JENISON, Michigan—Twenty-five years ago, Automated Machine Systems (AMS) started as a dream of founder Kris Chayer to develop automation solutions for pallet handling. Today, it has become one of the largest pallet recycling and handling equipment manufacturers in the country.
Earlier this year, AMS announced a $1.5 million, 35,000-square-foot expansion to its plant. AMS originally built the 41,000-square-foot facility in 2015 and added a 25,000-square-foot expansion two years later.
Kevan Grinwis, vice president of AMS, said, “We built the new plant in 2015 to combine operations taking place at three different facilities. At the time, we had 35 employees; now we have 110. This facility has helped us grow, improve efficiency, and boost manufacturing capabilities.”
Something to Celebrate: Quality Focus and Facility Improvements
As the company celebrates its 25th anniversary, AMS is moving ahead to develop new machinery solutions. Kris Chayer, president of AMS, remembered, “When AMS started back in 1997, it was just a sales and engineering company. Now, it is a fully-integrated manufacturer with capabilities that rival or exceed our competitors in the pallet recycling equipment and materials handling field.”
Chayer stated, “Our goal is to be a vertically integrated company, to be a turnkey manufacturer of automation. That’s where we have poured our people and capital resources. We’re on track to be ISO 9001 certified sometime next year.”
Why focus on international quality certifications? Chayer explained, “The ISO certification will provide a third-party seal of approval that validates and tells customers that we meet certain high levels of quality and manufacturing standardization.” As the pandemic stretched supply chains, AMS has developed more in-house capabilities. The manufacturer now has the capabilities to build much of the “off the shelf” roller conveyor that they would normally have purchased.
Beyond manufacturing muscle, AMS employs a lot of engineers and staff to ensure that products are designed to solve unique customer challenges. Chayer said, “We have a large staff of mechanical, electrical, control and software engineers. We have extensive manufacturing and pre-fabrication facilities, and we are even doing some private label machinery assembly for other suppliers.”
Chayer added, “We have built a small army here. This facility and our staff allow us to produce machinery efficiently and faster than many other suppliers in the industry.”
Changing Attitudes toward Automation
Difficulty in finding and keeping workers is helping to change recyclers’ attitudes toward automation. Grinwis commented that companies are investing in ergonomics and materials handling to reduce wear and tear on employees and make jobs easier to fill. Governments are also providing grants and assistance to improve the ergonomics of certain jobs. One of his customers recently secured a government grant where the state paid for 10% of a new repair system.
Companies are investing so that workers don’t have to pick up pallets or move them around manually anymore. Chayer explained, “Automation will allow people to do their jobs for longer. It won’t take as much of a physical toll. Automation helps pallet recyclers attract a more diverse workforce of varying ages, genders, and physical strength.”
Chayer commented, “For the first time ever, pallet industry leaders are not questioning automation. They’re asking where they should start and what’s the right automation for them.” See the sidebar on page 20 to learn more about evaluating where you should start your next automation journey. Grinwis admitted, “You want to think about the evolutionary process when you go into a facility because many times the improvements will be incremental over time.”
Increasingly, more companies are doing both pallet manufacturing and recycling. Many one of those are seeing the need to start with at least some level of automation. For example, Challenger Pallet, of the largest pallet companies in the Intermountain region, has recently gotten into recycling. AMS built a repair line for Challenger, including repair stations and stackers. The line was designed to automatically dispense pallets to repair stations so that workers don’t cherry pick the best pallets to fix. Chayer said, “Challenger loved the first line so much that we just finished building a second one.” This line was being packaged up for shipment while I visited the AMS headquarters in early October. Under certain building constraints, this new line includes side conveyors that can be vertically lifted to allow easier worker and forklift access.
While AMS does have some standard products, most jobs require at least a small amount of customization. AMS relies on a four-part sales process to develop the right solutions for clients. Grinwis explained, “A lot of times it’s important to see what automation a plant already has. We can integrate with existing equipment to save money. We can use existing conveyors and stackers and develop a customized solution.”
