New approach for the automotive industry
How sustainable
Maintenance and
Asset Management
292 billion euros – that is the invest-ment it would take to replace all of the production assets in the automotive industry of the 28 member states of the European Union. This figure inclu-des all production systems and equip-ment operated in 2012 by automotive manufacturers and suppliers. What is more the annual maintenance budget of the automotive industry amounts to 46,4 billion euros – covering all direct maintenance costs as well as indirect maintenance costs caused by technical production downtimes – or five percent of the industry’s annual turnover. A worldwide survey of the cost struc-ture in main industries supports the-se figures and the contribution of a sustainable maintenance and asset management to a profitable and flexib-le productive output (see fig. 1).
The percentage of maintenance costs in relation to overall production costs varies widely from one industry to the other. As a general rule maintenance cost correlate with the equipment-intensity and complexity of produc-tion plants. In the automotive indus-try maintenance costs are especially important due to the high degree of automation.
Considering this development up to 40 percent of the influenceable produc-tion costs in the automotive industry are related to maintenance and asset management. This is a significant lever for the sucess of the company.
Obviously production efficiency is ext-remely important. Nevertheless stand-still of production is a much too com-mon occurrence and responsible for losses running into billions of euros for Europe’s automotive industry. But what are the future challenges for a sustaina-ble asset management and where are the automotive companies today?
Maintenance
in the auto-
motive industry –
Driving billions
Mechanical engineering/tool making/ aircraft building
Utilities Steel/metal
Semi conductors/electronics
Selected industries Direct maint. costs [%] Indirect maint. costs [%] ø influenceable production costs [%]
Chemicals/pharmaceuticals Pulp & paper/wood Automotive 15 12 10 10 12 14 6 30 - 45 20 - 35 20 - 30 - 30 20 10 - 25 12 - 15 - 18 12 45-60 32-47 30-40 30-40 22-37 26-29 18-24
Source: Average empirical value from ConMoto projects
Future
challenges
to production
and
maintenance
The automotive industry is in a sta-te of flux. World wide production is growing and companies are investing billions. The money is invested in mo-dernizing and expanding existing pro-duction sites as well as opening new sites in emerging economies. Compa-nies have to deal not only with regio-nal shifts in markets and production locations but also with specific risks and chances generated by a highly competitive business environment. Volatility is the new normal. Technolo-gical innovation, ever shorter product life cycles, new technical guidelines, and binding technical standards are additional cost-pushing factors. As a result profit margins of the OEMs are shrinking due to pricing competi-tion, rising production costs, and high capital intensity.
In consequence the suppliers find themselves in a fix, as they are un-der massive pressure to adapt to the new conditions. They have to deal with strong competitors when sup-plying standard products and also have to meet lower prices demanded by OEMs, who are concentrating on an ever decreasing number of sup-pliers. Co-operation by automobile manufacturers and the wide-ranging introduction of modular systems and strategies bring additional pricing pressure.
Machines have to be used to their full capacity. That is one of the major chal-lenges for a profitable global produc-tion system. Those in charge are very aware, that they have to get more out of their production plants. At the same time a growing range of variants calls for maximum flexibility of production processes and the machines involved. Moreover the trend towards automati-on and digitalizatiautomati-on alautomati-ong the value-chain embodied in the fourth industrial revolution (Industry 4.0) increases the complexity of production systems and presents new challenges to a com-prehensive maintenance and asset management. Some proceedings, for example in coating, have similarities with the process industry when com-paring shutdowns for cleaning, revisi-on, maintenance or inspection.
The most important prerequisites of a sustainable and highly efficient pro-duction system are outmost reliabi-lity, Overall Equipment Effectiveness (O.E.E.), plant availability, and stable processes. These factors have to go hand in hand with maintenance, repair and technical optimization. The status analysis – which is a vital part of all ConMoto projects – highlights that a lot of automotive OEMs and suppliers have some catching-up to do.
Production plants
have to run
smoothly and
reliably.
Day by day.
“
Examples of technological differences and resulting challenges to maintenance and asset management:
• Press line: high degree of automation
(hyd-raulic systems/electronics); requires intensi-ve maintenance.
• Coating & painting plants: extremely high degree of automation; high-level of mainte-nance due to cleanliness requirements.
• Body shell production: high degree of
auto-mation characterized by robotics and sensor technology; First line maintenance by tech-nical production staff is common.
• Assembly lines: partly automated (especially
in conveyor systems); Autonomous mainte-nance is less common, as production wor-kers are working in tact time; small variety of spare parts.
The pages 4 to 7 are not included in this preview.
Should you be interested in the whole White Paper "How sustainable Maintenance and Asset Management put your company in the fast lane – New approaches for the automotive industry", please contact:
Carina Ruf
Communication Manager
ConMoto Consulting Group GmbH Boschetsrieder Str. 69 81379 Munich Germany Phone: +49 89 780 66-138 Fax: +49 89 780 66-101 Email: ruf@conmoto.de
ConMoto Consulting Group GmbH, Munich Boschetsrieder Str. 69 81379 Munich Germany Tel.: +49 (0)89 78066-0 Fax: +49 (0)89 78066-101 ConMoto Consulting Group GmbH, Stuttgart Gerokstr. 11 70184 Stuttgart Germany Tel.: +49 (0)711 76779-0 Fax: +49 (0)711 76779-205
Nils Blechschmidt has been a management consultant since 1995 at ConMoto and since 1999 he is a main shareholder of the company. He is the driving force behind the consulting field ‘Value oriented Maintenance and Asset Innovation’. As a top expert in this area and with well-founded knowledge of various sec-tors, such as the automotive and component supplier industry, aerospace industry, enginee-ring and plant construction, semiconductors/ electronics, process industry (chemicals,
phar-maceuticals, steel, food), plastics processing industry and transport technology, he gives numerous lectures. Before his time at Con-Moto, Nils Blechschmidt was employed as the Technical Head of an aircraft maintenance business for seven years. He completed his education as a Dipl.-Ing. (graduate engineer) in aerospace technology at the University of the Bundeswehr in Munich and gained his MBA at Henley Management College (UK).
Nils Blechschmidt
Managing Director
ConMoto Consulting Group GmbH Managing Director
ConMoto Strategie und Realisierung Tel.: +49 (0)89 780 66-114
Fax: +49 (0)89 780 66-101
E-Mail: blechschmidt@conmoto.de
ConMoto Consulting Group Ges.m.b.H, Vienna Schottenring 16 1010 Vienna Austria Tel.: +43 (0)1 5850274-0 Fax: +43 (0)1 5850274-11
ConMoto Consulting Group GmbH, St. Gallen Notkerstr. 10 9000 St. Gallen Switzerland Tel.: +41 (0)71 2440871 Fax: +41 (0)71 2431881 ConMoto LeanSupport s.r.o., Bratislava Na vŕšku 8 811 01 Bratislava Slovakia Tel.: +421 (0)2 54413304 Fax: +421 (0)2 54410635 ConMoto Consulting Group Co. Ltd., Shanghai
Unit 1606, Time Square 93 Huai Hai Zhong Rd. 200021 Shanghai
People's Republic of China Tel.: +86 (0)21 614152-75 Fax: +86 (0)21 614152-76
info@conmoto.de www.conmoto.de www.conmoto-consulting.com
