When to Automate Manufacturing? A Practical Framework for Mid-Size Manufacturers
By: Scott Wojciak
Industrial automation revolutionized large-scale manufacturing by increasing productivity, improving quality, and reducing labor costs, but mid-sized manufacturers were hesitant to invest in automation due to cost and complexity. However, as competition intensifies and modern automation technologies become less expensive and more flexible, the question is no longer if mid-size manufacturers should automate, it’s when it makes sense to do so.
This blog provides guidance on when to automate manufacturing processes, outlines a practical automation decision framework, and offers tips on understanding automation ROI.
When to Automate Manufacturing for Mid-Size Operations
Mid-size manufacturers face unique challenges, including limited financial and technical resources, fluctuating demand, quality control issues, and difficulty retaining skilled workers. Automation may be the solution if the situation is justifiable, the timing is right, and there is a well-planned manufacturing automation strategy in place.
For mid-sized manufacturers, automating too early risks locking in undefined processes and wasting resources, while automating too late can result in high operational costs and competitive disadvantages.
So how do you know when the time is right?
Signs it’s time to automate
Consider automation if you’re experiencing any of these operational pain points:
Labor challenges:
Quality issues:
Bottlenecks:
Safety risks:
High-mix, low-volume operations:
Signs it’s not time to automate (yet)
Automation for mid-sized manufacturers may not be the answer if you:
- Have immature processes: If products are new and the process is still being defined, it may not make sense to automate yet.
- Demand is dropping: When demand is waning, it is likely not a good time to invest in automation.
- Custom products or complex tasks: If the process requires customization, complex thinking, or very high levels of dexterity, automation may not be the right solution.
A Practical Automation Decision Framework
Still unsure? Use this automation decision framework to guide your automation investment decision.
- Have immature processes: If products are new and the process is still being defined, it may not make sense to automate yet.
- Demand is dropping: When demand is waning, it is likely not a good time to invest in automation.
- Custom products or complex tasks: If the process requires customization, complex thinking, or very high levels of dexterity, automation may not be the right solution.
Step 1: Audit your operations
This step will help identify why you’re considering automation. During the audit:
- Identify operational pain points that are increasing costs or reducing efficiency.
- Determine which processes need improvement. Focus on risky or repetitive tasks, areas that experience bottlenecks, positions that are difficult to staff, or lines that are fraught with errors/quality issues.
Step 2: Set business objectives
The next step in the decision-making process is to set business goals and determine how automation will help you reach them. Here you should:
- Establish clear business objectives, such as reducing costs, improving quality, or increasing productivity and throughput.
- Determine how automation will satisfy your objectives. For example, will automation effectively reduce bottlenecks, prevent errors, or fill labor gaps?
Step 3: Know your automation options
Once you’ve determined automation is a potential solution:
- Connect with an automation expert at Tavoron to discuss available options. More flexible, lower-cost, less complex options, such as collaborative robots, make automation more affordable than ever for mid-size manufacturers.
- Educate yourself about current automation trends and technologies and assess whether they match your needs and budget. Can the cobot, robot, or automated system perform the tasks? How will it increase efficiency or reduce errors?
Step 4: Evaluate and Understand Automation ROI
Although the cost of collaborative robots and other modern automation technologies are now mid-size-manufacturer friendly, it is important to weigh the automation cost vs. benefit to determine your cost justification for automation. Here’s how:
- Consider tangible and measurable savings. Labor savings, waste reduction, and increased throughput are savings that can be quantified.
- Don’t forget intangible, but high-value automation benefits. Fewer injuries, improved quality/increased customer satisfaction, faster time to market, and greater efficiencies all add up to a better bottom line.
- To determine your robotic automation ROI, calculate the value of these benefits over one to five years and compare it to the cost of the project. This will provide you with an ROI and cost justification for automation projects.
Step 5: Develop an implementation plan
Once you’ve determined that automation will be beneficial and that the selected technology fits your budget and offers an acceptable ROI:
- Work with an experienced automation integrator like Tavoron to create a plan for the design, installation, service, and lifetime support of the system.
- Ensure that installation and integration will cause minimal disruption and that operator training is provided so the transition is a smooth one.
Why Having a Manufacturing Automation Strategy Matters
Successful automation for mid-size manufacturers is about system-level thinking, not simply purchasing a robot.
The best industrial automation strategy is one that addresses operational challenges and ensures that the project aligns with business goals to provide a satisfactory manufacturing process improvement with a justifiable ROI.
The role of an integration partner in your automation strategy
An experienced integration partner ensures that the selected automation technology meets your specific manufacturing needs and that the integrated system performs seamlessly in the application.
As your integration partner, Tavoron will guide your project from initial planning through execution to ensure manufacturing efficiency improvements. Our team expertly assists with your needs assessment, technology selection, and system design. And, our services include execution and implementation of the system, as well as post-execution strategies for operator training and long-term technical support, so your automation project provides production optimization.
