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    COMPETIVE MANUFACTURING SYSTEMSCM7201

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    Mechanization

    Use of machinesReplace manual labour of animals orhumans.Based on principles of

    specialization of tasks Adherence to specificity

    Power, compactness and speed ofmachine operation.Example: Farming practices

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    Organization Structureclose 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 technicalmethods for performing each job

    vertical interaction - supervisor and subordinate

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    Process-Oriented Structure

    General Manager

    Foundry And

    Castings

    Milling And

    Grinding

    ScrewMachining

    Finishing And Heat

    TreatingInspection

    Loading And

    ShippingCustomer

    Service

    Billing And

    Accounting

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    When Does Mechanization Work?

    Straight forward task to performStable environment to ensure that theproducts produced will be appropriateonesProduce exactly the same product againPrecision is at a premium

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    Why Not Mechanization

    May lead to difficulty in adapting tofrequent changes in market condition.Conflict of individual goals with respect toorganizational goalsDehumanizing effects upon employees atlower level of hierarchy

    Job lossMundane work

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    PRINCIPLES OF AUTOMATION

    Mechanization

    Continuous process

    Automatic control

    Rationalization

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    Continuous Process

    Assembly line-Continuous flow processskilled worker moved from one job to anotherperforming the same task-specialization

    Innovationsmass production technologyautomatic transfer machines

    no human interventioncontrol through remote electronic panel

    E.g. automobile industry, bottling

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    Automatic Control

    Automatic control/feedbackInput of machine regulated by its outputtill desired objectives met.Machine can start, stop, accelerate,decelerate, count, inspect, test,remember, compare, measure dimensionsof space, sound, temperature and otherphysical properties

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    Automatic Control (Contd.)

    If there are any production problems, thesystem intervenes and suggests alternatecourse of action.E.g. CNC* controlled processingmachines(metal , plastic ,wood ) with

    programs with modifiable parameters andrun by electronic controlling system

    *Computer Numerical Control11

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    Rationalization

    Design of each step in process tocontribute most efficiently to final product

    Logical evaluation of performanceConservation of resource, energy,elimination of waste, most efficientattainment of final product.

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    Management Automation

    Managers need (accurate, timely, concise,complete, relevant, etc.) information to:

    Plan

    ControlCoordinate activitiesMotivate subordinates

    Make on -off decisions (non -programmeddecisions)Good quality information has value when itallows managers to do the above.

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    What is automation

    It is a technology dealing with the applicationof

    mechatronicscomputers

    for production of goods and services.

    Automation is broadly classified into manufacturing automation

    service automation 15

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    Automation-contd..

    Automation has been defined as Anydevelopment that may cause employee

    displacement Automation may:

    o Wipe out certain jobso Reduce contents of certain jobso Combining several jobs into one .

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    Types of automation

    Fixed automation

    Programmable automation

    Flexible automation

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    Programmable automation

    In programmable automation, the equipmentis designed to accommodate a specific classof product changes and the processing orassembly operations can be changed bymodifying the control program

    Suited to batch production

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    In programmable automation, reconfiguringthe system for a new product is time

    consuming because it involves reprogrammingand set up for the machines, and new fixturesand tools.

    Jacquard loom

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    Programmable automation contd.

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  • 8/13/2019 Automation Best

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    Source: www.seas.upenn.edu 24

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    Reasons for automation

    Shortage of laborHigh cost of laborIncreased productivityCompetitionSafetyReducing manufacturing lead timeLower costs in the long run

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    Reasons against automation

    Labor resistanceCost of upgraded labor new skill setInitial investmentManagement of process improvements

    Reengineering

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    Adapting Organization To New

    TechnologyChanges may come in 2 ways

    Policy Decision to modify objective to get

    more advanced system of productionStandardization of product

    Result of technical/administrativedevelopment

    Readjustment periodDegree of technological potential attained.

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    Impact of Technology (Contd.)

    Disproportionate time spent on evaluatingtechnical aspect in comparison to study its

    affect on organization.Ways to avoid discrepanciesChange technology to adapt to organizationstructureChange organization as per technology.Maintain existing organization structure &technology, modify processes.

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    Impact of Technology (Contd.)

    Hence, appraisal of organizational structure andstudy of organization change along with

    technical change is a must.Studies show correlation between the affect oftechnical change on nature of production andorganization.

    More the affect on nature of production,more is the affect on the organization.

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    Impact of Automation onIndustrial -Relations system

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    Impact of Automation on Industrial

    -Relations system Analyzing the labor relations dynamics setin motion by the introduction of new

    technologies in a competitive and highlyunionized environment.Intense industry competition has lead tothe adoption of technology at a highlyrapid rate in order to retaincompetitiveness .

