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AUTONOMOUS GUIDED VEHICLES

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RISK MANAGEMENT

RISK MANAGEMENT

BY MARIETE F. PACHECO

AUTOMATED GUIDED VEHICLES

ADVANCES IN AGV TECHNOLOGY MEAN A LARGER RANGE OF USES

Automated guided vehicles (AGV) have been around since the 1950s when they were used primarily in warehouses for material handling applications, like moving large quantities of goods during the shipping and receiving process – usually done with a towing AGV. These early AGVs operated on a taped or wire-based system which guided them on predetermined, simplistic and repetitive paths.

The mass retail boom in the 1990s and the e-commerce explosion of the 2000s pushed the demand for AGVs to new levels with AGVs taking on a larger role in warehouse automation. Since then, AGVs have become more commonplace across many industries including, most notably, in manufacturing and industrial applications. In addition, AGVs have evolved greatly in their functionality and costing as technology has changed.

TYPES OF AGV

Automated guided vehicles differ greatly from their more advanced and progressive cousins, automated mobile robots, which are highly autonomous and can learn their surroundings based on blueprints uploaded to their systems or follow employees throughout a facility. In contrast, AGVs travel along a fixed guidance path, most commonly a flexible magnetic or coloured trail, embedded wire track or wireless navigation which is based on distances between sensors or reflectors. There are six common types of AGVs, including: assembly line; automated guided carts; forklift; hybrid; towing vehicles and unit load. sensor platform to ensure their fully autonomous function in a warehouse environment to store and retrieve products.

A hybrid AGV is modified standard operator-based equipment which is dual-purpose and can function both autonomously and manually with a rider-operator guiding its path. Hybrid AGVs offers the most flexibility in terms of offering the benefits and ease of use of a fully autonomous AGV as well as the ability to function as manual transporting or lifting equipment. Hybrid AGVs are commonly used as forklifts in warehouses.

Towing vehicles (also referred to as tuggers) were one of the first AGVs. These are used in pulling or towing applications such as moving trailers and trains either in a warehouse or in a shipping or train yard.

Unit load AGVs have built-in conveyors which offer the ability to flex easily and adapt a production line as business demands change. The flexibility of unit load AGV also provides greater safety as it opens the work area for moving equipment or people. Unlike its fixed conveyor counterpart, if an issue is encountered in the process the production line doesn’t shut down; alternatively the process continues as each step operates independently of the others. This type of AGV is frequently used in manufacturing, assembly and warehouse applications.

An assembly line AGV creates a surface that moves in place of a fixed conveyor or an overhead crane system. The assembly line AGVs carry the unfinished or unassembled product from workstation to workstation for the employee or robot to complete their task for that station. The movement along the production line continues until the product is finished. This type of AGV is frequently used in the automotive manufacturing industry where a partially completed car moves from station to station for the operator (human or robot) to assemble a new component on the car until the end of the production line.

Automated guided carts (AGC) are the lower cost AGV option which follow a flexible magnetic or coloured tape adhered to the floor on a predetermined path and are generally smaller in size and offer a lower weight capacity than other types of AGV. They can be easily adapted to reflect changes in the environment they are used in by simply re-affixing the flexible magnetic tape in a new guidance path as the surroundings change, making these a good solution for both budget conscience applications and tight quarters which require a smaller footprint solution. Common uses for AGC include moving compact loads through a facility such as a hospital and transporting food trays, linens or medical supplies.

Forklift AGV are similar to an automated forklift that moves and lift palletized goods using the frontloading forks of the AGV. This includes moving pallets into spaces such as high-bay racking. These operate on a laser

TRENDS

The most significant trend in the AGV market relates to technology advancements in the equipment for energy options and guidance systems.

A major challenge to AGVs being reliable has been their limited battery life. There was nothing worse during a production run than having an AGV going down without warning due to a discharged battery. To combat this, a well-known development in battery technology in the automotive industry has shifted into the AGV market as well. The introduction of lithium batteries means a power source that is fast charging, has eliminated maintenance and reduced gas emissions compared to traditional lead-acid and gel batteries.

