OTC Insights Team
Established in 1963, OTC Industrial Technologies is one of the largest industrial distributors & service providers in the United States. We're committed to seeing industrial operations advance through expert technical solutions & unmatched support using our years of experience.
As labor and supply chain challenges persist globally, increased automation is on every manufacturer’s mind. How do I improve production without increasing labor cost? Is manufacturing automation the way to meet increased demand in a world where skilled labor is at a premium?
Evidence suggests that despite the growing use of automation in almost every industry, there is still a huge opportunity in the manufacturing sector. In a recent study of manufacturing work in 46 countries, McKinsey & Company found that 87 percent of the hours spent on activities performed by workers in production occupations are automatable.
Despite the potential, many manufacturers hesitate, assuming there will be a prohibitively large investment of resources — both of money and time. However, as technology matures, we are seeing reduced costs and easier implementation of manufacturing technology. With both small and midsized businesses seeing fast returns on their automation investments, now could be a great time to start (or to expand) your automation journey.
Getting started with manufacturing automation
From the assembly line to autonomous robotic assembly, automation and manufacturing have gone hand in hand for many years. How can you take advantage of improving automation tools and technology to meet your business goals?
Identify a production challenge
As John Clemons, Director of Manufacturing IT for Maverick Technologies, puts it, “No matter how dazzling a new technology seems, it’s meaningless if you aren’t using it to solve a business problem.” In other words, don’t start by shopping for available technology, start by assessing your plant. When looking for solutions to reduce labor hours externally, it’s easy to get overwhelmed by the possibilities or even oversold on exciting new technology that you don’t really need. Instead, begin with a specific business goal in mind that automation could address.
These could include:
- Unplanned downtime
- Availability and cost of labor
- Issues with variation and quality
Identify what to automate
Uncovering the source of inefficiencies can be a challenge in itself. A smart manufacturing strategy that produces real-time, actionable data is the most effective way to pinpoint areas that need improvement. Smart manufacturing is essentially a digital ecosystem that marries information technology with operational technology to optimize production.
Automation can produce returns when implemented at any point in the value chain. That includes technology on the production floor and in the planning office. The business side of production is a good place to start looking for places that could benefit from automation. Are there time-consuming, rote tasks that could be automated so the employees you have can focus on higher-priority work? Examples include: reporting, approval requests, email automation, data entry, and monitoring.
When you think of manufacturing automation, however, you’re probably thinking of the production side, not office work. Implementing low-cost automation tools at just a few points on the production line can create significant ROI, sometimes even compared to a fully automated line. With a lower cost barrier to entry than full-run automation, it may make more sense for your business to automate individual processes along your value chain. This can include:
- Quality sensors
- Detection systems
- Energy management sensors
- Smart connected machines and tools
The challenge many companies and manufacturers face in adopting and implementing manufacturing automation isn’t an issue with cost or technology, but information and expertise.
OTC Automation Experts Are Here to Help
As the experts in smart manufacturing solutions, OTC can help you get started or expand your manufacturing automation capabilities.
Contact us to learn more or set up an appointment to talk to our experts about how an automation strategy can help improve your productivity, product quality and profit. OTC Industrial Technologies is here to help with premier product lines, innovative solutions, and unparalleled technical expertise. Reach out to our team today!