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UNFEASIBLE does mean no feasible grasps were found--there are a number of things that can go wrong. Sometimes it means the object is out of reach, other times that there's no grasp that doesn't make the arm collide with the table, still other times the pregrasp is out of reach or in collision, even still other times there's no way to lift the object from the grasp pose... if you look at the messages going by in the window where you launched pr2_tabletop_manipulation.launch you should be able to see more info about why the grasp(s) failed. You do want the torso to be all the way up, pretty much anytime you're trying to do tabletop manipulation. Also, in that picture the robot looks pretty far from the table--to grasp objects that far into the table, I would definitely drive the base right up to the edge of the table. It's really quite surprising often how small the robot's workspace actually is--stuff that looks reachable very often really isn't.
As for putting stuff down, in more recent versions (Electric) the place goals have been raised in z to start--in older versions, if calibration causes the table to be significantly tilted, sometimes all the place poses will be in collision with the table. Even so, it should eventually resort to the last-resort-place in which it kind of shoves the object diagonally down onto the table--the fact that it doesn't suggests to me that your collision map is preventing the arm from planning any sort of movement to above the table.