Fujian Daimler Automotive in China wanted to implement high standards for automotive production at its new plant. It looked to Siemens for an automation solution based on Daimler's proven Integra standard. Siemens provided a turnkey solution for the entire mixed model assembly line, including testing equipment. Fujian Daimler benefits from the flexible line that can produce two different vehicle models, reducing space needs. The local Siemens team also provided important support for the project.
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Volkswagen's Flexible Production in Emerging Russian Market
1. The Magazine for Automation in the Automotive Industry
moveup
Volume 9, Number 1, 2010
Fujian Daimler Automotive, China
High Standards,
Local Support
2. 2 move up | 1-2010
p Editorial
p Cover
Emerging Markets
4 Flexibility on a Global Scale
Volkswagen Group Rus, Russia
8 High Standards, Local Support
Fujian Daimler Automotive, China
10 International Benchmark
Renault Nissan Automotive India Pvt
Ltd., India
13 Taking the Wheel
Emerging market trends
14 Global Partners
Volkswagen India
16 Bringing Innovation
to Market Faster
Automotive Sector, Mahindra &
Mahindra Ltd., India
18 The Next Level
Zhejiang Geely Holding Group Ltd.,
China
20 Keys to Success
Beijing Foton Cummins Engine Co.,
China
22 In Brief
23 Dialogue
With standard components and expertise
from Siemens, Volkswagen is producing a
wide range of vehicles in Kaluga, Russia, in
a world-class facility
Page 4
Fujian Daimler Automotive benefits
from both high standards in its
automotive production and good
support from the local Siemens team
Page 8
Renault Nissan Automotive India
Pvt Ltd. sets benchmarks in terms of
production quality and performance
with Simatic technology
Page 10
Volkswagen
Daimler
RenaultNissanAutomotiveIndiaPvtLtd.
C o n t e n t s m o v e u p | 1 - 2 0 1 0
3. Thomas Schott
Head of Factory Automation
Siemens Industrial
Automation Systems
move up | 1-2010 3
E d i t o r i a l
After an extremely difficult year, we and our customers are glad to see
a significant market recovery. The emerging markets have certainly
played a key role in this recovery; with their dynamic approach they
were able to curb and, to a certain extent, even counteract the down-
turn in the traditional automotive markets. Countries such as Russia,
China, and India were able to maintain steady growth throughout
2009. Plus, the long-term prospects are good: emerging markets
continue to be demand-driven. Moreover, manufacturers there are
placing greater emphasis on high-quality and efficient production
systems. In order to implement these systems, they need partners
with the corresponding expertise.
We are extremely proud that we can support our customers in emerg-
ing markets to achieve their goal of safe, state-of-the-art, and envi-
ronmentally friendly automotive manufacturing. Not only do we work
directly with automotive manufacturers as a product and solution
provider, we also work with international OEMs. Our expert teams
working on-site can draw on our extensive and global automotive
knowledge. In this edition of move up, which focuses on these
emerging markets, you can read about some of the many successful
projects we have implemented with our customers in Russia, China,
and India.
I hope we can give you some valuable ideas. Enjoy the read!
Yours,
4. 4 move up | 1-2010
C o v e r E m e r g i n g M a r k e t s
5. move up | 1-2010 5
Volkswagen Group Rus, Russiap
Flexibility on
a Global Scale
With its new plant in Kaluga, Volkswagen
is increasing its presence in Russia –
a strategic growth market for the future.
The plant has been able to produce up to 150,000
vehicles per year since the completion of the second
stage of expansion at the end of 2009. For Volks-
wagen, this date marks the successful conclusion of
a project lasting nearly four years. One of the central
requirements of the factory was the production of
a wide range of different models. Today the plant
already produces more than 20 models belonging
to the Volkswagen, Skoda, Audi, and Volkswagen
commercial vehicles brands.
The new production facility is located in the
Grabzevo technology park in Kaluga, southwest of
Moscow. The location is ideal – offering plenty of
space, yet close to Moscow as an important hub –
and the foundations for the new plant were laid here
at the end of 2006. Initially, Volkswagen built a
semi-knocked-down (SKD) production facility, which
went into operation in 2007. The vehicles are assem-
bled from large components in this facility. Follow-
ing that, the site was extended for full production by
the end of 2009 with the addition of a body shop,
paint shop, and final assembly area. A total of five
Volkswagen and Skoda models now roll off the
production line in Kaluga for the Russian market.
With standard components and
expertise from Siemens, Volkswagen is
producing a wide range of vehicles in
Kaluga, Russia, in a world-class facility.
Allphotos:Volkswagen
6. 6 move up | 1-2010
The special on-site conditions, with infrastructure
under development and relatively limited local
resources, and also, to a lesser extent, the specific
guidelines from the Russian authorities, meant that
project partners were needed that had both the
technical expertise from Germany and the local
competence to be able to properly implement such a
large, international project. In part for this reason,
Volkswagen decided to work with Siemens. With
a presence spanning 150 years and experience in
the country, Siemens is able to implement large
and complex projects on time in Russia – while
complying with specific guidelines and standards
(GOST, etc.).
Global standards implemented
on a local level
Volkswagen has high global standards for the quality
of its products and therefore also places high
demands on the quality and development of the
systems engineering employed. Siemens came up
with the right answers for Volkswagen in Russia:
setting up the complete electrical infrastructure –
from the groundbreaking to the completion of the
assembly plant – came under Siemens’ responsibility
as the general contractor. The consistent, integrated
implementation of the power supply in accordance
with Totally Integrated Power (TIP), from power
outlets to the 20-kilovolt substation, made an essen-
tial contribution to the success of the overall project.