The second evolution in energy options for AGVs is the battery-free and wireless AGV. This allows the equipment to run continuously through charging via inductive power transfer (IPT) technology whereby the AGV is powered wireless from the floor.

Trackless systems have grown in popularity whereby the AGV is guided by an operator’s voice, GPS or WIFI technology instead of traditional physical markers or tracks such as magnetic tape or reflectors. These advancements offer greater flexibility and adaptability as an organization’s operations change.

SUPPLY CHAIN BENEFITS

Automated guided vehicles offer extensive overall benefits to an organization; however, the scope of the benefits will differ depending on the industry and the organization’s operations. The six most frequently occurring benefits from deploying AGVs include labour cost savings, utilities cost savings, improved safety, a reduction in damages, increased inventory productivity and accuracy.

Labour cost savings is the most common positive impact upon deploying AGV in an organization. The direct savings can be attributed to the reduced staff required to complete a task. The additional advantages are further compounded when considering the long-term savings against salary increases and benefit payments.

AGVs can function in less-than-ideal working conditions when compared to a human workforce, as the equipment can operate in lower or higher temperatures than the average person. The savings of reduced electricity consumption from fewer hours of heating and cooling systems running can add up over the ownership lifetime of an AGV.

An AGV’s precision in terms of following predetermined paths leaves little room for error in terms of accidental collisions with products, racking other equipment or, worse yet, employees in the facility. This slim margin of error can dramatically generate savings for an organization due to reduced damages caused to the physical structure, its contents and the reduction in employee injury claims. During the pandemic when physical distancing has become the norm, AGVs have provided organizations with the ability to continue to operate without sacrificing the health of their employees by reducing the number of employees on site at the same time.

The improved inventory productivity and accuracy from adding an AGV to an operation can be dramatic in high-production facilities which manufacture in significant volumes and in very systematic methods. An AGV can operate at any time with minimal downtime due to breaks, vacations or injuries (with the exception of maintenance). As well, the precision of an AGV in following tight tolerances is unmatched in manufacturing settings of frequent and repetitive actions. The human operator will produce some variances at a much higher rate than an AGV. Lastly, the AGV can, in real-time, maintain an active inventory count while an operator must perform a more time-consuming and sometimes inaccurate physical count.

With the continued growth of e-commerce and the need for retailers and manufacturers to reduce operating costs, increase productivity and efficiency to remain competitive on the global stage; AGVs will be there to support organizations. The North American market alone for AGVs is estimated by the Mordor Intelligence Group to grow 14.6 per cent annually in 2021 and to reach a new record of nearly US$2.7 billion by 2026 (pre-pandemic impacts).

Automated guided vehicles can offer tremendous value to an organization depending on the industry; from distribution efficiencies in warehouses to reduced production times in manufacturing and even maintaining sterility or safety in sensitive sectors such as pharmaceuticals, healthcare and electronics. SP

“The most significant trend in the AGV market relates to technology advancements in the equipment for energy options and guidance systems.”

Mariete F. Pacheco, MBA, PMP is managing director at FRW Services Ltd.

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Manager, Commercial and Government Fleet Sales zahmed@hyundaicanada.com (905) 948-6822

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Fleet Management

26

Upfitting trends Build options for fleet managers.

28

28

Road test Driving the Subaru Crosstrek.

29

Fleet branding The benefits of sprucing up your fleet.

Fleet Management is a special section of Supply Professional magazine. It is an important resource for Canadian supply professionals who recommend, select and manage fleet vendors and service providers. EDITORIAL INQUIRIES: Michael Power, 416-441-2085 x110, michael@supplypro.ca ADVERTISING INQUIRIES: Alex Papanou, 416-441-2085 x101, apapanou@iqbusinessmedia.com

Upfitting trends

Fleet managers now have unprecedented build options

We’ve been tracking the trends in the world of upfitting. Some of these follow the social trends of the customers they serve, while of course, others are the result of the advances in technology and hardware provided to them by the OEM truck builders. But before we get into the nuts and bolts, we have to deal with an unanticipated trend that is affecting all the players right now – builders and customers alike.

