Industrial Automation Magazine India

Mitigating Risks and Costs through Phased Pilot Projects

Published on : Wednesday 03-01-2024

Sureshbabu Chigurupalli, Board Member-Director, Balasore Alloys Ltd.

Many modern businesses now rely on automation in manufacturing to get products built faster, optimise workplace processes, and get orders to customers more efficiently. Automation in manufacturing refers to using technology and machines to perform specific tasks without the need for humans to intervene. The goal of automation is to increase efficiency, productivity, and accuracy in the production process, reducing manual labour and minimising the risk of human error.

Recent supply chain disruptions and a squeeze on labour markets signify automation has now become more important than ever.

Today, companies and non-profit organisations worldwide spend a lot of time, money and energy developing new ways to fight the past's harmful consequences. Industry 4.0 technologies enable the manufacturing lines, business processes, and teams to collaborate regardless of location, time zone, network, and any other aspect. It is quicker to scale output up or down in a smart factory. This results in higher revenues for a production facility. The cloud and big data will ensure that the IoT and Industrial Internet of Things (IIoT) devices link the user experience and create super lean manufacturing. Cloud storage is highly efficient and feature-rich, as well as flexible, up-to-date, and stable. Cloud also provides a popular forum for connecting goods to the company across international borders, and it is well-suited to handle IoT-generated big data.

 

What are the key aspects to consider for a typical company that wants to switch over from a traditional manufacturing process to an automated environment?

To ensure a successful implementation of digital automation, businesses should provide ongoing support with troubleshooting and technical assistance. It is essential to have systems in place for data monitoring and analysis, enabling the identification of potential issues and continuous optimisation of automation processes. Consider the scalability and adaptability of the chosen automation system to accommodate future needs and changing production requirements. Safety should be a top priority, with proper safeguards, risk assessments, and compliance with safety regulations. Cultural change is necessary to embrace automation, fostering an open and collaborative environment where employees participate in improvement initiatives. Evaluate the environmental impact of automation, prioritising solutions that promote sustainability and resource efficiency.

 

How scalable are automation and digitalisation solutions for different sizes of manufacturing facilities?

Automation and digitalisation solutions are scalable across different sizes of manufacturing facilities, although the specific scalability options may vary.

In small facilities, scalability often involves the use of modular automation, allowing for easy expansion or reconfiguration of equipment and systems as production needs change. Incremental investment in automation and digitalisation can also be adopted, starting with a smaller investment, and gradually increasing it as the business grows. Cloud-based solutions can be leveraged, enabling scalability by adding more users or computational resources as required.

Medium-sized facilities have more resources to invest in automation and can scale by implementing integrated systems that can manage multiple production lines or processes. Advanced data analytics can be utilised to optimise production and predict maintenance, and the scalability of these solutions is dependent on the volume of data generated. Collaborative robots (cobots) can be employed, as they are easily redeployable for different tasks, providing scalability in task automation.

Large manufacturing facilities have the capacity for extensive automation and digitalisation. They can scale by implementing fully automated production lines that require minimal human intervention and can operate around the clock. Enterprise resource planning (ERP) systems can be deployed to integrate all aspects of the operation, and these systems can be expanded to cover new locations or product lines. Smart factory initiatives, utilising technologies such as the Internet of Things (IoT), artificial intelligence (AI), and machine learning, can create highly efficient and self-optimising production environments, providing scalability in terms of overall production capabilities.

It's important to note that scalability may require additional investments in infrastructure, equipment, and training, depending on the specific needs and goals of each manufacturing facility. The scalability of automation and digitalisation solutions allows businesses to adapt and grow their operations while maximising efficiency and productivity.

 

What are the initial costs associated with implementing factory automation and digitalisation?

The initial costs of implementing factory automation and digitalisation can vary depending on factors such as the size of the operation, the complexity of processes, and the level of technology being adopted. It is important for businesses to consider various cost categories when planning for automation and digitalisation.

Capital expenditures (CAPEX) include costs for automation equipment, such as robots, conveyors, CNC machines, and AGVs. Software costs encompass expenses for purchasing or licensing software like MES, ERP systems, or PLM tools. Integration costs involve customising and integrating automated equipment and software systems into existing processes. Infrastructure upgrades may be necessary, such as reinforcing floors for heavy machinery or upgrading electrical, network, and data storage capacities. Peripheral equipment, such as sensors, scanners, machine vision systems, and safety systems, should also be considered.

Operational expenditures (OPEX) include costs for training and development, as existing staff may require training to operate and maintain new automated systems. Maintenance and repair costs are incurred for regular maintenance and repairs of automated machinery. Software subscriptions for SaaS platforms, cloud storage, and data processing capabilities are ongoing fees. Utility costs may increase due to the higher electricity consumption and other utilities associated with operating automated equipment.

There are also indirect costs to consider. Project management costs involve managing the implementation project, which may require internal resource allocation or hiring external consultants. Downtime during the installation and testing of new systems can result in a loss of production and impact revenue. Change management costs may be incurred when organisational changes are necessary, such as restructuring teams and managing the transition for employees affected by automation.

It is important for businesses to carefully assess these cost categories and develop a comprehensive budget for implementing automation and digitalisation. Additionally, businesses should consider the long-term benefits and return on investment that automation and digitalisation can bring, such as increased productivity, reduced errors, and improved efficiency.

 

How does the adoption of automation and digitalisation impact the skills required for the workforce?

