ISSUES OF MECHANISATION, AUTOMATION
AND COMPUTERISATION
Facilitator and Course Coordinator
Vinayshil Gautam PhD , FRAS (London)
(Founder director IIM K; Leader consulting team IIM S)
A AI Sager Chair Professor and first head,
Management department, IITD
Chairman DKIF
1
History

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Industrial revolution: Substitute machines for
human effort.
Examples from past.

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Mechanization : Attendant reqd. to operate the valves
to channelize steam.
Automation: Later Watt's fly ball governor removed
need for human intervention.
Automation decreased need for physical labour
besides reducing the requirement of decision
making on part of the attendant.
2
Mechanization

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
Use of machines
Replace manual labour of animals or
humans.
Based on principles of

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specialization of tasks
Adherence to specificity
Power, compactness and speed of
machine operation.
Example: Farming practices
3
Organization Structure

close adherence to the chain of command

a functional division of work into specialized
activities/job

use of the formal hierarchy for coordination

detailed job descriptions that provide a precise
definition of rights, obligations, and technical
methods for performing each job

vertical interaction - “supervisor and subordinate”
4
Process-Oriented Structure
General Manager
Foundry
And
Castings
Loading
Billing
Milling
Screw
Finishing
And
Customer
And
And
Inspection
Machining And Heat
Shipping Service Accounting
Grinding
Treating
5
When Does Mechanization Work?

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Straight forward task to perform
Stable environment to ensure that the
products produced will be appropriate
ones
Produce exactly the same product again
Precision is at a premium
6
Why Not Mechanization


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May lead to difficulty in adapting to
frequent changes in market condition.
Conflict of individual goals with respect to
organizational goals
Dehumanizing effects upon employees at
lower level of hierarchy

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Job loss
Mundane work
7
PRINCIPLES OF AUTOMATION

Mechanization

Continuous process

Automatic control

Rationalization
8
Continuous Process

Assembly line-Continuous flow process

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Innovations

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skilled worker moved from one job to another
performing the same task-specialization
mass production technology
automatic transfer machines
no human intervention
control through remote electronic panel
E.g. automobile industry, bottling
9
Automatic Control



Automatic control/feedback
Input of machine regulated by its output
till desired objectives met.
Machine can start, stop, accelerate,
decelerate, count, inspect, test,
remember, compare, measure dimensions
of space, sound, temperature and other
physical properties
10
Automatic Control (Contd.)


If there are any production problems, the
system intervenes and suggests alternate
course of action.
E.g. CNC* controlled processing
machines(metal , plastic ,wood ) with
programs with modifiable parameters and
run by electronic controlling system
*Computer Numerical Control
11
Rationalization


Design of each step in process to
contribute most efficiently to final product
Logical evaluation of performance
 Conservation of resource, energy,
elimination of waste, most efficient
attainment of final product.
12
Management Automation


Managers need (accurate, timely, concise,
complete, relevant, etc.) information to:
 Plan
 Control
 Coordinate activities
 Motivate subordinates
 Make ‘one-off’ decisions (non-programmed
decisions)
Good quality information has ‘value’ when it
allows managers to do the above.
13
Management Automation(Contd.)


Deals with automation of
 Decision Making
 Detecting problems
 Directing organizations attention towards
them.
 Problem Solving
Decision Making Tools
 Data warehousing
 Decision Support System
 Management Information System
14
What is automation
It is a technology dealing with the application
of
 mechatronics
 computers
for production of goods and services.
Automation is broadly classified into
 manufacturing automation
• service automation
15
Automation-contd..


o
o
o
Automation has been defined as “Any
development that may cause employee
displacement”
Automation may:
Wipe out certain jobs
Reduce contents of certain jobs
Combining several jobs into one.
16
EXAMPLES OF AUTOMATION


automatic machine tools to process partsCNC m/c
industrial robots

automatic material handling

feedback control systems
17
Types of automation

Fixed automation

Programmable automation

Flexible automation
18
Fixed automation

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Fixed automation refers to the use of
custom-engineered (special purpose)
equipment to automate a fixed sequence
of processing or assembly operations.
This is also called hard automation.
The primary drawbacks are the large initial
investment in equipment and the relative
inflexibility.
GE: 2 million light bulbs
19
Programmable automation

In programmable automation, the equipment
is designed to accommodate a specific class
of product changes and the processing or
assembly operations can be changed by
modifying the control program

Suited to batch production
20
Programmable automation contd.