Of course, it’s the pandemic. The quick and dirty (and obvious) is that disturbed supply lines have created delays in builds and deliveries. However, a secondary cause is the hesitancy of ordering by industries trying to deal with the real-time fallout of lockdowns.

Curiously, most every business has viewed the year-old pandemic as a sales killing event; but for some, surprisingly, it actually increased sales dramatically. These companies are the ones that suddenly needed new vehicles and replacement ones ASAP. That’s where the problems started as the normal rhythms of this industry were upset.

While this is not really breaking news, it does continue to affect many industries as lead times draw out and ship-thru dates come and go – vanishing into a black hole of parts shortages. Rest assured that OEMs and upfitters are working hard to meet demand – but for the foreseeable future keep in mind that leadtimes will need to be elastic.

Safety first According to the US Occupational Safety and Health Administration (OSHA), work-related musculoskeletal disorders — awkward movements, heavy lifting, and repetitive strain — account for 34 per cent of lost workdays. A heightened awareness of the true costs associated with injuries is driving fleet managers to equip vehicles with equipment and systems that will better safeguard operators.

This trend pays dividends in costs and productivity – so it’s here to stay and will be improved upon perennially. But what are we actually talking about?

To start with, OEM builders continue to provide additional safety features in vehicles as standard equipment. Upfitters then take that as a starting point to add their own improvements. These include rearview camera systems; parking sensors (front and rear); standard back-up beepers; improved grab handles (inside and out); improved mirrors; easy opening doors and improved access steps. These are just the basics. Specialized equipment can be expected to get specialized safety features.

Upfit designs are being reviewed with a critical eye to determine if equipment add-ons get in the way of the driver or crew. Can they be moved? Should they be? This new attitude leans toward the upfit being moved, rather than the old thinking that expected people to just learn to work around them. The safety benefits are obvious.

Safety is also an exercise in knowing what works and what doesn’t – there has to be a way to measure success – hence the growth in telematics. You have to have data to determine how new designs are working, so more and more companies are ordering upfitted vehicles with systems that monitor driver and vehicle performance. This gives insights into fuel costs, possible causes of frequent repairs, effectiveness of equipment in terms of time spent using them and also identifying potential liabilities for the company. These data are also a proactive indicator identifying possible problem areas so companies can react and better train operators.

Going green You can’t talk about new trends without talking about “going green.” At first glance most think of going green as the trend towards electric service and delivery vehicles. Sure, that’s part of it – but just part. There is also a more subtle subtext to “green.” What we’ve seen is owners want to do more with less (meaning smaller vehicles) and they want it all to weigh less, too. This is also green.

This trend lowers costs on conventional ICE-powered trucks. And, while electric is exciting, fleet managers know that costs drive innovation – and sometimes the expensive ones stop them dead.

With that in mind, we can look at the CNG and propane systems that have been around for while now. These too were considered experimental in their time – yet

have proven themselves to be economical in many applications. In the same way electric is now on the cusp of moving from futuristic to a solid economic choice.

Past propulsion though, buyers are increasingly looking at van bodies rather than pickup trucks. Some of these lower weights, while inside the use of modern plastics in the upfitter add-ons also trims weight. This trend from upfitters using more plastic composites and aluminum have far reaching benefits.

This lighter equipment eases the burden on the engine, increasing fuel economy. This increases engine life, with less time and money going to repairs. The result is better use of space, as lower weight equals reduced driver stress and overall costs. New vehicle preferences As stated above, there is a noticeable shift in preference toward commercial vans. It can be argued that the new European-influenced vans have opened up this market. However, acceptance across a variety of industries is what is really driving this trend. While pricing, again, is important, a few other inherent benefits of these vans have no doubt influenced fleet buyers.

First, an enclosed, covered work area is an operator benefit; also, clear, standing room is now a normal part of this type of vehicle. The large, tall, square body also offers a limitless number of upfit configurations that help increase productivity.