Moreover, Siemens was also an important solution
partner in equipping the final assembly and supplied
the entire conveyor technology, including all compo-
nents for the car body conveyor technology and
important just-in-time (JIT) parts (doors, dashboard,
etc.) using electric overhead conveyors, skillet con-
veyors, and belt conveyors. Furthermore, Siemens
supplied systems for assembling the dashboard and
front end, adjusting the drive line alignment (axle
and track), programming the vehicle control units
H i g h l i g h t s a t a g l a n c e
On-schedule delivery and implementation3
Fulfillment of the global Volkswagen quality3
standards
Expert and powerful partner for international3
project management
Solution partner for mechanical and3
electrical systems across all products
Local project and technology skills in Russia3
with certification (GOST, TÜV)
Local maintenance and after-sales service3
C o v e r E m e r g i n g M a r k e t s
7. move up | 1-2010 7
(checkout with SIDIS pro), and ensuring the assem-
bly quality using a worker information system (rip
cord, Andon board). In addition to the infrastructure
and final assembly, Siemens – as a partner of the
Volkswagen tool-making unit – was responsible for
the complete implementation of the automation
technology, including robot programming in the
body shop that is equipped with the latest laser
welding, geometrical, and respot welding technol-
ogy. All the mechanical and electrical fittings for
the body-in-white finishing lines (doors, hatches,
etc.) were also supplied by Siemens.
A Totally Integrated Automation (TIA) concept was
implemented for all production facilities, with
S7-317/319 Siemens controllers and an integrated
visualization system. The sophisticated conveyor
process was implemented with Siemens EMSdriver
carriage controls and the tailored combination of
Sinamics G120 D frequency converters and Flender
geared motors. For the first time in a Volkswagen
plant, communication between the components was
established using only Profinet/Profisafe – even
wirelessly, using Industrial Wireless LAN with
Scalance W, in the extensive assembly halls. The
innovative automation concept was also the inspira-
tion for other new Volkswagen plants in Pune, India,
and Chattanooga, Tennessee.
Heading toward success with
standard technology
The integrated Siemens mechanical, electrical, and
automation technology solutions form the basis for
qualifying and training the operating personnel
on-site and today can guarantee a uniform, easy-to-
understand means of operating the systems. The
standardization of the materials used allows a con-
siderable reduction in spare parts stock – an addi-
tional benefit for Volkswagen. However, expertise
and support are needed from the specialists from
time to time, and in this case, quick and competent
local after-sales service is available from Siemens
Russia.
Kaluga has been working at full production since
October 2009 – with world-class performance, as
confirmed by the project team. The expertise and
problem-solving ability of Siemens has made a great
contribution toward this success. “Thanks to modern
technology, the most flexible plant in the Volks-
wagen Group worldwide has emerged in Kaluga,”
says Dietmar Korzekwa, Russia corporate manager
and general director of Volkswagen Group Rus. p
info
contact
www.siemens.com/automotive
schmitt.walter@siemens.com
Siemens acted as a
solution partner for
specific packages and
the entire power
supply
als Werksstandard
Plant uses a
Siemens Automation Concept
as a standard solution
Plant
Cross-sectional
functions
S7-317/319; Simatic ET 200pro; Profinet; Scalance IWLAN;
IWLAN Mobile RFID Moby-E; WinCC; sensors, switching devices, etc.;
Sinamics G120 D; Flender geared motors
Chassis installation 1–5
Logistics
Installation automation
Control systems/
MES
Building technology/
security
Communication/
networks
Installation automation for laser,
geometric, and respot welding stations
Body shop systems and conveyor technology
Conveyor technology
Dashboard and front-end installation
Wheel alignment
Universal testing system with SIDIS pro
Installation automation
Electrical infrastructure
and power supply
Siemens scope of delivery
Power supply from the substation (20kV) to the outlet
General lighting for all indoor areas and outdoor installations
Control system for the power supply and lighting
SKD assembly
Final assembly
CKD production
Press shop
Body shop
Paint shop
Final assembly
8. 8 move up | 1-2010
Fujian Daimler Automotive, Chinap
High Standards,
Local Support
Located in Qingkou, 25 kilometers south of the
city of Fuzhou in southeast China, the new
Fujian Daimler Automotive greenfield project
has been called “Daimler’s South China pillar.” A joint
venture between German automaker Daimler AG,
Fujian Motor Industry Group Corporation (FJMG), and
Taiwan-based China Motors Corporation (CMC), the
Fujian Daimler Automotive (FJDA) plant is expected
to “raise the technology and quality of the Fujian
auto industry,” according to Ling Yuzhang, former
chairman of FJMG and the board of FJDA. The plant
makes several models of multipurpose vehicles and
light vans: the Sprinter, the Vito, and the Viano.
The Sprinter and the Vito/Viano models are assem-
bled on a so-called mixed production line. This was a
particular challenge, as the models not only differ
greatly in size but also vary in terms of assembly
concepts during assembly and marriage. Conse-
quently, FJDA needed a mixed-line assembly solution
that could accommodate that.
Implementing a higher standard
Previously, FJDA had considered using Asian prod-
ucts and solution partners for its new plant in China.
However, Daimler had had a positive experience
with Siemens automation technology and automo-
tive manufacturing expertise in its Beijing Benz-
When Fujian Daimler Automotive wanted high standards for
auto production, the company looked to Siemens for a solution,
and also received a good local team to support it.
Automotive Co. Ltd. (BBAC) joint venture in China as
well as in Europe, where Daimler has also developed
an innovative standard for the design and equip-
ment of production facilities in Daimler AG assembly
plants.
This Integra standard also specifies automation and
communication technology. Key elements of the
automation technology in the Integra standard are
proven Simatic components, such as the Simatic S7
controllers. These components form the basis for the
standardization of operator panels and control units.
The use of this standard results in efficient project
realization, a smooth and fast ramp-up, and opti-
»Due to its extremely positive experiences
in the Daimler and BBAC parent plants,
FJDA has decided to use Siemens also in
its new plant in Qingkou.«
Christoph Rentsch, FJDA
C o v e r E m e r g i n g M a r k e t s
9. move up | 1-2010 9
info
contact
www.siemens.com/automotive
hans.heinl@siemens.com
mized lifecycle costs. This means increased produc-
tivity and reduced total cost of ownership for the
customer. So when FJDA was assessing various
alternatives for the new mixed assembly line, it was
also evaluating Siemens as a supplier. “Due to the
extremely positive experiences in the parent plants,
we decided to use Siemens technology in our Chi-
nese plant in Fuzhou,” said Christoph Rentsch, FJDA.
