Troublesome or Lifesaver

- Harsh Sharma Rajesh T Raksha Shetty Shamanth M K Sumedha Arya

Arjun’s Dilemma Number of tablets an
employee can press per hour
Average Salary per
(Using the Existing Rotary
month for a tablet
Machine that requires human
coating employee is Rs.
operation) – 2500/hour
10,000

?
For a company
making a turnover of
General Qualification around Rs25 Cr and
Required to operate
aiming at around Rs.
tableting machinery is
High School or Less 50 Cr., there should
be around 500
employees.

Thus total cost that the company is incurring- 10,000 (Salary of

one employee)*500(employees)*12(months) = 6,00,00,000 with an
output of around 5,000*8(working hours)*365(1
year)*500(employees)= 7,30,00,00,000
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Arjun’s Dilemma Solved
In comes a new tech automated tablet pressing machine

• The new automated tablet pressing machine has an output of 58200

tablets/hour
• The cost of the machine is in the range of $70,000 (which is under Rs.
52,00,000)

• It gives a highly augmented output and is cost effective.

• The new output will be 583200 * 12 (hours/day) * 3 (machines) * 365
(days/year) = 7,66,32,48,000 (Which is more than the previous method’s
output

• Cost of acquiring the machines would amount to Rs. 1.5 Cr.

• Combining this with other costs such as employees to operate the
machine (12 employees) and electricity costs, the expense would still be
less than Rs. 2.5 Cr which is an improvement by

3
Course of Action
Negotiate with workers with the statistics shown in the previous slide

As per available data, Artificial Intelligence and Automation is

going to have a huge impact in the healthcare sector.

Average automation potential for roles requiring less than a

Bachelor’s degree is 24% with a 55% risk exposure

This will make sure that workers understand the perilous situation
that can ensue if they forsake their jobs and thus will be able to
make a rational decision.

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Consequences
Case 1 Case 2

The workers agree to work. If the

workers have understood how risk
prone their job has become, then let
the situation as it is and fire Abhijit for
jeopardizing the whole
If the workers still don’t understand
organizational structure of the
how things are working, ask them
company. In this case, the workers
some time saying that we need to
will themselves understand that given
persuade the upper management
the risk factors that their job is prone
and during this time, order the
to, they have no other alternative,
machines and then go ahead with
but to work for the company.
the process of automation.
However, to maintain the cordiality in
relations, they can be given some
“extra” holiday bonuses and this will
be enough to restore the situation to
semblance.

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What’s next for Abhijit
After understanding how tough things can get once the company goes ahead with the process of
automation, Abhijit would be engulfed with some serious predicaments. His course of action can result
in two consequences:

He can try to negotiate with the board. Rather than asking for some
very high increase in their wages, Abhijit can go ahead asking for
only some minor increase in their wages and that would be suitable
for both the company as well as the workers. This would save the
whole automation cost that the company would incur and on the
other hand workers too would be better off.

If Abhijit has workers at his side and they refuse to go surrender to

Amit’s plan,, then Abhijit should immediately initiate worker’s strike.
Initiating the strike suddenly would reduce the faith that the
company’s managing authorities have in Amit’s ability to handle the
business and may finally compel the top management to yield to
Abhijit and workers’ demand.

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Thank You