However, this new vehicle trend applies to more than just vans. Sales figures suggest that companies are looking to reduce the overall size of their equipment wherever they can. In part this is possible by innovations from upfitters – providing the same equipment in smaller packages that weigh less. This in turn requires a smaller base truck that costs less – and costs less to run.

While we can argue that doing more with less has always been a plank in any business plan, the expanding base vehicles choices – and the imagination of the upfitting industry is offering an unprecedented increase in new build options. This benefits us all. FM/SP

Upfit designs are being reviewed with a critical eye to determine if equipment add-ons get in the way of the driver or crew. Can they be moved? Should they be?

Powered up

The Subaru Crosstrek adds the extra oomph some drivers crave

It’s really something how a single update can take a car from being a middling option to one of the better values on the market.

The Subaru Crosstrek is a great example. It’s a veteran in the subcompact crossover space having been launched in 2013, and it’s seen steadily increasing sales among the buyers who are more often seeking out this segment and appreciate the Crosstrek’s small footprint and standard all-wheel drive.

But there’s one thing critics have repeatedly pointed out as missing: more power. The 152hp and 145lbs-ft from the 2.0-litre engine works for some buyers, but for people who want to use their cars for more than trips to the grocery store – which includes more Subaru owners than the average across most brands, it must be said – an extra bit of oomph would make the Crosstrek just right.

Subaru listened, and now a mid-cycle refresh has brought with it a 2.5-litre, four-cylinder engine making 182hp and 176lbs-ft of torque. Not only that, but it can be equipped at an MSRP of less than $30,000 for buyers who opt for the new Outdoor trim.

This update caught the attention of Canada’s top automotive critics: the Automobile Journalists Association of Canada named the Subaru Crosstrek the Best Small Utility Vehicle in Canada for 2021, netting the Crosstrek its first AJAC award. Updates don’t need to be complicated to hit the right marks.

The new engine is available in two trims, the aforementioned Outdoor featured in this test drive and the top-of-the-line Limited, both matched exclusively with a continuously variable transmission (while the smaller engine remains available with a six-speed manual). This CVT feels more like an automatic than most thanks to simulated steps in the revs that replicate the feel of jumping between ratios. With the engine’s low mount, typical of Subaru’s engines with their horizontally opposed cylinder arrangement, more of the Crosstrek’s weight is closer to the road. This gives it excellent handling in spite of its desirably high 22cm of ground clearance.

There are two downsides worth pointing out, however. The larger engine’s published fuel consumption ratings of 8.8L/100km in city driving and 7.0 on the highway are not at all far off those seen in the 2.0-litre (8.5 and 7.0 respectively), but the observed fuel consumption during this test drive is a fair bit higher at 9.6 litres per 100km, so driving style and conditions may sway the results with this engine more than average. The engine’s auto stop-start feature is also rough enough to be startling, which may cause some drivers to become annoyed and turn it off, meaning they lose even more fuel efficiency.

The EyeSight suite of safety and convenience features is standard in all Crosstreks equipped with the CVT and includes pre-collision systems, adaptive cruise control, lane centring and lane keep assist, lane sway and departure warning and lead vehicle start alert. On this Outdoor trim, buyers receive this interior with acid-yellow accents as opposed to the orange found in every other trim but the base model. The mix of features is targeted toward young, outdoorsy types and includes a trim-exclusive dual mode X-Mode for variable off-road performance, a front-view camera to assist with visibility around blind corners and steep hills, 17-inch wheels, the upgraded eight-inch infotainment system and gunmetal grey exterior accents. On the liftgate, a small overhead lamp is installed that could be handy when unloading gear in the dark. Subaru Canada opted out of including a sunroof, partly to keep the price below $30,000 and partly because drivers who might be more inclined to roof-mount cargo boxes or outdoor gear are less likely to see as much value from it.

There’s one more safety-oriented feature applied here that really ought to see more widespread use: a self-returning light switch, which flips back to auto whenever the car starts up regardless of where it was last set, meaning that it’s not left up to the driver to remember to flip the lights back on if they were turned off manually.