In November 2007, FJDA planning management in
Fuzhou decided to use Siemens technology based
on the Integra BBAC standard for all systems in the
body shop, paint shop, and assembly.
Easy implementation,
excellent support
For the Fuzhou assembly project, Siemens provided
a comprehensive turnkey solution for the entire
assembly line, complete with testing and inspection
line. Siemens delivered the automation and drive
systems, such as Simatic ET 200 distributed I/Os,
Simatic S7 controllers, Simatic panels, and Scalance
network components, along with all required engi-
neering for the chassis installation and preassem-
bly, the conveyor technology (electrical overhead
monorail system, slat and skid conveyor), the filling
equipment, and the testing systems (roller tester,
wheel alignment, headlight aiming tester, etc.).
The entire automation technology solution was
produced by Siemens Factory Automation Engineer-
ing Ltd. (SFAE) in China. SFAE also provides local
after-sales service that is fast, flexible, and in the
client’s language. Siemens automotive experts in
the headquarters and SFAE jointly developed and
successfully implemented the automation concept,
including the Andon board system, also providing
concept overviews of the automation technology
used. In addition, thanks to SFAE it was not neces-
sary to bring in support from Germany for the design
and commissioning of the automation project.
Flexible, high-performance line
With the new assembly line, FJDA benefits from the
highly flexible mixed-line concept for the Vito/Viano
and Sprinter models. For example, the chassis for
both models can be assembled with only one type of
assembly frame in preassembly and marriage, and
the models are transported with only one type of
electric monorail system (EMS) hanger using alter-
nating adapters. Due to this flexibility, the line does
not require any buffers for different kinds of assem-
bly frames. This design is space saving, reducing the
plant footprint and costs. p
K e y p o i n t s
The Sprinter and the Vito/Viano3
models differ greatly in size and
assembly concepts during
assembly and marriage
FJDA needed a mixed-line3
assembly solution that could
accommodate that
Siemens provided a suitable3
turnkey solution for the
assembly line with a testing and
inspection line
FJDA benefits from a flexible3
line solution that is also space
saving, reducing the plant
footprint and costs
o Both the Viano and the Sprinter
models are transported using
the same type of EMS hanger
Allphotos:Daimler
10. 10 move up | 1-2010
Renault Nissan Automotive India Pvt Ltd., Indiap
International Benchmark
At the new greenfield automotive plant of Renault Nissan Automotive India Pvt Ltd.,
a standardized automation solution based on proven Simatic technology helps set
benchmarks in terms of production quality and performance.
Allphotos:RenaultNissanAutomotiveIndiaPvtLtd.
C o v e r E m e r g i n g M a r k e t s
11. move up | 1-2010 11
When Renault and Nissan announced plans
for a joint venture to manufacture vehi-
cles in India in February 2008, the new
automotive production plant in Chennai was pre-
sented as a key milestone in the companies’ strategy
for the Indian automotive market. “With the estab-
lishment of our plant, Renault-Nissan will make
major investments in India, reaffirming the growing
bilateral economic ties between our respective
countries,” said Nissan president and CEO Carlos
Ghosn at the plant inauguration in March 2010.
Representing an investment of 45 billion rupees
(US$990 million) and with the capacity to produce
400,000 units per year at full capacity, the new
Chennai plant initially employed 2,000 workers at
the start of production in May 2010.
The plant is the first dedicated Renault-Nissan alli-
ance vehicle manufacturing plant. The first vehicle
to be produced at the plant will be the new Nissan
Micra, a global subcompact. The Micra, which is also
the first vehicle derived from the new V-platform, is
destined for the Indian market as well as for export
to over 100 countries in Europe, the Middle East,
and Africa. In 2011, the plant will start production
of the Renault Koleos and Fluence, both destined
for the Indian market.
A versatile plant
Intended to manufacture a variety of car models,
the new plant must be able to operate flexibly and
quickly adapt to changes in model lineup and pro-
duction capacities. While the production equipment
for the new plant was delivered by line builders from
all over the world, Renault-Nissan opted for a highly
standardized solution in terms of production auto-
mation. In several of its plants, such as in Batilly in
France, Renault had already implemented automa-
tion solutions based on the SCUBE concept (see
sidebar) developed in coordination with Siemens,
and had achieved good results with this approach.
So consequently, Renault-Nissan also opted for
SCUBE as the basis of the automation technology to
be deployed in the new Chennai facility. Siemens
provided state-of-the-art standardized automation
solutions for all its shops in vehicle operation and
powertrain assembly lines. The result was a plant
that not only was rapidly built, but quickly produced
a high-quality product.
One standard for automation
Siemens manufactured and delivered the standardized
cabinets to the line builders in Korea, Italy, and China
that were contracted for the Chennai facility. Conse-
quently, all shops in the new plant use a uniform
automation architecture that greatly simplifies both the
training of staff and the maintenance of the produc-
tion technology. The reduced product variety requires
lower spare parts inventory and this also leads to
lower training effort for the maintenance staff.
The automation architecture is based on Siemens
products throughout: Simatic controllers at the pro-
grammable logic controller (PLC) level, Simatic panels
for operation and monitoring, Sinamics and Simotion
drive systems, Sirius switching products, and Scalance
communication devices. Simatic WinCC flexible is
used for visualization tasks. The communication in
the plant is based on Industrial Ethernet and Profinet,
with Profisafe for safety communication. All shops
use Siemens cabinets built to the SCUBE standards –
Siemens delivered more than 100 of them. These
include control cabinets, which Siemens installed.
Siemens also delivered the line builders.