In programmable automation, reconfiguring
the system for a new product is time
consuming because it involves reprogramming
and set up for the machines, and new fixtures
and tools.

Jacquard loom
21
Flexible automation


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In flexible automation, the equipment is
designed to manufacture a variety of products or
parts and very little time is spent on changing
from one product to another.
a flexible manufacturing system can be used to
manufacture various combinations of products
according to any specified schedule.
Customization
Honda-for production of cars and bikes
22
Source: www.seas.upenn.edu
23
Source: www.seas.upenn.edu
24
Reasons for automation

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Shortage of labor
High cost of labor
Increased productivity
Competition
Safety
Reducing manufacturing lead time
Lower costs in the long run
25
Reasons against automation

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Labor resistance
Cost of upgraded labor – new skill set
Initial investment
Management of process improvements
 Reengineering
26
Adapting Organization To New
Technology

Changes may come in 2 ways
 Policy Decision to modify objective to get
more advanced system of production
 Standardization of product
 Result of technical/administrative
development
 Readjustment period
 Degree of technological potential attained.
27
Impact of Technology (Contd.)


Disproportionate time spent on evaluating
technical aspect in comparison to study its
affect on organization.
Ways to avoid discrepancies



Change technology to adapt to organization
structure
Change organization as per technology.
Maintain existing organization structure &
technology, modify processes.
28
Impact of Technology (Contd.)

Hence, appraisal of organizational structure and
study of organization change along with
technical change is a must.
 Studies show correlation between the affect of
technical change on nature of production and
organization.
 More the affect on nature of production,
more is the affect on the organization.
29
Impact of Automation on
Industrial -Relations system
30
Impact of Automation on Industrial
-Relations system


Analyzing the labor relations dynamics set
in motion by the introduction of new
technologies in a competitive and highly
unionized environment.
Intense industry competition has lead to
the adoption of technology at a highly
rapid rate in order to retain
competitiveness .
31
Impact of Automation on Industrial Relations system contd.

Today therefore, workers and their unions
have a direct and vital interest in how
Technology is introduced and its effect.

What shapes the decisions of employers
to invest in automation?
32

Will unions impede the diffusion of
automation and to what degree (if any)?

What impact will unions have on the lag
between the introduction of
commercially available automation and
its diffusion in manufacturing?
33
Workers perspective
Simultaneously, we must ask:
 What will be the degree of displacement of
workers?
 What happens to displaced workers?
 What proportion will be retrained by
employers?
 How many will be laid off?
34

What kind of changes in work rules will
unions seek?

What kind of changes will unions gain?

Will white collar workers seek union
representations?
35
Impact of Automation on Industrial
-Relations system (Contd..)

Automation often changes skill
requirement , degree of responsibility and
working condition.

Automation often blurs the distinction
between production work and supervisory
work.
36
The Quandary of Wage setting
When productivity rises due to Automation:
 Unions may ask for higher wages even
though physical work required may be
less.
 Firms may set skill set as the basis for
wages ,which again is hard to quantify.
Thus ,wage determination remains a
bone of contention in many ‘collective
bargaining ‘ negotiations.
37
Way Out..

