Some small and medium-sized manufacturers (SMMs) still have scars from an Enterprise Resource Planning (ERP) software implementation or Manufacturing Execution System (MES) project, which turned out to be significant investments that did not produce promised results. It’s not surprising that many of these firms remain hesitant to invest in new technology, such as automation.

As the lead automation advisor at the University of Wisconsin-Stout Manufacturing Outreach Center (MOC), which is part of the Wisconsin MEP and the MEP National Network, I’ve spent 10 years working on technology scouting and automation for small manufacturers. I can confirm what they experienced: The first automation project is always the hardest. The manufacturing industry has built machines to do specific tasks that are easy to automate. But the majority of SMMs work in high-mix low-volume (HMLV) production environments, which demand more flexible automation. It’s significantly more difficult to manage all of the variables in this type of automation, from software programming to electronics and resource management.

The good news is automation for HMLV work is more accessible than ever. These applications include:

  • Machine tending: Cobots can handle material for a single machine or manage multiple machines simultaneously. For high-mix environments, vending machine–style part dispensers can ensure a smooth flow of different components.
  • Flexible MIG welding: Cobot welding cells offer the adaptability needed to tackle diverse welding tasks.
  • Streamlined packaging and material handling: Pick and place robots can automate repetitive tasks in packaging and material handling, improving efficiency.

Additionally, many systems have user-friendly interfaces that require minimal coding or no coding at all. The growing availability of pre-configured systems lowers the initial investment, while leasing options and Robotics as a Service (RaaS) providers offer low-risk ways to explore automation.

Following a proven roadmap for a first automation project will remove a few of the common obstacles and reduce anxiety while improving the likelihood of entering the automation world with confidence and success. A roadmap should begin with a commitment to invest time and money in learning what options are available in terms of hardware and software, and understanding the skills and capabilities required by the organization to implement this automation.

First automation project includes costs of entry, additional skills

One of my manufacturing clients that does a wide variety of metal working had a process bottleneck in a wire form subassembly. A machine operator had to pull a wire form out of a machine and put it into another machine so it could be spot welded.

Wire pulling and wire spot welding are challenging automation applications, so we helped the client conduct an initial $7,500 feasibility study and find a custom provider to build a fully automated cell in which the robot removes the metal object and welds it. Our systematic search took nearly six months. The initial project cost about $107,000 for equipment, training and implementation.

The spot welding outcome was so successful that the manufacturer soon added two more cells. While the capital cost of equipment was similar, the support costs associated with the automation are now divided over three cells instead of one, lowering the cost per cell.

One important note: The staff quickly noticed how every spool of wire might be slightly different, and they had to account for variance in the metal form and materials. But robotic adjustments are more complicated than most machines with motion controls, electronics and programming – a combination known as mechatronics. This is a common pain point for first-time automation, as many SMMs do not have staff members with experience in mechatronics. People with experience in mechatronics are in high demand, but once such a professional is on staff, it opens up additional opportunities.

In this case, the manufacturer had an electromechanical expert in the maintenance department who was able to fill the role. They eventually created a role specific to supporting the three cells. It can be difficult to hire someone with skills specifically for a custom automation setup, so companies must commit to additional training and support for lifelong learning.

Preparing for the first automation project

Here at the MOC, we use an Automation Advisor service to address many of the concerns of first-time automation buyers. The process matches a company’s unique needs to potential automation projects and providers, helping them sort out what’s real from hype for their specific processes using a risk and ROI graph. We also give them a few examples of providers and capabilities. Then we help visualize a path with a three-year roadmap for both the hard project needs (such as equipment) and soft project needs (such as internal support).

Yes, it’s a three-year timeline, because this is so different from legacy day-to-day operations. But it does work. Another client with a small shop in Wisconsin went from no automation to three projects in a three-year period and are now almost doubling their production with about the same number of employees. They began with a CNC wire bender with a cobot, then added an automatic box maker set up, and then a cobot welding cell.

Let’s look at the main challenges that SMMs experience in their first automation project.

Shift your mindset from variable costs to include more fixed costs

The National Association of Manufacturers estimates that 75% of U.S. manufacturers have 20 or fewer employees. It can be a stark contrast to the world of international giants of the manufacturing world already leveraging automation and advanced manufacturing technologies such as predictive analytics and robotics.

