How to get started with automation in a small manufacturing company

Today, manufacturing process automation is becoming increasingly accessible to small and medium-sized enterprises. Technological advancement and decreasing costs of automation solutions enable even smaller manufacturers to optimize their processes, reduce costs, and increase market competitiveness. Automation is no longer the exclusive domain of large corporations with enormous budgets – small manufacturing companies can now leverage modern technologies to transform their production processes and achieve significant improvements in efficiency, quality, and profitability.

The path to successful automation, however, requires careful planning, gradual implementation, and proper understanding of the specific company’s needs. In this article, we will examine a comprehensive approach to implementing automation in a small manufacturing company, from initial analysis to long-term maintenance and optimization of automated processes.

Current State Analysis and Opportunity Identification

Thorough Mapping of All Production Processes

Before initiating any automation, it is essential to conduct a detailed analysis of all current production processes. This analysis should include mapping every step in the production chain, from raw material receipt to finished product shipment. It is important to document not only the main production processes but also supporting activities such as warehousing, quality control, packaging, or administration.

When mapping processes, focus on identifying repetitive tasks that are performed regularly and in the same manner. These routine activities are often ideal candidates for automation because their standardized nature allows for relatively easy implementation of automation solutions. Simultaneously, identify time-consuming operations that consume a significant portion of employee working time or represent bottlenecks in the entire production process.

Pay special attention to areas with high error rates, where frequent mistakes occur due to human factors, fatigue, or work monotony. These processes often represent not only cost burden in the form of defects and repairs but also risk to final product quality and customer satisfaction.

Identifying Bottlenecks and Inefficiencies

Production bottlenecks represent processes or operations that slow down the entire production flow and limit the company’s overall capacity. Their identification is crucial for determining automation priorities. These are often manual operations that require high precision, special skills, or are physically demanding.

Also analyze material flows and logistics within the company. Inefficient material handling, unnecessary movements, or waiting times between operations may represent significant opportunities for improvement through automation.

Prioritizing Areas for Automation

After completing the analysis, it is necessary to establish priorities for automation. Focus primarily on processes that have high return on investment potential. These are usually processes with high labor costs, high error rates, or significant impact on overall productivity.

High priority should also be given to processes that pose safety risks to employees. Automating dangerous operations not only protects worker health but also reduces the risk of workplace accidents and associated costs.

Processes requiring high precision and consistency are other ideal candidates for automation. Machines and robots can often achieve higher precision and repeatability than human operators, leading to improved product quality and reduced production variability.

Setting Clear Goals and Realistic Budget

Defining Specific and Measurable Objectives

Successful automation requires clearly defined goals that are specific, measurable, achievable, relevant, and time-bound. Instead of general formulations like “improve productivity,” establish specific goals such as “increase line productivity by 25% within 12 months” or “reduce defective products by 40% by year-end.”

Goals should cover various business aspects. Productivity goals may include performance increases, cycle time reduction, or increased machine utilization. Quality goals may focus on error reduction, product consistency improvement, or achieving higher quality standards.

Financial goals should include both cost savings and potential revenue increases. Cost savings may come from reduced labor requirements, decreased material consumption, energy savings, or reduced quality costs. Revenue increases may result from higher capacity, faster delivery times, or better product quality.

Comprehensive Budget Planning

Realistic budget planning is a critical success factor for automation projects. The budget should include all related costs, not just the automation equipment purchase price.

Direct costs include hardware (robots, sensors, control systems), software (programming, licenses, updates), and installation (space preparation, electrical and pneumatic systems, safety systems). Indirect costs may include employee training, temporary productivity reduction during implementation, project management costs, and consultations.

Operating costs include maintenance, energy, spare parts, software updates, and potential external service services. These costs must be planned for the entire automation system lifecycle, which can be 10-15 years.

It is also important to plan a reserve for unforeseen expenses, which should be 15-25% of the total budget. Automation projects often bring unexpected challenges that may require additional investments.

Selecting Appropriate Technologies for Small Companies

Industrial Robots and Automation Systems

Collaborative robots, also known as cobots, represent an ideal solution for small manufacturing companies. Unlike traditional industrial robots, they are designed for safe collaboration with human operators without the need for safety fences. They are relatively easy to program, often through intuitive user interfaces, and their price is significantly lower than traditional robotic systems.

Articulated robots with six degrees of freedom offer high flexibility and are suitable for more complex handling tasks, welding, or painting. SCARA robots are optimized for fast and precise operations in the horizontal plane, such as assembly, pick-and-place operations, or testing.

For specific applications, Cartesian robots (gantry) may also be suitable, offering high precision and payload capacity at relatively lower costs, or delta robots for very fast pick-and-place operations.

Production Control and Monitoring Systems

Manufacturing Execution System (MES) provides real-time production process control, order tracking, material management, and quality control. For small companies, modular MES solutions exist that can be implemented gradually according to needs and budget.

Enterprise Resource Planning (ERP) systems integrate all business processes from purchasing through production to sales and finance. Modern cloud ERP solutions are available for small companies with monthly licenses instead of high one-time investments.

SCADA (Supervisory Control and Data Acquisition) systems enable real-time monitoring and control of production machines and processes. They provide process visualization, data collection, alarming, and basic analytical functions.

