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27th Club of Bologna Members’ Meeting Session 1 – KNR 1.2 Hanover, 12-13 November 2017
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Smart Logistic for Effective Process
by Franco Oliaro
ROJ - ITALY
1. Company presentation
ROJ is a SME, with more than 50 years of history, it design and produce mechatronic systems. Within
its Group, specialized in textile machinery, ROJ has always distinguished itself for its typical Italian
creativity and independence.
12.000 m2 footprint located in Biella (Fig. 1);
250 employees for a revenue of 48 M€ in 2017 with a positive trend (Table 1).
2. Growth projects and Industry 4.0 ante litteram
In 2013 two important projects were started:
Mechatronics for Agriculture, focused on systems and electronic motor drives designed to control
the seeding disks of a precision planters [1] (Fig. 2);
internal logistic improvement, initiated with the aim to better control the material flow according
to some of the principle that today are recognized under the name of Industry 4.0. (Fig. 3).
3. Mechatronic for agriculture
Scope of the system is to replace the mechanical/hydraulic transmissions on the implements, with
distributed Electrical drives (Permanent Magnet Motors with integrated driver), managed by an
electronic control system (ECU).
the standard components, as shown in Figure 4, are Motor Drives, ECU and HMI
power and signal distribution (cabling) is customized in a complete system [2] (e.g. PCS200)
according to the model of the implement.
This replacement allows obtaining a greater flexibility of the machine and provides functionalities
which are not possible to achieve with the mechanical transmission:
easy setting;
position control (e.g. of a seeding disc);
accurate speed control;
high torque at low speed;
pre-feed (priming);
integration of monitoring functions (e.g. seed monitoring) on the HMI;
motor load monitoring for diagnostic purpose
The main applications are on sowing and fertilizing machines, with fixed and variable rate.
4. Business model
27th Club of Bologna Members’ Meeting Session 1 – KNR 1.2 Hanover, 12-13 November 2017
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We work B2B and the main type of customer is the Machine Maker but we also support the after-
market with machine upgrading, motor replacement and support to the user.
ROJ is a verticalized company with internal R&D, Engineering, Manufacturing (mainly electronic
production), Sales and Service.
We do Mechatronics and the manufacturing processes can be distinguished in:
electronic production in batches (PUSH) on tens-flow lines with optimization of the set-up;
mechanic and system assembling to order (PULL) to follow the customization demands.
In our P&L, the materials (including scraps and material handling) are 60% of the revenue, for this
reason we concentrate in the handling automation, to avoid stock redundancy and no-value activities
such manual handling.
In the presentation we follow the processes related to the ECU p/n 54T01068 (circled in red in Fig.
4), used in the Planter Control System PCS200.
5. Our case of Industry 4.0
Our application uses the digital information to trace the materials and automate their handling
5.1. AS IS Analysis, Goal and Objectives
The initial situation saw:
different types type of materials incoming in different places;
different models of flow for different processes.
The objectives were:
to reduce the material handling;
to reduce the inventory failures;
to implement flexibility with discipline;
to find one place for everything and everything in its place;
to set a FIFO rule;
to implement the material traceability;
in one few words: a smart Logistic system, integrated with the ERP system.
5.2. Project implementation
The actual solution is based on the introduction of the WMS (Warehouse management system)
Logistic Package in the ERP system [3]. (Fig. 5, 9) with:
integration of the ERP with three different departmental WMS software [4,5,6];
transactions based on “physical” items;
creation of loading units with unique identification (RF id, barcode, QR code...), such as
component reels, boxes, pallets which:
o physically contain the materials;
o logically “contain” the information related to the same material (p/n, S/N, lot, quantities,
approval status, process steps…).
