
COST COMPARISON
For the sake of an example, let's compare the "cost per use" of
two typical containers. Applying all the factors listed below to the "use"
situation, we can compare the "use" cost of a paperboard container
with a thermoplastic container as follows:
In this example, it is notable that the total "cost per use"
of a thermoplastic tote box, that you can recycle/ is less than half of
just the /'hidden cost" of a disposable paperboard box alone. This
is not uncommon. Many users have replaced /'free/' boxes (shipping cartons
from suppliers) with thermoplastic containers and achieved demonstrable
savings.
One more word about costs: even a medium sized manufacturing operation
can utilize thousands of tote boxes, once they become established as a handling
module. Since uniformity is usually beneficial, most users tend to standardize
on the first type of box purchased. Therefore, the first purchase is very
important. Not only must you establish which box or system will be most
efficient, you must also guard against making a box material decision based
on price alone. An arbitrary decision could result in thousands of dollars
in extra costs due to an unfavorable "use" factor.

a) $30.00 per requisition
and purchase order; purchased in 1M lots
b) l000, crushed but not compacted, will occupy approximately 2/3 of refuse
container which costs $30.00 per pickup, or 02/box Equal amount to get box
from point of discard to container
c) Crushed to greater bulk than paperboard
d) Failure rate est 1:l000: cost per failure, in terms of damage and cleanup,
est $20.00 e) 25 production cycles per year for 3 years
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MATERIALS
Tote boxes are made from many different kinds of materials, each having
advantages and disadvantages as follows:
Paperboard: Inexpensive, most suitable
for slow turnover storage applications because of low initial cost. Wears
quickly with resultant contamination problems from chaff. Does not withstand
effects of acid. Deteriorates when exposed to oil or moisture.
Metal: Rigidity and strength offer
extended life advantages. More expensive than paperboard, dents easily.
If painted, boxes tend to chip, can rust, and create contamination problems.
Sharp edges may be a hazard Weight of larger containers may restrict "hand
load" capacity
Glass Fiber: Offers good strength and rigidity.
Easily cleaned, little maintenance required in normal use. Abuse may cause
chipping and cracking which can contaminate contents. May cause rash and
skin irritation to workers.
Wood: Major advantages: easy to fabricate
"in house" for specialized uses. Strong and rigid. Expensive to
fabricate, highly absorbent without protective finish. Splinters present
hazard to workers, can contaminate parts.
Pressed and impregnated fiber: Good for many light to moderate-duty storage
and handling functions due to low initial cost and maintenance. Moisture
and oil resistance, while much better than paperboard, is rarely sufficient
for extended exposure. Generally low impact strength, subject to particulation
and failure in rough use. Usually unsuitable for in-process parts handling
due to rough and/or sharp surfaces.
Thermoplastics: As in other categories,
quality can vary widely depending on what type of material is used. Thermoplastics
range in cost from pennies to several dollars a pound. They are light-weight,
moisture resistant, non-particulating, and require no maintenance. By type,
styrene, polyethylene, polypropylene, and ABS are most commonly used.
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