2012Northwest Ohio Manufacturing Forum and Expo
Re-Shoring America withRobotics and FlexibleAutomation
Who is MCRI
Robot Manufacturers
ABB
FANUC
Kuka
Motoman
Adept
DENSO
Epson
Kawasaki
Nachi
Okura
Reis
Staubli
Save Your Factory
Save Your Factory
•Manufacturing Paradigm – Weneed to off-shore to low-costlabor markets to be competative
•Facing the challenge to re-shore
•What steps can be taken toenable North Americanmanufactures to be globallycompetitive
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 495,000American 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 automationand robotics had not been developed to enable cost effective productionof millions of electronic products, from Phones to Playstations." -"Positive Impact of Industrial Robots on Employment" by Metra MartechNovember 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 wageeconomy
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 adomestic product
•Compare this with the piece partcost for the same item in China orIndia (It will almost always belower)
•Add the cost of freight to get it toyour customer
Realistic Cost Comparison
1.Shipping
2.Inventory
3.Insurance
4.Quality
5.Travel
6.Vendor Selection
7.Infrastructure Risk
8.Material
9.Labor
10.Other
Other Considerations
Legal Issues
Theft/Piracy
Cost of additional paperwork
Cost of employee morale
Cultural/Communication difficulties
Loss of manufacturing control andflexibility
Training costs
Lead Time, QC, Inventory
Underestimation of startup costs
Increasing labor costs once a vendorrelationship 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 theU.S.
Using the North American Option
Offshore
North 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 thecountries whose companies
•Embrace automation
•Use lean manufacturing processes
•Reduce production costs whileimproving quality
•North America is in the bestposition to win the race
Case StudyRe-shore Packaging Operation
Considerations
Labor cost rising
Quality concerns
Damage during shipping
Inventory regulation
Changing packaging/product
Case StudyRe-shore Packaging Operation
Challenges
Running multiple sku’s simultaneously
Floor space
Amount of equipment required
Available labor
Throughput
Varying product and production needs
Changing inventory
Maintenance
Ability to grow
Case StudyRe-shore Packaging Operation
Packing/lidding area
Challenges
Erect 3 sizes of case
Random sizes can be processed
Traffic control
Maintenance
Data acquisition
Case Erecting Lidding Development
Case Erecting Lidding Development
Case Erecting Lidding Development
Installed System
Re-Shoring Results
Successes
Flexibility for scheduling
2 operators for packaging
Future automation of RF sealing
Reduced inventory
Total inventory tracking
Data gathering
Remote diagnostics
Local support
Shipping cost
Damaged product
New product additions
Future efficiency
Reliability
Questions and Contact Information
Motion Controls Robotics, Inc.
1500 Walter Ave
Fremont, Ohio 43420
Tim Ellenberger VP
(419) 334-5886