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2012 Northwest Ohio Manufacturing Forum and Expo Re-Shoring America with Robotics and Flexible Automation.

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Presentation on theme: "2012 Northwest Ohio Manufacturing Forum and Expo Re-Shoring America with Robotics and Flexible Automation."— Presentation transcript:

1 2012 Northwest Ohio Manufacturing Forum and Expo Re-Shoring America with Robotics and Flexible Automation

2 Who is MCRI

3 Robot Manufacturers ABB FANUC Kuka Motoman Adept DENSO Epson Kawasaki Nachi Okura Reis Staubli

4 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

5 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

6 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:

7 Re-Shoring Paradigms N.A. - Higher costs - Labor- Healthcare -Legal- Tax Rates -Environmental laws Offshore - Low cost labor

8 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

9 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

10 Other Considerations Legal Issues Theft/Piracy Cost of additional paperwork Cost of employee morale Cultural/Communication difficulties Loss of manufacturing control and flexibility Training costs Lead 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.

11 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?

12 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

13 Case Study Re-shore Packaging Operation Considerations Labor cost rising Quality concerns Damage during shipping Inventory regulation Changing packaging/product

14 Case Study Re-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

15 Case Study Re-shore Packaging Operation Packing/lidding area Challenges Erect 3 sizes of case Random sizes can be processed Traffic control Maintenance Data acquisition

16 Case Erecting Lidding Development

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19 Installed System

20 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

21 Questions and Contact Information Motion Controls Robotics, Inc. 1500 Walter Ave Fremont, Ohio 43420 www.motioncontrolsrobotics.com Tim Ellenberger VP (419) 334-5886


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