Adding automation to factories is a multi-faceted initiative. Both the benefits and the challenges are plentiful. The issues associated with the workforce alone are varied and complex. Additionally, there are processes associated with “hidden factories,” those that may not be documented, but do, indeed take place to flow value through an operation. How to characterize the return on investment also requires rational and sometimes creative justification depending on the goal one is hoping to achieve through the automation project(s).
In spite of these challenges, the benefits of automation cannot be ignored, and may, indeed, be just what is needed to have a competitive factory.
Benefits of automation in machining operations
- Talent: Many current manufacturing workforces are of advanced age and seniority, and numerous retirements are impending.
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“Hidden Factories":
Implementing automation may be one of the only ways to eliminate “tribal knowledge” and ensure that processes are captured and performed consistently without the intervention or dependence on the workforce members that know how to progress parts through experience and work-arounds. This means that factors creating variation must be dealt with, instead of compensated for.
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Product quality:
Automated technology will lead to less variation in people-dependent processes, equating to improved quality. For example, older machining equipment typically requires very skilled operators to manually set and check axes multiple times during a process. There may also be some creativity required to properly set up different part numbers. Loading programs into automated equipment requires the operator to choose the right program, but not depend on that operator to set up each and every parameter correctly. This will greatly reduce the incidents in which the dreaded “operator error” arises in problem-solving meetings in which rework or scrap decisions must be made.
Coupled with the challenges in labor availability within the market in general, automation has the allure of attracting the next generation of manufacturing personnel.
Younger generations have been raised in a digital age, and are not intimidated by the advanced technology to the same extent that some of the current generation of manufacturing leaders and operators may experience.
Increased productivity is almost always a result of implementing automation, that is, more value being created with less people.
These are but a few of the benefits associated with automating a factory. Based on these alone, it begs the question as to why every company isn’t investing in automation now. Or, why weren’t investments made in previous years when the gap in skilled labor was first recognized. There can be many answers to these questions; however, in our experience it has been a combination of incomplete knowledge on best application, navigating the capital expenditure process, and, at times, adverse reactions among the workforce, concerned about losing their jobs. Purchasing new automation equipment requires investment, and it competes with other use of limited cash.
Unless there is a clear growth path for the business’ revenue in which automated equipment is a pure capacity increase, extra people are usually generated through the implementation process. If people are not being exited from the business, it can be hard to justify the expenditure. However, if people are being let go, automation projects can be met with resistance. People who remain employed may not have the skills required to maintain or program the automated equipment. Additionally, some of these newly required skillsets are not readily available in the marketplace.
It is a difficult position businesses find themselves in. Also, just because the variation of the process is greatly reduced, does not mean that the quality or availability challenges of incoming material are automatically solved. Many times this must be resolved to fully experience the complete benefits of the automation.
Ways factories can reduce automation implementation challenges
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Create a long-term plan. Three to five years would be an excellent place to start. Depending on the equipment needed, planning capital projects and acquiring the funds, combined with the lead time of the equipment, could take 18 months or longer in some cases. Planning horizons that exceed five years are subject to change as technology progresses rapidly. Understanding what equipment will be retired and what will replace it, the cost and rough benefit of each will be necessary. We suggest replacing unsafe equipment first, then moving toward equipment with higher customer demand to gain the most benefit.
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Examine each piece of equipment and understand which part families could go onto the new automated equipment. Since the cycle times should be significantly less, or the yield significantly better, you may be able to combine demand from multiple pieces of legacy equipment ultimately requiring less machinery and floor space in the new configuration. Perhaps the highest-end, fastest equipment you are considering will ultimately leave too much excess capacity because of the characteristics and demand that can go onto it. In this case, maybe a lower-level piece is a better option?
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Understand the impact on people. Again, with faster cycle times and better quality, fewer people should be required to produce the same value. It would be good if freed up human capacity could be trained to perform other functions in the enterprise such as continuous improvement.
These are a few examples of the challenges and benefits that automation can bring to factories. Automating factories is the way of the future, but it needs to be completed holistically, thoughtfully and thoroughly to realize all of the benefits.