Evolution of AGVs –

What’s Available and What’s to Come?

Session Abstract
AGV systems have quickly become a disruptive force leading the way to
Intralogistics 4.0. Industry estimates forecast near double digit growth of AGVs
through 2020. There is a growing need for automation in material handling
processes across segments, learn where to begin and what's possible in the
world of AGVs.

In this presentation you’ll:

• Learn about simple & more challenging AGV applications
• Gain a better understanding of what is possible in the world of AGVs
• Learn how AGVs can solve complex material handling challenges
So What is an AGV?
Says Wikipedia…
• An automated guided vehicle or automatic guided
vehicle (AGV) is a portable robot that follows markers or
wires in the floor, or uses vision, magnets, or lasers for
navigation. They are most often used in industrial
applications to move materials around a manufacturing
facility or warehouse. Application of the automatic guided
vehicle broadened during the late 20th century.
History of AGVs
• Brought to market in the 1950s
– Grocery warehouses and auto assembly
– Originally followed wires
• Vehicles were “dumb”, with 1950s
intelligence in the wire controllers
• Evolved into manufacturing workstreams
– Unit load carts
– Tow carts
– Counterbalanced trucks
• Modern growth in warehousing & distribution 1970s
– Increased vehicle capabilities/designs/functionalities
• Narrow aisle (reach style trucks)
• Very narrow aisle (VNA trucks)
AGV = Driverless vehicles to move goods from
A to B
Functional Applications of AGVs Repetitive transports
Low/medium throughput
Multi-shift & 24/7 operations
Short to mid-distance travel
Complex production flow
Material flow with buffer locations

Benefits of AGVs Increased Safety

Reduced operating costs & manpower
Increased efficiency
Less product damage
Lower operational cost

Operational Issues Addressed by AGVs Safety

Labor cost
Aging of Fork Truck fleet
Shipping accuracy
Productivity
Order Mix Changes
Today’s AGVs…
• Applications
– Horizontal transport of pallets, cases, totes
– Storage and retrieval of materials
– Inventory management, replenishment for distribution and order fulfillment
• Safety – Share work space An withAGV can and
people do manual vehicles
•
just about
Integration – tightly integrated with WMS, ERP
anything that a
• Navigation – single or multiple systems without changes to environment
fork truck can,
– Laser and inertial navigation and increasing use of ‘natural target’ or contour
without
navigation and visual (camera) a worker
navigation
• While historically, AGVs were more purpose-built for each project – now
more modular and “standardized” products – similar to their ForkTruck
ancestors where they can be easily “configured” for unique projects
AGV Use Examples
Horizontal Transport
• Project Description/Features
– Assembly line fulfillment
– Tunnel under jack-pin style AGC
– Spot guidance augmented by Inertial Navigation
– Traffic Management optimization
– Transport loads > 5,000 lbs.
• Project Benefits
– Improved productivity & operations
– Improved safety
– Requires minimal space
– Reduced labor costs
– Increased facility throughput
– Rapid ROI
Horizontal Transport
• Project Description/Features
– Engine manufacturing
– workers had to manually move equipment throughout the facility
– AGVs are called via buttons at each
workstation, making transport
immediately available when needed
• Project Benefits
– Increase from 100 to 220 engines a day
– No longer need to manually move
engines between workstations
– Labor is being used where it should be
– AGVs use off-the-shelf components,
so easier parts/maintenance
Horizontal Transport
• Project Description/Features
– Deliver steel sheets to laser cutting machine
– Deliver components to work stations
– Negotiate tight layout without
disrupting operations
– Wireless navigation, bi-directional travel
– Call/send pushbutton stations
• Project Benefits
– Timely delivery of steel and components
– No modifications to existing equipment
– Two way travel in and out of machining area
EoL to Storage or Shipping
• Project Description/Features
– Pick up full pallets of bottled beverages from 12 stretch wrappers
– Deliver to storage lanes or directly into outbound trucks
– 20 AGVs with single double attachment
– Integrated to WMS
• Project Benefits
– 2 year payback
– Reduced plant and
product damage
– Eliminated “lost” product
and product returns
EoL to Storage or Shipping
• Project Description/Features
– Warehouse storage and order staging
– 23 Clamp AGVs
– Integrated WMS
– Single site pilot for potential corporate roll out
• Project Benefits
– Reduce labor and forklifts
– Increased inventory accuracy cancelled
need for quarterly inventory counts
– Reduction in product damage by utilizing
clamp style AGV
– Successful pilot justified expanding AGV
roll out to 3 other sites and nearly 100 AGVs
Receiving and Putaway
• Project Description/Features
– Transport of finished goods to the warehouse
– 10+ Laser Guided Tugger AGVs (65,000 lb cap)
– IP-65 rated for outdoor operation
– Integrated with AS/RS and WMS
– Automated hitch engagement
• Project Benefits
– Improved safety
– Reduced labor costs
– Improved material tracking
– Increased facility throughput
– Rapid ROI
Inventory/Material Management
• Project Description/Features
– Automate product movement in dairy warehouse
• Aged cheese from warehouse to processing area
• Processed cheese to warehouse
• Finished goods to shipping
– 10 laser guided AGVs
operating in chilled areas
• Project Benefits
– Under 2 year payback
– Reduced labor and product
damage costs
– System is flexible for future
changes
Storage and Retrieval
• Project Description/Features
– Automate storage/retrieval in 780,000 sq. ft. DC
containing 700,000 cases
– 5 laser guided AGVs store/retrieve
product in lanes
– AGV mounted bar code scanner
identifies product
– Integrated with WMS
• Project Benefits
– Improved inventory accuracy
– Reduction in breakage & energy costs
– Flexibility/scalability/mobility
– Payback 1.5 years
Storage and Retrieval
• Project Description/Features
– Address growth and cramped storage situation
in manual warehouse
– Removed outsourced storage and related costs
– Automated warehouse with 3 dual-use reach trucks
and 4 dual-use VNA vehicles
• Project Benefits
– Doubled capacity
– Removed need for outsourced offsite storage
– Increased efficiency
– Less product damage
Are AGVs Right For You?
The ROI for AGVs in your Operation
• How do you know AGVs are right for you?
– High Non-Value Added Costs
– High Damage Rates
– High Inventory Loss
– 24 Hour Operation (or related labor costs)
• How AGVs improve your organization
– Reduced Damage
– Increased Efficiency
– Reduced Costs
– Increased Inventory Accuracy
Sample ROI for AGVs ‘Rule of Thumb’ for
• Example AGV replacement:
1.5 AGV for each
– 24/7 Operation fork truck
– 3 Shift
– $60,000/yr
– 5 Operators Per Shift
• ($60,000)x(5 Operators)x(3 Shifts)=$900,000 Yearly
• ($1,750,000 AGV System)/($900,000 Savings)=1.94
• 2 Year Payback
What’s The Future for AGVs?
The Alphabet Soup of Mobile Automation

