Managing Automation- July 2008

[ SPECIAL REPORT ] A mind of its own? Seegrid’s autonomous robots can interpret their surroundings and move independently. country,” says Jeffrey Burnstein, executive vice president of the Robotic Industries Association. “We are hearing about companies sending manufacturing overseas because it is cheaper and it is the only way they can compete, but we don’t believe that. We believe it is cost-effective to produce a product in the U.S., and there are a lot of reasons for that.” Some of the reasons stem from the potential loss of intellectual property, shipping costs, and the need to control quality, Burnstein says. Keeping manufacturing in the United States or even moving it back to the United States is feasible and cost-effective. “Robots are a critical part of the equation,” he says. Indeed, while pundits like Siciliano see the potential for robots and humans to work together, some people see robots as a way to solve the workforce shortage — or in some cases, the workforce expense. Take Evergreen Solar, a solar panel manufacturer that, under a joint venture with a German company, will be using 100 robots between its German plant and a new plant being built in Massachusetts. Without robots, “we couldn’t compete,” says Peter Kane, a principal engineer for Evergreen Solar. “If we couldn’t automate [the movement of solar panels], the labor cost would kill us and we’d have to move everything to China.” Evergreen Solar is a good example of a company in a growing industry that is beginning to make use of robots. Robots have always been associated with the automotive industry, and, indeed, that is still where most robot sales go. But there are signs that things are changing. According to the RIA, North American robot sales rose 24% in 2007, a reversal of the 30% decline in 2006. While the majority of growth is a direct result of the cyclical buying patterns in automotive, other industries are finding ways to use these mechanical companions. Although orders to non-automotive markets accounted for just 36% of all orders, RIA saw a 16% increase in sales to life sciences/pharmaceutical/biomedical companies, and an 8% rise in sales to food and consumer goods companies. RIA is aggressively targeting industries such as food, medical, pharmaceutical, and even plastics, and trying to educate companies on robots’ productivity potential through case studies and tutorials that outline business justifications and practical applications. “Education “The new, advanced industrial robot will share the working environment with the user.” — University of Naples’ Siciliano is key,” Burnstein says. “A lot of companies are not aware of what is possible with a robot, or they may not be aware of the successes that companies are having using robots.” THE REPLACEMENTS One of the biggest business issues confronting companies now is retiring baby boomers. “There is a great concern in our company that within the next five to seven years, we’ll be seeing a fairly significant labor shortage,” says Pete Rector, executive vice president of Genco, a third-party logistics provider that runs distribution centers for large CPG companies such as Unilever. Genco has 37 million square feet of distribution space in North America and is trying to figure out how to operate warehouses in the future with fewer people. The company is tackling the problem in two ways: refining processes by training workers in Six Sigma disciplines that ensure that workflow is efficient, and increasing productivity through the use of technology — specifically, robots. Robots, Rector and other Genco executives decided, could offset the unproductive travel time that occurs when a forklift driver is moving pallets and products from one end of a building to the other. But it can’t be just any robot. It has to be flexible — a term not typically associated with these mechanical creatures. AGVs, which are moving robots, have always relied on special tapes, wires, magnets, or lasers that keep them on a track. The problem ma July 26 2008 Photos courtesy: Seegrid, Bruno Siciliano

Table of Contents Feed for the Digital Edition of Managing Automation- July 2008

Managing Automation- July 2008 Contents Take 1 HP's Acquisition of EDS May Face Integration, Global Delivery Challenges Rimini Plans to Woo SAP Support Users Rockwell Steps Up Its Activities in Software Microsoft Targets the Process of Innovation Supply Chain Standouts Honored by AMR Notes Who Are Today's Influential Thinkers? The Robot Revolution Is the Price Right? Without a Trace Harvesting the Suggestion Box Product Scan Advertiser Index Next

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