From a field experience to technology for the next-generation robotics and automation

- Making technology make sense

Alain Patchong

Nov. 30, 2016

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Faurecia produces up to 25% of a car’s components 4 Business Groups | Sales: ~€20B | Employees: ~100K | ~250 plants

Exterior

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Emission Interior Seating

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Overview

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Business background & Needs Initial situation Implementation Takeaways Technology that makes sense Conclusion

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Business background & Needs

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Assumption of benefits from competitors benchmark   Productivity   Ergonomics & Safety   Pull system (stable transportation time)

Outcome of pilot project in Crévin

  Confirmed expected benefits   Excellent payback: ≈ 10.6 months   But CAPEX: average running AGV ≈ €40K   Key competences needed: PC&L, ME, Supplier

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Introducing Crévin Plant: Seats production for Citroën C5 and Peugeot 508 | 800 Carsets /day | 2 shifts

Démontage zone école + déplacement zone qualité

Déplacement de la gare AT / ACC AR

Réaménagement des gares KB + Intégration des IS AR MPAP

SM: IS/covers/foam

Delivery point

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Situation with AGVs

Picking

Full Trolley

Empty Trolley

Delivery RS BR

Delivery RS CU Trajets :

Empty trolley

Full trolley SM: IS/covers/foam

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Crévin pilot project: Snapshots & Economics

CAR #315673Project 1

RS FS - Left FS - Right Total project 2 TOTAL projects 1&2AGV CAPEX 37 500 € 37 500 € 37 500 € 75 000 € 112 500 €Batteries CAPEX 10 378 € 7 743 € 7 743 € 15 486 € 25 864 €Installation CAPEX 9 600 € 7 160 € 7 160 € 14 320 € 23 920 €Programming CAPEX 3 000 € 2 250 € 2 250 € 4 500 € 7 500 €Supervision CAPEX 10 849 € 2 145 € 2 145 € 4 290 € 15 139 €

Documentation Mfg cost 2 500 € 250 € 250 € 500 € 3 000 €Training 0 € 0 € 0 € 0 €Travel fees Mfg cost 5 760 € 2 785 € 2 785 € 5 570 € 11 330 €Controlling system Mfg cost 7 998 € 2 895 € 2 895 € 5 789 € 13 787 €Spare AGV 0 € 0 €Logistics / picking area works Mfg cost 2 355 € 2 165 € 2 165 € 4 330 € 6 685 €Trolleys, wiring, tracks Mfg cost 13 023 € 21 621 € 21 621 € 43 241 € 56 264 €Taxes Mfg cost 327 € 327 €Total Cost 103 289 € 86 513 € 86 513 € 173 026 € 276 315 €

Total CAPEX 71 327 € 56 798 € 56 798 € 113 596 € 184 923 €Total Mfg cost 31 962 € 29 715 € 29 715 € 59 430 € 91 392 €

Saving MOD - 1/Shift 70 400 € 70 400 € 70 400 € 211 200 €MOD Metal 35 200 € 35 200 € 70 400 €

Small trains - 2 / Project 10 800 € 10 800 € 10 800 € 32 400 €Total / year 116 400 € 116 400 € 81 200 € 314 000 €

Payback (months) 10,6 8,9 12,8 10,6

CAR #317221Project 2

8 jobs saved €276K for 7 AGVs: – 60% AGV, Batteries & others – 20% Dolly – 20% Process control & Electronics

Payback: 10.6 Months

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Business background & Needs : Summary

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  Estimated CAPEX for full deployment in Europe: €8M

  AGV is very profitable… But requires huge CAPEX!

  How and where to deploy AGVs while minimizing CA$H need?

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Implementation: Initial situation – European plants

Internal material transportation:   166 small trains   322 train drivers

Total train drivers wages: ≈ €8M/yr Small trains are leased:   Total leasing cost estimate: ≈ €600K/yr

(€300 / train / month)

Productivity goldmine: The hidden plant! Internal material transportation = 1 plant

Replace leased small trains by leased AGVs No more CA$H needed! But not the same cost structure.