AGV – Automatic Guided Vehicle

AGC – Automatic Guided Cart
LGV – Laser Guided Vehicle
AMR – Autonomous Mobile Robot
Sorting Out the Terminology
Automatic Guided Carts (AGCs) are lower-
cost entry points to mobile automation and
are usedare
Robots, mobile robots, autonomous mobile robots for newer
material transportation and
assembly line tasks. AGCs automate
buzzword terms used to describe machines that can plot
Automated Guided
material movement
their own reduce offer
Vehicles
and help (AGVs) non-
path, but these terms could also apply to AGVs. Confusing?
increased flexibility, additional capabilities
value-added labor cost in distribution as
and numerous design variations
well as manufacturing compared
operations.
Autonomous Mobile Robots (AMRs) refer
to AGCs.
to more of a navigation style and not a
AGVs are also more sophisticated and offer
vehicle type, and the industry is beginning
AGV AMR features not found in AGCs. (Also called
Cost

to zone in on ‘autonomous’ being a vehicle

LGV, but not by many)
that doesn’t have to follow a strict path
(LGV) and is able to plot its own course from A to
AGC B within a defined area.

Complexity of Navigation
What’s the Future for AGVs?
• Human/Vehicle Collaboration
• Applications – more complex load handling attachments
– Items (eaches), small tote handling
– Fully automated picking
– Interfacing to Buffer systems, Goods to person, Person to goods, Robots, etc.
• Safety/Navigation – Obstacle monitoring vs detection; dynamic routing
• Integration – across the complete enterprise
• Full “lights-out” warehousing and order fulfillment solutions
• Convergence of robotics and AGV mobility to address increasing labor
challenges
• Dual use machines
• Smaller size machines
What’s the Future for AGVs?
Who we are

• Leading AGV/C system and component suppliers

• Mission: Promote the growth and effective use of automatic
guided vehicle systems (AGVS) in manufacturing,
warehousing, distribution and other key markets
For More Information and/or copy of the
presentation:

[email protected]
Visit MHI AGVS booth booth 8285