Putting Industrial Robots on the Payroll

Considering the pros, cons, costs and repercussions of robots in the manufacturing environment.
Black woman and Asian woman in hard hats interacting with robotic arms in an industrial setting.

The robot takeover we once feared seems to be coming true. There are over 4 million robots in factories worldwide. Companies in North America are using 37% more robots than they did in 2020. But far from being a threat, robots have taken over the most mundane, repetitive jobs, freeing workers to focus on more interesting tasks.

What Is a Robot?

According to the International Federation of Robotics, industrial robots are “automatically controlled, reprogrammable machines for use in industrial settings.” They don’t necessarily look like our concept of a walking, talking robot, often taking the form of a fixed unit with a single moving arm.

The Rise of Industrial Robots

Industrial robots perform tasks ranging from assembly and welding to packaging and quality control. These machines offer unparalleled precision and can operate in environments that may be hazardous or uncomfortable for humans. Moreover, robots can work continuously without fatigue, significantly boosting productivity.

Robots are an integral part of smart manufacturing, characterized by the integration of advanced technologies such as the Internet of Things (IoT), artificial intelligence (AI), and robotics. This evolution is not merely about automating tasks but enhancing the entire production ecosystem to be more responsive, efficient, and flexible. By leveraging data analytics and interconnected systems, manufacturers can optimize operations, reduce waste, and improve product quality.

Robots as Coworkers

The successful integration of robotics into manufacturing processes is not without challenges. Businesses must carefully assess the suitability of robots for specific tasks and ensure they complement rather than replace human workers. This balance is crucial in maintaining operational flexibility and preserving the unique problem-solving capabilities of humans.

The Importance of Human Skills

While robots excel at repetitive and precision tasks, human workers bring creativity, critical thinking, and adaptability to the manufacturing floor. The ability to troubleshoot, innovate, and adapt to unforeseen circumstances remains a distinctly human advantage. As such, businesses must focus on developing a workforce that can effectively collaborate with robotic systems.

Are Robots Right for You?

In assessing your company’s need for robots (or additional robots), here are some things to take into consideration.

  1. Task Complexity and Repetition: If the tasks are highly repetitive, precise, or hazardous, robots can significantly improve efficiency and safety. Poll your workers for their opinions on which tasks are the most likely candidates for automation.
  2. Production Volume: High production volumes often justify the investment in robotics due to the potential for increased speed and consistency. However, smaller producers should not rule themselves out. There are many ready-made, easily programmable units targeted specifically at smaller manufacturers, like the Baxter robot.
  3. Flexibility and Scalability: Robots can be reprogrammed for different tasks, making them suitable for manufacturers with varying production needs.
  4. Labor Shortages: In regions or industries facing labor shortages, robots can fill gaps and maintain production levels.

Conducting a Cost-Benefit Analysis

“Hiring” a robot brings with it plenty of pros and cons. Here are some things you need to take into consideration.

Costs:

  • Initial cost of equipment, accessories, installation, programming and software licenses
  • Integration with existing systems and training
  • Operational costs including energy usage, maintenance and repair, and software upgrades

Benefits:

  • Increased speed and efficiency
  • Less error and waste
  • Reduced labor costs
  • Easier adherence to standards
  • Improved safety

Quantitative Analysis:

  • Sum up all initial and operational costs to get a comprehensive cost figure
  • Quantify benefits in terms of cost savings and increased revenues

Return on Investment (ROI):

  • Total benefits minus total costs = net benefits
  • ROI = (Net Benefits / Total Costs) * 100

Net Present Value (NPV):

  • For a more accurate cost-benefit analysis, consider calculating all future costs and benefits to their present values. This is called a net present value (NPV) calculation.

Making a Decision

  • Compare NPV and ROI: Higher NPV and ROI indicate a more favorable investment.
  • Sensitivity Analysis: Assess how changes in key assumptions (e.g., cost of robots, labor savings) impact the results.
  • Intangible factors: Your reputation may benefit from being seen as a technologically advanced company. You may even appear more attractive to talent by offering improved working conditions.

How to Integrate Robots into Your Workforce

Once you’ve made the decision to automate all or part of your manufacturing process, it’s important to devise a strategy that considers both technological and human factors. Here are some key actions to help you achieve a harmonious balance.

Foster Human-Robot Collaboration

Many workers are initially worried that robots will displace them, and this concern should be addressed openly and upfront. Businesses should design workflows that allow human workers to focus on tasks that require cognitive and creative skills, while robots handle repetitive and precision tasks.

This collaborative approach not only enhances operational efficiency but also empowers workers by allowing them to engage in more meaningful and rewarding work.

For tips on preparing your people for automation, read Three Key Factors in Building an Automation-Ready Workforce.

Implement Training and Development Programs

Moving front-line workers away from some or all of their current tasks will require some degree of reskilling or upskilling. Workers will need to acquire the skills needed to operate and interact with robotic systems. This includes both technical training on specific machinery and broader education on the principles of automation and smart manufacturing.

Be aware that upskilling is not a one-and-done effort in this rapidly changing technological environment. Encouraging a culture of continuous learning not only enhances individual capabilities but also fosters an organizational environment that is agile and resilient to change. By investing in employee development, businesses can ensure they have a workforce that is capable of adapting to technological advancements and driving innovation.

If you’re unsure which skills will be the most valuable to your business going forward, read The Changing Face of Manufacturing: Why Skilled Technical Talent Is the Key to Growth.

Achieving the Right Balance

The integration of robots and humans in the manufacturing industry presents both opportunities and challenges. By strategically balancing technology with human skills, businesses can unlock new levels of productivity, efficiency, and innovation. Through careful planning, upskilling, and fostering a collaborative environment, you can successfully navigate the complexities of smart manufacturing and position your company for long-term success in an ever-evolving industry.

Learn more about all the ways Manpower can power your manufacturing floor.