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AGILE MANUFACTURING.What, Why, and… How to get started

The Game is Changing.

Simon Drexler, P.Eng, MBADirector, Linear Motion

Technologies

Agile Manufacturing:What, Why, and… How to get started

Go Beyond Lean, Get Agile

Collaborative Is More than Robots

Scaling With Automation

SuperTrak CONVEYANCE™ is the foundation of the world’s top manufacturers

Reduce Complexity | Accelerate Deployment | Increase Flexibility

$3B+Active Automation

18+Years In Market

600+Systems Deployed

Today

1 – Lean v. Agile2 – Market Conditions3 – Taking a First Step4 – Questions and Open Discussion

Lean Manufacturing is relentless work on eliminating waste

from the manufacturing process.

The goal of lean is to make us more competitive

by reducing costs.

Lean manufacturing is generally considered to be a precursor to agile. Many lean practices are also enablers for agile manufacturing.

- leanproduction.com

Mass Production

CIM(Robotics)

Lean Manufacturing

Just In Time

Agile Manufacturing

Toward 21st Century

?

Agile manufacturing focuses on the ability to respond to shifting customer demands

quickly

Agile manufacturing is a

business direction.

Source: Agile operations for volatile times by

A world class medical device manufacturer cultivated world class operations in high volume, low margin business.

Sought to increase flexibility by looking upstream and increasing the number of shared components.

Source: Agile operations for volatile times by

Lowered capital costs for the targeted products by 40 percent while reducing the ramp-up time for new product variations by 75 percent.

Source: Agile operations for volatile times by

Item Lean Agile Enablers

Kaizen - Continuous Improvement l l Statistical Process Analysis

Continuous, Level Flow (Heijunka) l l Robust Communication

Single Piece Flow l l Data Systems Drive Communication

Polka Yoke – Mistake proofing l l In Process Inspection

Jikoda – Detection through automation l l Partial Automation

Agile principles

Agile is dependent on team communication.

Today’s Market

Instant Gratification

Choice

More SKUs, Greater Uncertainty, and Smaller Batch Sizes

The market is pushing us into more unpredictability, therefore, we all need at least a little bit of agile in our business.

Taking a First Step

“Begin with the End In Mind”

Steven CoveyHighly Effective Habit #2:

>23,000 Custom Machines Deployed Globally

The factory of the future will have only two employees, a man and a dog.The man will be there to feed the dog.

The dog will be there to keep the man from touching the equipment- Warren Bennis

Automation Requires Process and Infrastructure Development

Automation

What do you get when you automate a bad process…

Step 1

Process Definition

Foundation is correctly identifying all

inputs & outputs

Reduce cost (e.g., for production)

Improve quality

Increase productivity through R&A

Improved capabilities of robots (technology driven)

Enable higher flexibility in production

Reinforcing safety increase (e.g., tasks are too dangerous for employees)

(Physical) unburdening of employees

Respond to labor shortage

Decreasing robot prices

New application enabled by new R&A technology

New applications in productions require additional equipment

Brand perception

Step 1

Process Definition

Foundation is correctly identifying all

inputs & outputs

When to move on?1. Exhausted practical process improvement

→ Confirmed that a new approach is needed

2. Removed (or identified) bottlenecks

→ Informs you and the next stage of system design

3. Reviewed serial vs. parallel processing

→ Directs “finish line” of centralized / decentralized approach

Step 2

Data Analysis &Infrastructure

Process validationat defined inputs / outputs

Reduce cost (e.g., for production)

Improve quality

Increase productivity through R&A

Improved capabilities of robots (technology driven)

Enable higher flexibility in production

Reinforcing safety increase (e.g., tasks are too dangerous for employees)

(Physical) unburdening of employees

Respond to labor shortage

Decreasing robot prices

New application enabled by new R&A technology

New applications in productions require additional equipment

Brand perception

Step 2

Data Analysis &Infrastructure

Process validationat defined inputs / outputs

When to move on?1. Process data supports investment

→ Create the business case

2. IT / Infrastructure needs are known

→ Included in the plan

3. Organizational capacity for traceability

→ Automation generates new necessities

Automate (or augment)

Add technology where and when it ‘makes sense’

Reduce cost (e.g., for production)

Improve quality

Increase productivity through R&A

Improved capabilities of robots (technology driven)

Enable higher flexibility in production

Reinforcing safety increase (e.g., tasks are too dangerous for employees)

(Physical) unburdening of employees

Respond to labor shortage

Decreasing robot prices

New application enabled by new R&A technology

New applications in productions require additional equipment

Brand perception

Automate (or augment)

Add technology where and when it ‘makes sense’

When to move on?1. We don’t’!

