Analysis
Inventive Financing With True Capacity On Demand
Royal Philips Electronics subsidiary Assembléon reports that customers are finding inventive ways to reduce installation costs for electronic equipment assembly lines. When Assembléon introduced its TCoD (True Capacity on Demand) initiative earlier this year, the company viewed it as a way to solve customers’ seasonal demand problems, and smooth out peaks in production volumes. Customers are also using it to reduce initial capital costs, though, by buying pick & place systems to handle their usual production levels and renting extra robots for the first few months. The cash generated from the extra production then goes to purchase the robots permanently, thus preparing customers for the economic upswing.
WithThe initiative has led to early results, and one new Chinese customer has found an attractive twist. “We recently sold three A-Series lines to Shanghai based Tian Wei,” remarks Burkhardt Frick, Assembléon’s Asia Pacific General Manager. “The customer bought machines with eight robots, and rented an extra six robots for the first six months. That reduced initial investments, and also reduced the start-up risks of introducing the customer’s new product. The cash generated from selling the extra products can go to buy the rented robots.”
“The alternative to renting equipment during production peaks is to outsource, but that is not an attractive option,” says Leo vandeVall, President of Assembléon America, Inc.. “It takes time to set up and qualify, time that is sometimes just not available because of market demands for fast delivery. Retaining production in house makes better use of the customer’s existing organization, machine capacity and test equipment. It also saves on organization, assembly, test and delivery costs of the outsourcing company. That was a major factor for one of our customers – Advance Assembly Inc (AAI) in the US – which has taken a three-month rental for extra production capacity.”
Assembléon’s True Capacity on Demand therefore helps bring adaptive manufacturing to dynamic production environments. The machine configuration itself remains unchanged, the footprint does not increase, and the production line itself is left undisturbed. TCoD also saves on maintenance and services like air supply to support associated overcapacity equipment.
TCoD hence minimizes the cost per placement of electronics assembly, despite fluctuations in production periods. It smoothes out seasonal patterns by allowing customers to hire extra capacity while maintaining the same equipment footprint. It also prepares equipment makers for the global economic upturn
Assembléon’s modular, calibration-free robots give the market’s fastest adaptation to machines on the line. Expansion can be made in easy output increments of only 6,000 components an hour – impossible with (for example) gantry based systems, which are much more complex and much less versatile.
Assembléon’s A-Series already sets the industry benchmark for lowest (single-digit) defects per million placements. True parallel placement optimizes every placed component for the industry’s highest First Pass Yield. The A-Series boasts the lowest energy and air consumption in the industry, leading to lower bills, reduced CO2 emissions, and so smaller carbon footprint.