COMPETETIVE MANUFACTURING SYSTEMS CM7201

History

Industrial revolution: Substitute machines for human effort. Examples from past.

Mechanization : Attendant reqd. to operate the valves to channelize steam. Automation: Later Watt's fly ball governor removed need for human intervention.

Automation decreased need for physical labour besides reducing the requirement of decision making on part of the attendant.
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Mechanization

Use of machines Replace manual labour of animals or humans. Based on principles of

specialization of tasks Adherence to specificity

Power, compactness and speed of machine operation. Example: Farming practices

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Organization Structure

close adherence to the chain of command a functional division of work into specialized activities/job use of the formal hierarchy for coordination detailed job descriptions that provide a precise definition of rights, obligations, and technical

methods for performing each job

vertical interaction - supervisor and subordinate

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Process-Oriented Structure

General Manager Loading Billing Milling Screw Finishing And Customer And And Inspection Machining And Heat Shipping Service Accounting Grinding Treating

Foundry And Castings

When Does Mechanization Work?

Straight forward task to perform Stable environment to ensure that the products produced will be appropriate ones Produce exactly the same product again Precision is at a premium

Why Not Mechanization

May lead to difficulty in adapting to frequent changes in market condition. Conflict of individual goals with respect to organizational goals Dehumanizing effects upon employees at lower level of hierarchy

Job loss Mundane work

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PRINCIPLES OF AUTOMATION

Mechanization
Continuous process Automatic control Rationalization
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Continuous Process

Assembly line-Continuous flow process

skilled worker moved from one job to another performing the same task-specialization mass production technology automatic transfer machines no human intervention control through remote electronic panel

Innovations

E.g. automobile industry, bottling

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Automatic Control

Automatic control/feedback Input of machine regulated by its output till desired objectives met. Machine can start, stop, accelerate, decelerate, count, inspect, test, remember, compare, measure dimensions of space, sound, temperature and other physical properties
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Automatic Control (Contd.)

If there are any production problems, the system intervenes and suggests alternate course of action. E.g. CNC* controlled processing machines(metal , plastic ,wood ) with programs with modifiable parameters and run by electronic controlling system
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*Computer Numerical Control

Rationalization

Design of each step in process to contribute most efficiently to final product Logical evaluation of performance Conservation of resource, energy, elimination of waste, most efficient attainment of final product.

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Management Automation

Managers need (accurate, timely, concise, complete, relevant, etc.) information to: Plan Control Coordinate activities Motivate subordinates Make on-off decisions (non-programmed decisions) Good quality information has value when it allows managers to do the above.
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Management Automation(Contd.)

Deals with automation of Decision Making Detecting problems Directing organizations attention towards them. Problem Solving Decision Making Tools Data warehousing Decision Support System Management Information System
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What is automation
It is a technology dealing with the application of mechatronics computers for production of goods and services. Automation is broadly classified into manufacturing automation service automation
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Automation-contd..

o o o

Automation has been defined as Any development that may cause employee displacement Automation may: Wipe out certain jobs Reduce contents of certain jobs Combining several jobs into one.
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EXAMPLES OF AUTOMATION

automatic machine tools to process partsCNC m/c industrial robots

automatic material handling feedback control systems
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Types of automation

Fixed automation
Programmable automation Flexible automation

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Fixed automation

Fixed automation refers to the use of custom-engineered (special purpose) equipment to automate a fixed sequence of processing or assembly operations. This is also called hard automation. The primary drawbacks are the large initial investment in equipment and the relative inflexibility. GE: 2 million light bulbs
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Programmable automation

In programmable automation, the equipment is designed to accommodate a specific class of product changes and the processing or assembly operations can be changed by modifying the control program
Suited to batch production

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Programmable automation contd.

In programmable automation, reconfiguring the system for a new product is time consuming because it involves reprogramming and set up for the machines, and new fixtures and tools. Jacquard loom

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Flexible automation

In flexible automation, the equipment is designed to manufacture a variety of products or parts and very little time is spent on changing from one product to another. a flexible manufacturing system can be used to manufacture various combinations of products according to any specified schedule. Customization Honda-for production of cars and bikes
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Source: www.seas.upenn.edu

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Source: www.seas.upenn.edu

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Reasons for automation

Shortage of labor High cost of labor Increased productivity Competition Safety Reducing manufacturing lead time Lower costs in the long run
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Reasons against automation

Labor resistance Cost of upgraded labor new skill set Initial investment Management of process improvements Reengineering

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Adapting Organization To New Technology

Changes may come in 2 ways Policy Decision to modify objective to get more advanced system of production Standardization of product Result of technical/administrative development Readjustment period Degree of technological potential attained.
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Impact of Technology (Contd.)

Disproportionate time spent on evaluating technical aspect in comparison to study its affect on organization. Ways to avoid discrepancies

Change technology to adapt to organization structure Change organization as per technology. Maintain existing organization structure & technology, modify processes.
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Impact of Technology (Contd.)