Cost Structure AGV Implementation

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Implementation: framework for deployment

  Customers = Deployment plan: o  List of European plants for 2013 & 2014

  Doers = Organization agreed: o  Execution: Local plant (Lean, PC&L, ME) o  Methodologies & standards: Central Ops

  Suppliers = Agreement with selected suppliers

o  Solution defined and shared with supplier: Standard AGV attributes, Safety requirements, Cost, Maintenance

o  Supplier role: AGV, % installation, Maintenance o  FAS role: Dollies, % installation, Maintenance level1 Faurecia

Supplier

Leipzig & Siemar

Crevin

Golden Triangle: Customer – Doer – Supplier

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Key takeaways on mixing manual and automated solutions

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Automa'on)from)manual)tasks)follows)a)simple)rule:)))«)stay)away)from)50850)»)

To)minimize))troubles)follow)the)«)big)bang)»)approach)

100% 0% 50%

Level of automation

Leve

l of t

roub

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Initial Time

Leve

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utom

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Final 0%

100%

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  AGV improves productivity and more… with a good payback Caveat: CA$H is King Do leasing!

  Implementation: Golden Triangle Beware: you need experienced and knowledgeable third party

  Need for next-generation technology that makes sense

More takeaways…

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Technology that makes sense Current situation : Few facts on what’s wrong

Several customized solutions: What if product / volume changes? Lack of customer voice Customer: “I want to improve my competitiveness” Cost issue as an “iceberg-tip”

€18,500 €18,500

=

© Alain Patchong | confidential

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Eliminate the “cash barrier” for high-cost countries’ SMEs: Average cost of a running AGV in Crevin plant = 46 KE

Industrial footprint expansion toward low-wage countries

Technology that makes sense Why is the cost an important factor?

© Alain Patchong | confidential

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Most companies decide on ROI Overall AGV target cost for a 24-month ROI

Manufacturing footprint is moving to low-cost countries: Running AGV cost should be < 32 K€ (-30% vs. today)

© Alain Patchong | confidential

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Technology that makes sense Market requests “smart automation”: 6 key assessment criteria

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Standard (low-cost))   Equipment an/or components are standard and can be / are used for other activities. Standard equipment or components are “good deals”

Reliability)  Efficiency above 98% and most breakdowns can

be fixed by local staff (no external support, no hiring)

Plug and play)  Installation in a few hours to less than 1 day (max

2 WE days) by local people after short training, no need for external expert

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SMED))   Performed automatically or by people around on the shopflloor (an operator or a team leader)

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Modularity)   CAPEX function of the production volume 5 Reconfigurability)

  Changes can be done within a few minutes to less than a day (max 2 WE days) by local people after short training, no need for external expert

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Technology that makes sense Example of assessment: Universal Robots and the “Best AGV offer”

Universal Robot Best AGV offer

Standard low-cost

Reliability

SMED by shop-floor team

Plug and play

Modularity

Reconfigurability

Overall assessment

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Technology that makes sense Mexence’s first project: Create the next-generation mobile robot

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6)crite

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automa'

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Dras'c)cost)red

uc'o

n))

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Conclusion

•  The “golden triangle” is key for success in deployment

•  When it comes to mixing manual – automated solutions, “Stay away from 50-50” by going for “big bang”

•  There are significant gaps between customer needs and current offer of automation solutions

•  Assess your solutions on the six-criterion grid before adoption

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Thank you !

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Prioritized plan for AGV deployment in Europe

