Abstract: An automated apparatus and method for identifying, picking up, placing and packaging a plurality of different packaging a plurality of different types of items such as utensils. Utensils are deposited onto a conveyor belt system that separates clusters of utensils and transports them to an identification site where a vision system identifies them by type, location and orientation and to a pick-up site where they are selectively picked up and placed in a collection pan to form a desired utensil set. When the collection pan has a desired utensil set, it is emptied into a placement bucket on a movable bucket conveyor which transports the set to an automatic bagging machine. The set may be supplemented with napkins dispensed from an automated napkin dispenser or other with other items from other machines operatively connected to the system.