27th Club of Bologna Members’ Meeting Session 1 – KNR 1.2 Hanover, 12-13 November 2017
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The material with its loading unit number brings forward in the process its own information allowing:
traceability of the electronic components with MODULA WMS [4] and SIPLACE Facts [5] in
the Electronic Production department (Fig. 5, 6, 7, 8);
automatic storage and dispatching with INCAS Easystor [6] (Fig. 9) in:
o IQC (Incoming Quality Control) Lab (Fig. 10);
o Mechanical pre assembling Department (WIP) (Fig. 11);
o System assembling and OQC (Outgoing Quality Control) Department (Fig. 12);
o Packing and shipment Department (Fig. 13).
6. Results
The project figures (schedule, costs, savings and payback) are collected in the Table 2.
Additionally, the company has resulted to be very attractive for the most demanding customers and,
also thanks to the LEAN approach, the space availability has generated unexpected project that have
boosted our business in 2014 (Table 1).
In particular we are pleased with some results:
reduced occupied spaces for WIP materials thanks to the automatic warehouse have freed a new
area for Project base orders (circled in red in Fig. 3);
reduced defectiveness thanks to the electrical components traceability (Table 3);
reduced time for IQC thanks to the automatic warehouse (Table 4);
increase of the Value added/head thanks to the reduced manual handling (Table 5).
7. Next steps and conclusions
Industry 4.0 represents a great opportunity if grown on a culturally prepared company investing in:
employees education;
continuously updated technology;
LEAN thinking (reduces low value activities, reduces scraps, reduces stocks, and reduces
spaces…).
The method and the technic can be applied to other environments and our purpose is to transfer the
principles to our customers through our systems (Fig. 14):
logging the seeding and fertilizing process (lot, operator, date, quantity);
with the remote diagnostic;
with IoT ready systems (georeferenced).
27th Club of Bologna Members’ Meeting Session 1 – KNR 1.2 Hanover, 12-13 November 2017
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References
[1] SFOGGIA: http://www.sfoggia.com/CatalogoDettaglio.aspx?ProductID=10233
[2] ROJ PCS200:
http://www.roj.com/prodotti/mechatronic-systems/planter-control-system-pcs-200/
[3] ITACME: http://www.itacme.it/en/DNA_WMS
[4] MODULA: http://www.modula.eu/products/modula-wms/
[5] ASM: SIPLACE Facts
http://www.siplace.com/addmindms/download.aspx?domid=10&d_id=6f57c570-e288-4c9d-9292-
9b8b49758394&fdl=0
[6] INCAS: Incas WMS Easystor http://www.incasgroup.com/en/roj/
27th Club of Bologna Members’ Meeting Session 1 – KNR 1.2 Hanover, 12-13 November 2017
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FIGURES
Figure 1 - ROJ facilities in Biella – Italy.
Figure 2 - Precision Planter Source: [1, 2].
27th Club of Bologna Members’ Meeting Session 1 – KNR 1.2 Hanover, 12-13 November 2017
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Figure 3 - Internal Logistic Improvement (Assembling department).
Figure 4 - Components of the Mechatronics for Agriculture.
27th Club of Bologna Members’ Meeting Session 1 – KNR 1.2 Hanover, 12-13 November 2017
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Figure 5 - Traceability of the electronic components.
Figure 6 - Automatic inspection of the Component Mounting on ECU board.
27th Club of Bologna Members’ Meeting Session 1 – KNR 1.2 Hanover, 12-13 November 2017
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Figure 7 - ECU electronic test first phase.
Figure 8 - Barcode acquisition for data collection of the ECU electronic board.
27th Club of Bologna Members’ Meeting Session 1 – KNR 1.2 Hanover, 12-13 November 2017
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Figure 9 - Automatic storage and despatching (IT integration).
Figure 10 - Loading units retrieved from the Miniload at the IQC.
27th Club of Bologna Members’ Meeting Session 1 – KNR 1.2 Hanover, 12-13 November 2017
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Figure 11 - Loading units unloaded from the Miniload for assembling.
Figure 12 - ECU unit functional test in the WIP department.
