The United States factory automation market is growing, and manufacturers now face an almost perpetual question about their factory automation readiness—whether to introduce or increase automation at their plants.
Many manufacturers in the United States have already begun using factory automation, especially in the industrial Midwest. Whether a manufacturer is just starting their industrial automation journey or taking their next step to further automate their manufacturing process, the considerations are largely the same. Let’s look at steps to determine factory readiness for automation.
1. Assess Productivity
Productivity is a primary criterion for determining whether a manufacturing plant could use factory automation. There are many angles from which to assess productivity. Manufacturers should consider speed, throughput, and overall consistency of the manufacturing process. Are there any bottlenecks in the process? Anything that slows down or hinders flow? How much of the process is manual? Are there any variations or disruptions that cause inconsistencies that lead to slowdowns or an increase in waste? On the flip side of these questions, manufacturers should consider their ideals and what they would like their process to be. They shouldn’t hesitate to consult with their in-house engineers and outside experts to ascertain whether an automation solution would improve their productivity on one or more counts.
2. Review Levels of Automation, Technology, and Infrastructure
As manufacturers assess their productivity and start to glean that industrial automation would likely enhance some or all of their manufacturing processes, they can review levels of automation to see what options may fit in with their business goals, company culture, and overall needs. For example, what would be better: a semi-automatic system, which combines manual and machine-aided systems, or a fully automatic system, which requires no human interaction?
Manufacturers can also look at the age of existing machinery, especially in the light of possible technology upgrades. They can review their current data collection and see where there may be gaps where, for instance, a supervisory control and data acquisition (SCADA) system could supply much-needed information and insight into their manufacturing process. Manufacturers can also take an enterprise-wide view and investigate how additional automation in their manufacturing can integrate with their enterprise resource planning (ERP) systems.
Indeed, keeping up with the latest developments in factory automation technology could offer manufacturers competitive advantages. Additionally, manufacturers should consider possible future uses of automation and expansion, whether at their own facility or beyond. What kinds of automation solutions are flexible, scalable, and reusable so that manufacturers will be supported by their investment both now and in years ahead?
3. Consider Workforce and Training
Another consideration for manufacturers to assess whether they will incorporate new industrial automation into their manufacturing process is workforce readiness—that is, the current labor dynamics of their workforce. Are they short on labor, or are labor costs too high? Automation can help supplement labor shortages by performing tasks that are too hard for humans—repetitive, ergonomically challenging, or even potentially hazardous tasks. It can also supplement human jobs that are expensive to maintain (for example, by reducing the number of unionized workers required). Manufacturers should also consider automation’s impact on current job roles—will any special training or new skills be required once an automation process is introduced? What kind of training will their automation integrator partner provide for workers?
4. Perform a Cost-Benefit Analysis
Adding automation to a manufacturing process necessarily means evaluating the costs and benefits. However, a cost-benefit analysis is not just about numbers; it’s also about strategic alignment and future-proofing operations. It’s essential for manufacturers to be thorough and realistic in their factory automation readiness assessments to make the best decision for their company. Costs include the initial investment—equipment, integration, installation, training, and anticipated maintenance. They should then estimate long-term savings in labor, productivity gains, and error reduction.
Next, they should assess the pay-back period: how long will it take for the automation to pay for itself through the benefits (both financial and non-financial) it generates? Non-financial benefits that ultimately impact return on investment are factors such as equipment scalability and reusability, strategic use of manufacturing floor space, and after-sales support. Other non-tangibles like employee morale, customer satisfaction, and alignment with other business goals are additional benefits to consider in automation readiness.
Finally, manufacturers should double-check the assumptions that undergird their analysis. How would an unanticipated cost increase or an unexpected delay in realizing benefits affect their cost-benefit analysis? Manufacturers should take into account multiple variables to make a final decision on factory automation readiness.
5. Conduct Pilot Projects and Testing
Small-scale projects are often the best place to start for newcomers on the automation journey. That way, manufacturers can test an automation solution in a specific area, monitor performance, adapt as necessary, and learn from the pilot. Pilot results can be used to refine their overall automation strategy in the future.
For manufacturers who have already introduced some automation into their processes, the decision to introduce additional automation will be influenced by the results of their cost-benefit analysis and their previous successes with automation.
Based on decades of experience, we here at Wes-Tech understand that there is no cookie-cutter way to make a decision regarding automation. The factors listed above are general, and individual situations may necessitate further evaluation based on different criteria. Also, take a look at our how-to write an RFQ for an industrial automation project. Contact us for a free consultation to explore your specific circumstances with you and see if your factory is ready for automation.