In-Depth Investigation | STEP Robotics—The Secret to the Comeback of Small Manufacturing Enterprises
2020-01-14
STEP Robotics—the key factor behind Yancheng Jicheng’s 10-fold performance increase over four years.
Tracking and Visiting, Station Four: Yancheng Jicheng Petroleum Pipe Fitting Processing Workshop
STEP Robot Workstation: Loading and Unloading for Oil Pipe Fitting Processing Machine Tools
Number of STEP robots: 4 units
Robot deployment start date: July 2015
The crucial 5 cents
“Let’s do the math first. With piece-rate wages, it costs us 6 cents to manually load and process each part. For the robot-assisted loading and processing, the cost allocated to each part is just 1 cent.” Our advantage lies in those crucial 5 cents. Don't underestimate these 5 cents—each batch involves quantities in the tens of thousands of units, and the cumulative effect can be quite significant. It’s worth noting that when we allocate robot costs, we factor in depreciation, electricity expenses, and maintenance fees in full. As a pipe fitting processing company, our profit comes from processing fees. The competitive edge that the STEP robots have given us is that we’ve been the first in our industry to achieve this. Cost leadership. On November 21, 2019, in the sunny county town of Jianhu in northern Jiangsu, Mr. Zhang, who oversees production at Yancheng Jifen, counted on his fingers, his words brimming with confidence and pride.
Finished oil pipe fittings
In the processing workshop of Yancheng Jicheng, dozens of workers are bustling with enthusiasm. Four STEP robots shuttle back and forth between eight machine tools, operating busily yet in perfect order. Standard parts in large quantities are handled by robots, while smaller, non-standard parts are produced manually. One worker conducts inspections every half hour and replenishes materials once an hour. General Manager Zhang explained that since there are many types of pipe fittings, Jicheng has experienced senior engineers who are well-versed in mechanical processing. The tooling used for robot loading and unloading is all custom-made by Jicheng itself. Going forward, Jicheng plans to develop an automated material-loading system to further reduce the physical strain on workers.
Used on-site in March 2016
The four STEP robots we saw on site were manufactured in 2015 and 2016, respectively. General Manager Zhang said they’ve been working quite well. Apart from the manufacturer’s routine maintenance, it has never been reported for repair. This is thanks to the consistent quality of the robots themselves and the thorough training provided in the early stages. Today, Jicheng’s technicians have mastered the essentials of daily robot maintenance and are fully capable of working independently. When they encounter problems they simply don’t understand, they can call STEP’s staff for advice—and in most cases, these issues are promptly resolved.
Mr. Zhang, who has a background in mechanical engineering, added that the solid choice of materials is a key reason for the stable performance of STEP robots. For example, from large components like motors and gear reducers—which are predominantly from imported brands—to smaller parts such as wire harnesses, connectors, corrugated tubes, pipe clamps, bearings, and seals, everything is consistent with the standards set by leading international robot brands—each and every component is a genuine branded product.
On-site use in November 2019
STEP Robotics is our secret to turning things around.
General Zhang explained that when faced with large orders, our strengths truly come to the fore. Our region is a hub for the oil equipment industry, and most pipe-fitting processing companies are relatively small in scale. When confronted with large orders that demand short delivery times, these companies find themselves stretched thin. At the same time, they often suffer from an overabundance of workers who end up underutilized and struggling to stay fully employed. By introducing robots, we’ve not only boosted efficiency but also enhanced our ability to work continuously. With two or three shifts per day—while human workers take breaks, the robots keep rolling—when it comes to meeting tight order deadlines, we’re always able to deliver on time, with top-quality products and in full compliance with specifications. The STEP robots have become our secret weapon for turning things around. Since we installed our first robot back in 2015, we quickly reaped the benefits and went on to purchase three more robots. Over the past four years, our business performance has increased tenfold, enabling us to rise to the ranks of large-scale enterprises in the local area. Ever since we started using STEP robots, county leaders have frequently visited our facility for tours, significantly boosting our company’s visibility. To further expand our production capacity, Jicheng is currently building a new factory, which will begin operations next year.
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