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    Today therefore, workers and their unions

    have a direct and vital interest in howTechnology is introduced and its effect.

    What shapes the decisions of employersto invest in automation?

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    Impact of Automation on Industrial -

    Relations system contd.

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    Will unions impede the diffusion ofautomation and to what degree (if any)?

    What impact will unions have on the lagbetween the introduction ofcommercially available automation andits 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 byemployers?How many will be laid off?

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    What kind of changes in work rules willunions 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 skillrequirement , degree of responsibility and

    working condition.

    Automation often blurs the distinctionbetween production work and supervisorywork.

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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 beless.Firms may set skill set as the basis forwages ,which again is hard to quantify.

    Thus , wage determination remains abone of contention in many collectivebargaining negotiations.

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    Way Out..

    Collective bargaining: It helps workers negotiateand settle with employers on reasonable andhumane protections for workers against thepotentially adverse effects of job destroyingtechnological innovation.

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    Collective bargaining can provide cushionsto soften the adverse impact on workers

    by setting up adjustment procedures andprograms at the workplace.

    Applications of new technology should behumane for workers as well as profitableto business.

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    Way Out contd..

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    Labour-management relationsand Automation

    -Case study of Canadian RailroadNetwork(CRN)-

    Canadian Pacific Railway provides animportant and interesting case study foranalyzing the labor relations dynamics setin motion by the introduction of new

    technologies in a competitive and highlyunionized environment.

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    Rail deregulation, industry consolidation,

    trucking competition, and the increasedpower of shippers have left rail companieslittle choice but to adopt new technology

    and other market-oriented policies in orderto survive. The pace of change hasaccelerated and the ability of thecompanies to shield workers from itsimpact has declined.

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    Time-line of Automation

    at CRN1960s -The introduction of diesellocomotives not only reduced the size of

    train crews, it also decreased maintenancefrequency, eliminating shop-craft jobs.1980s -The development of sophisticatedsensors and communication devices thatcould be attached to the rear of trainsenabled the elimination of cabooses, againreducing train crews.

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    Future- global positioning satellites (GPS)systems combined with wirelesscommunication and computer advanceswill provide the technical capability forcrewless trainsIndeed, one analyst has commented that

    at the rate they [railway companies] aregoing, in 10 years time, there will be 2guys sitting behind a computer and thetrains will be running themselves"

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    Time-line of Automation

    at CRN contd.

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    Catch 22

    (To be or not to be..) Unions- They make a buck, we make abuck dilemma Jobs are being lost at an

    ever increasing rate yet Unionrepresentatives are cognizant thattechnological change is inevitable as wellas necessary for company survival.

    Management -On one hand managementis hurt by the job cuts, yet its hands aretied by the market forces.

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    The SettlementThe unions settled through for CollectiveBargaining and achieved the followingBenefits:Job Security AgreementIncome Security AgreementMaterial change provision

    Now even before a tech change takes place ,benefits for those whose jobs are affected areprovided for. Now, management approachesthe Union before the tech changes.

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    The Settlement (Contd..)

    Material change Agreement:Operating Unions,have a material change provision in theircontracts. (Note: A material change refers to asignificant or substantive change that adverselyaffects employees, not literally a change inmaterial.)Job Security Agreement: Provides an array ofbenefits for employees adversely affected bytechnological, operational, or organizationalchange.

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    Income Security Agreement

    These agreements emphasize providing long-service employees with options in the event new

    technology eliminates jobsThirty years ago you had two choices: layoff orseverance. Now there is early retirement,bridging, and even paid educational leave.

    In essence it is akin to a generous, butcontingent, severance package

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    Conclusions:Thus, the company does not have the unilateralability to introduce technological change thatadversely affects the working conditions of

    running-trade employees without firstnegotiating how the adverse effects are to beameliorated or having the adverse effectssubject to arbitration

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    Equally important, however, the running-

    trade unions do not have the ability to halttechnological change just because it mayadversely affect their members. 'OK, I

    have a gun and I am going to shoot you.You get to pick where I shoot you. But inthe end, you will get shot. Whether I shootin the arm, in a fleshy area, or internalorgan; it is up to you

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    The application of automation in manufacturingoperations has the potential to trigger

    widespread changes in education and trainingrequirements.

    Robots and other forms of programmableequipment and systems may change

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

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    Education, training, and retraining, shouldfacilitate the identification of

    new opportunities,problems,issues

    in education and training policy.

