Insource automation

Assembly Automation

ISSN: 0144-5154

Article publication date: 1 April 2006

291

Citation

Loughlin, C. (2006), "Insource automation", Assembly Automation, Vol. 26 No. 2. https://doi.org/10.1108/aa.2006.03326baa.001

Publisher

:

Emerald Group Publishing Limited

Copyright © 2006, Emerald Group Publishing Limited


Insource automation

Insource automation

Our theme for this issue is the automotive industry, which, I am told, is in big trouble – at least in the West.

The problem is not one of lack of demand, but perhaps it is a case of too much demand. Henry Ford once famously said that his customers could have their cars in any colour as long as it was black. This was not because other colours were not available but simply because black paint dried faster.

These days customer demand has led to ridiculous scenarios such as that of the Mini Cooper which has so many customer options that so far, of the million that have been sold only ten are alike. Is the customer always right? Is choice a good thing?

By giving customers choice are we in fact creating headaches for ourselves and ultimately for our customers as well? If we look at personal computers we see that the number of permutations is totally mind-boggling. Different processors, operating systems, display, printers, keyboards, mice, memory and disk storage all conspire to create instability and a support nightmare. I know that competition empowers technological development, but it is possible to overdo it.

This same customer demand is forcing manufacturers to outsource their manufacturing operations to low wage economies, something which in my view is bad news for the planet to say nothing of non-environmental issues. But can we really blame customers for wanting to pay the lowest price? Of course not – so we need to find another way.

In his paper in this issue “Improved product design as an alternative to outsourcing manufacture and assembly” (pp. 121–126), Andrew Lee-Mortimer reports that Dewhurst and Meeker claim that all the hidden costs can add an extra 24 per cent to the cost of a product manufactured overseas. This not only means that such outsourcing is significantly less attractive than it first appears but also begs the question that if that 24 per cent was spent on local manufacturing resources then would it actually be necessary to go overseas at all?

I am not pro-West or anti-East, but I am concerned that present day global manufacturing strategies are being driven by short-term necessities at the expense of long-term benefits.

Government sponsored protectionism has in the past created a false sense of security which in turn lead to basic laziness and the continuation of outmoded and inefficient manufacturing and sales techniques. Our goal should always be to design and build the best possible products in the best possible way.

I believe that automation is key to achieving this ambition and that we should embrace this mantra with great enthusiasm. This is not to say that automation should replace human endeavours but that it should be used as the tool that enables us to achieve our objectives.

Clive Loughlin

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