Background
The global market for auto parts manufacturing is expected to continue growing at a CAGR of 3% for the forecast period of 2022-2027, and to reach a value of around USD$ 453 Billion by 2026. Not all industry players are optimistic about the overall trends. Fastener suppliers to auto parts manufacturers are increasingly worried about their position in the EV supply chain. Shrinking demand, price wars and the high barrier to entry are upsetting the traditional fastener industry.
- Fastener Demand Is Shrinking: fastener usage in EVs has been reduced by 30%, starting in 2021. Automotive orders have shrunk by 30%~50%.
- Price Wars: Emerging countries like China and ASEAN countries are squeezing Taiwanese suppliers with extremely low pricing.
- Higher Barrier to Entry: Fastener suppliers are demanding the provision of tracking and tracing of products throughout the full product lifecycle.
Factory digitalization has become a fundamental way to regain a top competitive position in the auto parts fastener market. For our case study, we will share the valuable experience of our customer, SHIN-MONE SCREW CO., LTD who overcame substantial challenges to successfully construct a pioneering smart fastener factory in Taiwan.
Requirements & Challenges
Factory Director of SHIN-MONE SCREW CO., LTD., Jinting Kuo stated, “Production challenges come from the opacity of machine and operation status.” During a regular day in a metal processing factory, production managers are required to inspect up to 100 job stations in across the factory. The job of checking the condition of machines is essential to avoiding potential risks. Machine downtime, especially unplanned downtime, takes a tremendous amount of time and effort to correct. Most production activities rely on ERP or paperwork where information is often delayed from 1-to-2 days— caused by the lack the of transparency and real-time information. Unplanned interruption of work is a serious issue and already tight production schedules can no longer be guaranteed. Operators can choose to hire more labor at additional cost or delay delivery commitments, which slowly reduces the perceived competence of the enterprise and can erode its market value and position.
Pain Points:
- Unexpected machine downtime causes inefficiencies in on-site communication.
- Information delays come from the disconnection between production data and the production line itself.
- Data opacity and lack of data-driven decision-making reduce a company’s ability to deliver on time as promised.
Advantech Offerings
Advantech-iFactory and our DFSP partner, HITI Ltd., prioritized three major digital transformation tasks to solve challenges in the fastener industry.
HITI has effectively leveraged the strengths of the WISE-iFactory solution. They designed a best-fit architecture for the fastener industry. Starting from machine connectivity and moving to the situation center, we can make sure machine data is categorized correctly and will be displayed at the top of the dashboard. HITI consolidates all the data sets from ERP/MES and the shop floor to build a high-level intelligent situation room.
- Develop production transparency with detailed production data: iFactory/ Shop-Floor
Centralize data from the factory floor and make sure each machine status is known along with details of work orders and ERP information. This is the first priority, along with being able to track the progress of each work order and production rates.
- Build production traceability to always be ready for inspection: iFactory/ SPC
Build a database with a visual KPI dashboard where production data (and documentation) can be viewed at a glance. It was very important for SHIN-MONE SCREW CO., LTD. that quality reports, operator information, machine recipes, and raw materials are recorded and tracked in one centralized place.
- Boost machine fleet OEE 24/7/365: iFactory/ OEE, iFactory/ Maintenance, iFactory/ PHM
Build a database with a visual KPI dashboard where production data (and documentation) can be viewed at a glance. It was very important for SHIN-MONE SCREW CO., LTD. that quality reports, operator information, machine recipes, and raw materials are recorded and tracked in one centralized place.
Project Implementation
- Centralized Server: IFS-51A RTM, iFactory centralized data platform situation center.
- Edge Computing: RTM MIC770V2 i7, edge computing for production applications
- Network Connectivity: EKI-2428 high-performance intranet switch with reliable connectivity options
- HMI: WOP-207K operator panel installed with HMINavi software, offering powerful connectivity drivers to support 500+ brands of PLCs
System Diargram
Conclusion
A factory for the future with improved production to place the company in a more competitive position globally.
- Low total cost of ownership.
- Provides a POC for ROI evaluation.
- Advanced design strategy to allow space for upgrades and additions.
- Fast development time.
- Clear system architecture.
- Co-existence with existing conventional CCTV systems.
Why Advantech
“2022 is a big year for SHIN-MONE SCREW. Digital transformation has become our[B1] core concern and has changed our way of thinking on a daily basis. With Advantech and HITI Ltd.‘s partnership, the power of digital transformation has been deployed by SHIN-MONE SCREW, and we will continue to grow in the area of smart manufacturing as we plan to digitalize our processes such as design, mold management, material tracking, and more. Although the global crisis is still affecting us and our business, we believe digitalization of our production from end to end will lead us to success and we will be resilient on our way to GLOBAL diversification.”
- SHIN-MONE SCREW CO., LTD. - Vice president, Mark Kuo.
Explore More
Metal Process Industry
Achieving flexible manufacturing of metal processing through production visibility and efficiency with Advantech.
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