    Changing Role of EducationHuman development process.Services to the general public or to specialsegments of the population.Informational Technology , instructionalservices are available home.

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    Participation in InstructionalPrograms

    Job skill mismatch .

    many individuals are seeking additional training in orderto keep pace with technological and economic change.

    Since the mid-19th century, both business and the labormovement have contributed to or participated in thedesign and delivery of instructional programs.

    Formal, in-house instruction is more common inlarger business and labor organizations.

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    Technological LiteracyIndividuals must have knowledge of the computer as a

    tool for managing andproviding access to massive amounts of information.

    Modified definition of basic literacy that includesfamiliarity with the computer. Technological literacy

    Technological literacy will soon be required of allmembers of the work force, as broader and more

    extensive applications of information technology aremade in offices and plants. : E-DMS

    More in-house corporate education and trainingsystems

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    Ch g R lti g f A t ti

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    Changes Resulting from Automation

    EducationTechnical

    Vocational

    Challenges : TeacherLevel :1 Industrial LevelLevel : 2 College and University level

    Engineer : Man automation process

    More Apprenticeship training : Needs radical changes

    Emphasis on Group training with alternating period ofStudy and work

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    Retaining programs for the employeeworker whose job content is changing in

    the automated plant Concern over retaining peoples whose jobcontent has changed

    Older Worker :Requires not only retraining in techniques butalso a understanding of reason for thesechanges

    More leaning through participation and seeingthe implication of technological developmentMaking people feel that training is not forced onthem

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    Retraining the Displaced

    Retraining programs are of greater benefitto displaced workers who are younger,have slightly more formal education, andhave achieved some level of financialsecurity.

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    Supervisor :

    Have a favour for Automation Also on favor men who have more formal andtechnical education

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    Retaining Programs

    Older men , especially those whose areaof skill have disappeared as a result oftechnological change.

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    UAW reached with Ford Motor Co., GeneralMotors, and International Harvester, there areprovisions for training and retraining programs for

    current employees as well as those laid off.In addition, each contract calls for theestablishment of a joint unionmanagement

    employee development and training committeethrough which special instructional assistance willbe provided to members who are displaced

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    Training and Retraining

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    by new technologies, new techniques ofproduction and . . . shifts in customer

    preference. Employees both skilled andsemiskilled are covered under other provisionsof the agreements.

    They are eligible to participate in upgradetraining designed to sharpen job skills and toprovide updates on the state of the art oftechnology being utilized in their plants.

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    Training for management of automationprocess is linked with the training oftechnical manpower because theseprocess breakdown the distinctionbetween manpower and managerial skills.

    Managerial decision are vitally importantwhen they affect the maintenance andoperation of the integrated plant and theycan be made only by person who knowsthe plant intimately as a technical system.

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    Automatic production is also likely toincrease the advantage of formal trainingin management , Because each plant mustoperate as a unified whole and suchoperation is best achieved by techniquesof management planning and control,which have been acquired by formal

    training

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    ReferencesBooks :

    Designing Effective organisation , T Elanine Gagne & David K Banner , sagepublication, California 1995The future of the Organisation ,Colin Coulson Thomson, Kogan page limited,London 1997Organisation Learning , Micheal D cohen, Lee S Sproull, sage publication,California 1996

    Website : www.wcupa.edu/ACADEMICS/sch_cas.psy/Career_Paths/Industrial/subfield2.htmDate : 12/10/2005http://www.pp.bme.hu/so/2001_2/pdf/so2001_2_02.pdf Date : 09/10/2005http://www.elsevier.comcws_home/620640/description Date : 10/10/2005

    http://www.skyenet.net Date : 15/10/2005http://nicic.org/Library/period195 Date 16/10/2005http://www.hpsys.com/leader.htm Date 18/10/2005http://www.managementhelp.org/quality/tqm Date 18/10/2005http://www.vcp.com.br/English/Institutional/ Company Date 18/10/2005

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    http://www.wcupa.edu/ACADEMICS/sch_cas.psy/Career_Paths/Industrial/subfield2.htmhttp://www.wcupa.edu/ACADEMICS/sch_cas.psy/Career_Paths/Industrial/subfield2.htm
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    Is Training Necessary

    Functional illiteracy rate is high

    The nature of work is changing

    Technology revolution requires training andretraining of older workers

    Training is lifelong - we cannot count on holdingthe same job forever

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    TrainingOn-the-job trainingVestibule training

    ApprenticeshipComputer-assisted instruction (CAI)Net-based trainingBehavior modification

    Job rotationCase studies, Business games, In-baskettraining, Role playing