ISSUES OF MECHANISATION, ISSUES OF MECHANISATION, AUTOMATION AND AUTOMATION AND COMPUTERISATIONCOMPUTERISATION

Facilitator and Course Coordinator

Vinayshil Gautam PhD , FRAS (London)(Founder director IIM K; Leader consulting team IIM S)

A AI Sager Chair Professor and first head,

Management department, IITD

Chairman DKIF

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HistoryHistory

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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MechanizationMechanization

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 StructureOrganization 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 StructureProcess-Oriented Structure

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When Does Mechanization When Does Mechanization Work?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

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Why Not MechanizationWhy 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 PRINCIPLES OF AUTOMATIONAUTOMATION

Mechanization

Continuous process

Automatic control

Rationalization

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Continuous ProcessContinuous Process

Assembly line-Continuous flow process skilled worker moved from one job to another

performing the same task-specialization Innovations

mass production technology automatic transfer machines no human intervention control through remote electronic panel

E.g. automobile industry, bottling

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Automatic ControlAutomatic 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.)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

*Computer Numerical Control*Computer Numerical Control

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RationalizationRationalization

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 AutomationManagement Automation Managers need (accurate, timely, concise, complete,

relevant, etc.) information to: Plan Control Coordinate activities Motivate subordinates Make ‘one-off’ decisions (non-programmed

decisions) Good quality information has ‘value’ when it allows

managers to do the above.

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Management Management Automation(Contd.)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 automationWhat is automation

It is a technology dealing with the application of

mechatronics computersfor production of goods and services.Automation is broadly classified into manufacturing automation• service automation

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Automation-contd..Automation-contd..

Automation has been defined as “Any development that may cause employee displacement”

Automation may:o Wipe out certain jobs o Reduce contents of certain jobso Combining several jobs into one..

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EXAMPLES OF AUTOMATIONEXAMPLES OF AUTOMATION

automatic machine tools to process parts-CNC m/c

industrial robots

automatic material handling

feedback control systems

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Types of automationTypes of automation

Fixed automation

Programmable automation

Flexible automation

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Fixed automationFixed 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 bulbs19

Programmable automationProgrammable 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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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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Programmable automation Programmable automation contd.contd.

Flexible automationFlexible 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.edu23

Source: www.seas.upenn.edu 24

Reasons for automationReasons 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 automationReasons 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 Adapting Organization To New TechnologyTechnology

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

systemsystem

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Impact of Automation on Impact of Automation on Industrial -Relations systemIndustrial -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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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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Impact of Automation on Impact of Automation on Industrial -Relations system Industrial -Relations system

contd.contd.

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 perspectiveWorkers 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 Impact of Automation on Industrial -Relations system Industrial -Relations system

(Contd..)(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 The Quandary of Wage settingsetting

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..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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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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Way Out contd..Way Out contd..

Labour-management relationsLabour-management relationsand Automationand Automation

-Case study of Canadian Railroad -Case study of Canadian Railroad Network(CRN)-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 Time-line of Automation at CRNat CRN

1960’s-The introduction of diesel locomotives not only reduced the size of train crews, it also decreased maintenance frequency, eliminating shop-craft jobs.

1980’s-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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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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Time-line of Automation Time-line of Automation at CRN contd.at CRN contd.

Catch 22 Catch 22 (To be or not to be…..)(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 it’s hands are tied by the ‘market forces’.

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The SettlementThe SettlementThe 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..)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 Income Security Agreement

These agreements emphasize providing long-service 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 running-trade 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

IMPACT OF AUTOMATION ON IMPACT OF AUTOMATION ON EDUCATION TRAINING AND EDUCATION TRAINING AND

RETRAININGRETRAINING

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IMPACT OF AUTOMATION ON EDUCATION IMPACT OF AUTOMATION ON EDUCATION TRAINING AND RETRAININGTRAINING 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 1960’s,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 Participation in Instructional ProgramsPrograms

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 Changes Resulting from Automation 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 56

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.

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Supervisor :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.

•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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Training and RetrainingTraining and Retraining

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• by new technologies, new techniques of production and “ . . . shifts in customer preference. ” Employees—both 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.

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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ReferencesReferencesBooks : 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 18/10/200565

Is Training NecessaryIs 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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TrainingTraining 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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