What to think about...

Automation has completely changed how we think about manufacturing processes. Previously, manufacturers could depend on having a skilled labor pool to deliver many capable people to build their products. Recently with many of those same workers retiring or leaving the work force, manufacturers need to pivot. Automation typically is their preferred compass point. 

Since 2008's recession, automated manufacturing has been growing exponentially across all industry markets. It is safe to say that the past fifteen of growth has proven that automation is here to stay. 

For some businesses, their survival depends on it. As the work force dwindles  for a multitude of reasons, these companies must adapt and overcome. If you're considering automating your processes, please read on and consider the factors below. 

Automated vs. Manual Labor...

Overall cost is the most common starting point. Start by clearly defining your goals and indicators to track your progress/success. These may include: Profit Targets, Scrap Rates, Rework, or Uptime/Downtime ratios. These indicators are data based benchmarks you can refer to while determining if automation is best for your process.

Next collect as much data regarding all of the costs associated with Manual Labor and Automated Processes.

Costs of Manual Labor:

• Wages (wage inflation)

• Training (non-wage benefits)

• Worker's Compensation Insurance

• Payroll Taxes

• Auxiliary Safety Equipment

Managers also need to consider the following intangible costs too. These costs are harder to quantify but they are just as critical data points in your decision making process.

• Human Error

  • Safety Risk 

  • Product Loss/Rework

  • Lower production rates

Automated Process Costs:

• Up-front hardware and software investment including installation.

• Operator Training and Wages

• Ongoing Maintenance

• Planned/Unplanned stoppages for change overs in flexible automation systems

Automated processes come with fewer unknowns/intangibles. They may not be better nor more cost effective processes. They can help businesses reduce their overall workforce maintenance costs due to high employee turn over rates and redundant training. Automated processes allow businesses to redirect their workforce into tasks where they can thrive.