Automation isn’t just for big companies anymore. AMS works with both big players, such as CHEP and Millwood, and smaller companies. Chayer clarified, “We can go small and provide an opportunity to grow. For example, we can put a gravity conveyor in front of a few stackers. You can have an operator inspecting for quality while manually feeding the stackers. Then, when you are ready, you can put in full automation with popups and the rakes and automate the entire process. “
J&M Pallet Co. purchased a repair line from AMS back in 2020. The repair line allows operators to repair pallets on the fly. These pallets are then flipped, and the other side is repaired on the fly before pallets are automatically sent to the right stacker at the end of the line. Jeff Bolton, owner of J&M Pallet Co., said, “The AMS repair line has been the best decision we made. It has helped us more than double production with the same amount of people, we have gone from repairing 280 cores per day to 700 plus.”
Penn Pallet Inc. has tackled its labor struggles with automation from AMS. Jeff Blakeslee of Penn Pallet Inc., stated, “Prior to having our repair and sort line installed, hiring, and retaining employees was becoming a struggle. It was getting harder and harder to find employees that could keep up with the physical demands of manual pallet repair. Our repair line from Automated Machines Systems has taken a large chunk of the labor out of it. Now it’s as simple as repairing a pallet and putting a sticker on it to send down the line. It has opened up our potential employee base exponentially.”
Blakeslee talked about how smooth the sales process went. He said, “Working with our salesperson Jennie made the quoting process a breeze. She made it quick and easy and was a driving force from start all the way through delivery and after to get this project off the ground and landed for us. Her and her team also kept us updated all along the process and helped us make any change order decisions that were needed. Even with today’s supply chain challenges, they were able to work with us to get our order fulfilled as quickly and efficiently as was possible.”
The Penn Pallet line is equipped with barcode scanners to streamline our inventory and accounting process. This reduced paperwork for management and improved accuracy. Now all the calculations are done within PalmMate software.
AMS also works with retailers and distribution centers that need automation to improve their pallet handling and sortation systems. For example, AMS developed four sorting lines for Menards using a carousel similar to what you would see in an airport baggage area. The carousel allows pallets to keep moving in a circular pattern until they are removed, and hand stacked into different stacks by workers.
Private Label Manufacturing
Due to AMS’s facilities and personnel, it is partnering to produce machinery for other suppliers in the pallet industry and materials handling sectors. In fact, AMS is partnering with other innovators to produce some new ideas for lumber recovery and more.
These new ideas will bring more automation to existing technologies as well as bringing in fresh innovation, all with the intention of reducing labor requirements and improving safety, according to Chayer.
Continued Software Innovation from PalMate™
Responding to the evolution in software as well as the wooden pallet and lumber industry, the PalMate™ Group is continually focused on enhancing its suite of software and other technology solutions. Chayer admitted, “Some have criticized that we have been asleep at the switch. There are some other products on the market that are web-based and a little flashier. But we have been rolling out new features about 3-4 times per year, and PalMate™ remains the most feature-rich ERP on the market for pallet operations.”
The PalMate Group is fanatically focused on offering collaborative software solutions that enable Wood Products Companies to operate with clarity through efficient data collection, organization and reporting tools. As such, everything that PalMate does needs to evolve just as quickly as the companies that it serves. Along with rolling out regular feature enhancements in PalMate ERP and its other existing products, the PalMate Group is releasing new Advanced Reporting Dashboards which are available through the use of Microsoft Power BI (see ad on page 74). Available in December 2022, these new reporting tools will offer real time information from PalMate through the use of mobile apps and other web-based solutions, giving users the ability to manage their businesses on the go.
To continue evolving with software expectations, AMS is investing significant capital in developing its new cloud-based software product called PalMate Edge, which offers the power of PalMate in a web-based application and is targeted for release in 2023. Grinwis recognized, “Developing a cloud-based system requires a lot of work, especially since we’re building something that we feel is worthy of the name PalMate. We aren’t just taking the PalMate desktop and putting it online, this is something new.” From a security standpoint, PalMate uses Microsoft Azure as its hosting platform, one of the top options on the market. The PalMate team has built extensive integration to work with other software products. They also offer data collection integration with any major machinery manufacturer’s equipment, including Viking, Cape, Alliance Automation, PRS Group, and Industrial Resources.
One of the ways that PalMate stays connected to customers is through its annual PalMate Summit user conference. These events enable the company to bring together various PalMate users to discuss potential improvements and software development considerations, as well as engaging in plant tours and other educational activities surrounding PalMate and its real world applicaiton.