Many small manufacturers live in a variable expense world – sales go up, more people are hired. Sales go down, some people are let go. Many of them have survived for years with minimal long-term planning and no budgeting for capital expenses. Many small shops focus on daily operations and are consumed with workforce issues and troubleshooting equipment or inventory issues. But automation projects are more open ended, with many unknowns emerging throughout the initiative.

The automation mindset includes:

  • Accepting more fixed costs as part of a company’s financial models.
  • Committing to long-term planning and budgeting for capital expenses. An automation project often requires a six-figure investment.
  • “How we have always done it” will not work for automation. Manufacturers have to be willing to change processes to leverage the technology, as opposed to adapting the technology to meet current processes.
  • The start of a transition from general labor to tech jobs, which may translate into the need to pay more for key positions and account for lifelong learning and career development in a company’s work culture and training.

Develop awareness of automation options and a process for selection

Many manufacturers that have not invested in automation may not realize what’s possible with digital or physical automation. They may not be sure what options are available. They should be prepared to invest time into researching possibilities.

The most common areas for first automation on the facility floor include:

  • Grinding and surface prep
  • Welding and weld prep/cleanup
  • Painting and finishing
  • Pick and place for CNC machines
  • Pick and place for packaging
  • Material handling
  • Machine monitoring for overall equipment efficiency

The ideal first automation project should be low risk, solve an existing pain point and have an attractive ROI. A cobot can be a preferable low-cost pacesetter in an operational cell and a great pilot for an initial foray into automation.

However, there are other variables to consider. There are always more pre-packaged systems available with a smaller cost of entry. There also are options for leasing equipment versus buying. The local MEP Center can help planners research these variables, as well as available grants and tax credits for automation.

Understand skills and capabilities needed for the future state

Many small manufacturers face a management skills gap when it comes to an automation initiative. A key to automation success is commitment to devoting resources to the initiative. The first time an existing line shuts down from a disruption, do not take key people off the automation project to troubleshoot. Ultimately, trust must be placed in the people who are working on the present and the future states.

Other areas to consider include:

  • Scope of maintenance resources: Many smaller manufacturing operations don’t have a maintenance department; they run lean and rely on experienced operators to fix things. For automation, maintenance capabilities are a cost of doing business. As a company grows, it is more of a fixed cost versus variable cost.
  • Scope of computer and network communications resources: Many smaller manufacturers do not have onsite IT personnel or dedicated OT resources. Contract help or a managed IT provider can be used, but as more automation is added companies will need someone who understands industrial controls. A full-time IT person may not be needed for an initial automation project, but a contractor will be.
  • Increased need for cybersecurity: Automation means a significant increase in connectivity and sensors to collect data. Additional cybersecurity becomes another cost of doing business.
  • On-site or off-site servers and backup systems: While an initial automation project may not require a shift in the computer network setup, users might want to evaluate longer-term options as more automation is added to an operation.

Temper expectations and look for “light bulb moments” to share

As I mentioned earlier, it’s a big change to bring in a robot or automation cell to replace even a portion of someone’s job, so temper everyone’s expectations and plan for delays and bugs. Some new machines work right away; most do not. Users will have an easier time with the initiative if a continuous improvement program is implemented to give staff the chance to buy into the importance of tuning and perfecting a company’s processes.

Be sure to communicate early and often to all stakeholders to help alleviate concerns or anxiety about how automation will impact jobs.

Once the equipment is on site and in operation, workers will experience “light bulb moments” as they grasp the full potential of automation. Think of it like the 80/20 rule. The employee who spent 80% of his/her time operating a machine or doing transactional/repetitive tasks and 20% on higher value can now devote 80% to the more rewarding work. Managers are not replacing everyone’s job but are replacing tasks and parts of jobs.

Many companies plan for a 12- to 18-month period to reach full production in their first automation project. Most importantly, users will want to plan to build on their automation success.

The local MEP Center can help interest parties get started on a roadmap for a first-time automation project. They can help everyone understand and address the many variables and challenges, while helping teams overcome roadblocks to embracing automation.

About the author

Ronald Thomas is the lead Automation Advisor for the University of Wisconsin-Stout Manufacturing Outreach Center, which is part of Wisconsin Center for Manufacturing & Productivity and the MEP National Network. He has more than 20 years of experience in manufacturing engineering and related research, development and education.