Automated Guided Vehicles Flexible, Yet Automated Material Handling Automated Guided Vehicles (AGVs) have long been the most flexible of automated material handling systems. Now Siemens Dematic has introduced a user friendly system design program that eliminates the need for any service support when the AGV system’s operation needs to be changed. An already flexible solution has become even more so. Automated material handling systems reduce labor costs, but most lack flexibility. Now the most flexible of automated material handling systems, the AGV, has just become even easier to redeploy to meet changing needs.

1. THOUGHT LEADERS FOR MANUFACTURING & SUPPLY CHAIN
ARC INSIGHTS
By Steve Banker
Automated material handling systems
reduce labor costs, but most lack
flexibility. Now the most flexible of
automated material handling systems,
the AGV, has just become even easier to
redeploy to meet changing needs.
INSIGHT# 2003-12MD
FEBRUARY 26, 2003
Automated Guided Vehicles
Flexible, Yet Automated Material Handling
Keywords
Automated Material Handling
Summary
Automated Guided Vehicles (AGVs) have long been the most flexible of
automated material handling systems. Now Sie-
mens Dematic has introduced a user friendly system
design program that eliminates the need for any
service support when the AGV system’s operation
needs to be changed. An already flexible solution
has become even more so.
Analysis
The advantage of automated material handling systems – such as convey-
ors or monorails – is that they reduce labor costs. The disadvantage is that
they are not flexible. If order profiles change in the warehouse or work
processes need to change in the factory, the travel paths may also need to
change. In such circumstances many types of automated material handling
systems end up getting retired. This is not the case with non-wire guided
AGVs. Non-wire AGVs generally navigate either using an internal gyro-
scope or a mounted laser scanner. Reflective targets are mounted on
columns for the vehicle laser to use to determine location, or in-floor mag-
nets are used for the vehicle gyroscope as reference targets. If needs
change, the paths can changed by moving targets, or magnets, and then
making the necessary changes in the software code. Common applications
include direct service to and from manufacturing operations, bulk move-
ment into and out of warehouses, and bulk movement of products over
long distances.
Application Case Studies
The one million square foot Federal Mogul factory and warehouse in
Skokie, Illinois manufactures gaskets for the automotive industry. At this
facility two AGVs from Siemens Dematic are used to haul scrap material

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from manufacturing to the dock. The scrap is hauled in a train of six cars
that can carry up to 2000 pounds. At the dock more valuable metals are
sorted out and recycled. The Skokie facility is replacing previous AGVs
that had been in operation for 13 years. Because of their previous experi-
ence with AGVs, they are confident that their payback will occur within
one and a half years.
John Deere is a manufacturer of agricultural equipment for both industrial
and home usages. Their plant in Milan, Illi-
nois recently replaced a 15 year old system
with a solution from Siemens Dematic. They
purchased 8 units that will each pull four
trailers. Each unit will move along a path
with 23 stop destinations. Each AGV train is
generally sent to 3 operator selected stations
per trip. If no destination is typed in follow-
ing unloading, the AGV automatically
returns to the receiving dock.
Software Programming
Most solutions that replace human beings need to be programmed with
“intelligence.” While what an AGV does sounds quite simple, the pro-
gramming can be surprisingly complex. AGV solutions must be designed
to:
• Have routes with optimal material flow characteristics
• Allow AGVs to move on multiple paths yet have the ability to select the
best path
• Allow AGVs that move on paths with intersections to avoid collisions
yet move through intersections in a way that best meets the needs of the
facility
In comparison to other automated material handling systems, AGVs are
flexible. However, redesigning or expanding flow paths has traditionally
involved going back to the supplier for additional services. The more ex-
tensive the changes to the existing flow design, the more costly the services.
Historically the programming was done by the suppliers using in-house
proprietary simulation and design programs and this was a major source of
the additional costs.
AGV Types Description
Towing Can tow several carts that are
loaded and unloaded at
specified stops
Fork Vehicles Can service multiple elevations
including floor pick and drop
Unit Loads Quite popular in applications
integrating conveyors with
manufacturing operations or
storage retrieval systems
There Are 3 Main Types of AGVs

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A free Q-CAN Trial Version CD
can be found by registering at
the www.agvsystems.com site.
This site also contains extensive
information on AGVs.
Siemens Dematic Q-CAN System
Siemens-Dematic has introduced a user friendly, graphical AGV system
design program called Q-CAN™. Q-CAN runs on a standard PC and
stands for Quick Configurable AutomatioN. Because us-
ers only need to create the model, and the model
automatically generates the software code, people with no
training in programming are able to use this software pro-
gram following a two day class. Users that have used
simulation games or applications may not need a class at
all. In a visit to Siemens Dematic’s Grand Rapids Michigan facility, this
analyst got to see users create a path layout and configure a fully function-
ing AGV system. At the end of the training, the users got to download their
programs into an AGV and see with their own eyes the results.
There are benefits to Q-CAN in addition to speeding the programming
process and thus reducing costs. It can speed the initial deployment by al-
lowing critical personnel to visualize the layout. This helps to eliminate
unnecessary iterations. The ability to model also makes it easier for users
to proactively consider changes on
an ongoing basis that may improve
logistics processes. It should also be
noted that advantages accrue to us-
ers whether or not they decide to get
trained on this system. After all, the
system is also easier for the sup-
plier’s personnel to use and the
ability to show models to customers
still eliminates costly iterative proc-
esses. For this reason, Siemens
Dematic is developing Q-CAN solu-
tions for other material handling
and production assembly systems.
Recommendations
• Regular preventative maintenance is the best way to extend the life of
AGVs.
• Don’t assume that a more complex AGV layout is the better design.
Complex layouts can adversely affect maintenance costs and reliability.

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