Internet of Things (IoT) and Sensor Technologies

Temperature, pressure, humidity, vibration, and other parameter sensors enable continuous monitoring of machine and process conditions. This data can be used for predictive maintenance, process optimization, and quality assurance.

Optical sensors and camera systems with artificial intelligence can automate quality control, defect detection, or object recognition. Modern machine vision systems are increasingly accessible and easier to implement.

RFID chips and barcodes enable automatic tracking of materials, parts, and finished products throughout the production process. This provides better inventory control, product traceability, and logistics process optimization.

Gradual Automation Implementation

Pilot Project as Success Foundation

Starting automation through a pilot project is a proven approach that minimizes risks and allows gaining valuable experience. Select one specific process that is relatively simple, has clearly defined inputs and outputs, and represents a good opportunity to demonstrate automation benefits.

The pilot project should be sufficiently representative to provide relevant experience, yet sufficiently limited to be completed within reasonable time and budget. The ideal pilot project duration is 3-6 months from initiation to results evaluation.

During the pilot project, focus on thorough documentation of all experiences, problems, and their solutions. These insights will be invaluable when planning further automation phases.

Gradual Automation Expansion

After successful pilot project completion, you can gradually expand automation to other processes. Use pilot project experience to optimize the approach and avoid repeating mistakes.

When expanding automation, it is important to ensure compatibility and integration possibilities of different systems. Plan with consideration for future connection of individual automated processes into a comprehensive system.

Each subsequent phase should build on previous experiences and gradually increase automation solution complexity. This approach allows the organization to gradually build competencies and knowledge needed for managing more complex systems.

System Integration and Optimization

The ultimate goal is creating an integrated automation system that connects all automated processes and enables their coordinated control. This requires careful planning of communication protocols, data formats, and control systems.

Integration should include not only technical system connection but also process harmonization, procedure standardization, and creation of a unified user interface for operators.

Change Management and Human Resource Development

Communication and Employee Engagement

Successful automation requires active employee support and engagement. Transparent communication about automation reasons, goals, and expected benefits is crucial for gaining team support.

Explain to employees that automation is not aimed at replacing people but at improving working conditions, increasing safety, and creating opportunities for developing new skills. Emphasize that automation can lead to company growth and thus new job opportunities.

Involve employees in the automation planning process. Their practical experience with production processes is invaluable for identifying problems and opportunities that may not be obvious from a management perspective.

Personnel Training and Requalification

Automation changes employee skill requirements. Instead of routine manual tasks, employees will need skills for operating, programming, and maintaining automation systems.

Create a comprehensive training plan covering different employee levels – from operators through technicians to management. Training should include not only technical aspects but also safety when working with automated systems and procedures during failures.

Collaborate with vocational schools, universities, or specialized educational institutions. Many automation system suppliers also offer training programs specific to their equipment.

Invest in long-term employee development. Automation is a continuous process and employees will need ongoing education to work effectively with new technologies.

Creating a Continuous Improvement Culture

Automation should be part of a broader continuous improvement culture in the company. Encourage employees to suggest improvements, report problems, and share ideas for process optimization.

Create a system for collecting and evaluating improvement suggestions from employees. Regularly organize workshops or brainstorming sessions focused on optimizing automated processes.

Performance Monitoring and Continuous Optimization

Key Performance Indicators (KPIs)

Effective monitoring of automation systems requires defining and tracking key performance indicators. Overall Equipment Effectiveness (OEE) is a comprehensive metric that combines equipment availability, performance, and production quality. OEE provides an overall picture of automated system efficiency.

Throughput measures the number of completed products per time unit and is a key productivity indicator. Track not only overall throughput but also throughput of individual operations or machines.

Quality indicators include percentage of defective products, number of complaints, quality costs, and specification compliance rate. Automation should lead to significant improvement in these indicators.

Financial indicators include cost per production unit, capacity utilization, return on investment, and total automation system ownership costs.

Predictive Maintenance and Optimization

Modern automation systems generate enormous amounts of data that can be used for predictive maintenance. Trend analysis in sensor data can predict potential failures before they actually occur.

Implement systems for continuous machine condition monitoring through vibrations, temperature, current, and other parameters. These systems can automatically generate alerts when abnormalities are detected.

Use data for process parameter optimization. Machine learning and artificial intelligence can identify optimal settings for maximizing performance, quality, or energy efficiency.

Regular Evaluation and Improvement

Establish regular cycles for evaluating automation system performance. Monthly or quarterly reviews should include KPI analysis, problem identification, and improvement opportunities.

Systematically collect feedback from operators and technicians who work daily with automated systems. Their observations and suggestions can reveal optimization opportunities that are not obvious from data.

Monitor new technological trends and evaluate their potential application in your company. Technologies develop rapidly and new solutions may offer additional improvement opportunities.

Financing Automation Projects

Various Financing Options

Own resources represent the simplest financing method but may be limited, especially for smaller companies. The advantage is independence and absence of interest, the disadvantage may be depletion of working capital.

Bank loans are a traditional way of financing larger investments. Many banks offer special products for financing technological innovations with favorable conditions.

Leasing allows gradual payment of automation equipment while simultaneously using its benefits. Operating leasing may include service and maintenance, which reduces operational risks.