The body shop in the plant is a good example of how
the automation standard is deployed. The entire
body shop is controlled through a main operating
panel (MOP) as defined in the SCUBE standard,
» The service and support we
have received in India from
the local Siemens team has
been excellent. «
Paul Morris, Head of Maintenance Department,
Renault Nissan Automotive India Pvt Ltd., Chennai
S C U B E
The SCUBE concept is based on a structured and modular automation
concept and also integrates fail-safe functions into one uniform architec-
ture. SCUBE uses standardized software and hardware:
Simatic S7-300 PLCs3
Simatic HMI devices3
Simatic Industrial PCs3
Microbox PCs for embedded control3
Sinamics G120/G120 D as standard motor converters3
Safety Integrated3
Additional standard components:
Sirius circuit breakers for standard and specific handling applications3
Simatic RFID read/write devices and data tags3
Scalance components for networking and communication3
The automation and HMI units are all contained in standardized cabinets,
always using identical interfaces, installation, and design. Depending on
the extent of the required functionality, every manufacturing unit or zone
is equipped with suitable versions of the specified operator panels.
12. 12 move up | 1-2010
info
contact
www.siemens.com/automotive
sudhir.bachloo@siemens.com
which utilizes a Simatic S7-300 fail-safe PLC. This
PLC controls all processes in the body shop and
connects to the drive control system via Ethernet, I/O
modules in a Siemens Microbox PC 42x, a Siemens
Scalance Switch, and an ET 200S distributed I/O
system.
Each zone within the body shop can be controlled
with an HMI suboperator panel (SOP). All cabinets
are supplied by Siemens according to the SCUBE
standard. Each zone cabinet contains an ET 200S
with a frequency inverter. Each zone also has a
converter cabinet for the transfer station, which
contains an ET 200S, and a Sinamics G120 frequency
converter for the drive plate. Zones 1 and 2 also
have a converter cabinet for the slat conveyer, which
also contains an ET 200S and Sinamics G120.
Excellent position for a growing market
Thanks to the standardization achieved by using the
SCUBE approach, both the project execution and the
commissioning of the equipment in Chennai were
completed in a very tight time frame, speeding up
overall project execution. The uniform architecture
simplifies training, and systems are easier to main-
tain. Moreover, the standardized architecture also
has significant benefits in terms of future modifica-
tions and expansion projects: because the entire
structure is modular, it can be easily expanded.
Renault-Nissan was pleased with the plant build time
and local support from Siemens, as Paul Morris, head
of the maintenance department at Renault Nissan
Automotive India Pvt Ltd. in Chennai confirms: “The
service and support we have received in India from
the local Siemens team has been excellent.“
After just 20 months, the greenfield automotive
plant has started production. It is one of the most
advanced facilities in India in terms of automation,
and consequently in terms of performance and
productivity quality. At the plant inauguration cere-
mony on March 17, 2010, Chairman Ghosn said, “This
is the first Renault-Nissan alliance plant, and using
Renault’s production method. The plant will be a
clear benchmark for the future.” Renault-Nissan is
already benefiting from the mature technology of
Siemens and the SCUBE standard: a proven, state-of-
the-art automation solution, successfully deployed at
Renault in several plants and now also at Renault-
Nissan in India, that offers operational benefits and
can easily be expanded to serve the growing auto-
motive market in India. p
Industrial Ethernet level 2
Industrial Ethernet level 0
Industrial Ethernet level 1
Zone 2
Sinamics
G120
Drive plate
SOP HMI
ET 200S with
frequency inverter
Converter cabinet for transfer station
Zone cabinet
ET 200S
Sinamics
G120
Drive plate
Converter cabinet for slat conveyor
ET 200S
Zone 3–4
Sinamics
G120
Drive plate
SOP HMI
ET 200S with
frequency inverter
Converter cabinet for transfer station
Zone cabinet
ET 200S
Zone 2
MOP
Sinamics
G120
Drive plate
SOP HMI
ET 200S with
frequency inverter
Converter cabinet for transfer station
Zone cabinet
ET 200S
Sinamics
G120
Drive plate
Converter cabinet for slat conveyor
ET 200S
Flat panel
PC 42x
S7-300
CP343-1 lean
Scalance
switch
ET 200S
C o v e r E m e r g i n g M a r k e t s
13. move up | 1-2010 13move up | 1-2010 13
C o v e r E m e r g i n g M a r k e t s
info
contact
www.siemens.com/automotive
jan.maser@de.pwc.com
liang.cheng@de.pwc.com
Emerging market trendsp
Taking the Wheel
Both India and China have enormous rural
populations alongside comparatively affluent
middle classes. Car ownership among the
middle classes is growing fast, creating strong
markets for the automotive suppliers operating in
the regions. However, these markets will be dwarfed
by the opportunities to be unlocked as the rural
populations start to embrace car ownership. Here
the similarity ends, as the two countries are taking
quite different approaches in developing their auto-
motive industries. Russia presents quite a different
challenge.
Russia: challenges and opportunities
Russia has a mature industrial economy, but its
domestic producers have aging product lines. The
global financial crises hit the Russian manufacturers
hard, causing a massive decline to just 650,000
vehicles produced in 2009. However, the domestic
suppliers are fighting back, forming relationships
with global brands (e.g., AvtoVAZ with Renault-
Nissan) to update their product lines and better
compete with incoming global products.
Low-cost models for rural India
India produced 2.4 million light vehicles (LVs) in
2009 and is forecast to increase production to
5.8 million by 2016.
Most Indian car production is destined for the do-
mestic market, and many OEMs, led by Volkswagen-
Suzuki and Tata, are now targeting rural India. They
are introducing very low-cost models such as Tata’s
Nano to lower the bar to car ownership.
China eyeing world markets
China has a very strong domestic manufacturing
sector with brands such as BYD, Chery, and Geely
growing sales by about 62 percent during 2009. But
the Beijing government has its sights on interna-
tional markets and is following a strategic plan for
The economies of Russia, India, and China contain automotive sectors of great
importance to those countries and the surrounding regions. In its Autofacts reports,
PricewaterhouseCoopers reveals that each has its unique characteristics and
prospects for the future.
consolidation of the domestic auto industry into 8 to
10 large Chinese automakers, each capable of sus-
taining production of 1–2 million units and ready to
compete on the world stage.
