Introduction
Automation involves the use of robots in the production process. Normally, robots used in the production process require little or no help from humans. The primary aspect of automation is that it employs self-correcting control systems for feedback (Cichocki, 2012). After setting up an automation process, human’s role is only to maintain and repair the equipment. Companies are increasingly using robots in their production process. This paper will provide a background on STIHL’s manufacturing and robotics; the company’s profitability, and profits; and benefits of automation.
STIHL Background in Manufacturing and Robotics
Established in 1926 by Andreas Stihl, Stihl Incorporation is a handheld power equipment manufacturing company based in Virginia, USA. With its headquarters in Stuttgart, Germany, STIHL is a privately held company owned by the Andreas Stihl descendants. The company has recently introduced collaborative robotics in its manufacturing approaches in the US and Germany. In the robotic manufacturing technology, man and machine have a common working space (Cichocki, et al., 2012). Since man and machine have a common working space, they collaborate during assembly procedures. Among the wide range of products that the company produces, include edgers, trimmers and bush cutters, chainsaws, hedge trimmers, and lawn mowers among others.
Profitability and Profits
Through its automation practices, STIHL has grown into a World Class production company. With only 2,100 employees across the globe, STIHL makes an annual sale of 1 Billion USD (Cichocki, 2012). Despite the weakening global economy characterized by adverse weather conditions and Eurozone debt crisis, STIHL has continued to grow. In 2012, the company had a turnover of 1,968 million Euros. This turnover represented a 7.9 percent increase from the previous year. The company’s productivity has come as a result of the automation production practices and its presence across the globe. The company’s profits mainly come the sale of its products. STIHL has over 40,000 authorized dealers in more than 160 countries. The increasing sales units in other areas offset the dips in units from one region across the globe. For this reason, the company is not affected by fluctuation in exchange rates, adverse weather conditions, and regional economies.
Benefits of Automation
The use of robots at STIHL means there is a collaboration between robots and humans. With the help of sensors, there has been a great reduction of risk at work hence improved productivity (Cichocki, 2012). Despite the benefit of reduced risks, there are other benefits associated with automation.
Reduced costs of production
When companies use robots in the production processes, returns on investments (ROI) will outweigh the initial startup cost. Automation of manufacturing practice is effective in the sense that it reduces the cost of production.
Decreased Cycle Time
Automation decreases cycle time since robots have the ability to work faster and for a longer period (Cichocki, 2012).
Improved reliability and quality
Another benefit of automation is that it improves product’s reliability and quality. Since it is repeatable and precise, automation ensures products follow a specific manufacturing approach.
Space Utilization
Automation manufacturing is important in the sense that it helps in utilizing space. Space utilization is achieved through reducing the footprint of the working area through automating parts of the production line (Cichocki, 2012). Through automation, a production plant can effectively utilize its floor space for other operations thus making the manufacturing process flow in an efficient manner.
Reduction of Waste
Basing on the accurateness of robots, automation can help in reducing the amount of materials used during the production process, thus reducing wastage.
Saving Local Jobs
When companies use robots in the production processes, they will be able to secure local jobs (Cichocki, 2012). Using robots will increase profitability since a manufacturing plant will maintain its initial location.
Stay Competitive
Automation helps companies to stay competitive through reducing associated costs thus attracting new customers. Besides, companies can have increased production at the lowest cost.
Reference
Cichocki, A. (2012). Workflow and process automation. Boston: Kluwer Academic Publishers. Web.