Increased productivity through automation
Increased productivity through automation
Increasing productivity is of crucial importance in global competition. The most important means of achieving this end is automation, which is essential to using resources efficiently and increasing output, especially in a high-wage country like Germany. Find out more about the benefits, challenges and best ways to increase productivity through automation. This article will also demonstrate which applications are particularly suitable for small and medium-sized enterprises (SMEs).
Key points at a glance
- Automation can significantly increase productivity.
- The effect mainly comes from fewer manual activities and improved quality.
- Labour costs can be saved through automation and production waste reduced.
- Simple and repetitive tasks are automated first and foremost.
- Complex processes are also increasingly becoming part of automation.
- With its high labour costs, the competitiveness of the German economy in particular can be strengthened through automation.
Productivity - Definition
In economics, productivity describes the ratio between the goods or services produced (output) and the required production factors (input). The factors of production are labour, capital, resources and knowledge.
Example: Calculation of the productivity of the labour factor
To calculate the productivity of the labour factor, the work result (= output) is divided in figures by the labour input of the employees in the form of time (= input).
Output: Input = productivity
What is important in this context is not the absolute figure, but rather the comparison with the productivity of competitors and the development of the key figure over time. A positive development is when output can be increased with the same input.
What is the difference between productivity and profitability?
In the case of productivity, output and input are set in relation to each other, whereas, when determining profitability, costs or expenditure are set in relation to income or revenue. Economic efficiency is therefore a value-based approach, while productivity is a quantity-based one.
How important is productivity for a company?
Companies with a high level of productivity can produce a certain output of goods or services more quickly and therefore achieve major competitive advantages. The productivity indicator is thus extremely relevant for companies because, among other things, it acts as an indicator of growth, as well as a comparison with other companies (benchmark).
How can productivity be increased?
Productivity can be increased through the targeted control of the input of individual production factors and through the optimisation of processes. Automation plays a decisive role here. Using modern technologies, work processes can be optimised and made more efficient, and the cost-intensive deployment of employees for manual labour can be reduced.
Automation - Definition
Automation exists when processes are performed using machines, software, robots or AI applications with little or no human intervention. Humans only assume the monitoring or control functions, but not the actual labour.
The respective degree of automation can be divided into full and partial automation according to the remaining proportion of human interaction.
What does partial automation mean?
In the case of partial automation, only some process steps are automated, while humans perform the activities in the production of goods and services. This type of automation is currently the most widespread form. As a rule, heavy and repetitive tasks are automated, while finer and/or individual steps continue to be performed manually.
What does full automation mean?
Within the scope of full automation, the entire process is carried out by a machine or software, for example, in the case of self-driving cars. Comprehensive full automation is still rare at present, but the trend is generally pointing in this direction.
What are the most important automation technologies?
Machines and artificial intelligence, ideally linked together, offer the best opportunities for automation and therefore for increasing productivity. Artificial intelligence (AI) can not only analyse complex amounts of data and promote machine learning, but also control machines, optimising the use of robots, object detectors and error detection, for example. Find out more about the use of AI in production here.
Current technological developments to support increased productivity
Nowadays, so-called AR glasses (augmented reality glasses) are already being used in many industries to improve processes and communication and gain 3D insights. In mechanical engineering in particular, USDZ is also being used more and more to create specific 3D models of machines and facilitate preliminary tests.
Goals of automation and increased productivity
The assumption of manual labour processes through automation can realise cost benefits, sometimes to a considerable extent. Saving on personnel costs is particularly important in a high-wage country like Germany. The work steps can also be performed faster and with better and, above all, consistent quality. Output increases whilst the number of defects and faulty products is reduced because human errors are prevented.
Application areas for automation
Automation plays a decisive role in increasing productivity. Using modern technologies, processes can be optimised and accelerated in production, logistics, customer service and administration.
Which areas of application lend themselves to automation?
In addition to the classic areas of application in production, the field of automation is constantly expanding and currently includes many other functions in logistics, quality management and customer service.
We present the most important areas of application for automation here:
Simple activities in production
Traditionally, simple and repetitive tasks that do not require specialised personnel are automated. Here, labour costs can be reduced and errors in production caused by human error can be prevented. Machines generally work faster, more efficiently and with consistent quality. Specialists are only required to monitor the machines and perform maintenance and repairs.
