Skip to main content

Evolving internal logistics operations with 5G: An innovative intralogistics platform for CIE Automotive

NTT DATA and Telefónica Tech have developed an intralogistics management platform, based on 5G technology, for CIE Automotive

April 25, 2023

Economic instability, challenging markets, and demanding customers have forced industries to be more aggressive in optimizing and making their operations more flexible to achieve better results. Current global trade restrictions and the pandemic outbreak have made sourcing even more challenging, and they continue to threaten business continuity.

In an effort to optimize processes, reduce production times and ultimately, lower costs, many companies in the manufacturing industry are looking to fully digitalize their production lines by incorporating advanced technologies such as IoT or autonomous mobile devices like Automatic Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs). At the heart of this transformation is 5G connectivity due to its ability to link a large number of devices and sensors and truly shorten reaction time.

CIE Automotive understood the importance of automatization and the added value of incorporating early on 5G technology and took the first step towards a fully automated production line by digitalizing the final part of the production line from where end-goods have to be transported to the warehouse using AGVs and the Intralogistics Platform powered by 5G.

A cloud illustration with a grid showing a cityscape model, connected by lines representing data flow.
Business need

Automating complex intralogistics operations

As a major manufacturer of components for the automotive market, CIE Automotive relies on state-of-the-art production lines to deliver high-quality products efficiently and on schedule. Given the importance of the intralogistics processes, CIE Automotive decided to evaluate the benefits of 5G through an integrated solution that incorporates advanced capabilities to automate the end-line process, increase efficiency, flexibility, and and reduce costs.

The client's goal was to achieve the following objectives:

  • Integrate autonomous devices such as AGVs.
  • Incorporate 5G technology.
  • Deploy an Intralogistics Platform capable of orchestrating and managing the connectivity, sensors, data and autonomous devices automatically.

To this end, NTT DATA developed a proof of concept (PoC) for CIE Automotive in collaboration with Telefónica. NTT DATA, as the technology partner, and Telefónica, providing its digital transformation and 5G connectivity capabilities, deployed an Intralogistics Platform to address the internal logistics challenges CIE Automotive faces at the final stage of its production line. Our solution uses reliable 5G connectivity to support communication between the AGVs, the PLCs and the Intralogistics Platform.

“While many associate 5G with mobility, this technology can support a wide range of business use cases. Companies with a strong focus on innovation, such as CIE Automotive, that integrate 5G into their operations, are future-proofing their service offerings in a world where competition is fierce, and the economic climate requires rapid change,” says Andrés Escribano, Industry 4.0 and New Business Director, Telefónica Tech IoT & Big Data

Solution

Connecting and orchestrating intralogistics with 5G

Managing a factory that produces components, assemblies and subassemblies is a complex process that requires all its systems to work seamlessly and with as little interruption as possible. Operations such as those at CIE Automotive’s plant usually include:

  • ERP: Enterprise Resource Planning software is the main system for managing a company’s resources. It can issue material movement requests or other instructions to devices such as AGVs and AMRs, with feedback from these devices integrated into production and intralogistics information.
  • MES: A Manufacturing Execution System manages production across the plant and can also issue material movement requests while integrating other production data.
  • Sensors: Sensors automate other aspects of intralogistics processes, such as opening doors and identifying specific goods or cases required at different stages of production. In this case, sensors are used to identify when a production line needs an empty case and when a full case is ready to be transported. The sensors also need to be integrated into the intralogistics process.

To address CIE Automotive’s challenges, we deployed a private 5G network and integrated the existing systems and components with Programmable Logic Controllers (PLCs) and AGVs through NTT DATA’s Intralogistics Platform, creating a fully automated and intelligent end-line process.

The connectivity solution consists of a 5G NSA network and eight dots (indoor antennas) installed to provide coverage and connectivity quality along the entire AGV route, from the production line to the warehouse, and to send signals from the PLCs to the cloud, where the Intralogistics Platform is hosted.

