When Pallet Service Corporation (PSC) was looking to add a third line to its cut-stock operation in 2016 at its Little Canada, Minnesota location, it faced a challenge that plagues many pallet companies – a lack of space. Then PSC’s plant manager Ed Determan proposed an idea. What if they could simultaneously feed two separate lines out of a single trim system – one for stringers as well as one for deck boards?
Nick Wenner, vice president of operations for PSC discussed the concept with Wilmer Hurst of Pendu Manufacturing, ultimately leading to the development of the automated seven saw trim system now utilized by PSC.
Growth as a Cut Stock Leader
To take a step back, Pallet Service Corporation (PSC) has been a full-service, industrial wood products supplier for almost 50 years. The company has never been shy about investing in high-quality equipment and technology to improve worker safety, product quality, and productivity. The family-owned business specializes in new, recycled and remanufactured pallets, as well as custom crating. Operating from locations in Maple Grove and Little Canada, Minnesota, as well as Knapp, Wisconsin, the company can also offer service nationally through its ownership role in First Alliance Logistics Management.
A little over a decade ago, the company began utilizing its extra machinery capacity to produce cut stock not just for its own needs, but for other wood pallet and packaging operations. PSC created a cut stock and wholesale lumber division (Grove Wholesale Lumber) that has grown rapidly under the direction of Luke Wenner, vice president of sales.
“Luke really grabbed the bull by the horns to grow that business,” Nick Wenner stated. “It grew from zero percent to 70% of our business. We formed solid mill relationships when the lumber markets were in tough shape during the 2007-2014 recession and started buying mill direct. We just grew it from there.” As well as offering direct brokering, the company holds inventory at its three locations, totaling anywhere from eight million to 14 million board feet. PSC provides predominantly KDHT softwood from 2×4 and 2×6, but also processes large volumes of rough pine components (kiln dried or green), as well as hardwood cants.
PSC’s shipping lanes for cut stock and wholesale lumber include basically the whole Midwest. Freight rates are especially attractive into Chicago as there are a lot of trucks headed back empty to the Windy City. Lumber is sourced predominantly by truck and rail from Minnesota, Wisconsin and Canada, so PSC is geographically in a good position relative to mills and its wood products’ customers. Another advantage is that a shorter lead time is required compared to ordering from a Canadian supplier, given a shorter distance and avoidance of the Canada-U.S. border, customs and duties.
A More Systematic Approach to Machinery Selection and Project Management
The growth of the cut stock business had driven need to increase capacity, and hence the interest in the new cut stock line at the Little Canada location. After PSC’s initial conversation with Pendu, the Pendu design team came back with its first set of preliminary plans. They became the basis for further discussion. “We probably had 10 or 15 sets of drawings that went back and forth,” Wenner said. “It was an evolutionary process.”
Wenner admitted that while the process was fun, it can be challenging to balance all of the tradeoffs. “You can make it really do whatever you want,” he cautioned. “It is just that there are flexibility and productivity constraints, as well as cost limitations. We tried to be very intentional, using our experience as well as Pendu’s to balance those constraints.”
One fresh approach that PSC took for the Pendu project was to be more purposeful about buying equipment that would more readily run together. “Our previous system had three machines from three different vendors,” Wenner said. “We bought the infeed deck from one company used, we bought the unscrambler deck from another company new, and we bought the trim saw from another company new. So, then it was up to us to piece it all together, raising decks and lowering decks and doing all of that troubleshooting on the fly. And having gone through that a few times at some of our other plants, this time we had a much clearer idea of what we wanted when we invested in a new system.”
Another facet of the project that Wenner believed was highly worthwhile was to fly out to Pendu to watch the machinery run, before taking delivery. Along with Bob Wenner, his father and PSC president, as well as the company maintenance supervisor, the PSC team observed the equipment in action and gave feedback prior to shipment. “They can modify it quicker in their shop than out in the field,” Wenner noted, adding that they have all of the tools, equipment and technical staff on hand. PSC requested some extra guarding along with moving some sensors, which were quickly addressed at the Pendu location.
The Pendu project also marked a change in approach when it came to the installation. After being involved with startups at two of the company’s three plants, Wenner has experienced a number of machinery projects. He acknowledged that while the result is that everything works well, it usually takes them extra time to get there when relying solely on their in-house maintenance team. For the Pendu trim line, given the size of the investment, as well as the complexity of the sensors, timers, and other components, PSC decided it would make sense to have a Pendu technician onsite for the installation.
“Pendu designed the system, so who better to get it up and running?” Wenner commented. “The installer was very knowledgeable and also knew who to call for any particular issue. We felt like it really expedited the process.” The results spoke for themselves. The line was shut down on Thursday afternoon. The old equipment was removed, and the new line was set in place and ready to run by Monday morning.
Automation, Increased Productivity and Improved Quality
One of the things that attracted PSC to Pendu is that its trim systems offered automated changeovers. Changing cut length from 40" to 42" to 36" had previously been an ongoing bottleneck to production. Moving the heads was a very time-consuming process, taking anywhere between 30 minutes to an hour. With the Pendu line, the heads can be transferred in 30 seconds. While operators take a little additional time for cleanup prior to each automated changeover to make sure it goes smoothly, Wenner stated that there is still a considerable net gain in changeover time. Additionally, because both stringers and deck boards are running simultaneously, the number of changeovers is reduced significantly.
According to Wenner, the company has realized an average of at least a 10% increase in productivity on these lines as a result of the new Pendu equipment.
The new Pendu system includes a two tier in-feed package deck which conveys material to the bar unscrambler, then to a powered lumber transfer/feeder and then into the double-sided trim system. With flexibility in mind, a flick of a switch resets the trim system to a one-sided mode so that it can handle material length of up to 20 feet.
Operating in double-sided mode, deck boards and stringers can be run parallel. Stringers are run through to the notcher while the decking is sent to a Producto vertical rip saw. Both decking and stringers are then sent to M2L Board Stackers from Pallet Machinery Group.
Wenner noted that no new piece of equipment is going to run flawlessly, and with an innovative approach that has not been attempted before, such as the double-sided system; there have been, and continue to be issues to be worked through. Clutch life at the unscrambler pit has been one concern, but modifications have been planned. Pendu will be sending out a tech to make the necessary changes over a weekend.
“If we had to do it over again, would we do anything differently?” Wenner asked rhetorically. “Of course, but largely we are very happy with the project. We have been pleased with Pendu’s commitment to making things work right.” As a signal of that satisfaction, PSC has just ordered another trim saw from Pendu.
“We are investing in equipment which will help our employees work more safely and efficiently so that we can offer the best quality at an affordable price,” Wenner concluded. “We just gave Pendu a purchase order for a new trim saw for one of our other plants, so we are continuing to invest in our people and processes to grow our business.”
