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Introduction to Automation
Introduction to Automation Outline
u What is automation?
u Types of automation
Vijay Kumar u Manufacturing versus service automation
Department of Mechanical Engineering u Models of production
and Applied Mechanics u Why automate?
University of Pennsylvania u When to and when not to automate?
Philadelphia, PA
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Types of Automation Production Volume and Variety
Attributes and advantages
Automation When to consider Advantages Disadvantages
High
FIXED t extrusion
AUTOMATION t others: grinding, stamping, welding, assembly
t bottlenecks in assembly: injection molding and part feeding
FLEXIBLE
AUTOMATION u Time to market: 24 months
u Capital cost: $200 million
completely u Estimated life cycle: 6-8 years
automated
CAPITAL INTENSITY
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Other Models for Manufacturing Mass Production to Mass Customization
“... No longer able to generate large earnings from high-volume production of standard commodities - and unable to
restore profits by protecting the American market, cutting prices, or rearranging assets - America’s core
corporations are gradually, often painfully, turning toward serving the unique needs of particular customers. By
trial and error, by fits and starts, often under great stress, and usually without much awareness of what they are
doing or why, the firms that are surviving and succeeding are shifting from high volume to high value
production....”
- Robert Reich, Former U.S. Labor Secretary, 1992
Video
Examples
u steel making:
l corrosion resistant steels, powder for sintering lightweight crankshafts and camshafts, special alloy steels for turbomachines,
and heat resistant steels for aerospace applications.
u semiconductor chips: National Semiconductors makes specialized million dollar chips
u computer industry: 80% of the cost of the computer are in the specialized software
u cars: Toyota makes 23,000 one-of-a-kind cars in the Georgetown plant
u clothing: Levi Strauss - customized jeans
u bikes: Canondale uses lot sizes of 10 in the manufacture of bicycle frames
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Lathes
Office
Grinding
Which layout has (a) higher productivity? (b) higher flexibility? (c) more automation?
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Group Technology Group Technology
All parts require similar manufacturing Example:
processes, although the design process
is different Manufacture of different parts needing turning, milling, grinding
l casting and finishing
l turning
l milling
l grinding
l finishing
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Video
Examples
l windshield
l camshaft
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Cost of labor Reasons for Automation
uShortage of labor
u Japan’s labor costs are 5% more than the U.S. and over 50% higher than the l The ratio of the number of workers to the number of retirees in the U.S. is
U.K. expected to be 2 to 1 in 2000. Main reason in Japan.
u West Germany imports cheap labor to augment domestic labor.
uHigh cost of labor
u Taiwan’s manufacturing labor cost quadrupled from 1974 to 1984
l may not always make sense to establish plants in countries with low labor costs
u Korea’s manufacturing labor cost doubled from 1979 to 1984, and quadrupled
again between 1984 and 1996. uIncreased productivity
l value of output per person per hour increases
Country 1985 1995 uLower costs
Germany 9.6 31.88 l reduced scrap rate
Japan 6.34 23.66
l lower in-process inventory
France 7.52 19.34
USA 13.01 17.20 l superior quality
UK 6.27 13.17 l superior quality
Malaysia 1.08 1.59 l shorter (compact) lines
South Korea 1.23 7.40
uReducing manufacturing lead time
China 0.19 0.25
India 0.35 0.25 l respond quickly to the consumers’ needs
l rapid response to changes in design
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Labor Costs and Strategic Planning Is the U.S. economy becoming a service-based economy?
Why are Japanese and German auto companies building plants in the U.S.?
l Percentage of service workers has increased.
l to be more responsive to their most important export market
l “Office Economy” (CEOs, lawyers, janitors, etc.) accounts for 41% of all
l to hedge against currency fluctuations
workers [WSJ, 2/24/98]
l to increase their political clout in the U.S.
l to ensure access to the U.S. market even if sanctions are imposed
Examples
• Software (often 3-5 times the cost of the equipment)
• Specialized materials
• Design of parts/machinery/processes
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Cost of Flexible Automation Next Generation Manufacturing
Capital costs per car in 1996 u Autonomous, not automated
u Toyota u Soft tooling
l 480,000 cars/year, $3960/car u Recycleable plant Fine
u Nissan arts
u Suzuki
l 200,000 cars/year, $2150/year Model
Printing
Making
State of
automation
u Future Challenges
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l factory layout: fixed position layout, product flowlayout, and process flow
layout u Ayers, Robert U. and Duane C. Butcher. “The Flexible Factory
Revisited.” American Scientist, vol. 81 (Sept-October 1993), pp. 448-
l group technology
459.
u Manufacturing versus service automation l contrasts mass production with flexible automation
u Reasons for automation
u When to and when not to automate? u Drucker, Peter F. “The emerging theory of manufacturing.” Harvard
Business Review, May-June 1990.
l organization of modern factories
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