An SME Examination on the Effect of Transition to Automation Systems on Production Performance

Abstract

Automation technologies are being exposed to negative criticism, as their high costs and will cause high unemployment rates in the future, yet their contributes to production systems are accepted by everyone. Automation systems, which are generally used to reduce production costs and increase product quality, can also create an important competitive power as it gives the work speed and flexibility. The advantages it provides in safety and ergonomics especially in heavy and dangerous works are among the important reasons for the transition to these systems. In other words, the transition to automation systems leads to a significant increase in production efficiency. In this study, the effect of the transition to automation systems on production performance was investigated. Within the scope of the research, case analysis method consisting of observation, interview and document review stages was used. The process of transition to automation systems and the problems encountered in this process were examined through an interview that carried out with a pioneer company in Mobile Hydraulic Lifting Equipment in Turkey. In line with the production data of the automation systems before and after the transition, it has seen that the transition to automation systems provided advantages such as increasing process and product quality, decreasing error rates, decreasing lost times, eliminating bottlenecks, decreasing wastage, improving traceability etc. In addition to its advantages, there are disadvantageous aspects such as high investment cost, long investment return time, requiring a qualified workforce, long set-up times and employee resistance caused by the fear of losing their jobs. The study is aimed to benefit all experts and practitioners working in the field.