As different as their markets and automotive industry
landscapes may be, Russia, China, and India have one
thing in common: automakers there are looking for
innovative solutions that can help them increase their
productivity and production quality. With tailored
automation solutions, these goals can be reached
more easily. Consequently, investments in equipment
and technology have also seen significant growth in
the last years, and will continue to do so. p
China
Developing Asia-Pacific: Light Vehicle Assembly
Outlook by Country
2009 vs. 2016 (Millions)
India
Thailand
Indonesia
Malaysia
Pakistan
Taiwan
Philippines
Vietnam
0.0
Source: Autofacts Q2/2010 Data Release
2016
2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0
20090.1
0.1
0.1
0.1
0.1
0.3
0.3
0.4
0.7
0.5
0.8
0.9
2.7
2,4
5.8
11.0
19.0
0.2
14. Volkswagen Indiap
Global Partners
The plant in Pune is an important milestone
for Volkswagen as the company further
strengthens its position in India – Volkswagen
has invested around €580 million in the site. This
makes the plant the largest investment project ever
undertaken in India by a German company. As the
only production facility to be operated by a German
car manufacturer in India, it encompasses the entire
production chain, from the press shop, body shop,
and paint shop to final assembly.
The new greenfield plant took only 18 months to
complete, which was around 9 months less than
originally anticipated. Construction of the plant
began in the second half of 2007, and it was offi-
To achieve the high standards that are the norm throughout its plants,
Volkswagen chose capable and tried-and-tested technology partners –
such as Siemens – for equipping its new manufacturing plant in India.
cially inaugurated on March 31, 2009. It was pri-
marily thanks to the exceptionally close collaboration
between the planning department in Wolfsburg and
the individual technology partners on-site that such
a disciplined approach to project execution was even
possible.
Prior to the project, Volkswagen made a deliberate
decision to work with partners it had gained previous
experience with and that consequently knew pre-
cisely where the priorities lay for a Volkswagen plant.
The close global collaboration between Volkswagen
and Siemens goes back many years, which in itself
provided a solid basis for successfully integrating
Siemens products into the India project. However,
14 move up | 1-2010
C o v e r E m e r g i n g M a r k e t s
The new
automotive
plant in Pune
15. one of the key factors that swung the argument
firmly in favor of reprising the collaboration in India
was the potential to standardize the products across
the entire production cycle. In Pune, as elsewhere,
Volkswagen could therefore keep employee mainte-
nance training to a minimum and warehousing costs
down.
Single-source automation
The automation solution in Pune is based on tried-
and-tested Simatic components. Each of the three
production workstations is equipped with a fault-
tolerant Simatic S7-300 F controller, which is con-
nected to the Simatic ET 200S distributed stations
and the Simatic panels via Industrial Ethernet to
allow networked operation. The controllers are
linked to one another via Profisafe. This architecture
enables fail-safe signals to be transmitted via a bus
system in parallel with the conventional communica-
tion channels. Communication between the individ-
ual CPUs takes place via a PN coupler. This coupler in
turn interlinks the subnetworks that belong to the
various workstations. The production level is con-
nected to the network of the production building
and the visual display via Industrial Ethernet. A
Simatic panel PC serves as the master computer for
visualization and welding and enables the operator
to gain a quick overview of the production process.
Optimum support on-site
From the early days of the project, the team was
keenly focused on ensuring that each operation be
completed either on schedule or, in some cases,
ahead of schedule. This represented a huge chal-
lenge for everybody involved on-site – one that,
according to Klaus-Dieter Goern, head of mainte-
nance at Volkswagen in Pune, they “succeeded in
overcoming because of the effective cooperation
with the various planning departments at Volks-
wagen headquarters and with the system manu-
info
contact
www.siemens.com/automotive
rainer.friess@siemens.com
move up | 1-2010 15
facturers, including Siemens – and what’s more,
the project was conducted in line with all quality
requirements and safety regulations.” Goern con-
tinues, “Thanks to Siemens’ presence in India, there
were always plenty of specialists on hand to assist
in all kinds of areas. The support we received from
Siemens was, without exception, extremely effec-
tive.” Siemens will continue to act as a partner of
Volkswagen when the system is in operation. Not
only is the complete range of spare parts readily
available from in-house production through the
company’s Indian subsidiaries, but there is also
guaranteed on-site support from specialists who can
be called in on short notice, thus enabling a fast and
effective exchange of information – whether the
issue concerns a technical problem, further develop-
ment of the production technology, or a production
changeover. Volkswagen is therefore in no doubt
that it was right to choose Siemens as its automa-
tion partner, and the company remains open to the
prospect of new ideas and projects in the future.
“We feel certain that our decision to work with
Siemens was right, and so far we haven’t recorded a
single defective component since the start of pro-
duction,” concludes Goern. p
VolkswagenPune
Industrial Ethernet
Simatic CPU
319F-PN/DP
Panel PC Mobile
panel
ET 200S
PN coupler
Switch
Industrial Ethernet
Simatic CPU
319F-PN/DP
Panel PC Mobile
panel
ET 200S
PN coupler
Switch
Industrial Ethernet
Simatic CPU
319F-PN/DP
Panel PC Mobile
panel
ET 200S
PN coupler
Switch
Profisafe
Workstation 1 Workstation 2 Workstation 3
Building network
Industrial Ethernet (fiber optic)
Panel PC
Master control visualization
and welding
LED display
The automation architecture of the welding and assembly line
T h e a u t o m a t i o n t e c h n o l o g y
The automation technology structure in the
three workstations in the Pune plant is identi-
cal in each case and comprises the following
components:
Simatic S7-300 with CPU 319F-33
Simatic ET 200S3
PN coupler3
Panel PC3
Mobile panels for on-site operation3
The individual programmable logic controllers
are interconnected via Profinet with Profisafe.
An optical Industrial Ethernet network serves
as the main building network.
»We feel certain that our decision
to work with Siemens was right.«
Klaus-Dieter Goern, Head of Maintenance at Volkswagen in Pune
16. 16 move up | 1-2010
The Mahindra Group’s Automotive Division is
India’s fourth largest manufacturer of four-
wheeled vehicles and the country’s second
largest independent OEM. The company manufac-
tures and markets utility vehicles and light commer-
cial vehicles, including three-wheelers. It has led the
market in utility vehicles in India since its inception
and currently has about half of India’s utility vehicle
market. A strong product portfolio and a philosophy
of customer satisfaction have driven robust growth
in domestic sales (19 percent compound annual
growth rate) over the past four years. The company
employs over 10,000 people.