27th Club of Bologna Members’ Meeting Session 1 – KNR 1.2 Hanover, 12-13 November 2017
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Figure 13 - ECU packed and labelled for shipment.
Figure 14 - PCS200 HMI: Data Log screen.
27th Club of Bologna Members’ Meeting Session 1 – KNR 1.2 Hanover, 12-13 November 2017
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TABLES
Table 1 - ROJ relevant figures in the past five years.
Table 2 - Project time schedule, costs, benefits and payback.
2013 36.823 2013 1.917
2014 47.848 2014 2.781
2015 42.600 2015 1.179
2016 44.117 2016 2.313
2017F 48.200 2017F 2.400
2013 9.588 2013 2.396
2014 11.255 2014 2.356
2015 13.545 2015 2.560
2016 15.768 2016 2.595
2017F 18.500 2017F 3.000
2013 3.392 2013 199
2014 4.673 2014 208
2015 5.254 2015 231
2016 5.285 2016 248
2017F 5.800 2017F 250
Investments in fixed
assets (Keur)Turnover (Keur)
Equity (Keur)
Investments in R&D
(Keur)
Staff Employed at Dec.
31st. (leased people
incl.)E.B.I.T.D.A.(Keur)
20.000
25.000
30.000
35.000
40.000
45.000
50.000
2013 2014 2015 2016 2017F
Turnover (Keur)
4.000
6.000
8.000
10.000
12.000
14.000
16.000
18.000
20.000
2013 2014 2015 2016 2017F
Equity (Keur)
2.000
2.500
3.000
3.500
4.000
4.500
5.000
5.500
6.000
2013 2014 2015 2016 2017F
E.B.I.T.D.A.(Keur)
500
1.000
1.500
2.000
2.500
3.000
2013 2014 2015 2016 2017F
Investments in fixed assets (Keur)
500
1.000
1.500
2.000
2.500
3.000
2013 2014 2015 2016 2017F
Investments in R&D (Keur)
100
120
140
160
180
200
220
240
260
2013 2014 2015 2016 2017F
Staff Employed at Dec. 31st. (leased people incl.)
Project schedule
Supplier selection and purchase orders Jan 2013
Permission release and contruction start Mar 2013
End of contruction and start of warehouse assembly Sep 2013
End of the assembly and start of the Tests Dec 2013
Miniload ready start of IT integration Jan 2014
Project completed Apr 2014
Total duration 15 months
Costs (€)
Building modification and construction 553.000,00
Structures and machines 853.000,00
SW and IT integration 65.000,00
Conveyors 67.000,00
Lighting and Safety equipments 45.000,00
Total Cost 1.583.000,00
Savings/year (€)
Routings improvement 80.000,00
Reduction inventory failoure 30.000,00
Reduction of manual handling 220.000,00
Total saving/year 330.000,00
Pay-back (years) 4,80
27th Club of Bologna Members’ Meeting Session 1 – KNR 1.2 Hanover, 12-13 November 2017
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Table 3 - Overall ICT defectiveness.
Table 4 - IQC lead-time improvement.
DAYS
2012 11,62
2013 10,82
2014 8,53
2015 9,19
2016 4,25
0
2
4
6
8
10
12
14
2012 2013 2014 2015 2016
LEAD TIME IQC (DAYS)
1,241,08
0,61
0,36
0,55
0,16
0,00
0,50
1,00
1,50
2,00
2,50
2012 2013 2014 2015 2016 2017
Difettosità %
Target
27th Club of Bologna Members’ Meeting Session 1 – KNR 1.2 Hanover, 12-13 November 2017
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Table 5 - VA (Revenue less consumptions) per FTE (average full time equivalent head).
2013 72,21
2014 84,49
2015 80,59
2016 84,17
2017F 87,20
VA/FTE (Keur)
60,00
65,00
70,00
75,00
80,00
85,00
90,00
2013 2014 2015 2016 2017F
Value Added/ Head