S1E1 - Mobile Robot Market Update & Getting Started with Mobile Robot Automation

Choosing which processes to automate and which technologies to provide for automation projects can be overwhelming.  You know some of your competitors have installed automatic guided vehicles, also known as (AGVs), to automate material movement, but your company is probably more risk-averse and wants proof that this will deliver the desired benefits. 

In this episode, Mark Lonagcre will share a brief update on the industrial mobile robot market. You will learn how to get started with material movement automation, and some things to consider as you develop plans to show that automating material movement is right for you. 

Visit our website www.jbtc.com/automated-systems

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Transcript

[Angela]
Choosing which processes to automate and which technologies to provide for automation projects can be overwhelming.  You know some of your competitors have installed automatic guided vehicles, also known as (AGVs), to automate material movement, but your company is probably more risk-averse and wants proof that this will deliver the desired benefits. 

In this episode, you will learn about some things to consider as you develop plans to show that automating material movement is right for you. 

My guest today is Mark Longacre who has worked in the automatic guided vehicle (AGV) industry for over 21 years. 

Mark has gained a thorough understanding of the market, the products, the enabling technology, customer’s goals, and key trends.  

As JBT’s Applications Engineering Manager, Mark coordinates all presale engineering, including selecting vehicle types, quantities, and support equipment required to install and integrate JBTs AGV systems successfully. 

In addition, Mark is active in AGV industry committees and is the current chairman of the Mobile Automation Group (MAG) product council of Material Handling Industry (MHI) 

I am Angela Weiser, the host of Automate This podcast… Let's get started! 

[Angela]  
What is the current state of the industrial mobile robot industry Mark? 

[Mark]
Right now, there’s almost a frenzy around mobile automation.  Every time I open my email, there’s a publication, newsletter or market study detailing the growth of automated material movement.  Growth has hit every product sector (AGVs, AMRs, AGCs,) and every vertical market – manufacturing, warehousing. Traditional vertical markets continue to be a stable market with new customers, and new applications are being developed at a growing rate.  New suppliers of mobile robot automation and technology enter the market frequently, conquering old challenges that were once insurmountable.  JBT participates in several confidential market studies, and the growth is unprecedented. 

[Angela]
Can you give me an example of the traditional vertical markets you are referring to?

[Mark]
Automotive, General Manufacturing

[Angela]
Which vertical markets are just getting into mobile robot automation?

[Mark]
Warehousing in general (3PLs, DCs, Cold Storage) 

[Angela] 
What are some factors contributing to this growth? 

[Mark] 
Perfect storm involving both labor and technology.  Labor shortage, not highly regarded positions, companies want to strengthen their supply chains = pandemic.  Automation technology is improving at a rapid pace.  New sensors and software are driving up functionality and driving down cost.  Automating material movement is one of the latest competitive battlefields where companies can achieve real cost advantages.  

The first companies to automate are well up the learning curve and some are in their 2nd and 3rd stages of deployment, involving multiple facilities and several applications or areas of automation.  Companies just coming to the party are already 5 years behind.  They see this and are trying to catch up. 

[Angela]
Are there ways for companies who are just starting their automation journey to reduce the level of risks associated with automation? 

[Mark] 
I think customers need to start with a strategic vision of where they want to be in 3-5 years.  To reduce risk, they can then divide that vision into bite size chunks that are appropriate to achieve that vision or goal. Depending on the size of the customer and their risk tolerance, the first “bite” could be fairly large, like fully automating one mid-sized distribution center, or fairly small, like automating put away and retrieval in one aisle of a small distribution center.  

Every automation project has unique characteristics, so lessons will be learned and can then be applied in subsequent automation projects.  Clearly, the smaller the chunks, the longer it will take to achieve a given level of automation.  The bigger the chunks, the more risk.  It’s a balance. You can tip the scales in your favor by doing your homework and choosing a supplier with a great resume of successful applications.  One that is financially stable and will be there for you as you realize your vision.

[Angela]
Are there any common characteristics that would qualify your site to automate your material movement?

[Mark] 
Routine / repetitive movements in the facility.   Stable regularly shaped loads ( i.e. Pallet loads ).  Medium throughput applications (where you have each AGV move 10-15 pallets per hour, 4-6 mins per mission) 

[Angela]
Can a potential user “try out” automation to ensure it works in their facility?

[Mark]
Yes – in reality everyone does.  They need to be comfortable and that it’s an acceptable level of risk 

[Angela]
But at what level is the test?  Is it testing on one entire facility or testing one day with one product?  

[Mark] 
The larger and more involved the test, the more you will learn, and the farther ahead you will be on the journey of achieving your strategic automation goals.  Smaller tests will give you feedback more frequently, but will extend the overall automation schedule and the cost of the test. Its extremely difficult to develop a realistic small-scale test, which is very limited and you don’t learn too much. 

The ideal situation is to pilot a small project instead of doing a demo. The AGV must work in your environment, has to integrate with your software, work with your loads and meet all safety requirements.
 
[Angela] 
When you say large and more involved, what do you mean? 

[Mark]
In a warehouse application, the more aisles you test, in a manufacturing plant, the more materials you handle, and also the duration of the task, the longer the time. Boils down to how long the test will be, is it one day or six months?  Will JBT be present for the entire test? That will determine if we have to train their staff or not. How will material movement orders be generated? Is it manually or are we integrated with their software? How customized will the vehicle need to be to perform the movements? Are you building a custom vehicle or modifying an existing one? A complex test over a few months could cost up to $300k or more.

[Angela]
If testing automation is an absolute requirement for a prospective customer, what would you suggest?

[Mark]
Set goals for the test.  What defines success?  What must be tested?  Prioritize the goals into “must haves” and “nice to haves”.  Are you proving you can pick up the loads, transfer the loads, prove safety? What’s really your goal? So that we can design a test as small as possible. Realistically determine how much are you willing to invest? 

[Angela]
What are the challenges of doing a test or small-scale system?

[Mark]
To realistically test your real-world application while minimizing cost, the more detailed the test, the higher the costs. There are a small number of simple A&B applications where accuracy is not important, and a simple test can be done. 

[Angela] 
Sounds like there are lots of factors to consider. So what's one final point you would like to make for potential customers wanting to install a demo system? 

[Mark]
Really to summarize, if a customer really feels that they absolutely have to do a demo, go as detailed as you can in that demo, try to make it as realistic as possible. Just bringing in a vehicle to pick up a load and put down a load isn’t really going to reduce your risk at all. Try to go as far as you can, putting that vehicle in use to do real work for you. What that will mean is, it will be more like a real system.  It will cost a little more but you will learn more too.

[Angela]
Thank you for your time and I want to let our audience know that you will be a guest on the next podcast that will define and clarify what the capabilities and differences between AGVs, AMRs and AGCs are, as there seems to be misunderstanding and confusion between the three.  So I look forward to speaking with you again. 

That is all for our episode on today’s Automate This podcast.