Automation
Automation is a powerful tool that can significantly improve the efficiency and speed of processes, but only when applied correctly. Bill Gates of Microsoft is convinced that not all automation is equally beneficial.
The first rule of any technology is that automating an efficient operation increases efficiency. The second rule: automating an inefficient operation increases inefficiency. (Bill Gates, Microsoft Corporation)
The story of Elon Musk and Tesla serves as a vivid example of how one can stumble into this trap. After automating a process, you might achieve the opposite effect: increased costs, production complications, and even a decline in product quality.
At one point, Musk noticed that the conveyor belt was slowing down at a station where an expensive but slow robot was applying fiberglass strips to batteries. The robot's vacuum grips kept dropping the strips, and it was dispensing too much adhesive. "I realized that our first mistake was trying to automate the process, and I am to blame because I insisted on significant automation," he says. (Elon Mask, biography)
Therefore, one of the prerequisites for automation is conducting a thoughtful analysis of the process. Before introducing robots, algorithms, or software, it is essential to ask yourself a few simple questions:
1. Is this process truly necessary? Perhaps it can be simplified or even eliminated, as was the case with Tesla.
2. Is the process ready for automation? If the process is unstable, contains numerous exceptions, or requires constant human intervention, automation might only make things worse.
3. What are our goals? Automating for the sake of automation is a waste of resources. A clear understanding of the goals (cost reduction, faster production, improved accuracy) helps in choosing the right approach.
4. How long will this process exist? Automation may require significant costs and time. Investments may not pay off if the process being automated has a short lifespan.
It is also important to consider the human factor and resistance to change. Implementing new systems requires training employees, changing their habits, and possibly even revising the organizational structure. It is crucial to plan in advance how freed-up resources can be utilized.
Conclusion:
Automation is a tool, not an end goal. Automate only what truly needs to be automated.
Below are examples of successful and unsuccessful automation.
Successful Automation:
✔ Amazon – Robotic Warehouses. Amazon actively uses robots to sort goods, significantly reducing order processing time. Kiva robots move shelves with products to employees, not the other way around, which reduces search time and lessens the workload on staff.
✔ McDonald's – Self-Service Kiosks. The fast-food chain introduced digital terminals that allow customers to place orders themselves. This has sped up service, reduced the likelihood of errors, and increased the average bill by offering additional options through the system.
✔ Airbus – Quality Control Automation. Airbus factories use drones with computer vision to inspect aircraft. Previously, this process took several hours and required the involvement of multiple specialists. Now, it is completed in 10–15 minutes.
The first rule of any technology is that automating an efficient operation increases efficiency. The second rule: automating an inefficient operation increases inefficiency. (Bill Gates, Microsoft Corporation)
The story of Elon Musk and Tesla serves as a vivid example of how one can stumble into this trap. After automating a process, you might achieve the opposite effect: increased costs, production complications, and even a decline in product quality.
At one point, Musk noticed that the conveyor belt was slowing down at a station where an expensive but slow robot was applying fiberglass strips to batteries. The robot's vacuum grips kept dropping the strips, and it was dispensing too much adhesive. "I realized that our first mistake was trying to automate the process, and I am to blame because I insisted on significant automation," he says. (Elon Mask, biography)
Therefore, one of the prerequisites for automation is conducting a thoughtful analysis of the process. Before introducing robots, algorithms, or software, it is essential to ask yourself a few simple questions:
1. Is this process truly necessary? Perhaps it can be simplified or even eliminated, as was the case with Tesla.
2. Is the process ready for automation? If the process is unstable, contains numerous exceptions, or requires constant human intervention, automation might only make things worse.
3. What are our goals? Automating for the sake of automation is a waste of resources. A clear understanding of the goals (cost reduction, faster production, improved accuracy) helps in choosing the right approach.
4. How long will this process exist? Automation may require significant costs and time. Investments may not pay off if the process being automated has a short lifespan.
It is also important to consider the human factor and resistance to change. Implementing new systems requires training employees, changing their habits, and possibly even revising the organizational structure. It is crucial to plan in advance how freed-up resources can be utilized.
