Machines in manufacturing have revolutionized production with speed and precision, especially in repetitive operations. Yet decisions about when to automate a manufacturing process are never as clear as we want.
For company owners, the debate over humans versus automation is both philosophical and real – because much of modern manufacturing involves repetitive processes. However, for smaller companies and specialized operations, the trade-offs involving efficiency, cost, space, and skill are often cloudy.
Automation is not simply a choice between people and machines. The real questions are: Which processes benefit from machinery? Which are better performed by people? And where can they work together most effectively?
At Synthesis, we design and build custom machines, so we see the quandary. In our experience, concerns about humans versus automation are often framed incorrectly. Automation is a tool for greater efficiency, allowing employees to expand in other areas and apply skills where they create more value. The important question is: When should you automate a manufacturing process?
Where Are the Opportunities for Automation?
As a company owner or production manager, you already know, intuitively, where the opportunities are. Articulating the need or quantifying the effect is the next step, but we will get to that. Start by identifying the need.
An example from our work is a custom measuring and cutting machine we designed and built. While we cannot discuss the intellectual property of the machine, we will say it measures and cuts lengths of material.
One day, the business owner walked into the shop and found 9 people measuring and cutting material for a job site. 6 were highly paid tradesmen.
He was pleased to see everyone pitching in, but bothered that so many skilled employees were simply measuring and cutting. While it is an important part of the business, it is only needed in occasional bursts – making labor assignments difficult.
With the custom machine we built, the measuring and cutting process is now fast. 2 people can do the work of 9, about 5 times faster. And when not needed, the new machine can sit idle without an ongoing labor expense.
The machine did not displace jobs. Rather, removing the production constraint gave the company capacity to expand without wasting the talent already in the workforce.
This example highlights some interesting points of opportunity. One alone is probably not sufficient, but as the points stack up, the argument for automation becomes more compelling. Here are several to consider.
Key Points Of Opportunity
The things to consider in looking to automate a manufacturing process fall into 3 main categories. Here they are with several minor points as well.
- Increased Efficiency or Quality: Custom machines can operate at high speed, with greater precision, leading to increases in production and lower defect rates. Here are some examples:
- Extended repetitive work that is boring to employees.
- Periodic work that interrupts the normal workflow. (example above)
- Tedious measuring, positioning, fastening, or handling tasks.
- Processes that will improve quality by being more consistent.
- Production steps that limit output or create a bottleneck.
- Cost Reduction: Automation often reduces labor costs, and can minimize waste. If the machine has a good ROI, it will contribute to an overall cost savings, or production cost reduction.
- Processes requiring several people to coordinate.
- Operations that currently have high scrap or rework rates.
- Work that consumes the time of skilled labor for unskilled tasks.
- Work that is simple in principle but difficult to perform consistently.
- Enhanced Safety: Machines can handle dangerous tasks, reducing the risk of workplace injuries. They can also do strenuous work, in difficult environments.
- Dangerous work involving blades, presses, fast-moving objects or pinch points.
- Work in inhospitable environments like ovens, freezers, or around noxious fumes.
- Physically demanding work that causes fatigue or injury.
- Work requiring lifting, processing, or holding objects too heavy for humans.
Add your own to the lists above. We can't possibly think of them all.
These are all places where a machine can contribute strength, precision, repetition, endurance, or consistency. You know this by intuition, but how do we make the financial and physical case for implementing a form of automation?
For one customer who was struggling with high injury rates, the custom machine significantly reduced medical expenses and lowered the company insurance rates. With healthier employees, there was a lot less labor turnover and thus less investment in training and new-hire expenses. The medical costs alone paid for the new custom machine even before considering the higher throughput and improved product quality. (Basically all 3 of the items in the list above.)
When Does a Custom Machine Pay?
Without a doubt, one of the biggest hurdles to automation is cost. A custom machine can require substantial upfront investment, and that is not easy to swallow. More to the point, justifying the cost is not easy either.
The concept of ROI, which is Return On Investment, comes into play here. A custom machine is an investment that must pay for itself by reducing costs or creating other meaningful value – some are financial, and some are intrinsic.
In the measuring-machine example above, the machine paid for itself in two ways.
- It decreased the labor cost of the work by requiring fewer people, less time, and no highly paid tradespeople.
- It increased total revenue by returning the skilled workers to skilled work, allowing the company to serve more customers.
Justification means comparing the total machine investment against the labor, capacity, quality, waste, downtime, and other costs a machine can reduce. We must also factor in the non-cost items that eventually contribute to the financial picture. Things like consistency, safer work, easier training, and dependable production have value even if they are difficult to calculate.
A custom machine pays when the value it creates through labor, capacity, quality, safety, consistency, or reduced waste exceeds the cost to design, build, operate, and maintain it.
