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MEAM 520 MEAM 520 Introduction to Automation Outline u What is automation? u Types of automation u Manufacturing versus service automation u Models of production u Why automate? u When to and when not to automate? Introduction to Automation Vijay Kumar Department of Mechanical Engineering and Applied Mechanics University of Pennsylvania Philadelphia, PA University of Pennsylvania University of Pennsylvania 1 MEAM 520 MEAM 520 Definition Types of Automation It is a technology dealing with the application of u mechatronics u computers for production of goods and services. Cost of labor may not always make sense to establish plants in countries with low labor costs Video Examples l l windshield camshaft University of Pennsylvania 23 University of Pennsylvania 24 MEAM 520 MEAM 520 Cost of labor Reasons for Automation uShortage Japan’s labor costs are 5% more than the U.S. and over 50% higher than the U.K. West Germany imports cheap labor to augment domestic labor. Taiwan’s manufacturing labor cost quadrupled from 1974 to 1984 Korea’s manufacturing labor cost doubled from 1979 to 1984, and quadrupled again between 1984 and 1996. Manufacturing lead time respond quickly to the consumers’ needs rapid response to changes in design University of Pennsylvania 25 MEAM 520 MEAM 520 Labor costs and strategic planning Automation in low-wage countries Low-wage countries are not necessarily more competitive u international trade tends to equalize labor costs per unit output u low wages are also accompanied by lower productivity t 26 Do we need automation in low-wage countries? In 1990, hourly wages in Malaysia were approx. 15% of that of the U.S. Hourly productivity was also comparable. Capital intensity is equally high u Fiat plant at Belo Horizonte, Brazil u Carplastic – manufacturer of car plastic components Ford subsidiary in Monterrey Mexico Need significant investment for automation even in low-wage countries University of Pennsylvania University of Pennsylvania 27 MEAM 520 Case study: CARPLASTIC u u u MEAM 520 Case study: CARPLASTIC A wholly-owned Ford subsidiary in Monterrey, Mexico Products l Question: Can highly automated facilities be maintained and upgraded in “Lowwage countries”? handlamps, polycarbonate instrument panels, radiator grill, consoles Production l l t t l l reasonably automated w t l l 200-4000 ton machines largest product is 6 kg. Expedition instrument panel cycle-time 1 min to 1 min 45 secs. “Office Economy” accounts for 41% of all workers l l Free trade agreements l Are we loosing manufacturing jobs? l Reality suggests that other factors dictate layoffs t t Layoffs are mostly due to mergers, competition, restructuring, and cuts in government spending Layoffs in 1995-96 l Lockheed Martin, Boeing, Chemical Bank/Chase Manhattan, Bell South, AT&T, Kmart, CNA Financial, Chase Manhattan, Kimberly-Clark, 3M and GM. University of Pennsylvania In 1996, U.S. accounted for 39% of the world’s manufacturing output. Share in manufacturing employment has grown from 24% in 1962 to roughly 27-28% today Today, although fraction of workforce in manufacturing is decreasing, share of manufacturing in the GDP is increasing or constant. L mass production, batch production, job shop production factory layout: fixed position layout, product flowlayout, and process flow layout group technology u Manufacturing versus service automation Reasons for automation When to and when not to automate? l u 39 measuring the effects of automation in dollars Ayers, Robert U. and Duane C. Butcher. Contrasts mass production with flexible automation Drucker, Peter F. “The emerging theory of manufacturing.” Harvard Business Review, May-June 1990. L University of Pennsylvania 38 organization of modern factories University of Pennsylvania 40 ..