Innovative Label Applicator Brings Big Sales

Systems integrator Manufacturing Solutions, Inc. (Green Bay, WI) has found success by creating a unique system to apply labels to manufactured products. Company founder and president Paul Kramer parlayed his background as a machine tooling automation craftsman and his knowledge of molding operations to develop a specialized robotic arm for in-mold labeling (IML) applications. Although popular in Europe for a generation, IML is just now gaining traction in North America. The process incorporates labels containing UPCs (universal product codes), logos, product liability, or instructional information into a product as it's being formed. In the United States, IML is used for custom packaging, toys, office supplies, and power tools. In Europe, it's also used for food packaging.

Plant Tours Generate New Customers For Label Application Solution
Much of Kramer's business comes from direct referrals -- potential customers see his solution in action and call him. "About 40% of our business comes from people who take plant tours where the labeling system is in operation," says Kramer. "We're capable of developing a turnkey IML operation, from building the robotic arm and label presentation unit to creating custom molds. It's definitely a niche market; there aren't many companies that have developed this technology."

OEMs and container manufacturers like IML because they see faster payback for their label application machines. "For one thing, you don't have a subsequent label application step," says Kramer. "Second, 70% of the cost of the labels on a pressure-sensitive label is in the adhesive."

Those efficiencies are what attracted Xten Industries LLC (Kenosha, WI), a plastic injection molding, assembly, and fulfillment company, to Menominee, MI for a tour of Emerson Tool Co. Emerson was the site of Manufacturing Solutions' first IML robotic arm installation. Five years ago, Emerson's IML operations were hampered by a 30% scrap rate due to misfires on the labels. The company turned for help to Kramer, who had built Emerson's custom molds for more than 20 years. "We designed and built a prototype robotic arm device that applied two labels simultaneously. The unit immediately reduced scrap rate to 5%. After some fine-tuning, we lowered the scrap rate to 0.2%. We now have eight units running at Emerson."

Custom-Designed Label Application Wins New Customer
Based on what it saw at the Emerson plant, Xten asked Kramer to design a robotic arm capable of applying four labels at once. Manufacturing Solutions designed and built a 48-inch robotic arm to support Xten's IML process, which uses Accu-Place IML roll label stock from Avery Dennison Industrial Products Division (Strongsville, OH). The labels use proprietary adhesive technology to ensure accurate placement in the mold cavity, eliminating the need for static charge.

Here's how the process works: The arm picks up labels from the Avery Dennison Printer Systems' (Philadelphia) 4310 Label Dispensing Unit and places them into the proper positions in the die. The vacuum is turned on, the mold is shot, the vacuum is turned off, and the labels are secured. After the product is molded, it's moved to a conveyor system where it's covered and placed on a skid for shipment.

The robot arm was installed in August 2004 in less than two days. "Once we're on-site, it's basically plug and play," says Kramer. "It's just a matter of mounting the arm to the robot and getting the two talking together. This particular install was extremely smooth; Xten knew exactly what it wanted, and the new machinery, robot, and end arm tooling device integrated seamlessly. The system was in full production within a matter of days."

Xten's investment in the robotic arm was $100,000, and Kramer projects the company's payback period to be about two years. "The entire system is going to be huge for Xten. It gives the company new capabilities and capacity that it didn't have before, and Xten has been very aggressive in finding new markets. I'm already in discussions with them for new end-arm units for other applications."

Manufacturing Solutions has about a dozen similar robotic arms in operation in the Midwest, South, and Canada and is seeing interest pick up, especially among custom molders. "OEMs are the primary users, but more custom molders are adding volume to the point where they can justify the cost by reducing label and labor costs," says Kramer. "And, of course, whenever our customers give a facilities tour, it seems our phone rings."