Automation’s Positive Effect: 90% Automation In Chinese Factory Results In 250% More Output, 80% Reduction In Defects

One of the first lessons which a business learns via hard way is that it exists for one sole purpose: making profits. A hardcore business is different from a social service, and providing employment is not it’s main objective of creation, but a means to achieve its business goals.

If automation leads to more productivity, reduction in errors, then is there any real reason for opposing it, even if it means a reduction in employment? A recent case study from a Chinese factory forces us to ask this question, in a hard way.

Automation’s Positive Side-Effect in A Chinese Factory

Changying Precision Technology Company, a factory based in Dongguan, China, adopted automation in a massive way, few months back.

They created mobile phones via assembly line, and in one single sweep, they replaced 590 employees out of 650 with robots. What would happen when only 60 human beings remained in their assembly lines, along with robots which are capable of doing the work of 590 employees?

As per Luo Weiqiang, the general manager at their factory, productivity increased by 250%, even as defect and errors reduced by massive 80%.

Production per person has increased to 21,000 units, up from 8,000 earlier, thereby witnessing an increase of 162.5% within a week. Earlier, with humans behind assembly lines, there used to a defect percentage of 25%, which has now reduced to 5% with robots controlling the system.

These facts can be easily comprehended to understand how much profits the company managed to increase as a result of automation.

As per Luo, the human headcount will now reduce to 20 very soon. And eventually, only 5 or 6 humans will manage the entire factory, as robots will take over the factory completely.

Is this the future of manufacturing as we know it?

Automation: Good or Evil?

There are two strong facts which are dominating our thought process right now: Automation leads to job loss, and employment is destroyed.

When a traditional company like Raymond embraces automation, then 10,000 jobs are instantly destroyed, thereby plunging in economic & social development of the areas where people are now jobless.

When IT companies start automating their work, then thousands and thousands of programmers, testers are out of the job, recruitment takes a hit and an entire industry is left orphan.

Automation has seeped into banking in a massive way, as evident from recent firings and deployment of automation for various jobs, which were earlier done by humans.

In a country like India, where jobs are scarce, 69% of all jobs can vanish due to automation.

And then, there are case studies like shared earlier wherein automation leads to 250% more output and 80% reduction in defects which means more profits for the business.

Is automation good or bad? Do let us know by commenting right here!