Conclusion:
Automation is a tool, not an end goal. Automate only what truly needs to be automated.
Below are examples of successful and unsuccessful automation.
Successful Automation:
✔ Amazon – Robotic Warehouses. Amazon actively uses robots to sort goods, significantly reducing order processing time. Kiva robots move shelves with products to employees, not the other way around, which reduces search time and lessens the workload on staff.
✔ McDonald's – Self-Service Kiosks. The fast-food chain introduced digital terminals that allow customers to place orders themselves. This has sped up service, reduced the likelihood of errors, and increased the average bill by offering additional options through the system.
✔ Airbus – Quality Control Automation. Airbus factories use drones with computer vision to inspect aircraft. Previously, this process took several hours and required the involvement of multiple specialists. Now, it is completed in 10–15 minutes.
✔ Walmart – Inventory Management Automation. Walmart uses automated inventory replenishment systems that analyze real-time sales data. This helps minimize overstocking and shortages, as well as optimize logistics. The implementation of such systems has significantly improved the efficiency of warehouses and stores.
✔ DHL – Robotic Warehouses. DHL has implemented robots for sorting and moving packages in its warehouses. This has sped up order processing, reduced errors, and decreased the workload on employees. The robots work in tandem with humans, making the process more efficient.
Unsuccessful Automation:
✖ Tesla – Over-Automation of the Assembly Line. In 2018, Tesla attempted to fully automate the assembly of the Model 3 but encountered problems. Some processes required flexibility and manual adjustments, and complex robots often broke down. As a result, some automation was replaced with traditional methods.
✖ Nike – Robotic Shoe Production. In 2017, the company launched a project for automated shoe production but faced issues: robots struggled with delicate materials, and the complexity of setting up the equipment made the process unprofitable. Eventually, the company returned to traditional production.
✖ Heinz – Warehouse Automation in the UK. When transitioning to a fully automated inventory system, the company encountered technical failures. This led to delivery delays and product losses. As a result, the system had to be partially revised and supplemented with manual controls.
✔ DHL – Robotic Warehouses. DHL has implemented robots for sorting and moving packages in its warehouses. This has sped up order processing, reduced errors, and decreased the workload on employees. The robots work in tandem with humans, making the process more efficient.
Unsuccessful Automation:
✖ Tesla – Over-Automation of the Assembly Line. In 2018, Tesla attempted to fully automate the assembly of the Model 3 but encountered problems. Some processes required flexibility and manual adjustments, and complex robots often broke down. As a result, some automation was replaced with traditional methods.
✖ Nike – Robotic Shoe Production. In 2017, the company launched a project for automated shoe production but faced issues: robots struggled with delicate materials, and the complexity of setting up the equipment made the process unprofitable. Eventually, the company returned to traditional production.
✖ Heinz – Warehouse Automation in the UK. When transitioning to a fully automated inventory system, the company encountered technical failures. This led to delivery delays and product losses. As a result, the system had to be partially revised and supplemented with manual controls.
✖ Foxconn – Production Robotization. Foxconn, known as a manufacturer of electronics for Apple and other brands, attempted to replace a large portion of its workforce with robots. However, it turned out that the robots were unable to handle tasks requiring high precision and flexibility, such as assembling small components. As a result, the company returned to using human labor.
✖ British Airways – Failure of an Automated Power Management System. In 2017, British Airways faced a major disruption due to a failure in its automated power management system. This led to the cancellation of hundreds of flights and delays for tens of thousands of passengers.
✖ British Airways – Failure of an Automated Power Management System. In 2017, British Airways faced a major disruption due to a failure in its automated power management system. This led to the cancellation of hundreds of flights and delays for tens of thousands of passengers.
Next:
"Red" status and watermelon projects
Today, we will discuss what a "red" project is, what leads to this status, how to stabilize the situation, and "green" the project. Let me start by saying that a "red" status is no reason to panic. I don’t know a single experienced project manager who hasn’t faced it.