Mahindra’s Automotive Division views innovation
and customer delight as the keys to continued
growth. The company strives to bring new models to
market sooner and to create more product variants.
It also works to improve its ability to operate at
multiple sites in multiple countries in developing its
vehicles.
Broadly implemented PLM
Since 1998, Mahindra’s Automotive Division has
been using product lifecycle management (PLM)
technology from Siemens PLM Software to address
these challenges and to ensure a product develop-
ment environment in which innovation thrives.
Specifically, Mahindra uses Teamcenter to enable
lifecycle data support, platform and variant manage-
ment, multisite data notification and synchroniza-
tion, change management and support for con-
current development, project execution and
monitoring, internal value chain support, and sup-
port for business partners.
This solution was chosen based on the breadth of
Teamcenter functionality. The installation, which
was carried out in phases, required minimal customi-
zation and was performed by an internal PLM Auto-
Automotive Sector, Mahindra & Mahindra Ltd., Indiap
Bringing Innovation
to Market Faster
Siemens Teamcenter helps the Mahindra Group’s Automotive Sector
substantially reduce development time, so it can continue to delight
customers with product innovation.
C o v e r E m e r g i n g M a r k e t s
17. move up | 1-2010 17
motive Sector team using implementation method-
ology and assistance from Siemens PLM Software.
Teamcenter has now been installed in eight loca-
tions, with 700 people using its collaboration func-
tionality, 100 using its project management func-
tionality, and 1,000 using it for engineering-related
activities.
Today, Mahindra has a seamless, integrated environ-
ment for new platform development. Using Team-
center, Mahindra has achieved multisite and multi-
CAD interoperability with complete project security
and concurrent design across multiple locations.
CAD, product, project, and process data are man-
aged in a single information vault. CAD data are
available to each site on a real-time basis, and the
company can now perform packaging studies and
clearance analyses across different CAD systems.
Using the JT format and Teamcenter’s visualization
capability helps advance the company’s goal of
eliminating 2-D drawings.
Compelling, documented benefits
Mahindra credits many improvements to the use of
Teamcenter. The company has seen an increase in
productivity per employee. It attributes this to effec-
tive document management and to automation of
routine tasks, releasing personnel to perform their
primary tasks. Activities such as manual CAD data
conversion have been eliminated.
In the design arena, engineering change time and
the time to resolve project concerns have both
dropped by 50 percent due to improved collabora-
tion. Analysis preparation time has decreased by 40
percent, and digital mock-ups can be created twice
as fast due to the real-time multi-CAD data integra-
tion and release management handled by Teamcen-
ter. The time to create bills of materials (BOMs) for
prototypes and variants has also been cut in half.
“For the company as a whole, what Teamcenter
means is a huge reduction in the time needed to
bring a new vehicle from concept to launch,” says
Prakash Deshkar, deputy general manager, IT,
Mahindra & Mahindra. Thus far, Teamcenter has
reduced that time frame by 25 percent. For future
projects, the company predicts a reduction of as
much as 40 percent. p
»For the company as a whole, what
Teamcenter means is a huge reduction in
the time needed to bring a new vehicle
from concept to launch.«
Prakash Deshkar, Deputy General Manager, IT, Mahindra Group’s Automotive Division
courtesy
info
contact
Corporate Communications,
Mahindra & Mahindra
www.siemens.com/automotive
vivek.marwaha@siemens.com
K e y p o i n t s
As a customer-centric company, Mahindra &3
Mahindra’s Automotive Sector wanted to
bring new models to market sooner, while
increasing the number of product variants
Siemens Teamcenter decreases development3
time through knowledge capture and reuse;
multisite, multi-CAD data interoperability;
concurrent design across multiple facilities;
and the automation of routine tasks
Mahindra has seen a 25 percent reduction in3
the time from concept to product launch; the
engineering change cycle cut in half; quicker
resolution of concerns; and bill of materials
creation in half the time as a result
Mahindra is a market leader in utility vehicles in India
Allphotos:Mahindra&Mahindra
18. 18 move up | 1-2010
From its formation in 2001, the Zhejiang Geely
Holding Group Co. Ltd., headquartered in
Hangzhou, has grown to become a major car
producer, with manufacturing facilities in eight
locations across China. The plants in Linhai, Ningbo,
Lugiao, Shanghai, Lanzhou, Xiangtan, Jinan, and
Chengdu have a total annual capacity of 400,000
vehicles. Geely also has complete-knock-down (CKD)
assembly plants overseas in several countries,
including Ukraine, Russia, and Indonesia. The com-
pany has set its sights on manufacturing two million
vehicles annually by 2015, with two-thirds of this
capacity being planned for export outside China. To
achieve these goals, Geely is transforming its prod-
uct lineup from the previous utilitarian designs to
high-specification vehicles meeting world-class
standards for quality and safety. Through the auto-
mation and integration of production processes,
Geely enabled its manufacturing plants to reach
best-in-class automation levels. World-leading auto-
mobile component manufacturers who are working
with Geely to achieve these standards have become
important suppliers to the Geely production lines.
To improve the efficiency of its car manufacturing
facilities, Geely opted for a Totally Integrated
Automation (TIA)-based solution.
A new approach for a new plant
In the paint, body, assembly, and press shops in the
old plant located at Ningbo, each process had its
own stand-alone control system. These systems
came from several different suppliers. Consequently,
the maintenance teams had difficulty compiling
real-time consolidated manufacturing data. To
overcome this limitation and upgrade the Ningbo
plant, a project team was established in 2007 and
the planning phase began. In 2008 Siemens Ltd.
China was invited to join the team, advise on state-
of-the-art automation concepts, and generate inte-
grated solutions meeting Geely’s budget and
intended degree of automation.
