THE AUTOMATION REVOLUTION

the Fourth Industrial Revolution

THE AUTOMATION REVOLUTION

Industry 4.0• Automation and data

exchange in manufacturing technologies.

THE AUTOMATION REVOLUTION

AutomationBoom

2000’s The Automation Boom 

Manufacturers began to realize the “real cost” of offshore manufacturing

Cost of labor in China increases

Advances in Robotics(brands, varieties, pricing)

US economy strengthens

US Manufacturers adopt a longer‐term Philosophy

The GreatRecession

2008

THE AUTOMATION REVOLUTION

MANAGEMENT

PLANNING

SUPERVISORY

CONTROL

FIELD

Enterprise Resource Planning (ERP) Systems

PLANNINGManufacturing Execution Systems (MES)

DATASupervisory Control and Data Acquisition (SCADA)

MACHINE CONTROLSComputers, Programmable Logic Controls (PLC)

MACHINES/EQUIPMENTConveyors, Robots, Sensors, Motors, Actuators, etc.

Levels of Manufacturing Automation

INDUSTRY 4.0The Fourth Industrial Revolution

INDUSTRY 4.0The Fourth Industrial Revolution

THE AUTOMATION REVOLUTION

Manufacturing Automation

Manufacturing Floor• Vision Systems• Robots• Assembly Equipment

AGVs

Automated Machines

RobotsVision Systems

Warehouse Automation /Shipping & Receiving

• Conveyors• Sorting equipment• Automated Storage and 

Retrieval Systems (AS/RS)

Palletizing Cells

Automated Warehousing

“Custom” Automation

“Configurable” Automation

THE AUTOMATION REVOLUTION

Benefits of Automation

ProductivityCost SavingsIncreased OutputReduced scrap

QualityEliminating human errorImproving precisionReducing Scrap

Safety & Ergonomics It’s all about maintainingor increasing profits!

OtherLess Overseas Travel & Communication CostsLess Retraining OperatorsLess Downtime

THE AUTOMATION REVOLUTION

1. Identifying Automation Opportunities• Areas of production where there are:

• High volumes,• Significant labor costs,• Production bottlenecks,• Quality issues, or• Safety issues

2. Gather Data• Production volumes, costs, etc.

3. Develop an ROI Analysis / Cost Justification

4. Document the Process and Requirements• Manufacturing process• Functional & Design Requirements• Pictures, Videos

5. Identify an Automated Solutions partner

6. Request a budgetary price/proposal

The Solution might be Simple!• Integrating off‐the‐shelf equipment

• Robot• Vision System• Case Erector• Conveyor

• Tooling, Fixture, Workstation

The Solution might be Simple!• Integrating off‐the‐shelf equipment

• Robot• Vision System• Case Erector• Conveyor

• Tooling, Fixture, Workstation

THE AUTOMATION REVOLUTION

Be Prepared !

• High initial cost• Assume 3x the material cost

• Long Development Time• Larger projects: 6‐12 months

• Not without snags• It’s custom – and the first one• Human’s adjust to special assembly 

needs, out of spec parts 

Robot = $30K

Controls= $20K

Vision System= $15K

Part Feeder= $15K

Frame/Guarding = $10K

THE AUTOMATION REVOLUTION

ROI Analysis / Cost Justification

Understand Managements decision making process• Will you be required to justify the cost of automation?• What metrics will be considered?

ROI ExamplesReduction in # Employees

# Shifts

Labor Rate 

AnnualCost

1‐YrPayback

2‐YrPayback

3‐YrPayback

1 1 $22.00 $44,000. $44,000. $88,000. $132,000.

3 3 $22.00 $396,000. $396,000. $792,000. $1,180,000.

Most Cost Justifications are based on reducing Labor Costs

Reduction in # Employees

# Shifts

Labor Rate 

AnnualCost

1‐YrPayback

2‐YrPayback

3‐YrPayback

1 1 $22.00 $44,000. $44,000. $88,000. $132,000.

Automation is sexy…until management has to approve a P.O.

THE AUTOMATION REVOLUTION

• Distributor• Sells automation components• Might offer some integration services

• Integrator• Integrates off‐the‐shelf automation products

• Material Handling Specialist

• Machine Builder• Custom solutions providers

Types of automation partners

THE AUTOMATION REVOLUTION

Local Automation Companies

THE AUTOMATION REVOLUTION

• Automation Experience• Years in business

• Designing, Fabricating, Programming• Managing Risk (time and cost)

• Industry Experience• Medical Device• Automotive• Pharmaceutical• Food processing

• Quality• Robust Design standards

• Proximity• Project Development• On‐going Maintenance & Service

Choosing the right Automation Partner…factors that should be important

• Number of Employees• Back and redundancy

• Turn‐key solutions provider• In‐house Design, Fabrication, Controls• Service and Maintenance

• An Engineering‐minded company

• Detail oriented • Defining requirements• Accurate, thorough documentation

• Equipment Requirements• CAD, Schematics, BOM’s• Project Status Reports

• A Long‐term partner

THE AUTOMATION REVOLUTION

• Custom Designed Machines

• Build‐To‐Print Machines

• PLC Control Systems

• Vision Systems

• Robotic Systems

• Fixtures & Tools

Omnitech Automation, Inc.Custom, Automated Equipment Manufacturer

THE AUTOMATION REVOLUTION

Automation ProjectTest Cell

Part Programming & Testing

Features• Part Programming & Testing

Pricing ‐ Delivery• $9,600.• 8 weeks

THE AUTOMATION REVOLUTION

Automation ProjectVision Inspection Cell

THE AUTOMATION REVOLUTION

Automation ProjectVision Inspection Cell

Vision Inspection System

Features• Part Feeding• Vision Inspection• Bad Part Rejection• Multiple part/color capability

Pricing ‐ Delivery• $95,000• 16 weeks

THE AUTOMATION REVOLUTION

Automation ProjectDrawer Guide Assemlby Machine

THE AUTOMATION REVOLUTION

Automation ProjectDrawer Guide Assembly Machine

Robotic Assembly System

Features• Part Feeding and Insertion• Riveting• Printing (lot number)• Vision Inspection

Pricing ‐ Delivery• $1.2M• 48 weeks

THE AUTOMATION REVOLUTION

Automation ProjectSurgical Staple Cartridge Assembly Machine

THE AUTOMATION REVOLUTION

Automation ProjectSurgical Staple Cartridge Assembly Machine

Automated Assembly System

Features• Part Feeding• Part Assembly• Greasing• Programming• Vision Inspection• Bad Part Rejection• Multiple part capability

Pricing ‐ Delivery• $3M• 56 weeks

THE AUTOMATION REVOLUTION

❶ Look for opportunities❷ Document, Quantify, and Qualify❸ Find an Automation Partner❹ Get started! Automate something!