NTT DATA’s Intralogistics Platform at CIE Automotive can:

  • Receive task execution orders from ERP and/or MES or, where necessary, other platforms and systems such as SCADA and PLCs and provide feedback to these systems.
  • Optimize and organize orders, creating the required queues and execution instructions for each autonomous mobile devices device.
  • Collect all execution orders through an orchestration intelligence layer.
  • Integrate production line sensors to generate tasks automatically.
  • Monitor the activities and status of all devices and sensors in real time.
  • Centralize the integration and coordination of different AGVs/AMRs, multiple sensors and systems, using the required communication protocols.
  • Monitor the entire process through an intuitive dashboard.

The platform helps the client streamline internal material-flow logistics. It manages these processes automatically and autonomously according to the requirements of each operation.

This cloud-based solution uses 5G connectivity, providing benefits including security, low latency, capacity, and bandwidth for dynamic operations such as intralogistics, and also supports AGVs/AMRs. These devices are useful not only for transporting goods, but also as platforms for additional capabilities and data-based use cases, such as barcode scanning for inventory automation, helping organizations make greater use of 5G capabilities.

The main features of the NTT DATA Intralogistics Platform are:

  • 5G-enabled
  • Cloud-based
  • Scalable
  • Flexible
  • Adaptable to new business requirements
  • Supports different communication protocols

Components

Advanced task management: Increases plant efficiency, productivity and industrial process performance by optimizing the execution of tasks requested by different systems and applications, including machinery, ERP, MES, SCADA, devices and PLCs, and scheduling them at the appropriate points in the process.

  • Orchestration brain: Optimizes planning for all devices, robots and processes working simultaneously, while supporting safety for people and equipment.
  • User interface: Controls and centralizes management of all AGVs/AMRs, regardless of manufacturer, through a single, easy-to-use interface.
  • Intuitive dashboard: Allows users and leaders to view all tasks and alerts in real time, whether related to signal communication failures or physical incidents.

NTT DATA’s Intralogistics Platform helps industrial organizations improve efficiency, flexibility and quality by using connectivity technologies to support greater horizontal and vertical digitalization across factories.

“As part of our commitment to innovation, we’re constantly looking for ways to improve our production processes and incorporate cutting-edge technologies into our systems. We’re confident that AGVs supported by tools like the Intralogistics Platform developed by NTT DATA will not only increase productivity but also improve the safety and well-being of our staff. This is a key factor in any digitalization initiative," says Jon Ezkerra, Coordinator of R&D Projects, CIE Automotive Group.

Outcomes

Improving productivity, safety and scalability

Thanks to the PoC, several benefits and advanced capabilities of NTT DATA’s Intralogistics Platform were tested and validated in a real-world environment at the CIE Automotive plant in Itziar, Guipúzcoa:

  • End-to-end automation, monitoring and control of all autonomous mobile devices and sensors to support efficient use
  • The platform’s 5G-powered capabilities are expected to generate an approximately 10% increase in AGV/AMR productivity in industrial plants
  • Safer process automation for employees and devices through communication and coordination via the platform
  • Data collection and management to support analysis across intralogistics operations
  • The ability to progressively integrate, manage and optimize additional autonomous mobile devices and sensors, supporting digital transformation in a scalable, sustainable and controlled manner

What’s next

While the Intralogistics Platform tested at CIE Automotive was developed for the automotive industry, it can also be applied to other sectors that need to optimize routines and processes, such as logistics companies, retailers, distribution centers or ports. The Intralogistics Platform can be adapted to any industrial sector seeking to automate its internal logistics processes to scale its digital transformation.

Why NTT DATA

Our extensive technological expertise and experience in developing and implementing large-scale projects and multidisciplinary teams allowed us to create a complete test environment and evaluate the key components shaping the future of intralogistics operations.

In addition to the solution, NTT DATA brings complementary expertise in consulting, digitalization, automation, SAP and system integration. We also work with an extensive ecosystem of partners to collaborate with other technology providers.

About CIE Automotive

CIE Automotive is a global supplier of components for the automotive market and generates value for its clients by simultaneously developing both the products and the processes necessary for manufacturing, integrating a whole range of technologies to provide the best solutions for the mobility of the future.

Industry: Automotive

Headquarters: Spain