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
Industrial revolution: Substitute machines for
human effort.
Examples from past.
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.

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 Mechanization

Use of machines
Replace manual labour of animals or
humans.
Based on principles of
specialization of tasks
Adherence to specificity
Power, compactness and speed of
machine operation.
Example: Farming practices
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 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

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Process-Oriented Structure

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 When Does Mechanization
Work?
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

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 Why Not Mechanization
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
Job loss
Mundane work

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 PRINCIPLES OF
AUTOMATION
Mechanization

Continuous process

Automatic control

Rationalization
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 Continuous Process
Assembly line-Continuous flow process
skilled worker moved from one job to another
performing the same task-specialization
Innovations
mass production technology
automatic transfer machines
no human intervention
control through remote electronic panel
E.g. automobile industry, bottling
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 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
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 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

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 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.

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 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.

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 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

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 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
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 Automation-contd..
Automation has been defined as Any
development that may cause employee
displacement
Automation may:
o Wipe out certain jobs
o Reduce contents of certain jobs
o Combining several jobs into one.

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EXAMPLES OF AUTOMATION
automatic machine tools to process parts-
CNC m/c
industrial robots

automatic material handling

feedback control systems

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 Types of automation

Fixed automation

Programmable automation

Flexible automation

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 Fixed automation
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
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 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

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 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

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 Flexible automation

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

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 23
Source: www.seas.upenn.edu
Source: www.seas.upenn.edu 24
 Reasons for automation

Shortage of labor
High cost of labor
Increased productivity
Competition
Safety
Reducing manufacturing lead time
Lower costs in the long run
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 Reasons against automation

Labor resistance
Cost of upgraded labor new skill set
Initial investment
Management of process improvements
Reengineering

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 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.

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 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.
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 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.

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Impact of Automation on
Industrial -Relations
system

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 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 .

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 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?

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 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?

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 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?

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 What kind of changes in work rules will
unions seek?

What kind of changes will unions gain?

Will white collar workers seek union

representations?

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 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.

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 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.

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 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.

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 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.

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 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.

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 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.

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 Time-line of Automation
at CRN
1960s-The introduction of diesel
locomotives not only reduced the size of
train crews, it also decreased maintenance
frequency, eliminating shop-craft jobs.
1980s-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.
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 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"
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 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 its hands are
tied by the market forces.

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 The Settlement
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.

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 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.
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Income Security Agreement
These agreements emphasize providing long-
service 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

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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

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Equally important, however, the running-
trade 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

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IMPACT OF AUTOMATION ON
EDUCATION TRAINING AND
RETRAINING

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 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 1960s,aerospace/defense

industry

Outsourcing

Y2K Bug

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 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

the organization of the manufacturing process,

the character of the production line,
the occupational mix,
the human-machine relationship

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 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.
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 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.

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 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
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 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
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 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

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 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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 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

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 Retaining Programs
Older men , especially those whose
area of skill have disappeared as a
result of technological change.

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 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

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 by new technologies, new techniques of
production and . . . shifts in customer
preference. Employeesboth 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.

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 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.

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 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

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 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

Website :
www.wcupa.edu/ACADEMICS/sch_cas.psy/Career_Paths/Industrial/subfield
2.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
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 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
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 Training
On-the-job training
Vestibule training
Apprenticeship
Computer-assisted instruction (CAI)
Net-based training
Behavior modification
Job rotation
Case studies, Business games, Inbasket
training, Role playing
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