Hence, appraisal of organizational structure and study of organization change along with technical change is a must. Studies show correlation between the affect of technical change on nature of production and organization. More the affect on nature of production, more is the affect on the organization.

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Impact of Automation on Industrial -Relations system

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Impact of Automation on Industrial -Relations system

Analyzing the labor relations dynamics set in motion by the introduction of new technologies in a competitive and highly unionized environment. Intense industry competition has lead to the adoption of technology at a highly rapid rate in order to retain competitiveness .
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Impact of Automation on Industrial Relations system contd.

Today therefore, workers and their unions have a direct and vital interest in how Technology is introduced and its effect. What shapes the decisions of employers to invest in automation?
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Will unions impede the diffusion of automation and to what degree (if any)? What impact will unions have on the lag between the introduction of commercially available automation and its diffusion in manufacturing?

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Workers perspective
Simultaneously, we must ask: What will be the degree of displacement of workers? What happens to displaced workers? What proportion will be retrained by employers? How many will be laid off?
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What kind of changes in work rules will unions seek? What kind of changes will unions gain? Will white collar workers seek union representations?

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Impact of Automation on Industrial -Relations system (Contd..)

Automation often changes skill requirement , degree of responsibility and working condition.
Automation often blurs the distinction between production work and supervisory work.
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The Quandary of Wage setting

When productivity rises due to Automation: Unions may ask for higher wages even though physical work required may be less. Firms may set skill set as the basis for wages ,which again is hard to quantify. Thus ,wage determination remains a bone of contention in many collective bargaining negotiations.
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Way Out..

Collective bargaining: It helps workers negotiate and settle with employers on reasonable and humane protections for workers against the potentially adverse effects of job destroying technological innovation.

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Way Out contd..

Collective bargaining can provide cushions to soften the adverse impact on workers by setting up adjustment procedures and programs at the workplace.
Applications of new technology should be humane for workers as well as profitable to business.
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Labour-management relations and Automation -Case study of Canadian Railroad Network(CRN)

Canadian Pacific Railway provides an important and interesting case study for analyzing the labor relations dynamics set in motion by the introduction of new technologies in a competitive and highly unionized environment.

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Rail deregulation, industry consolidation, trucking competition, and the increased power of shippers have left rail companies little choice but to adopt new technology and other market-oriented policies in order to survive. The pace of change has accelerated and the ability of the companies to shield workers from its impact has declined.

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Time-line of Automation at CRN

1960s-The introduction of diesel locomotives not only reduced the size of train crews, it also decreased maintenance frequency, eliminating shop-craft jobs. 1980s-The development of sophisticated sensors and communication devices that could be attached to the rear of trains enabled the elimination of cabooses, again reducing train crews.
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Time-line of Automation at CRN contd.

Future- global positioning satellites (GPS) systems combined with wireless communication and computer advances will provide the technical capability for crewless trains Indeed, one analyst has commented that at the rate they [railway companies] are going, in 10 years time, there will be 2 guys sitting behind a computer and the trains will be running themselves"
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Catch 22 (To be or not to be..)

Unions- They make a buck, we make a buck dilemma Jobs are being lost at an ever increasing rate yet Union representatives are cognizant that technological change is inevitable as well as necessary for company survival. Management -On one hand management is hurt by the job cuts, yet its hands are tied by the market forces.
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The Settlement
The unions settled through for Collective Bargaining and achieved the following Benefits: Job Security Agreement Income Security Agreement Material change provision Now even before a tech change takes place , benefits for those whose jobs are affected are provided for. Now, management approaches the Union before the tech changes.
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The Settlement (Contd..)

Material change Agreement:Operating Unions, have a material change provision in their contracts. (Note: A material change refers to a significant or substantive change that adversely affects employees, not literally a change in material.) Job Security Agreement: Provides an array of benefits for employees adversely affected by technological, operational, or organizational change.
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Income Security Agreement

These agreements emphasize providing longservice employees with options in the event new technology eliminates jobs Thirty years ago you had two choices: layoff or severance. Now there is early retirement, bridging, and even paid educational leave. In essence it is akin to a generous, but contingent, severance package

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Conclusions:
Thus, the company does not have the unilateral ability to introduce technological change that adversely affects the working conditions of running-trade employees without first negotiating how the adverse effects are to be ameliorated or having the adverse effects subject to arbitration

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Equally important, however, the runningtrade unions do not have the ability to halt technological change just because it may adversely affect their members. 'OK, I have a gun and I am going to shoot you. You get to pick where I shoot you. But in the end, you will get shot. Whether I shoot in the arm, in a fleshy area, or internal organ; it is up to you

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IMPACT OF AUTOMATION ON EDUCATION TRAINING AND RETRAINING

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IMPACT OF AUTOMATION ON EDUCATION TRAINING AND RETRAINING

At various stages in history, changes in workplace operations and procedures in all sectors of the economy have resulted in changes in education, training, and retraining requirements for those employed or preparing for employment.

