CKD

5th May 1961, Page 123

5th May 1961

Page 123

Page 125

Page 123, 5th May 1961 — CKD

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and Problems By Kenneth Bowden

IN A960 a total of 15,638 goods vehicles chassis left British shores for all parts of the world in a fully assembled condition. During the same year the number of chassis exported in an unassembled condition totalled 57,898.

These are Board of Trade figures which do not include public service and other specialized Vehicles not specifically annotated as goods carriers. Nevertheless, they serve to indicate quite clearly that the major percentage of the British commercial vehicle industry's exportsare transported today in the conditions known as CKD (completely knocked down) or SKD (semi-knocked down). An analysis of figures for previous years indicates, furthermore, that the use of these metliods is increasing, and will continue to do so in direct relation to the growth of exports.

It is, of course, an entirely logical development on a number of counts, the main one being that of reduced import duty in many markets on unassembled units compared to those partially or completely built up. Of almost equal consideration are transportation costs. Shipment rates are normally based on bulk, and a vehicle expertly crated in parts is invariably a lesser object than when fully assembled, besides being considerably easier to handle.

Among other major factors are the decreased incidence of damage with modern, highly specialized CKD methods; and, of increasing importance, the employment of related company or general local labour on assembly at the delivery point, which in some countries leads to advantageous import terms and is occasionally allied to home production of certain components for fitting to the imported units.

Such, indeed, has been the development of CKD that today not only the mass-exporters of standard vehicles, such as B.M.C., Bedford and Ford, either have major domestic establishments for the work involved or make use of outside contractors, but that manufacturers of heavier or more specialized vehicles have found it worthwhile to set up their own CKD organizations. A typical example is Leyland Motors.

As early as 1936 Leyland used CKD for specific units, but the real growth of the system has occurred since the end of the war.. The Leyland organization is such that it is found possible to infuse packing and shipping operations into the normal methods of production, and a separate specialized system or personnel have not been found necessary. Like all manufacturers, Leyland are limited in their application of CKD by import restrictions and foreign Market conditions. Whatever the future holds in terms of expanding the use of this method, however, Leyland like to retain full control of all operations concerning their products, and there is no doubt that the reins in this sphere will remain firmly in their hands.

Another factor is their belief that they can handle their own packing transportation more economically than it could be done outside the organization, an argument that holds water for Leyland but which might not for manufacturers in the Midlands, where inflated labour costs, even for ancillary work, seem insurmountable.

Among the numerous concerns of substance in the packing industry to become increasingly involved with the motor industry is Export Packing Service, Ltd., Imperial Buildings, 56 Kingsway, London, W.C.2. Two branches arc operated by this progressive company to pack, store and ship a variety of goods as wide as British industry itself. One is at Sittingbourne, in Kent, and the other, at Chipping Warden, near Banbury, is conveniently situated to serve the Midland motor manufacturers.

The pictures on these pages give a fairly comprehensive impression of what is involved in the CKD process as applied to a motor vehicle or its components. It will clearly be seen that the operation which manufacturers once considered "a necessary evil" becomes, in the hands of specialists, a highly skilled and scientific process.

Export Packing Service, in common with most of their major competitors, offer a complete service to anyone with anything requiring shipment abroad. This begins with collection and extends through storage awaiting processing; packing of the type most suitable to the commodity; storage awaiting shipment; and shipment direct from the packing or storage site. Although some of the major customers, including motor.manufacturers, employ-their own departments for administrating both land and sea transportation,. most packers, including E.P.S., offer a • comprehensive service in this respect also.

Other Advantages Even where a manufacturer controls his own shipping, the advantages of using a specialist are not simply to be found in the actual packing. In the motor industry in particular storage is a major problem which can be partially solved by utilizing a specialist packer—usually at an advantageous rate if the contract is for any quantity of goods or for a relatively lengthy period.

Obviously the size, weight, shape and composition of a unit in its completely or semi-knocked-down condition, phis the complexity of components and the protection they require in transit, are the major factors relative to the cost of a packing and shipping service. But the number of units and the length of contract that can be given will have a major bearing on a packing quotation, from which the motor manufacturer, when given reasonably stable foreign markets and an equable domestic labour climate, can in particular take advantage.

Much of Export Packing Service's work is for the various Ministries and, simply because of the comparatively longterm contracts given, is costable on a favourable basis in comparison with commercial work. The E.P.S. executives are eager in expressing their desire for more commercial and particularly motor industry work, but at the same time are quite frank in admitting the instabilities of commercial contracts which, naturally, can adversely affect costs. Labour troubles in the British motor industry and fluctuating foreign markets are major problems. Large quantities of a reasonably standardized unit for a longish term are the packer's dream. Its realization can result in surprisingly low quotations. This does not mean to say, of course, that the nonstandardized or " one-off " job is not welcomed. Both at Sittingbourne and Chipping Warden, E.P.S. have considerable research and design units of a highly scientific nature.

In terms of actual packing techniques, with regard to both multiple and non-standard units, a tour of the plant indicates with impact to the layman how much money manufacturers might save on shipping costs simply by calling in a packing engineer at the drawing-board stage of creating or modifying a unit for export. At Chipping Warden there were a number of instances where a minor production-line modification could have saved thousands of pounds in packing and shipping costs.

The E.P:S. establishment at Chipping Warden at. present moves out 750 tons a week, alt. by road, a good deal of which is B.M.C. and Rover private and commercial „vehicles and components in both CKD and SKD condition.

It is estimated that a packing operation requires three times the space taken by the commodity. Consequently, the establishment appears vast in relation to the tonnage handled and the labour force, which varies between 400-500. The Chipping Warden premises amount, in fact, to 35 acres, and are what was once an R.A.F. operational training unit. Former R.A.F. hangars have been extensively converted, and today there are 200,000 sq. ft. of covered space and 150,000 sq. ft. of covered and heated packing and storage space.

Mechanical handling equipment is used extensively. Two mobile 5-ton cranes, a 10-ton gantry, one 8,000 lb., two 6,000 lb. and four 4,000 lb. fork-lifts, plus a fleet of Lister and. Ransome tugs, are constantly employed.

Although much of the traffic is moved in by the maker's own transport, or by his arrangement, E.P.S., by virtue of the service they offer, are bound to operate a flexible road transport set-up. Their own fleet consists of six prime movers, eight semi-trailers, three Queen Marys, four pantechnicons, a 30-cwt. and a 10-cwt. van. Extensive use is also made of Andy's Transport, Ltd., of Banbury, a general haulier operating some 80 vehicles, and of B.R.S.

At the present time E.P.S. are packing and shipping, CKD, complete Austin commercial units in railway containers; Morris cars and Morris-Commercial engines; Conamer cabs and van bodies, and Meadows power units. Land-Rovers are being packed semi-knocked down, the wheels and superstructure removed and the springs compressed. Additionally, considerable reclamation work is handled for Jaguar and Rootes, and there is the likelihood in the near future of both commercial and private vehicle work for another major manufacturer.

CKD

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