4 Extreme Efficiency Through Automatization

E mer gi ng Ma na ge rs

Mr. Vaibhav Joshi Kirloskar Institute of Advanced Management Studies, Pune

E xtr e me E ff i ci enc y T hr o u gh A ut o ma t i z at i o n

Research from McKinsey shows that up to 50% of with automation than with the corresponding all work performed today can already be automated manual operations. with currently available technology. Automation is the creation and application of technologies to 2. High cost of labour: The trend in the produce and deliver goods and services with industrialized societies of the world has been minimal human intervention. The implementation toward ever-increasing labour costs. As a result, of automation technologies, techniques and higher investment in automated equipment has processes improve the efficiency, reliability, and/or become economically justifiable to replace manual speed of many tasks that were previously operations. The high cost of labour is forcing performed by humans. business leaders to substitute machines for human Automating internal processes throughout your rates of output, the use of automation results in a business can save money and increase overall lower cost per unit of product. efficiency. For industrial and heavy Industries such as manufacturing, construction, and the energy 3. Labour shortages: In many advanced nations sector, many companies are now exploring there has been a general shortage of labour. Labour automation possibilities beyond the production shortages stimulate the development of automation line. as a substitute for labour.

Reasons for Automating: 4. Safety: By automating the operation and 1. Increased productivity: Automation of participation to a supervisory role, work is made manufacturing operations holds the promise of safer. increasing the productivity of labour. This means labor. Because machines can produce at higher transferring the operator from an active greater output per hour of labor input. Higher 5. High cost of raw materials: The high cost of production rates (output per hour) are achieved raw materials in manufacturing results in the need

for greater efficiency in using these materials. The • Computer-aided manufacturing (CAM) refers to reduction of scrap is one of the benefits of the use of computers in the different functions of automation. production planning and control. CAM includes the significant cost to the manufacturer because it ties show up in intangible and unexpected ways, such use of numerically controlled machines, robots, and 6. Improved product quality: Automated other automated systems in the manufacturing operations not only produce parts at faster rates but process. Computer-aided manufacturing also they produce parts with greater consistency and includes computer-aided process planning (CAPP), conformity to quality specifications. group technology (GT), production scheduling, and manufacturing flow analysis. Computer-aided 7. Reduced manufacturing lead time: With process planning (CAPP) means the use of reduced manufacturing lead time automation computers to generate process plans for the allows the manufacturer a competitive advantage in manufacture of different products. Group promoting good customer service. technology (GT) is a manufacturing philosophy 8. Reduction of in-process inventory: Holding creating different manufacturing cells for the large inventories of work-in-process represents a manufacture of each group. up capital. In-process inventory is of no value. It • Numerically controlled (NC) machines are serves none of the purposes of raw materials stock programmed versions of machine tools that execute or finished product inventory. Automation tends to operations in sequence on parts or products. accomplish this goal by reducing the time a work Individual machines may have their own computers part spends in the factory. for that purpose; such tools are commonly referred 9. High cost of not automating: A significant machines. In other cases, many machines may competitive advantage is gained by automating a share the same computer; these are called direct manufacturing plant. The benefits of automation numerically controlled machines. that aims at grouping different products and to as computerized numerically controlled (CNC) as, improved quality, higher sales, better labor • Robots are a type of automated equipment that relations, and better company image. All of these may execute different tasks that are normally factors act together to make production automation handled by a human operator. In manufacturing, a feasible and attractive alternative to manual robots are used to handle a wide range of tasks, methods of manufacture. including assembly, welding, painting, loading and unloading of heavy or hazardous materials, Types of Automation: inspection and testing, and finishing operations.

• Information technology (IT) encompasses a • Flexible manufacturing systems (FMS) are broad spectrum of computer technologies used to comprehensive systems that may include create, store, retrieve, and disseminate information. numerically controlled machine tools, robots, and It is in the area of information technology where automated material handling systems in the most of the more flexible and non-industry-specific manufacture of similar products or components advances are now being made. using different routings among the machines.

• Computer-integrated manufacturing (CIM) that, “Line workers often prefer a high level of system is one in which many manufacturing human involvement over digital tools.” Despite functions are linked through an integrated computer some initial hesitation around adoption, it is network. These manufacturing or manufacturing- predicted that the use of digital tools to automate related functions include production planning and processes and streamline communication will rise control, shop floor control, quality control, in 2020. computer-aided manufacturing, computer-aided design, purchasing, marketing, and other functions. It is expected that there will be increased use of The objective of a computer-integrated automatic scheduling and delivery of targeted manufacturing system is to allow changes in internal media campaigns, work schedule product design, to reduce costs, and to optimize notifications, and read-receipt functions in the production requirements. company, which will further streamline daily operations for the organization. In the past, the industrial sector has been somewhat slow to automate internal processes due to the fact

References:

https://www.beekeeper.io/blog/trends-operations-management/ https://www.wisdomjobs.com/e-university/production-and-operations-managementtutorial-295/reasons-for-automation-9681.html https://www.inc.com/encyclopedia/automation.html