-jointed components. Unfortunately, re-scheduling and extensive work with industry was insufficient to generate adequate participation to proceed with the missions.
AFRI-700VA-03 pertaining to Value added - Alberta; Manufacturing - Automation; Remanufacturing - Alberta; Remanufacturing - Cost;