The company selected by the Brazilian Association of Technical Standards (ABNT) for this study, Festo Brasil, is a subsidiary of Festo AG, a leading German worldwide supplier of automation technology and solutions. Several initiatives potentially contribute to the growth of the automation industry in Brazil, including a large loan programme by the National Bank for Economic and Social Development (BNDES), and tax cuts for capital goods. The oil and gas, sugar and alcohol, mining and steel, automotive, paper and cellulose sectors continue to represent a high demand for automation solutions and products. Festo covers the entire domestic market via 125 service points, providing complete solutions in automation for over 30 000 clients. The company also exports its products to other Festo subsidiaries and to its German parent.
The assessment focuses on the Procurement, Production/operations, and Engineering functions. The procurement process for standards-based metals is estimated five times quicker than that for non-standards-based metals. On average, standards-based goods cost 30% less than non-standard-based goods. A mix of measures introduced through the standards-driven continual improvement process has allowed savings in production costs of around 13% of the total production costs for 2010. For the engineering function, benefits concern savings in design time for the engineers, reduction in project time and related work, reduced time-to-market, improved communication and increased reliability of new products' manufacturing. The contribution of standards to the company EBIT has been estimated at around 1.90% of the total company turnover.