Effect of Automation Level on Manufacturing Efficiency: Moderating Role of Workforce Skill Level

Abstract

In the current manufacturing systems, automation has been a defining aspect that has transformed the way production activities are done, their efficiency, and industry competitiveness to a large extent. The increasing use of new technologies such as robotics, artificial intelligence, and machine learning has led to more efficient manufacturing processes in reducing human error, speeding up the production process, and making the most use of the available resources. Nevertheless, automation does not always work well in any industrial environment and is determined by various organizational and human elements. The influence of the level of automation with an emphasis on the degree of workforce skills as a mediator on manufacturing efficiency is going to be discussed in this paper. Although increased automation is likely to lead to higher efficiency, the benefit highly depends on the ability of the labor force to work, control, and maintain automated systems. The automation is more effective with the help of skilled workers who can combine the systems, reduce the downtimes and even improve the decision-making process. On the other hand, low-skilled labor forces can restrict possible benefits of automation because of inefficiency in operations and the difficulty in adapting. The theoretical views on the subject are presented in the study as the means of interaction discussion on the basis of the literature on the industrial engineering and organizational management. The results indicate that automation per se cannot maximize the manufacturing efficiency unless it is complemented by a quality and trained workforce. This points out the significance of developing human capital as well as technology in the contemporary manufacturing setups.