[Report] Smart 'LG Refrigerator'... Achieving 'Mixed Production' Level Where Parts Don't Get Mixed Even When Making Different Products Together

Changwon LG Smart Park Integrated Production Building Process
Whole Plant Parts Process '10 Minutes Before' Simulation
Minimizing Parts Defects and Product Loss (Defects)

A robotic arm installed on the production line of the LG Smart Park integrated production building moving heavy refrigerator parts. (Photo by LG Electronics)

[Changwon=Asia Economy Reporter Moon Chaeseok]

#At the 3rd floor final assembly line of the LG Smart Park integrated production building in Changwon, Gyeongsangnam-do, Automated Guided Vehicles (AGVs) are busy moving around. Controlled by 5th generation mobile communication (5G), the AGVs easily transport 600KG load containers. When a person on the 3rd floor fits the parts lifted by the robots from the 1st floor, a refrigerator is quickly assembled. There is no sight of people struggling as if carrying heavy bags of rice. This is the smart factory proudly showcased by LG Electronics.

On the 6th, at the refrigerator equipment line in the LG Smart Park integrated production building in Changwon, one could glimpse LG’s unique 'mixed-model production' system characteristic of LG smart factories. Mixed-model production refers to LG’s unique production process that saves production time by accurately fitting parts without confusion even when producing different refrigerator models on the same production line. For example, instead of several people separately assembling product A, which takes 2 hours for production, assembly, and inspection, and product B, which takes 2.5 hours, a worker waiting on the 3rd floor line can immediately switch parts as needed.

LG Electronics employees checking the 'Virtual Factory' displayed by the intelligent process system at LG Smart Park. The factory operation status, including refrigerator production, parts, movement, inventory status, and equipment abnormalities, can be viewed at a glance. (Photo by LG Electronics)

The reason mixed-model production is possible is that a 'virtual factory' system that oversees the entire factory is in operation. The core is digital twin technology. By applying this technology, the entire factory’s status can be analyzed every 30 seconds. It is a system that helps supply the right parts at the right time to different product lines. Thanks to this, LG Smart Park can implement 'predictive maintenance' that simulates all processes 10 minutes before any event occurs.

Through predictive maintenance, production lines, parts movement, inventory status, equipment abnormalities, and product production performance can be monitored at a glance. This prevents the occurrence of product loss (defects) caused by mixing parts of product B into product A on the 3rd floor final assembly line. Since no wrong parts are delivered, workers’ production efficiency inevitably increases.

In the LG Smart Park integrated production building, logistics robots (AGVs) based on the 5th generation mobile communication (5G) dedicated network are busily moving around. (Photo by LG Electronics)

In fact, the amount of data collected daily at the LG Smart Park integrated production building reaches a staggering 500GB (gigabytes). Sensors are installed throughout the factory to collect data covering the entire production process. This is about 10,000 times more than the average daily data collection of 50MB on the existing refrigerator production line. It is a system that analyzes massive data in real-time using big data and artificial intelligence (AI) as part of digital transformation (DX). There is no longer a need for workers to manually check product abnormalities or worry about which equipment has problems and how to repair them when defects occur.

As a result, the time to analyze the causes of product defects has been reduced by about 50% compared to before. The actual defect rate on site has decreased by about 30%.

Mixed-model production is currently applied only to the refrigerator production line, but LG Electronics explains that it can be expanded to other home appliances at any time. This is because the refrigerator production process is the most complex among home appliances. Kang Myungseok, LG Electronics’ Advanced Task Leader, explained, "We are prioritizing mixed-model production on refrigerators, which have the most complex line processes with as many as 58 types of doors, and it can be sufficiently expanded to other products."

On the 4th, visitors at the 53rd Korea Electronics Show (KES 2022) held at COEX in Gangnam-gu, Seoul, are examining LG's Dios Objet Collection 'Mood Up' at the LG booth. Photo by Hyunmin Kim kimhyun81@

The increased production efficiency unique to LG, thanks to mixed-model production and predictive maintenance, is recognized worldwide. Mixed-model production and predictive maintenance are also the secrets to LG Electronics’ emphasized 'Customer Experience (CX) management.' For CX management to succeed, all kinds of demanding customer needs must be met. It is difficult to achieve this with 'low-mix, high-volume production' that churns out identical products like fish-shaped buns according to uniform production processes. A high-level DX system must be in place to enable 'high-mix, low-volume production.'

A typical example of LG Electronics’ mixed-model, low-volume production capability is the LG DIOS Objet Collection refrigerator.

LG Smart Park Integrated Production Building exterior. (Photo by LG Electronics)

The world also recognizes LG Electronics’ high-mix, low-volume production capability. In March, LG Smart Park was selected as a 'Lighthouse Factory' by the World Economic Forum (WEF) for the first time among domestic home appliance company factories. This means it was certified for establishing a high-level DX system and a high-mix, low-volume production system. Specifically, it received high scores in five categories: ▲factory logistics automation ▲digital twin technology ▲predictive maintenance system ▲AI platform-based inspection system ▲intelligent production automation. In particular, it was reported that it received a 'top tier' evaluation in the 'intelligent production automation' category, meaning it is at a higher level than other lighthouse factories.

LG Electronics began transitioning to smart factories early in 2017, and by last September, it was able to start related processes on three lines: ▲ultra-premium 'LG Signature' refrigerators ▲Objet Collection and North American French door refrigerators ▲water purifiers.

LG Electronics explains that this is still at a beginner level. By 2025, it plans to expand the integrated production building and upgrade it to a 'Phase 2' smart factory by adding lines for refrigerators, air conditioners, ovens, and dishwashers. The Phase 2 Changwon LG Smart Park will serve as the 'mother factory (core factory)' for 17 global production subsidiaries spread across 14 countries.

LG Electronics stated, "When the Phase 2 Smart Park is completed in 2025, the production system will be fully expanded and applied to global production subsidiaries, and the Changwon Smart Park will serve as the forward base for CX innovation."