Automation promises to increase production and profits wherever it is implemented. Automation often improves the overall quality of your product, and it may make the workplace safer for your employees while reducing their workload. However, investing in automation equipment is an expensive proposition. And it can be an unwise business decision if it isn’t done right. Here are three factors to consider before automating your facility.
The Processes People Don’t Want to Do
Automation is the ideal choice when the process is boring and monotonous. People may start to slack off after several hours of repetitive work due to boredom or fatigue. Or they may suffer repetitive stress injuries because they’re constantly completing the same motions.
Automating these processes frees up people to do other, more complex tasks. You should also prioritize work that is dangerous since this improves the safety of your team members.
For example, consider getting a hydraulic press that automatically shapes material instead of asking people to do extensive metalworking. Or install a high-speed hydraulic press that produces more finished metal items per hour than your current equipment while minimizing the work your employees have to do. Note, however, that you will also need to invest in advanced hydraulic press safety equipment to deal with flying debris.
The Impact on Other Processes
Automation does not have to be an all-or-nothing proposition. You can automate specific steps in the production process. However, you have to take the impact on other processes into account.
For example, you need to ensure that the production line can handle far higher output from an injection molding machine or redesign your process so that your automated welder doesn’t have such a low utilization rate that you’re losing money on it. Automate the right processes so that you don’t end up with a bottleneck downstream or disrupt your operations in other ways. That is why the best place to automate is your current bottleneck.
The Return On Investment
The return on investment is a key factor for every investment in automation. What is the benefit of automating a particular process? Be conservative when predicting increased profitability or throughput. It may increase the quality of your final product, but it may not eliminate all scraps. Expect to reduce labor costs but know that you’ll still need someone around to support the machine.
Don’t forget to factor in the total cost of ownership, not just the purchase price. How much will you need to pay for installation and training? How much does it cost to maintain the machine? What supplies does the machine need? Divide the likely returns on automation by the total cost to determine the return on investment.
Any piece of automation should pay for itself within several years or else you shouldn’t buy it. This prevents you from buying expensive equipment that is hardly used or otherwise not worth the expense. If you have a limited budget, prioritize the equipment with the highest ROI.
Conclusion
While automation can be piecemeal, it should always be done with long-term goals in mind. Understand your overall strategy and how every automated piece fits into the larger whole.