→ Mix of automation technologies shifts

→ Dependent on organizations goals and the business case for each stage

→ Reliant on the team’s readiness to utilize new teachnologies

AUTOMATION CAN TAKE MANY FORMS

Any of these three stages may be the end destination of “automation” for your business

Manual + Technology Semi-Automated Fully Automated

Primary driver of need, with an understanding thatspeed brings complexity to process

Throughput (Volume)

Quality (Yield)

Availability (Uptime) Capacity and capability to meet shifting

customer demands

Continuous improvement and cost reduction initiatives

The Business CaseMajor Driver

Throughput (Volume)

Major Driver Extending Value

Quality (Yield)

Availability (Uptime)

Redeployment

Cost of Poor Quality

Total Cost of Ownership

Task Complexity

Labor

Supporting Driver

Scaling Up Product Mix

Material Value

Space

The Business Case

Example #1 – Product Development

Throughput (Volume)

Quality (Yield)

Availability (Uptime)

Cost of Poor Quality

Total Cost of Ownership

Labor

Scaling Up Product Mix Redeployment

Task Complexity Material Value

Space

Major Driver Extending ValueSupporting Driver

Stage 1:

Manual Process Development.

Utilized to develop critical

manufacturing process while IP is

in development or regulatory

process is completed.

Stage 2:Semi-

Autono

mous

6 PPM.

Manual stations integrated into

autonomous system to

demonstrate cycle time capability.Stage 3:Full

y

Aut

om

ate

d

35

PP

M.

Convert manual load stations to

auto-feed.

All stations tooled to run at 35 PPM.Stage 4:High-speed, Full

Automation 140 PPM.

Utilize asynchronous transport to

duplicate stations and increase

system rate for high-volume

manufacturing.

Development

Low Volume

High Volume

Validation

Task Complexity

Example #2 – Scale Fast

Throughput (Volume)

Quality (Yield)

Availability (Uptime)

Redeployment

Cost of Poor Quality

Total Cost of Ownership

Labor

Scaling Up

Material Value

Space

Major Driver Extending ValueSupporting Driver

Product Mix

COVID-19 Test Kits

Risk Complexity Flexibility ScheduleClean Room + FDAComplianceRe-configurability

ATS Automation Awarded Order

Booking to Enable Rapid Scale-Up of COVID-19

Test Kit Manufacturing

…expertise and technology were critical in the customer’s decision to award ATS this strategic program,” said Andrew Hider, Chief Executive Officer. “The program will be built on our

best-in class SuperTrak Conveyance™ platform. We look forward to delivering on…”

FIND PARTNERS IN THE AUTOMATION COMMUNITY

FOUNDATIONAL TECHNOLOGY

LEVERAGE MODULARITY

CONNECTED DATA

Instantaneous Choice Unpredictable

The market is pushing us into more unpredictability, therefore,we all need at least a little bit of agile in our business.

Today‘s Consumer

LEAN:Waste

Elimination

AGILE:Responding

Quickly

GOAL: MAKE US MORE COMPETITIVE

1. Start with the end in Mind2. Don’t Boil the Ocean3. Solid Process Definition4. Choose Foundational Technologies5. Find Strong Partners

Things to remember:

Agile Manufacturing:What, Why, and… How to get started

Go Beyond Lean, Get Agile

Collaborative

Is More than Robots

Scaling With

Automation

THANK YOU

Confidential & Proprietary

www.supertrakconveyance.com

SuperTrakTeam@atsautomation.com

sdrexler@atsautomation.com

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