The adoption of automation and digitalisation in manufacturing has a significant impact on the skills required for the workforce. Here are some key insights:

1. Increased tech-savviness: Basic digital literacy becomes essential, along with understanding data analysis, visualisation, and programming languages. Workers need to be comfortable operating software and interacting with automated systems.

2. Enhanced analytical and problem-solving skills: Analysing complex data patterns, troubleshooting technical issues, and finding creative solutions become crucial in an automated environment. Critical thinking and analytical skills are needed to optimise processes and improve efficiency.

3. Communication and collaboration skills: Effective communication between humans and automated systems is vital, along with collaboration across teams with different skill sets. Interpersonal skills remain important for a positive work environment.

4. Adaptability and continuous learning: The ability to adapt to new technologies and continuously learn new skills is paramount. Workers must embrace change and participate in upskilling or reskilling programs. Creative thinking and identifying opportunities within automation are valued.

5. Specific technical skills: Depending on the chosen automation solutions, workers may need skills in robotics, mechatronics, IIoT, cybersecurity, or AI.

The impact on specific roles varies. Production workers may need to shift to roles involving monitoring, maintenance, and data analysis. Technicians and engineers will see increased demand for skills in installation, maintenance, and programming of automated systems. Management will require strategic skills in data analysis, process optimisation, and human-machine collaboration.

It's important to note that automation and digitalisation do not necessarily lead to job losses, but rather a transformation of roles and required skills. Companies should invest in workforce training and skills development to successfully navigate this change and ensure employees remain valuable assets in the evolving manufacturing landscape.

 

What regulatory considerations should manufacturers keep in mind when implementing automation and digitalisation with respect to safety and security?

When implementing automation and digitalisation in manufacturing, manufacturers need to consider various regulatory aspects related to safety and security. Here are some key considerations:

 

Safety Regulations:

- Machine safety: Ensure compliance with regulations such as ISO 12100, which focuses on preventing hazards like collisions, crushing, and electrocution. This may involve implementing guards, safety interlocks, and emergency stop mechanisms.

- Work environment: Assess risks associated with human-robot interaction and establish safety protocols, including designated work zones, clear communication procedures, and the use of appropriate personal protective equipment (PPE).

- Electrical safety: Adhere to electrical safety regulations, such as NFPA 70E, to prevent electrical hazards associated with automated equipment and digital infrastructure.

 

Data Security and Privacy:

- Cybersecurity: Implement robust cybersecurity measures to protect sensitive data from cyberattacks, unauthorised access, and data breaches. This may include strong password policies, encryption methods, and intrusion detection systems.

- Data privacy: Comply with data privacy regulations such as the GDPR and CCPA, which govern the collection, storage, and use of personal data. Obtain necessary consent and ensure transparency in data handling practices.

- Industrial IoT (IIoT) security: Secure connected devices and networks within the IIoT ecosystem to prevent vulnerabilities and ensure the integrity of collected data. Implement secure communication protocols and access controls.

 

Additional Considerations:

- Regular risk assessments: Conduct regular assessments to identify safety and security hazards associated with automation and digitalisation solutions. Update risk mitigation strategies accordingly.

- Employee training: Train the workforce on safety protocols, cybersecurity awareness, and responsible data handling practices to minimise risks and promote a culture of safety and security.

- Regulatory updates: Stay informed about evolving regulations and industry best practices related to safety and security in automation and digitalisation. Adapt systems and procedures to comply with new requirements. 

By addressing safety and security considerations and complying with relevant regulations, manufacturers can minimise risks, protect employees and data, and maintain compliance with legal requirements. It is important to continuously monitor regulatory changes and update processes accordingly to ensure ongoing compliance.

 

How can existing machinery and systems be integrated into a digitalised manufacturing environment, and the challenges in the integration process?

Integrating existing machinery into a digitalised manufacturing environment can present challenges such as data silos, lack of standardisation, technical expertise shortage, cybersecurity risks, high costs, downtime, data overload, change management resistance, and regulatory compliance complexity. To address these challenges, companies can collaborate with automation experts, invest in workforce training, and partner with technology providers. A phased approach, starting with pilot projects, can help manage risks and costs.

 

(The views expressed in interviews are personal, not necessarily of the organisations represented.)

Sureshbabu Chigurupalli, Executive Director, is on the Board of Directors – Operations & Maintenance, Keynote Speaker/Lean Practitioner/Production Management/TPM Practitioner with 26+ years of experience. He is Director (Operations) at Balasore Alloys Limited, Balasore, Odisha. He did his B.Tech.in Instrumentation from Andhra University (1994). He is an enterprising leader & planner with a strong record of contributions in streamlining operations, invigorating businesses, heightening productivity, systems & procedures.

Sureshbabu has achievement-driven professional experience in spearheading entire unit/plant operations to maintain continuity and match organisational goals through supervising Operations, Quality Control, Production Goals, Automation, Maintenance, Process Improvements, Safety Guidelines, Manpower Development, New Policy/Procedure Guidelines, Resource Allocation and Cost Optimisations. He is leading and managing all plant operations with effective utilisation of all resources and implementing industry best practices such as TPM, Six Sigma, Lean Management & others Business Excellence initiatives that contribute to improve productivity and efficiency. He has exhibited leadership in closely collaborating with numerous Japanese Consultants for implementing TPM to enhance overall plant effectiveness.