procurement and manufacturing

The purchasing department’s main job is to provide the kuka Group with goods and services. These are sourced internationally by the business unit, and its key objectives are to ensure top quality, on-time delivery and effective costing. These goals are achieved by working in partnership with core suppliers. Performance targets are mutually coordinated and, if necessary, the partners agree on improvement plans.

commodity prices exceed previous highs

In 2008, as in 2007, escalating prices were a challenge for the purchasing department. The strong demand for commodities and heavy utilization of suppliers’ factories caused prices to rise further during the first half year. This market situation changed fundamentally in the second half year as a result of the worldwide economic downturn and the international financial market crisis. The seller’s market turned into a buyer’s market in the fourth quarter. Prices for commodities, particularly oil, have since declined sharply and could contribute to further cost savings in 2009. As part of its international sourcing strategy, kuka has signed agreements with suppliers in Eastern Europe, India and China, which will be used extensively.

kuka group purchasing centralized

Since January 1, 2009, the Group’s central purchasing department has been in charge of all purchasing. Indirect materials will now be procured centrally by kuka ag. In 2008, the greater volumes created by bundling led to improved terms and conditions and lower costs for licensing and travel management, as well as personnel services. Direct material will continue to be purchased by the Robotics and Systems divisions themselves because of the different procurement practices and detailed product specifications.

it-supported procurement processes

The Robotics division is preparing to roll out a comprehensive Supplier Relationship Management tool. This will include the establishment of a web-based procurement catalog, and inventory guided by suppliers and implementation of electronic requests for quote and auctions. The goal is to reduce processing and procurement costs and improve flexibility and supply accuracy for purchase transactions.

The Systems division is preparing to introduce a web-based data exchange portal that will be used to automatically process the exchange of all design and procurement related data between kuka and suppliers. The new data exchange portal will go live in June 2009. When started up, this system will generate significant time and personnel cost savings.

kuka Systems also held a Supplier Event Day on November 13, 2008 in Schwarzenberg / Erzgebirge. 40 national and international suppliers from the plant engineering and construction, press tool and general industry (systems integrators) segments won prizes for their outstanding performance. In addition, eight received a supplier award.

five steps to a finished robot

kuka Robotics manufactures its products in accordance with the kuka Production System. Productivity and cycle time, as well as the quality of the products manufactured, can be successfully and verifiably controlled and continuously improved using this very efficient process. The maximum average three-shift capacity of the 9,000 square-meter manufacturing floor in Augsburg is 15,000 industrial robots. Sixty to 100 tonnes of raw materials such as steel and aluminum are processed per day in the factories.

rotating workstation system

The production workers alternate between two and three-shift operations for up to six days per week. They work on a rotating basis, i.e., the workers regularly switch workstations. This adds diversity to their jobs. The manufacturing staff are at the same time consistently encouraged to provide improvement suggestions, so that the manufacturing process can be continuously improved. This policy also gives the company more flexibility in using its skilled workers.

Robots are manufactured in five steps: mechanical assembly, painting, electrical assembly, testing / acceptance and finishing / shipment. The cycle time from printing the manufacturing order to delivery to the sales warehouse has been reduced by more than 15 days in the past six years. The quality management processes that have enabled the cycle times to be shortened are industry-leading.

fully automated quality control

Management of the process is fully automated. Every component has a barcode that enables it to be identified and correctly assigned at all times. All processes are monitored and documented on an ongoing basis. There is no need for additional quality assurance personnel. At the end of each process step, everything is checked to ensure that it is in its assigned location. Transfer to the next process stage does not take place until this has been confirmed. This process is called “Inprocess Control”.

multiple awards

On November 17, 2008, kuka Robotics won the prestigious “Manufacturing Excellence Award 2008”. Over the past number of years, it has become one of the most coveted process industry prizes in Germany. In addition to the top prize, kuka also won first prize in the product innovation category after a multistage selection process. According to the jury, kuka set new customer orientation and product innovation benchmarks in comparison to its competitors due to its outstanding performance in dealing with customers, processes and products. kuka is the first company to receive two prizes in the history of the mx Award.

The Nordrhein-Westfalen design center has nominated outstanding product designs for the “red dot design award” since 1995 and has thereby created an internationally recognized quality seal. kuka had already received awards for its kr 150 k, kr 180 k and kr 210 k robots in 2002. In April 2008, its kr 16 and kr 1000 Titan were added after being chosen from among more than 3,000 competing products. kuka’s kr 16 robot received the “red dot design award” for its versatility and flexibility. The kr Titan, which has a payload of 1,000 kg, is the most powerful robot in operation worldwide. In spite of this, it has a notably slim, powerful profile.

kuka systems simultaneously managing 50 construction sites

In 2008, kuka Systems focused above all on streamlining the logistics processes between the various factories and construction sites. On average, the project teams were working simultaneously on 50 construction sites throughout the world. The logistics associated with these orders are considerable. For example, the increasing demand for refurbishment of old systems demanded more transportation and warehouse movements. The increasing cooperation between the Systems and Robotics divisions should reduce the logistics effort over the course of current fiscal year.

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