A highlight of the project was the teamwork between
the various groups, especially in the area of the body
shop, where Chinese and Japanese OEMs were
involved. All were requested to use products speci-
fied by Geely, with Profibus as the communication
network. The body shop’s electrical system consists
of three units: main body, side body, and conveyor
units. In the main body unit, over 10 robots are
employed for the key quality control points in the
welding process and complete up to 700 welding
spots. The robot controller, with a Profibus interface,
both enables the OEMs to integrate their products
into the system much more easily and efficiently and
guarantees real-time data transfer with peripheral
devices. In the side body unit, field inputs and out-
puts are collected by Simatic ET 200 distributed I/O
systems. The systems are suitable for various types of
applications and industrial environments and enable
third-party devices for safety applications to be linked
via Profibus. The workers on-site monitor the manu-
facturing processes via Siemens TP170 touchpanels
located alongside the production line. In the con-
veyor, Siemens MM440 frequency inverters drive the
motors for conveying and lifting. For the vehicle
identification system (VIS), Geely has for the first
time applied a Simatic RF300 radio-frequency identi-
fication (RFID) system in place of the previous bar-
code system. Using the VIS with RFID, materials are
Allphotos:Geely
Zhejiang Geely Holding Group Ltd., Chinap
The Next Level
Geely equips its plants with Simatic factory
automation to move up to the world stage.
C o v e r E m e r g i n g M a r k e t s
19. move up | 1-2010 19
supplied just in time. This enables Geely to achieve
better stock control and lower materials costs, giving
a fast return on the investment in the RFID system.
At the controller level, three Simatic 317-2DP pro-
grammable logic controllers (PLCs) are responsible
for controlling the manufacturing processes in the
main body, side body, and conveyor units. The
large-scale data communication between the PLCs
routes via Industrial Ethernet, and a DP/DP coupler
facilitates the transfer of real-time data. With dual
Simatic PLCs with WinCC servers (for redundancy)
and multiple client PCs linked via Industrial Ethernet,
operators can monitor the manufacturing process
and status of signals and alarms at any location
throughout the plant.
Satisfied with the results
Tang Sheng Guo, general manager of the body shop
at Geely Ningbo, is very satisfied with Siemens. He
said, “It is important for Geely that the quality of
Simatic, Sirius, and Micromaster products is good
and that the Siemens system concept meets Geely’s
budget and degree of automation.” Tang added that
“Siemens provides good communication, strong
technical support, and close coordination between
Geely and different OEMs, even those located over-
seas.”
On the question of training and technical support,
he said, “We greatly appreciate that the technical
training and documents for Simatic, Sirius, and
Micromaster are all in Chinese
and that ongoing technical
support and workshops are
provided by Siemens’ local
offices close to Geely.” Follow-
ing the successful Ningbo plant
project, Geely used Siemens
automation products and solu-
tions to equip its second new
car plant located at Cixi city
(near Ningbo city), Zhejiang
Province, with a capacity of
150,000 cars per year.
Geely will employ its advanced plants at Ningbo and
Cixi to manufacture the new flagship Emgrand series
of cars, sport-utility vehicles, multipurpose vehicles,
and high-end pickups. The company associates its
new Emgrand brand with the core values of “Chinese
wisdom, world quality.” With technology from
Siemens, the plants at Ningbo and Cixi are ready to
produce cars to reflect these core values. After the
Cixi plant comes fully onstream, Geely plans to build
a series of additional greenfield car plants in various
cities. Siemens, with Simatic, is ready to support
Geely in these expansion plans. p
info
contact
www.siemens.com/automotive
wei.ch@siemens.com
stephen.sung@siemens.com
From left: Li Ping,
Yang Xiao Hong, Tang
Sheng Guo, Hua
Ming, Ma Xin Hua
System architecture of
the Geely Ningbo body
shop plant
Industrial Ethernet
Profibus
Distributed I/Os Distributed I/Os
DP coupler
MES SCADA
Press shop
server
Main body
process
control
S7-317-
2DP
HMI
Side body
process
control
S7-317-
2DP
HMI
Profibus
Conveyor
control
S7-317-
2DP
HMI
ASM456
RF300
reader
RF300 tag
MM440
MotorsRobots
Data
server
Paint shop
server
Data
server
Body shop
WinCC server
(redundant)
Switch
WinCC client
Application
server
20. 20 move up | 1-2010
Beijing Foton Cummins Engine Co., Chinap
Keys to Success
Solutions for Powertrain – Transline is a special
integrated solution for the automobile indus-
try. The solution is based on modularization
and standardization. It is broadly used in the power-
train field and has already set a standard for power-
train customers. Transline is successfully used in a
Foton-Cummins engine project to produce two types
of Cummins light-duty, high-performance diesel
engines in a Beijing manufacturing plant.
The plant has an annual capacity of 400,000 units
and will produce Cummins 2.8-liter and 3.8-liter
diesel engines, which will meet worldwide emission
standards, including Euro IV and Euro V. The project
is based on a joint venture between Beiqi Foton
Motor Company and Cummins Inc., forming Beijing
Foton Cummins Engine Company Limited (BFCEC).
BFCEC represents a further expansion of Cummins’
product line in China, where the company is already
the leading foreign producer of heavy-duty and
mid-range diesel engines. While Cummins is a lead-
ing diesel engine supplier, Foton Motor is a strong
player in China’s commercial vehicle industry.
Smooth integration within existing
technology framework
BFCEC decided to support the new manufacturing
lines and processes by implementing Solutions for
The tools provided by Solutions for Powertrain – Transline give the management of
the Chinese automaker confidence in high machine and plant availability as well as
optimal productivity.
Powertrain – Transline from Siemens. The solution
was chosen partly because of its many successful
installations around the globe. This gave the man-
agement confidence in Siemens’ technology and
deployment expertise. The company also preferred
Siemens’ extensive process management functional-
ity as well as its ability to work with the company’s
range of product information formats. In addition,
the flexibility of Transline was important to ensure
smooth integration within BFCEC’s existing technol-
ogy framework. The Transline concept decreases
technical risk and complexity and enhances the
ability to manage change. The project included a
cylinder head machining line, a cylinder body
machining line, and an engine assembly line.