The subcompact crossover segment is one of the fastest growing in Canada. Now that it’s sporting these updates, the 2021 Subaru Crosstrek is a top choice among it thanks to its improved power, well-considered packaging and overall value. FM/SP

As Tested

Price (incl. freight and PDI): Starts at $32,174; tested at same Engine: 2.5-litre four-cylinder Power: Max 182hp; 176lbs-ft Transmission: CVT Rated Fuel Economy (L/100km): 8.8/7.0/8.0 Observed Combined Fuel Economy (L/100km): 9.6

Best foot forward

1. Why investment in your fleet is an investment in your brand

When was the last time you spruced up your fleet? Every vehicle you have represents your brand. After all, it has your company’s logo on it. Every time it is out on the road, it gives the public a glance at your brand. For many, it will be their first impression. You want to make sure you leave a good impression by ensuring your vehicles are in top shape.

Your approach to branding the vehicles in your fleet also contributes to the impression those vehicles make. When designing graphics and decals to put on the trucks, you want to remember:

Keep it simple: Don’t overcomplicate the design. Less is more. You want to keep things professional and limit the design so the information you have mentioned is readable. The logo is key: It is easier for people to remember your company by its logo. Therefore, the design should centre around the logo.

Include information that

allows people to act: You want to limit the information to just essentials for people to contact you. Websites are now more effective than a contact number so mention your URL before anything else. Stick to basic colours: You want people to identify your business by just looking at the colour of the van. Think of UPS and DHL, both have a massive fleet and are known for brown and yellow vehicles, respectively. Having vans all in the same colour will help people become more aware of your brand, even associating the colour to your brand.

Once branding is sorted out, all you have to do is ensure the vehicles are presentable. The following reasons are why you should invest in your fleet and how the investment will impact your brand.

Meet safety standards, reduce bad PR Do all your vehicles come equipped with technology that allows your drivers ease and safety on the road? The safety of your driver and others is important. You wouldn’t want one of your vehicles to be the cause of an accident. That would mean you generate bad PR. You’ve probably heard that any type of PR is good since it gets your name out there. But not in this case, such PR can drastically hurt your business.

Covering the basic safety of the driver should be your top priority. This means, ensuring the vehicle is in shape to be on the road: seat belts work, tires are inflated, cracks on the windshield repaired and so on. Next, you want to equip the vehicles with technology such as a rear-view camera, blind-spot warning and automated emergency braking. These will help reduce the chances of both minor and major accidents. Lastly, you want to ensure all your drivers are trained to be out on the road.

Improve efficiency, improve customer satisfaction The quality of service your business provides correlates with its brand. If the business is known to ensure quality services then customers will continue to use it and even recommend it to others. The vehicles in your fleet play a major role in the service rendered.

You want to equip it with technology that improves efficiency and ensures timely deliveries. Technology such as a navigation system, so your drivers take efficient routes. You also want to equip it with a telematics and management system that gives you insights into the systems within the vehicle so it limits breakdowns which, of course, lead to delays.

Poorly maintained vehicles reflect badly on your brand Think of each vehicle as a moving billboard that advertises your brand. You want to make sure that it appears in top shape. That means, dealing with dents, chipping paint and regularly getting them washed. Upkeeping your vehicle will reflect positively on your brand, showing people that you value it. Save money, boost branding There are numerous ways you can invest in your fleet, from purchasing management software, upgrading the vehicle’s technology, to the vehicle itself. No matter what the investment may be, it will lead to your business saving some money. For example, equipping the vehicle with management technology that improves fuel efficiency will help you save on costs, because fuel costs are rising. The amount may seem small at first, but it adds up. The amount can be used for branding.

People’s first impression of your company is directly linked to the vehicles in your fleet. If you truly care about leaving a lasting impression, you will need to invest in your fleet. The investment won’t just impact your brand but also improve fleet management and your business’s overall efficiency.

For most, while the investment might appear costly at first, you will end up improving processes, brand image and saving money in the long run. So, it is one of the smartest investments you can make for your business. FM/SP

2.

Tarek Salam is a Canadian auto glass repair technician.

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