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