Collective bargaining: It helps workers negotiate
and settle with employers on reasonable and
humane protections for workers against the
potentially adverse effects of job destroying
technological innovation.
38
Way Out contd..
Collective bargaining can provide cushions
to soften the adverse impact on workers
by setting up adjustment procedures and
programs at the workplace.
Applications of new technology should be
humane for workers as well as profitable
to business.
39
Labour-management relations
and Automation
-Case study of Canadian Railroad
Network(CRN)
Canadian Pacific Railway provides an
important and interesting case study for
analyzing the labor relations dynamics set
in motion by the introduction of new
technologies in a competitive and highly
unionized environment.
40

Rail deregulation, industry consolidation,
trucking competition, and the increased
power of shippers have left rail companies
little choice but to adopt new technology
and other market-oriented policies in order
to survive. The pace of change has
accelerated and the ability of the
companies to shield workers from its
impact has declined.
41
Time-line of Automation
at CRN


1960’s-The introduction of diesel
locomotives not only reduced the size of
train crews, it also decreased maintenance
frequency, eliminating shop-craft jobs.
1980’s-The development of sophisticated
sensors and communication devices that
could be attached to the rear of trains
enabled the elimination of cabooses, again
reducing train crews.
42
Time-line of Automation
at CRN contd.

Future- global positioning satellites (GPS)
systems combined with wireless
communication and computer advances
will provide the technical capability for
crewless trains
Indeed, one analyst has commented that
“at the rate they [railway companies] are
going, in 10 years time, there will be 2
guys sitting behind a computer and the
trains will be running themselves"
43
Catch 22
(To be or not to be…..)


Unions- ’They make a buck, we make a
buck’ dilemma Jobs are being lost at an
ever increasing rate yet Union
representatives are cognizant that
technological change is inevitable as well
as necessary for company survival.
Management -On one hand management
is hurt by the job cuts, yet it’s hands are
tied by the ‘market forces’.
44
The Settlement


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The unions settled through for Collective
Bargaining and achieved the following
Benefits:
Job Security Agreement
Income Security Agreement
Material change provision
Now even before a tech change takes place ,
benefits for those whose jobs are affected are
provided for. Now, management approaches
the Union before the tech changes.
45
The Settlement (Contd..)


Material change Agreement:Operating Unions,
have a “material change provision” in their
contracts. (Note: A “material” change refers to a
significant or substantive change that adversely
affects employees, not literally a change in
material.)
Job Security Agreement: Provides an array of
benefits for employees adversely affected by
technological, operational, or organizational
change.
46
Income Security Agreement



These agreements emphasize providing longservice employees with options in the event new
technology eliminates jobs
Thirty years ago you had two choices: layoff or
severance. Now there is early retirement,
bridging, and even paid educational leave.
In essence it is akin to a generous, but
contingent, severance package
47
Conclusions:
Thus, the company does not have the unilateral
ability to introduce technological change that
adversely affects the working conditions of
running-trade employees without first
negotiating how the adverse effects are to be
ameliorated or having the adverse effects
subject to arbitration
48
Equally important, however, the runningtrade unions do not have the ability to halt
technological change just because it may
adversely affect their members. 'OK, I
have a gun and I am going to shoot you.
You get to pick where I shoot you. But in
the end, you will get shot. Whether I shoot
in the arm, in a fleshy area, or internal
organ; it is up to you
49
IMPACT OF AUTOMATION ON EDUCATION
TRAINING AND RETRAINING
50
IMPACT OF AUTOMATION ON EDUCATION
TRAINING AND RETRAINING
At various stages in history, changes in workplace
operations and procedures in all sectors of the economy
have resulted in changes in education, training, and
retraining requirements for those employed or preparing
for employment.

Industrial Revolution

industrial change occurred in the
1960’s,aerospace/defense industry

Outsourcing

Y2K Bug
51
The application of automation in manufacturing
operations has the potential to trigger
widespread changes in education and training
requirements.

Robots and other forms of programmable
equipment and systems may change

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the organization of the manufacturing
process,
the character of the production line,
the occupational mix,
the human-machine relationship
52

Education, training, and retraining, should
facilitate the identification of
 new opportunities,
 problems,
 issues
in education and training policy.

Changing Role of Education
 Human development process.
 Services to the general public or to special
segments of the population.
 Informational Technology , instructional
services are available home.
53
Participation in Instructional
Programs

Job skill mismatch .

many individuals are seeking additional training in order
to keep pace with technological and economic change.

Since the mid-19th century, both business and the labor
movement have contributed to or participated in the
design and delivery of instructional programs.