Automation Lets Employees Do More Valuable Work
The primary benefits of automation are listed above. When a machine handles mundane, repetitive, or dangerous jobs, employees can benefit. Humans are far more suited to jobs requiring creativity, problem-solving, and critical thinking. Plus, these jobs provide more satisfaction, promote skill development, and foster greater self-worth.
However, it is not all rosy in the human versus automation argument. Some people see automation as a threat. If not managed properly, the transition to automation can lead to job losses. While this is usually regarded as a negative, the positive side happens when companies assist good workers in acquiring new skills, move to better jobs, and be productive at a higher level - usually with higher pay.
The discussion should not be framed as humans versus automation. The two can, and should, work together.
The Cost of Complexity
While custom machines are ideal for repetitive and high-volume tasks, the cost gets higher as complexity goes up. For many small companies, the cost can be prohibitive for custom machines with complex operations.
The initial investment for design, engineering, and building a custom machine is substantial. Then, as machines get more sophisticated, the number of sensors and actuators, along with the programming requirements, begins to soar. Maintenance and potential downtime also add to the overall cost.
It is important to understand the goals of the machine, and how using it will recover the costs. For many companies, making a less complicated machine that does only the most critical or time-consuming tasks, will help the budget and make the desired strides forward. A simplified machine relies more on people working in conjunction with automation.
There really is more to the question of when to automate. We must also look at the level of automation the process and situation really need.
How Much Automation Is Appropriate?
At Synthesis, our goal is to find the right balance with humans versus automation. We understand that each manufacturing environment is unique, so our approach works to meet the specifics of our clients. By combining the strengths of both custom machines and human workers, we aim to optimize efficiency while finding ways to fit the budget.
In scenarios where production volumes are low or tasks are highly variable, it is often cost-effective to rely on skilled human workers. For instance, in custom manufacturing or prototype development, the flexibility and adaptability of human workers can easily outweigh the benefits of automation. Therefore, it is essential to carefully weigh costs and benefits when deciding whether to automate a manufacturing process.
You can see several examples of equipment as an Engineering Service on our Custom Machines page. The examples show more and less automation, and the drop-downs explain more about the machine. Not everything is best fully automated.
When we see these situations in projects that we are asked to quote, we often suggest special fixtures or custom tools to assist the people rather than going to full automation. This approach significantly reduces cost, and is often a better balance of humans versus automation anyway.
The Need for Human Oversight
Despite the advantages of automation, human oversight remains crucial in manufacturing. Custom machines, while highly efficient, require human intervention for setup, programming, inspection, and maintenance. This human-machine collaboration ensures smooth production and prompt resolution of issues when they arise. This is not a humans-versus-automation paradigm, but humans working with automation.
As a machine designer, I can say there are many tasks which are quite complex for machines to handle effectively. For example, tasks that require a high degree of dexterity, sensory evaluation, or subjective judgment are best performed by humans.
There is always a balance between the cost of machine complexity and the cost of human labor and skill. Dividing the tasks and managing the advantages can lead to the best of both worlds in human interaction versus automation in a custom machine. Truly, even in this world of AI, human skills remain irreplaceable, and human innovation remains indispensable.
Is It Time to Automate Your Manufacturing Process?
Most owners already know which processes deserve attention. The remaining questions are whether machinery can improve them, what level of automation makes sense, and whether the expected value supports the cost. Careful evaluation is important, but endlessly study can paralyze action and become its own costly decision. When an operation repeatedly calls attention to itself, trust what you see enough to explore it.
Certainly, automation with custom machines can represent a significant advancement in manufacturing. It offers numerous benefits for efficiency, accuracy, and safety.
So, when should you automate a manufacturing process? In general, automate a manufacturing process when the gains in efficiency, quality, safety, or labor use justify the cost. Then, choose the level of automation justified by the expected gains.
At Synthesis, we are committed to designing and building custom machines that strike a balance – one we decide on together – between automation and human expertise. If you want to have a conversation with us, here are some things to consider as structure for a useful discussion:
- Which operation keeps making you think, "There has to be a better way"?
- What part of the work is repetitive, dangerous, inconsistent, or a poor use of skilled labor?
- What must remain flexible or depend on human judgment?
- Would a fixture, operator-assisted machine, or full automation provide the improvement you seek?
We invite you to explore the specifics of your products and projects with us. If you are considering a move to automate a manufacturing process, we are ready to help with the engineering and potentially the build of your new equipment. We can also help in finding innovative solutions to enhance your process while ensuring the well-being of your workforce.
After all, innovation – whether in product or process – is A Best Business Strategy. Contact Synthesis to discuss how we can assist in achieving your goals.