KUKA Systems and FlexFactory Announce Collaboration on Joint Pay-on-Production Models on Automatica
KUKA Systems GmbH and FlexFactory GmbH by MHP | Munich Re | Porsche today announced a strategic partnership at the automatica trade show in Munich to jointly offer pay-on-production. The goal of the partnership is to offer customers customizable production capabilities that are booked as a service. Customers can thus fully focus on product development and customer satisfaction without having to bear investment costs.
KUKA is a leading global provider of technical services and manufacturer of flexible and highly innovative robot-based manufacturing systems and manufacturing solutions. From individual machines, components, robots and robot cells to complex production and assembly lines. FlexFactory, a joint venture of MHP, Munich Re and Porsche, acts as a business enabler. It provides the knowledge to build a flexible factory owned by outside investors and shared by multiple users.
Under the influence of dynamically changing customer expectations that put manufacturing companies under high investment pressure, the economy is currently undergoing a major transformation. Traditional processes must be adapted to remain competitive in the future. The intended concept for drivetrain models can achieve just this.
“Given the current challenge of supply chains that no longer function globally, the price increases in the freight sector and the trend to move production sites back to Europe, we see great potential in this concept,” said Gerald Mies, CEO of KUKA Systems.
And there is even more to be said for this forward-looking model: systems. needs to become flexible and more powerful to unleash all its potential, and the two partners have the right know-how to do that.
Increase liquidity and productivity
In the operator model, or pay-on-production, the customer does not buy a production facility, but only buys the parts produced. The customer pays a predetermined price per product. In this way, the capital committed by the two partners in machinery and equipment is recouped through the service provided. Pay-on-production is a concept that has been developed and successfully applied in the automotive industry, making production the most productive in the world in terms of assembly hours per vehicle. KUKA has many years of experience in the field with KUKA Toledo Production Operations, which has been manufacturing bodies according to this model since 2006.
“With KUKA, we have a highly experienced partner at our side, whose expertise in automation technology and real-world pay-on-production models allows us to successfully implement and scale the production as a service business model,” said Dr. Philipp Hypko, Managing Director FlexFactory, continued: “We are very much looking forward to further collaboration in joint initiatives that have already been launched.”