Quality inspection
With automation, production is not only of consistent quality, but automatic quality control can also be used. Such quality control could, for example, involve the machine automatically displaying an error message if problems occur or automatically checking the goods produced for faults using sensors and cameras.
Automated condition monitoring
Continuous, preventive monitoring of the condition of machines (preventive maintenance) is another increasingly important aspect of automation. Preventive and regular maintenance is designed to avoid potential machine failures. Early warnings, which are made possible by the automated monitoring of the machine with microphones or sensors, can also reduce downtimes.
Quality management
Within the scope of quality management, the processing of complaints can also be made more efficient through automated processes. These processes range from automatically generated confirmations of receipt to response letters compiled from text templates and analyses of the most frequent reasons for complaints. The latter can then be used to optimise production and quality.
Customer service
Automated chatbots, speech recognition systems and automatic translations can relieve and improve customer service. Certain recurring customer interactions can therefore be processed more quickly and efficiently, leaving more time for individual consultations and problem solving.
Logistics
Both transport and warehousing can be optimised through automation. Automated systems can manage stock levels, process orders, prepare shipments and optimise dispatch.
Other areas for automation
In addition to the classic areas of simple, repetitive work, more and more areas of work are becoming suitable for automation. Examples include the inspection of incoming goods using special devices that automatically check dimensions and quantities, as well as checking for incorrect feeding of components in production. In addition, the possibilities for using AI-generated large language models (LLL), such as ChatGPT, are currently growing.
What types of automation are suitable for administrative tasks?
Artificial intelligence (AI) offers support in customer service and administration in particular. For example, AI can use algorithms and machine learning to analyse large volumes of data, which is ideal for analysing customer data so that individual recommendations can then be created. Amazon, for example, uses this system very successfully. In addition, chatbots can be used to automate customer communication, and ChatGPT can be used to create templates for cover letters.
What role does ChatGPT play in automation?
ChatGPT is a large language model that was introduced by OpenAI from the United States in 2022. It is a chatbot that can support text-based communication. This application (in addition to similar programs from other providers) already offers immense possibilities for simplifying communication, text creation and image design. Entire professions (translation, design, copywriting, customer service) will be transformed by ChatGPT and similar programs. Companies can benefit greatly from this, but should definitely pay attention to the issue of data protection. Personal data should never be stored in open systems such as ChatGPT. There are now many new applications on the market that function in compliance with data protection regulations. Be sure to seek advice in this regard.
Automation and SMEs - Current developments
Which areas of application for automation are relevant for SMEs?
For small and medium-sized enterprises, it is generally a good idea to automate in stages, both to limit the investment volume and to start where it is worthwhile and relatively easy to automate.
Favourite areas of application for automation in SMEs
In SMEs, simple, repetitive and physically strenuous work steps are generally initially replaced by automation.
Use of conveyor belts
The simple yet strenuous physical labour of transporting goods or parts is very often replaced by automation in the form of conveyor belts, conveyor systems, etc. Such systems can save labour costs and protect employees from heavy loads.
Use of packaging machines
Packing products is sometimes time-consuming work that is usually carried out by unskilled workers. Automation means that these manual tasks are no longer necessary, and employees are only required to supervise the work of the machines.
Use of rotary units
Rotary units can automatically transport and align materials, containers, products and similar items and therefore prepare them for further processing, filling or application. Manual transport is no longer necessary, processes are enormously accelerated and physically strenuous work is eliminated.
Geyssel has decades of experience in applicators, rotary units, pick-and-place systems and the design and manufacture of customised machines. Take advantage of our expertise and get started with us in automation and increased productivity. Get in touch and we will discuss your requirements.
Use of applicators
The application of labels to products and the application of spoons, forks, sporks and other ingredients to food packaging can be reliably carried out by applicators, guaranteeing that the application is of good and consistent quality in the same place every time. Time-consuming manual activities and the associated labour costs can be saved.
Use of pick-and-place systems
Automation technology is also perfect for pick-and-place applications.
For example, a robot with a built-in camera system can automatically recognise the respective part or product and then place it in the correct position for further processing. In this way, spoons that are delivered as bulk goods in a carton can be picked up individually and placed on yoghurt pots. The number of cycles is significantly increased compared to manual handling and further processing is guaranteed with consistent quality.
