2012 northwest ohio manufacturing forum and expo re-shoring america with robotics and flexible...
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2012Northwest Ohio Manufacturing Forum and Expo
Re-Shoring America with Robotics and Flexible
Automation
Who is MCRI
Robot Manufacturers
ABBFANUCKuka Motoman
AdeptDENSOEpsonKawasakiNachiOkuraReisStaubli
Save Your Factory Save Your Factory • Manufacturing Paradigm – We
need to off-shore to low-cost labor markets to be competative
• Facing the challenge to re-shore
• What steps can be taken to enable North American manufactures to be globally competitive
Importance of Manufacturing in America
• Leads in GDP Growth & Productivity• Leads in Innovation:
• 70% of Total Private Sector R&D• 90% of Patents
• U.S. Manufacturers have added 495,000 American jobs since 2010
• Workers earn pay and benefits about 17% higher than other workers
• Backbone of Defense Industrial-Technology Base
Why Invest in Robotics?
"In world terms three to five million of jobs would not exist if automation and robotics had not been developed to enable cost effective production of millions of electronic products, from Phones to Playstations." - "Positive Impact of Industrial Robots on Employment" by Metra Martech November 2011
robots carry out work in areas that would be unsafe for humans
robots carry out work that would not be economically viable in a high wage economy
robots carry out work that would be impossible for humans.
Robots Create Jobs:
Robots Improve Work Conditions:
Re-Shoring Paradigms
N.A. - Higher costs- Labor- Healthcare- Legal - Tax Rates- Environmental laws
Offshore
- Low cost labor
Traditional Cost Comparison
• Start with the piece part cost for a domestic product
• Compare this with the piece part cost for the same item in China or India (It will almost always be lower)
• Add the cost of freight to get it to your customer
Realistic Cost Comparison
1. Shipping2. Inventory3. Insurance4. Quality5. Travel6. Vendor Selection7. Infrastructure Risk8. Material9. Labor10. Other
Other ConsiderationsLegal Issues Theft/Piracy Cost of additional paperwork Cost of employee morale Cultural/Communication difficulties Loss of manufacturing control and flexibility Training costsLead Time, QC, Inventory Underestimation of startup costs Increasing labor costs once a vendor relationship is established Cost of transition Cost of layoffs and severance Cost of inventory carry due to shipping Cost of managing offshore Cost of bringing a project back to the U.S.
Using the North American Option
OffshoreNorth America
• Lean Manufacturing• Robots & Automation• Quality Programs• Just in time Inventory• Capitalize on culture, laws &
standards
The Real Long Term Winner?
Keys to Manufacturing Success
• Manufacturing will go to the countries whose companies • Embrace automation• Use lean manufacturing processes • Reduce production costs while
improving quality
• North America is in the best position to win the race
Case StudyRe-shore Packaging Operation
Considerations
Labor cost risingQuality concernsDamage during shippingInventory regulationChanging packaging/product
Case StudyRe-shore Packaging Operation
Challenges
Running multiple sku’s simultaneouslyFloor spaceAmount of equipment requiredAvailable laborThroughputVarying product and production needsChanging inventoryMaintenanceAbility to grow
Case StudyRe-shore Packaging Operation
Packing/lidding area
Challenges
Erect 3 sizes of caseRandom sizes can be processedTraffic controlMaintenanceData acquisition
Case Erecting Lidding Development
Case Erecting Lidding Development
Case Erecting Lidding Development
Installed System
Re-Shoring Results
Successes
Flexibility for scheduling2 operators for packagingFuture automation of RF sealingReduced inventoryTotal inventory trackingData gatheringRemote diagnosticsLocal supportShipping costDamaged productNew product additionsFuture efficiencyReliability
Questions and Contact Information
Motion Controls Robotics, Inc.1500 Walter Ave Fremont, Ohio 43420 www.motioncontrolsrobotics.com
Tim Ellenberger VP(419) 334-5886