The machine centers for the machining line from
MAG are equipped with Sinumerik 840D. The drive-
based control system offers graduated performance,
from simple positioning tasks to complex machining
processes. Safety functionality provides reliable
personnel and machine protection without addi-
tional monitoring devices.
The assembly-line equipment from Dalian Haosen is
supported by a Simatic S7-300 controller. This pro-
grammable logic controller (PLC) is also integrated in
the Sinumerik 840D CNC systems. With performance
from various central processors, the system is capable
C o v e r E m e r g i n g M a r k e t s
21. move up | 1-2010 21
info
contact
www.siemens.com/sinumerik
voss.carsten@siemens.com
Transline minimizes
the total cost of op-
eration through its
modular automation
concept based on
standard hardware
BeijingFotonCumminsEngineCo.
of resolving complex control tasks. Handling is sim-
plified by integrated functions such as automatic
parameterization, expanded diagnostic options,
passwords, and ease of assembly.
For identification, the machining line uses the
Simatic VS 130-2 vision sensor system, while the
engine assembly is equipped with the Simatic RF300
radio-frequency identification (RFID) system. The
uniform Siemens technology solution yields enor-
mous benefits in terms of standardization. For
example, Foton-Cummins can work with just one
engineering tool for the PLC in the machining and
assembly lines.
Solutions that fit individual needs
The Solutions for Powertrain – Transline automation
concept is custom made but at the same time based
on proven yet innovative standards. It has been
developed specifically for mass production in the
powertrain field of the automotive industry. The
modular design concept principally manifests itself
in quicker commissioning, minimized spare parts
requirements, efficient service, lower training costs,
and a more flexible labor force. For example, the use
of a component list reduces the number of automa-
tion components employed, thereby also minimizing
the necessary spare parts stocks. Standardized
interfaces greatly facilitate data communication with
the control level, while uniform operating screens
lend all control panels a consistent look and feel.
The Transline concept also addresses project
management, which relieves customers of time-
consuming coordination work, as well as providing
services for the entire operational phase, leading to
sustainable cost reduction and higher availability
and productivity. The Siemens joint venture Siemens
Factory Automation Engineering Ltd. (SFAE), with
its well-trained service engineers, is very close to
its customers to ensure this availability and produc-
tivity.
Solutions for Powertrain will not only improve prod-
uct quality but also reduce project lifecycle costs and
time to market. At the same time, it will also provide
the company with the high level of efficiency neces-
sary to succeed in an increasingly competitive mar-
ket. The management believes that the successful
implementation will be the foundation for long-term
collaboration between Siemens and BFCEC. p
K e y p o i n t s
Optimum project management3
eliminates time-consuming
project coordination by the
customer – for higher availability
and productivity
Customized solutions based on3
standard modules – for faster
commissioning, reduced spare
parts requirements, and more
efficient servicing
One contact person – from3
design to commissioning and
start-up to operation – for global
deployment
Reduced total costs of operation3
through building engineering
and operation staff know-how,
as 80 percent of costs are caused
by spares and service and
support
22. 22 move up | 1-2010
Worldwide Contacts
Always Close
Across 13 countries, the Siemens account managers
for the automotive industry are always available as
a central contact point. They handle all matters
related to the global production processes of their
automotive accounts. Every account manager has
excellent process expertise and offers the entire
portfolio of Siemens services from a single source.
Working as team members with other experts, the
account managers develop the right strategy, con-
nect all necessary contacts on-site, coordinate the
implementation, and ensure that the project is
executed smoothly and rapidly.
Anticorruption Alliance
Collective Action
To make a positive change to the corrupt envi-
ronment in the global markets, Siemens is partic-
ipating in alliances against corruption, through
what is termed Collective Action.
There are various forms of Collective Action. With
Compliance Pacts, for example, competitors
reach an agreement on long-term anticorruption
initiatives. Then there are Integrity Pacts, which
involve contractors speaking directly or indirectly
to other potential contractors to conclude project-
specific alliances. An independent organization
supervises all processes, from the invitation to
tender through to the conclusion of the contract,
and ensures that everything takes place under
transparent and fair business conditions. In
Country Name Contact
France Marc De Volder marc.devolder@siemens.com
Korea Hyung-Mo Koo hyungmo.koo@siemens.com
Canada Karl-Philippe Clement karl-philippe.clement@siemens.com
United States Timothy Shepherd timothy.shepherd@siemens.com
Japan Yuji Hirai yuji.hirai@siemens.com
Brazil Rolf-Peter Hofmann rolf-peter.hofmann@siemens.com
India Nitin Nair nitin.nair@siemens.com
Spain Javier Pizarro javier.pizarro@siemens.com
Mexico Hans-Albert Ratzka hans.ratzka@siemens.com
Republic of
South Africa
Martin Taverner martin.taverner@siemens.com
China William Cui weiguo.cui@siemens.com
Russia Dmitry Matveev dmitry.matveev@siemens.com
Great Britain Stuart Moran stuart.moran@siemens.com
Sweden Micael Amandusson micael.amandusson@siemens.com
addition, all persons involved commit to accept-
ing sanctions should a breach of contract occur.
“Many customers and competitors have already
united with Siemens within the framework of
Collective Action,” explains Joerg Flath, Siemens
Compliance Officer for the Industry Automation
and Drive Technology divisions.
Flath cites the example of the tender to expand
Berlin-Schönefeld airport: “The value of this
particular tender was around €2.5 billion. On the
initiative of the mayor of Berlin, Siemens con-
cluded an Integrity Pact with its competitors. This
guaranteed fair competition and transparent
processes.”
You can find out more about Collective Action
from the contact for the Industry Automation
and Drive Technologies divisions:
Dr. Joerg Flath
IA&DT Compliance Officer
Tel: +49 (911) 895-5769
E-Mail: joerg.flath@siemens.com
I n B r i e f
SiemensAG
24. 24
Industrial identification with SIMATIC Ident: perfect solutions
for all requirements – with flexible expansions any time.
Answers for industry.
What optimizes your individual automation
steps today and your entire company tomorrow?