Use of robots
Robots are generally used in industry in the form of a collaborative robot, also known as a cobot. They work together with people and often do most of the heavy work, such as lifting parts. Further processing is then carried out by humans. Robots can take over simple but physically demanding work steps and relieve the strain on employees. Find out more about the use of cobots here.
Use of camera systems (object detectors)
Object detection enables errors to be detected quickly and automatically, such as incorrect application. The faulty parts can be sorted out immediately on request. Additional modules of this type make a decisive contribution to increasing quality.
Use of condition monitoring
Automatic system monitoring, also known as condition monitoring, detects and displays process errors at an early stage. It can also automatically remind you when maintenance is due. As a result, production downtimes can be avoided to a great extent and manufacturing processes can be organised more reliably. Condition monitoring is made possible through the constant measurement and analysis of physical data such as temperature, vibrations and oscillations.
Relationship between condition monitoring and the Jidōka concept
The Jidōka principle was developed by Toyota in the 1920s. It was described by the founder of the automotive group as ‘intelligent automation’. Its aim is to identify production errors directly at the source, eliminate the causes and initiate a continuous optimisation process. As a result, errors do not affect the entire production process. At Toyota, for example, the process stops automatically as soon as a fault is detected. The employees are then asked to check the error and determine the causes, which sets a learning process in motion that leads to a steady increase in efficiency. With sophisticated condition monitoring that goes beyond pure sensors whilst analysing other physical conditions, this learning and optimisation process can also be established outside the automotive industry with the involvement of employees.
Automation of warehouse management and dispatch
Warehouse management and dispatch can be made easier both by machines for transporting goods and by intelligent warehouse management systems that support the entire merchandise management system. Time-consuming manual and administrative workflows can be organised much more efficiently and quickly, and fewer staff are generally required.
Use of ChatGPT and similar programs in customer service and administration
Digitalisation and the targeted use of intelligent chatbots (such as ChatGPT) can make processes more efficient and better designed in both customer service and administration. Customer communication can therefore be improved and customer satisfaction increased. Personnel savings are also possible in the long term.
Examples of application for automation in SMEs
As a first step, small and medium-sized enterprises often implement automation using conveyor belts and rotary units to replace simple manual tasks. The use of robots that lift and transport products or place them directly into boxes can also be helpful. The application of labels can also be reliably carried out by machines, as can the application of ecological drinking straws, for instance, to packaging. Automated application is particularly recommended for the latter, as manual application often leads to errors and rejects. The use of customised special machines is often only the second step in small and medium-sized enterprises, as series machines and the associated modules are usually used first.
Digitalisation and therefore the automation of processes in accounting, customer service and administration are also extremely important for SMEs.
You can find more information on when automation pays off for SMEs here.
Benefits of automation
Automation offers a wealth of benefits for companies, the most important of which we highlight here:
Cost savings
Automation offers great potential for cost reductions. This potential is mainly due to labour that was previously used to carry out this work manually being saved. As labour costs in Germany are very high by international standards, major savings are possible.
Increased efficiency
Professionally planned automation generally eliminates intermediate storage and delays in production. Production is largely automated and transport to the next production step is performed using conveyor belts or rotary units. Resources previously required for manpower, storage space and means of transport are saved, significantly increasing production efficiency.
Error reduction
Machines do not make mistakes; they are not inattentive or distracted. Consistent quality can therefore be guaranteed, reducing rejects and minimising processing errors.
Increased productivity
Machines can complete work steps more quickly and downtime due to illness or holidays is not incurred. Automation therefore enables enormous increases in productivity.
Scalability
Automation systems are predictable and can be adapted to a company’s current needs if required. If a company grows or wants to produce more, the systems can be expanded to meet demand.
Further information on the benefits of automation can be found here.
Disadvantages of automation
In addition to the numerous advantages, automation also brings a number of challenges with it:
Loss of jobs
As a rule, certain jobs are lost through automation. These jobs are generally work for which little or no qualification is required. Increasingly, however, work processes in apprenticeship occupations are also being automated, such as invoicing, writing letters or regular quality checks.
However, it is important to remember that companies that are unable to keep up with international competition will definitely lose jobs and thus there is no way around automation.
