Cars once were just mechanical products. Not long ago, in different formats and with diverse utilities, they became gadgets having many controls and displays. With the developments in information technology and software, cars also changed the ways of operations and functionalities.
As the customers became more discerning and demanding, OEMs had the challenge of incorporating more convenience, comfort, environment friendliness, and safety factors. By applicating software-driven technologies, it became more accessible for OEMs to cater to these emerging needs.
As a next step, the vehicle makers will probably have to apply these path-breaking technologies in manufacturing through backward integration into the existing facilities and equip the greenfield projects with their latest versions.
Recently Volkswagen has announced its intent to make its facilities in North America up-to-date, which means the OEM plans to incorporate technologies like cloud-based industrial software, new intelligent robotics and artificial intelligence (AI) throughout the factories in the region.
Part of an estimated $1 billion investment in electric mobility and digitalisation in North America till 2025, the ultimate aim of this initiative is to get at least 30% improvement in productivity at its electric vehicle (EV) assembly and mass production of cars Chattanooga, TN, and Puebla, Mexico, by 2025. The vehicle maker made this in its agenda as the North American region is part of the group's much more extensive global network.
To hasten its digital push further, the vehicle maker also plans to raise its on-site training for its North American workforce.
Susanne Lehmann, Senior Director Production, Volkswagen de México, says certain aspects in car manufacturing can be labour-intensive and tedious for the workers on the shop floor. However, technologies like cobots, cloud-based apps and AI can reduce this due to their ability to foresee issues and offer instantaneous feedback. As a result, the teams can focus on training and more valuable and enriching tasks that can lead to improved personal opportunities besides transforming the facility into a more efficient and safe workplace.
For instance, the unified launch of the software, AI and robotics allow the automaker to optimise collaboration and enhance the overall assembly process and workplace environment for its employees and suppliers. Consequently, this could lead to even more efficient material flow management, optimised operation of machines and systems, and conserve energy in the manufacturing-oriented processes.
The global company is connecting its factories to a cloud-based industrial IT platform, the Industrial Cloud. Ergo, this helps set the foundation for the digitalisation of its manufacturing, monitoring, and daily operations. Besides, it also supports managing the supply chain management across North America.
By its nature, it helps the company manage manufacturing performance, inventory control and maintain visibility down the virtual pipeline to interpret the supplier performance and track production. Ultimately, the Industrial Cloud, steered by the group, has a global approach with other sites in the global production network, says Lehmann.
According to Johan de Nysschen, COO, Volkswagen Group of America, suppliers are given full transparency into their customers' various needs and demands worldwide with digitalisation. Therefore, it helps suppliers plan capacity better, invest in production equipment, and price their products to synchronise their operations to meet real-time supply and demand. Subsequently, this could result in far more efficiency, reliability, and lower costs for everyone in the value chain.
The company believes that digital technologies shouldn't solely focus on its core products and customer experience but be designed with other upstream areas such as production, design, and development in mind.
Industrial Cloud to share data and boost performance
The cloud-based IT platform developed by the group will boost global manufacturing performance by sharing data connections, real-time information and software apps for industrial machinery from all connected Volkswagen and supplier facilities.
Interestingly, 21 plants of the group and 13 global suppliers have already joined this global IT platform. Now the North American regional suppliers are encouraged to participate.
The group's North American sites are already preparing to deploy software applications from the Industrial Cloud. For example, an intelligent conveyor motor monitoring app could help reducing downtime and supports predictive maintenance technologies. In addition, cameras with machine vision technology help to chack quality of engine components. Currently, the teams are working on more than 50 projects, spanning from shop floor management to quality assurance and logistics within the factory.
Intelligent Robotics
To support its workforce, the group has been deploying cobots at its facilities. These cobots perform final inspection checks and measure for gap precision. For example, on the Tiguan line in Puebla, a cobot measures 26 checkpoints in less than a minute; it is the first application of this technology for the group, which is also expected to assist with spot-checking welding patterns when the ID.4 electric SUV begins assembly in Chattanooga in 2022. Eventually, this initiative will catalyse the quality standards in manufacturing.
AI to help strike a balance
The new artificial intelligence tool developed in-house at Volkswagen's AI Detroit centre will help supervisors manage factory schedules in Chattanooga. It reduces the time supervisors spend balancing inputs like training levels, time off and other factors. The AI scheduler can analyse all critical variables and provide suggested schedules within minutes of a request.
Nysschen says, when Volkswagen develops a vehicle, there are hundreds of factors between design and concept, customer profile, pricing, manufacturing, up to shipping and selling it. And most of these factors are, ultimately, trade-off decisions that require collaboration all across the organisation. Technology enables a level of collaboration that was never before. From an entirely virtual design process to predictive pricing and purchase models, highly advanced manufacturing and state-of-the-art marketing, digitalisation will be, no doubt, a game-changer and how Volkswagen does business worldwide, he says.