Formal, in-house instruction is more common in
larger business and labor organizations.
54
Technological Literacy

Individuals must have knowledge of the computer as a
 tool for managing and
 providing access to massive amounts of information.

Modified definition of basic literacy that includes
familiarity with the computer. “Technological literacy”

Technological literacy will soon be required of all
members of the work force, as broader and more
extensive applications of information technology are
made in offices and plants. : E-DMS

More in-house corporate education and training
systems
55
Changes Resulting from Automation


Education
 Technical
 Vocational
Challenges : Teacher
 Level :1  Industrial Level
 Level : 2  College and University level

Engineer : Man automation process

More Apprenticeship training : Needs radical changes

Emphasis on Group training with alternating period of
Study and work
56

Vocational Guidance to be attuned to Job
opportunity

Retraining for Skilled and Semiskilled
Occupations
 Potential social impacts of the use of
Automation calls for retraining programs for
skilled and semiskilled occupations.
Adult Worker :
 Impact : Social and psychological
 Change in occupational and Skill structure 
Stability of the worker and his family

57
Retaining programs for the employee
worker whose job content is changing in
the automated plant
 Concern over retaining peoples whose job
content has changed
Older Worker :
Requires not only retraining in techniques but
also a understanding of reason for these
changes
More leaning through participation and seeing
the implication of technological development
Making people feel that training is not forced on
them
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58
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Retraining the Displaced
Retraining programs are of greater benefit
to displaced workers who are younger,
have slightly more formal education, and
have achieved some level of financial
security.
Supervisor :
Have a favour for Automation
Also on favor men who have more formal and
technical education
59


Retaining Programs
Older men , especially those whose area
of skill have disappeared as a result of
technological change.
60
Training and Retraining
•UAW reached with Ford Motor Co., General
Motors, and International Harvester, there are
provisions for training and retraining programs for
current employees as well as those laid off.
•In addition, each contract calls for the
establishment of a joint unionmanagement
employee development and training committee
through which special instructional assistance will
be provided to members who are displaced
61
• by new technologies, new techniques of
production and “ . . . shifts in customer
preference. ” Employees—both skilled and
semiskilled —are covered under other provisions
of the agreements.
• They are eligible to participate in upgrade
training designed to sharpen job skills and to
provide updates on the state of the art of
technology being utilized in their plants.
62

Training for management of automation
process is linked with the training of
technical manpower because these
process breakdown the distinction
between manpower and managerial skills.

Managerial decision are vitally important
when they affect the maintenance and
operation of the integrated plant and they
can be made only by person who knows
the plant intimately as a technical system.
63

Automatic production is also likely to
increase the advantage of formal training
in management , Because each plant must
operate as a unified whole and such
operation is best achieved by techniques
of management planning and control,
which have been acquired by formal
training
64
References
Books :

Designing Effective organisation , T Elanine Gagne & David K Banner , sage
publication, California 1995

The future of the Organisation ,Colin Coulson Thomson, Kogan page limited,
London 1997

Organisation Learning , Micheal D cohen, Lee S Sproull, sage publication,
California 1996
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Website :
www.wcupa.edu/ACADEMICS/sch_cas.psy/Career_Paths/Industrial/subfield2.htm
Date : 12/10/2005
http://www.pp.bme.hu/so/2001_2/pdf/so2001_2_02.pdf Date : 09/10/2005
http://www.elsevier.comcws_home/620640/description Date : 10/10/2005
http://www.skyenet.net Date : 15/10/2005
http://nicic.org/Library/period195 Date 16/10/2005
http://www.hpsys.com/leader.htm Date 18/10/2005
http://www.managementhelp.org/quality/tqm Date 18/10/2005
http://www.vcp.com.br/English/Institutional/ Company Date 18/10/2005
65
Is Training Necessary

Functional illiteracy rate is high

The nature of work is changing


Technology revolution requires training and
retraining of older workers
Training is lifelong - we cannot count on holding
the same job forever
66
Training

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On-the-job training
Vestibule training
Apprenticeship
Computer-assisted instruction (CAI)
Net-based training
Behavior modification
Job rotation
Case studies, Business games, In-basket
training, Role playing
67