Adding Automation to Factories: A Multi-faceted Initiative – Automation.com

Summary

Automating factories is the way of the future, but it needs to be completed holistically, thoughtfullyand thoroughly to realize all of the benefits.

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.

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.

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.

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 isnt investing in automation now.Or, why werent 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.

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.

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?

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, thoughtfullyand thoroughly to realize all of the benefits.

Shannon Karels (pictured on the right) is a senior operations manager who has led multiple lean transformations and run operations for two large publicly traded corporations across various industries and business models. She started her career in supply chain management and progressed through lean and operations leadership roles. Through this journey, Shannon has improved cultures in numerous manufacturing facilities by leading employee empowerment and engagement, and building highly successful teams, with a focus on business results. Shannon holds a Bachelors Degree in Supply Chain Management from Western Michigan University.Kathy Miller(pictured on the left) is a senior operations executive who has held numerous global vice president and director roles both in manufacturing and lean enterprise leadership. Kathy is a Shingo Prize Recipient for Large Businesses as a Plant Manager. She started her career in Operations as a 17-year-old co-op student at a vehicle assembly plant, and progressed through engineering, marketing, lean, and operations leadership roles, working for four large publicly traded corporations in executive roles. Kathy is a transformational leader who consistently delivers impressive business results through team development, process discipline, and continuous improvement. Kathy holds a Bachelors in Industrial Systems Engineering from Kettering University, MBA from Ball State University and a Masters in Applied Positive Psychology from the University of Pennsylvania. Kathy was inducted into the Women in Manufacturing Hall of Fame in 2021.

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Adding Automation to Factories: A Multi-faceted Initiative - Automation.com