Industrial Revolution
industrial change occurred in the 1960s,aerospace/defense industry Outsourcing Y2K Bug
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The application of automation in manufacturing operations has the potential to trigger widespread changes in education and training requirements.

Robots and other forms of programmable equipment and systems may change

the organization of the manufacturing process, the character of the production line, the occupational mix, the human-machine relationship
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Education, training, and retraining, should facilitate the identification of new opportunities, problems, issues in education and training policy. Changing Role of Education Human development process. Services to the general public or to special segments of the population. Informational Technology , instructional services are available home.
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Participation in Instructional Programs

Job skill mismatch . many individuals are seeking additional training in order to keep pace with technological and economic change. Since the mid-19th century, both business and the labor movement have contributed to or participated in the design and delivery of instructional programs. Formal, in-house instruction is more common in larger business and labor organizations.
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Technological Literacy

Individuals must have knowledge of the computer as a tool for managing and providing access to massive amounts of information. Modified definition of basic literacy that includes familiarity with the computer. Technological literacy Technological literacy will soon be required of all members of the work force, as broader and more extensive applications of information technology are made in offices and plants. : E-DMS More in-house corporate education and training systems
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Changes Resulting from Automation

Education Technical Vocational Challenges : Teacher Level :1 Industrial Level Level : 2 College and University level Engineer : Man automation process

More Apprenticeship training : Needs radical changes

Emphasis on Group training with alternating period of Study and work
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Vocational Guidance to be attuned to Job opportunity Retraining for Skilled and Semiskilled Occupations Potential social impacts of the use of Automation calls for retraining programs for skilled and semiskilled occupations. Adult Worker : Impact : Social and psychological Change in occupational and Skill structure Stability of the worker and his family
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Retaining programs for the employee worker whose job content is changing in the automated plant Concern over retaining peoples whose job content has changed Older Worker : Requires not only retraining in techniques but also a understanding of reason for these changes More leaning through participation and seeing the implication of technological development Making people feel that training is not forced on them

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Retraining the Displaced

Retraining programs are of greater benefit to displaced workers who are younger, have slightly more formal education, and have achieved some level of financial security.
Supervisor : Have a favour for Automation Also on favor men who have more formal and technical education
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Retaining Programs Older men , especially those whose area of skill have disappeared as a result of technological change.

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Training and Retraining

UAW reached with Ford Motor Co., General Motors, and International Harvester, there are provisions for training and retraining programs for current employees as well as those laid off. In addition, each contract calls for the establishment of a joint unionmanagement employee development and training committee through which special instructional assistance will be provided to members who are displaced
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 by new technologies, new techniques of production and . . . shifts in customer preference. Employeesboth skilled and semiskilled are covered under other provisions of the agreements.
They are eligible to participate in upgrade training designed to sharpen job skills and to provide updates on the state of the art of technology being utilized in their plants.

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Training for management of automation process is linked with the training of technical manpower because these process breakdown the distinction between manpower and managerial skills. Managerial decision are vitally important when they affect the maintenance and operation of the integrated plant and they can be made only by person who knows the plant intimately as a technical system.

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Automatic production is also likely to increase the advantage of formal training in management , Because each plant must operate as a unified whole and such operation is best achieved by techniques of management planning and control, which have been acquired by formal training

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References
Books : Designing Effective organisation , T Elanine Gagne & David K Banner , sage publication, California 1995 The future of the Organisation ,Colin Coulson Thomson, Kogan page limited, London 1997 Organisation Learning , Micheal D cohen, Lee S Sproull, sage publication, California 1996

Website : www.wcupa.edu/ACADEMICS/sch_cas.psy/Career_Paths/Industrial/subfield2.htm Date : 12/10/2005 http://www.pp.bme.hu/so/2001_2/pdf/so2001_2_02.pdf Date : 09/10/2005 http://www.elsevier.comcws_home/620640/description Date : 10/10/2005 http://www.skyenet.net Date : 15/10/2005 http://nicic.org/Library/period195 Date 16/10/2005 http://www.hpsys.com/leader.htm Date 18/10/2005 http://www.managementhelp.org/quality/tqm Date 18/10/2005 http://www.vcp.com.br/English/Institutional/ Company Date 18/10/2005
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Is Training Necessary

Functional illiteracy rate is high

The nature of work is changing Technology revolution requires training and retraining of older workers Training is lifelong - we cannot count on holding the same job forever
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Training

On-the-job training Vestibule training Apprenticeship Computer-assisted instruction (CAI) Net-based training Behavior modification Job rotation Case studies, Business games, In-basket training, Role playing
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