Lear to open automated factory as ‘blueprint’ for global network
Dive Brief:
- Lear Corporation is building an automated manufacturing facility in Michigan that will serve as the blueprint for scaling automation across its global production footprint, President and CEO Raymond Scott said on an Oct. 30 earnings call.
- The car seating and technology company is on track to begin operation at the Orion facility next year, with automation technology expected to reduce conversion cost requirements by between 10% and 15%, Scott told investors.
- The facility will manufacture seating for three General Motors models, including the Cadillac Escalade, Chevrolet Silverado and GMC Sierra. Lear intends to scale the Orion facility model to other sites to support additional programs, such as the Ford Super Duty line.
Dive Insight:
Lear’s Orion facility represents the capstone on a 10-year journey built on strategic acquisitions and technology development, according to executives. Through acquisitions of companies such as WIP Industrial Automation, Thagora Technology and InTouch Automation, Lear is able to develop proprietary technology for its manufacturing sites that create a “competitive moat that will be difficult for others to replicate,” Scott said.
For example, the Orion site has two different automated storage and retrieval systems, one that handles raw components such as foam and another that handles finished goods. An internal team born out of Lear’s purchase of ASI Automation developed both systems, per Scott.
“We own the IP, we control the road map, and we can scale it across our global footprint,” Scott said.
The technology capabilities at the Orion site aren’t limited to ASRS platforms. The plant operates through what Scott calls “integrated intralogistics,” a connected intelligence layer for the entire factory.
“It ties together inventory, material management, storage, and real-time decision-making from the moment a component arrives at our dock to the moment a finished seat leaves our facility,” Scott said.
The site also features an overhead suspended material storage and delivery system, automated guided vehicles, automated trailer loading capabilities, a four-directional storage system, autonomous mobile robots, smart ovens, automated end-of-the-line testing and AI vision inspection. Lear is also using proprietary automation tools such as cycle time deviation and dynamic line scheduling for workforce management.
“We are moving towards automated execution, meaning our people are focused on solving problems, not performing routine tasks,” Scott said, adding that by interconnecting multiple processes, the company can improve efficiency and inventory management through real-time monitoring, analysis and adjustments.
Lear is preparing to launch the Orion site a little more than two years since unveiling its IDEA by Lear strategy, which prioritizes the adoption of digital tools and automation to enable more efficient manufacturing processes.
“And I remember two years ago, three years ago, when investors and analysts were saying, ‘Man, you’re going to have to change the whole model,’” Scott said. “And that’s exactly what we’re doing. We’re changing the model around how you think about sourcing a seat system and how you manufacture a seat system.”