The Changing Definition of “Good Enough” Automation

Overview

The current COVID-19 pandemic created a stress-test for manufacturers on several levels.  It revealed much about how work gets done, why work gets done, and the importance of that work.  It also brought an opportunity to re-evaluate what level of automation is adequate.

Manufacturers scrambled to react to a situation that hadn’t been encountered in recent history; a near quarantine of the global population. Industry experienced global disruption to the supply chain; supplies dried up, as did demand for some products. Demand for other products skyrocketed and some manufacturers shifted production lines to meet that demand. Stress always reveals weaknesses. The call to action presented by the pandemic (and exacerbated for some industries by an oil production dispute) forced a review of what level of automation is correct.

Crucial Automation

The human race has sought to automate tasks for most of its existence.  No one argues the benefits automation brings.  Widgets are produced by the thousands with fewer and fewer hours of human labor.  Automation is the reason why quality and safety have increasingly improved and safety improved, while manufacturing costs have dropped.

Automation is now a cornerstone of manufacturing.  Except for a few boutique industries, all manufacturers incorporate some level of automation.  However, the level of automation depends on the perceived benefit and has been subject to the law of diminishing returns.  Manual tasks associated with infrequent actions still remain because companies perceive that the expense of automating the task offers little return.  Even some of the most advanced processes maintain several manual tasks.  This is the “good enough” level of automation that a company is comfortable with.

Presenting the Pandemic

Thanks to a virus, the dynamic is changing. The pandemic challenged the status quo and forced companies to respond. While already small, the margin for error shrank in the post-COVID economy. Notwithstanding, experts predict this won’t be the last pandemic industry will need to navigate.  There have been four such pandemics since 1955, and since globalization isn’t going to slow down, the spread of new diseases will likely follow a similar pattern.

This, though, is the first pandemic for which many governments mandated a near-virtual shutdown of normal everyday human interactions. Companies and people scrambled to respond and adapt. Parts of the economy fared well, while others were devastated.  Some shifted production to support the medical community. Some ramped up manufacturing. Others shut down operations.  IT departments quickly reacted to support work-from-home arrangements. Companies made new arrangements for “essential” workers to accommodate the new regulations. This situation has revealed the benefits of automation, while redefining the level of automation that companies believe is “good enough.”

Real Application

Companies are now confronted with the question, “Is our current level of automation really as good as we thought it was? Is it really ‘good enough’?” With fewer people available to execute manual tasks, operating risk increased.  Although it isn’t as much of an issue with the plant running at steady state, abnormal operations (startup, shutdown, reduced rates) require more manual intervention.  This is because, abnormal operations are typically the least automated. They generally don’t occur often enough to warrant the extra expenses associated with installing and maintaining the additional instrumentation required for full automation.

ARC Advisory Group clients can view the complete report at ARC Client Portal   

If you would like to buy this report or obtain information about how to become a client, please Contact Us

Keywords: Automation, Control, COVID-19 Pandemic, Safety, Remote, Digitization, Digital Transformation, ARC Advisory Group.