Solutions: Through targeted training, employees can be further qualified and deployed to monitor production or in other areas. Make sure that existing employees are empowered to help shape the path of automation by offering targeted training programmes. Especially in view of the shortage of skilled labour, it is immensely important to retain employees in the company.
Necessary investments
Although automation ultimately saves costs, it first requires investment in IT systems, machines and training for employees. However, refraining from automation is not an option because, to remain competitive, there is no way around it.
Solutions: Get your company off to a step-by-step start with automation! Firstly, identify areas with a high manual workload. Check whether the work is carried out by machines or appropriate software. Then go on a targeted search for series machines, modules and software that could take over these tasks. Seek expert advice and invest in systems that can be easily supplemented at a later date.
As a supplier of applicators, rotary units, object detection and special machines, we can offer you the technologies that perfectly match your company’s requirements. We work with you to analyse your needs and cost-effectiveness and provide you with customised offers. Get to know us and find out more!
Security concerns
Automated processes can be susceptible to security risks, such as hacker attacks or data leaks. In addition, sensitive data (such as customer data) must not be entered into openly accessible systems (such as ChatGPT).
Solutions: ChatGPT can be used to create templates for cover letters, but not to create personalised letters including address and name. All systems with software must function in compliance with data protection regulations and be protected against hacker attacks, etc. It is essential that you pay attention to this aspect. Be sure to ask your chosen provider about it.
Lack of acceptance
The introduction of automated processes in a company is often associated with uncertainties for employees. In addition to the fear of job loss, concerns about adapting to new ways of working also play a major role.
Solutions: If possible, create an atmosphere of openness towards new ideas and technologies in your company. Hold regular meetings and training sessions in which employees are informed about planned changes and trained in new work requirements. Gradually introduce new modernisations. You can also take a step-by-step approach to automation if you wish, by first automating just a few work processes and then expanding them further. Make sure you find a supplier of machines and software who can go down this path with you.
Optimum approach to automation in companies
For you company to actually realise the benefits of automation and increase its productivity, you must take the following steps towards automation:
- Identify areas in your company where automation can help increase productivity.
- Be sure to look at particularly labour-intensive and error-prone work processes.
- Find out about the technologies and machines that are suitable for automation, in particular whether they are suitable for your company.
- You should also consider the possibility of having machines custom-built to meet your requirements.
- You can also check the suitability of certain modules for serially produced machines for your company.
- Only make a decision after you have sought expert advice and examined all the alternatives.
- Plan the implementation carefully and prepare the affected employees for the reorganisation and new areas of responsibility at an early stage.
- If possible, choose a provider who can take care of commissioning and also provide training and instruction for employees.
- Monitor the output of the new machines and technologies.
- Make adjustments if necessary.
- Ideally, further modules can be used to supplement the automation tasks; bear this aspect in mind when selecting a provider.
- Make sure that the technology you choose and the provider you select are up to date with the latest developments so that you are not investing in systems that may already be outdated.
Summary
Automation is now a must for SMEs. It is the only way to reduce costs and increase productivity in the long term. A step-by-step and, above all, planned approach is recommended. As a special machine manufacturer and design office, we are happy to accompany you on the way to automation. We offer a selection of applicators, rotary units, modules and, if required, special machines individually designed to meet your requirements for optimising the processes in your company. Get in touch with us! We are happy to support you on your way to greater productivity through automation.
FAQ
How can productivity be increased through automation?
Processes can be accelerated through automation. Output increases, which increases productivity. In addition, the occurrence of errors is minimised by the human factor, which increases the quality of production, reduces rejects and prevents production faults.
Which types of automation are particularly suitable for SMEs?
As a rule, small and medium-sized enterprises start with automation gradually and primarily for labour-intensive processes in the beginning. For the most part, the areas of transport and packaging, the preparation of products for further processing and the application of labels or objects to products are automated first. Here, the use of machines can quickly and efficiently reduce both the workload of employees and the susceptibility to errors.
Can automation also take place gradually?
Automation tends to be gradual rather than all at once, especially in SMEs. In most cases, planning is initially carried out for particularly labour-intensive or error-prone processes, insofar as they are constantly repeated and require a relatively large amount of attention and working time. If necessary, automation will be expanded further. It therefore makes sense to ensure that expansion is possible when choosing a provider for the machines and systems.