AMS has invested a lot of money and resources into PalMate. This ensures that customers know it has staying power and a group of developers that will keep it evolving. Find out more about PalMate at https://thepalmategroup.com/palmateerp/.
People–The Secret to Good Machinery
With each new expansion at the AMS headquarters, comes more people. Chayer said, “Our people matter a lot to us. When we moved in here, we had about 35 employees, now we have 110. We are constantly evolving, working to improve our processes.”
The size of the staff and its capabilities are impressive. For example, AMS has a customer service team led by Dave Tobias who deals with any issues that arise and can help troubleshoot concerns. Customer issues are managed through ticketing process to ensure speedy service. This team includes mechanical engineers, fluid power experts, electricians and controls engineers who are dedicated to supporting customer service. Such a large group of experts provides world-class support after the sale.
One happy customer, Lou Wilson of Selma Pallet Inc., said, “AMS has been amazing from start to finish, I am very impressed and pleased with their knowledge, abilities, and process. Jennie in Sales was wonderful to work with and I always felt our project was in good hands. Micah and his installation team was incredibly thorough and professional.”
A strong culture drives a good workforce, and a key to AMS’s success is the Christian faith of its founder and key employees. Both Chayer and Grinwis are ordained Christian ministers who strive to care for employees. As the company has grown, AMS has brought on a part-time chaplain to care for workers and walk the floor looking for ways to encourage and connect with staff. The company also conducts a weekly Bible discussion and prayer service for employees on Wednesdays. It is optional and a way for team members to connect on a spiritual level.
Having a spiritual background for its leadership helps as the company navigates growth and real-world challenges. Chayer admitted, “We are ecstatic to have reached the milestone of 25 years in business. But to be honest, this year has been tough with all the supply chain issues. Having our own manufacturing helps us better meet customer expectations. But you can’t make every part you need. So, we, like other manufacturers, are challenged to hit timelines due to forces outside of our control.”
With expanded capabilities and a growing team, AMS eyes the future knowing it will be ready to handle transitions and challenges. Chayer predicted, “We already have a great facility. But we are making it better every day. And we are working to make ourselves a critical supplier for pallet companies as the industry and technology continue to evolve.”
Where Should You Start Your Next Automation Journey?
Many pallet companies know they need to and want to automate. But they are not sure where to get started and what to tackle first. Automated Machine Systems (AMS) starts by qualifying their needs and identifying current and future opportunities. The discussion focuses on finding their pain point and what key goal is driving their desire to automate.
The following are some typical advantages companies may be looking to achieve. Which ones apply to your situation?
• Reduce the amount of labor required to complete certain jobs
• Improve the versatility of the system/process
• Eliminate manual handling of pallets and/or reduce forklift traffic
• Improve their employee safety, ergonomics and morale
• Expand their potential labor force
• Increase their ability to meet current market demand, boost productivity
• Position themselves to meet their projected growth goals
• Increase overall profitability
Then the AMS team will start asking about the current layout, equipment, and facility constraints. The following are some key questions to consider.
1. Given your current plant layout, what space constraints exist? Are you looking to expand your building? Where are critical building supports or walls that cannot be moved?
2. What is the flow of your current operation? How can you eliminate wasted motion and forklift traffic?
3. What bottlenecks currently exist?
4. What equipment do you currently have that is productive and useful? Taking advantage of existing equipment can significantly reduce total system costs.
5. How are most injuries or loss-time incidents occurring at your facility? What activities in your operation present the worst risk to workers?
6. What jobs require excessive lifting, bending over or other weird posture activity? Can automation eliminate these risks through conveyors, lifts, and other materials handling solutions?
7. How are you tracking production? Is this automated? Reliable?
8. What is the ROI that you need to justify capital expenditures?
9. What budget do you have for your next automation endeavor?
10. How can your operation be more versatile? What are your current changeover times for various designs or products? Can you find ways to reduce changeovers including stationing adjustment tools closer to each machine?
11. What is the biggest reasons for rejected orders? How can you improve consistency and quality through revised inspection criteria?
12. How do you expect customer desires and expectations will change over the next five years? How can you take these evolutions into account as you revamp your facility?
Never forget the best automation solution starts with asking the right questions.
