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BRIAN STANDBRIDGE UK OPERATIONS & EMEA SOURCING DIRECTOR IDEAL STANDARD INTERNATIONAL

BRIAN STANDBRIDGE UK OPERATIONS & EMEA SOURCING DIRECTOR IDEAL STANDARD INTERNATIONAL. OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION 14 OCTOBER 2010. Introduction. Privately owned company employing over 10,500 European HQ in Brussels

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BRIAN STANDBRIDGE UK OPERATIONS & EMEA SOURCING DIRECTOR IDEAL STANDARD INTERNATIONAL

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  1. OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION

  2. BRIAN STANDBRIDGEUK OPERATIONS & EMEA SOURCING DIRECTORIDEAL STANDARD INTERNATIONAL OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION 14 OCTOBER 2010

  3. Introduction • Privately owned company employing over 10,500 • European HQ in Brussels • Operations in Europe, Middle East, Africa and Latin Americas • Brands • UK - Main manufacturing warehouse site at Armitage, Rugeley - Employing over 50% of 1,200 UK employees OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION

  4. Recently – the site has developed from a multi level casting facility to single level (2000). It has seen a progressive removal of all plaster moulds (the last of which was removed in 2004). Combined with the introduction of automation. OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION

  5. History in the UK • 1999 / 2000 Acquisition of Armitage Shanks in the UK and Ceramica Dolomite (Italy) • 2000 – to date Consolidation of ‘general purpose ’ sites • £7.5m manufacturing investment and £2.5m warehouse investment • Focused Commitment of American owners to plant in Armitage village (Rugeley) on producing bulk of UK sales in a single plant. OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION

  6. OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION

  7. Key Strategy for the Plants Evolution • Conversion to 100% pressure casting facility (UK & Italy) • Installation of 3 generation of pressure casting equipment based on technology available 1. Pressure Cast – manual demoulding/finishing 2. Pressure Cast – robot demoulding / manual finishing 3. Pressure Cast – 100% robot demould / finishing • 24x7 Plant – 350 days / year • Balanced flow – all machines integrated in flowline production facility with transportation elimination and 100% robotic glaze application • Installation of best practise recycling equipment for glaze usage. OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION

  8. Key Strategic aims … Equipment installed in quest of strategy of:- • Highest productivity plant in ISI • Lowest material usage – highest yield and zero waste • Tighter process control – quality and yield • Produced locally, sold locally, supported locally • Lowest carbon footprint (UK manufactured) • Cost position towards goal of « CHINA + SHIPPING » OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION

  9. Continuous Introduction of Footprint Introduction of new technology 1 x Porvair 4 part bowl Pressure casting machine Xtract glaze reclamation unit 1 x Porvair FFC basin & ped Pressure casting machine Pre 2000 Dorst & Porvair basin pressure casting machines 16 x glaze application robots Bead milling Glaze preparation unit SACMI automated tank cell 1 x Porvair 4 part bowl Pressure casting machine 1 x Porvair 5 part bowl Pressure casting machine 1 x Porvair COBR & WHB Pressure casting machine 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 492 451 395 378 323 303 306 300 297 286 Headcount reduction ( redeployment/natural wastage / voluntary) Capacity growth from 1,35m to 1,9m pcs (+40%)

  10. KEY ACHIEVEMENTS – BEFORE / AFTER TRADITIONAL PLANT CONVERTED AUTOMATED PLANT Safety Record Poor Claims Culture RoSPA Gold medal Winners Reduction of recordable incidents Over -90% Now Single Digit per year Safety Culture Customer Lead Times long (2 weeks) with backlog variation Manufacturing leads times from 5 days to below 36 hours Inventory Reduction – 28% Mould changed daily Next day delivery introduced Variability of Quality Yields and Conformance of products 15% higher FPY Highest FPY in Group Return on Sales halved (Warranty) OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION

  11. KEY ACHIEVEMENTS – BEFORE / AFTER TRADITIONAL PLANT CONVERTED AUTOMATED PLANT Manually-intensive plant. Craft style skills Typically 30% labour needed Engineering based plant with Ceramic knowledge Mixed technologies Batch produced Traceability difficult Standard flow technology (UK/Italian produced) Continuous 24x7 operations Barcoded 100% Tranxfer production Real time fully integrated SAP Energy consumption units/1000’s Gas = 62% average Electricity = 58% average Mould life > 50k Materials = 75% Zero waste philosophy Energy-intensive (drying) Material intensive (Moulds, clay, waste) OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION

  12. Asian Sourced Product Traditional plant Co2/annum Saving Rugeley plant 16,250 OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION

  13. SUMMARY • WE BELIEVE … • Made in Staffordshire • Highest productivity and reliability • Pride in quality and lifetime guaranteed! • Loyal (15 year average) and skilled workforce who are keen and adaptable to change. • Can be used in a large company ‘balance’ exchange rates • No 25% labour inflation • No 40% transportation inflation • Best solution for CHINA + SHIPPING OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION

  14. OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION

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