smal

l tra

ins

driv

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shift

MO

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ost

SOP

2013

Soci

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"Mak

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NO

T m

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2013

Pr

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2014

Pr

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CommentsACL, valladolid 5 4 36 300 € 2 Cercy 6 10 33 626 €Nompatelize 8 8 43 130 €Nogent 12 4 38 639 € 1st Frames 1st Frames experience: Improve logisitcs firstSiemar (Sandouville) 5 5 35 033 € 3 Sielest (Pulversheim) 5 5 36 785 €Sotexo (Brèbrière) 9 9 44 145 €Siedoubs (Montbelliard) 11 11 36 126 € 5 Huge potential but launch in 2013Sienor (Hordain) 9 8 39 510 € Cannot be considered in 2012/2013 S1Trnava 3 3 14 400 € 1 Pay back to be checkedTogliatti 3 3 8 442 €Teheran 2 2 8 447 €Sao Joao da Madeira 16 16 12 002 € 6 Pick up learning from NSVVigo 14 14 29 936 € 7 Huge potential but launch in 2013Nelas 7 5 11 166 € 8 Grojec Frames 5 13 14 284 €Jelcz (JIT) 2 4 11 738 € ME being built up / Ford closing Genk plantLozorno 3 9 17 808 € Launch mid 2014Pisek Frames 7 14 15 381 € X TBC (PC&L and Frames APP)Walbrzych Frames 11 33 11 709 € X TBC (PC&L and Frames APP) / common work to be done with SEOMadrid Frames 2 6Pamplona 2 6 40 698 € X Huge PC&L work to be done up frontVitoria 1 2 35 595 € X End of 2014Neuburg A3 X Solve the budget issueNeuburg A4 6 15 42 151 € X Solve the budget issueNeuenstadt 1 3 39 448 €Sittard 2 4 39 185 € X PC&L manager leaving / high probability for BMW mini NedcarPlisenBanbury 2 4 33 574 € Solve the budget issueGeiselhöring Frames 6 15Leipzig 34 553 €Lohr am MainStadthagenKaluga 1 3

Selection Criteria

SEO

NEO

Estimated compensation cost at stake: ≈ €4M / yr

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Two support documents needed - PC&L booklet (methodology to modify material storage, picking, flow & feeding) - ME booklet (Standard solutions & methodology “How to design and validate new solutions”)

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HOW*TO*IMPL EMENT*AGV*?Methodology used ?

1) Synchronize & mutualize the trains to reduce transport variability

2) Reduce the number of delivery point at the production line (sequencing)

3) Compact the trolley & optimize the order lot

4) Compact the supermarket & optimize the picking (X-dock)

5) Separate picking activities from delivery activities

6) Implement Pull system (call off by cars)

7) Make the supermarket compatible with AGV (less faster in the bends)

Production Control & Logistics

Manufacturing Engineering

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HOW$TO$DESIGN$A$TRUCK$/$TROL LEY1/$Search$one$from$the$Booklet$of$standard$trucks2/$If$not$satisfactory$then$use$“How$to$design$and$validate$a$truck”

Early&vers ion Optimizingthe&solution

Trolley&tested« manually »F inalized&Trolley F inal&AGV

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Supplier contribution and dependability is key

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 The supplier is a key contributor  It’s not only about € but also the impact on the factory flow (Just In Time)

Supplier Faurecia

Faurecia and supplier

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Supplier selection: Market Overview, Criteria For Panel Definition & Narrow Down

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MANUFACTURER DISTRIBUTOR

CREFORM x (Japan & Germany)  

INDEVA x (Italy)  

TRILOGIG   x (Japan)

DS AUTOMOTION x (France)  

EISENMANN x (Germany)  

LINDE x (partnership)  

JUNGHEINRICH x  

CATERPILLAR x (partnership)  

BA SYSTEMS x (France)  

Criteria used to identify suppliers as PANEL

Supplier which is manufacturer and/or distributor, specialized in AGVs Request For Information completed Signature of master agreement, General Purchasing conditions & confidentiality agreement Footprint / Ability to work with all Faurecia plants in Europe in a first step and ROW in a second step Penetration rate (Faurecia sales vs supplier total sales) RFQ benchmark

Identified as AGV manufacturers/distributors Spec compliant Responded to RFI Penetration rate % Insurance Validate MA Pre selected

1 CREFORM CREFORM CREFORM CREFORM CREFORM CREFORM* CREFORM

2 INDEVA INDEVA INDEVA INDEVA INDEVA INDEVA* INDEVA

3 TRILOGIQ TRILOGIQ TRILOGIQ TRILOGIQ TRILOGIQ TRILOGIQ* TRILOGIQ

4 DS AUTOMOTION

5 EISENMANN

6 LINDE

7 JUNGHEINRICH * In progress,

8 CATERPILLAR minor discussion

9 BA SYTEMS Creform Indeva Trilogiq

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Supplier selection: Example of non-cost criteria

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Supplier selection: Prices & Leasing rates

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-  Compact the logistic supermarket - Separate picking from delivering activities - Make the supermarket compatible with AGV

•  Supermarket have been reduced by 20% (X-dock)

PICKING

Faurecia’s role PC&L

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Trolley building: From the initial container to the final trolley

Early version

Optimizing the solution

Use of trolley with small train

tested

Finalized trolley

Final AGV

Rail guiding structure

Initial

Faurecia’s role ME