An Automation Assessment, whether conducted in-house or with the help of an automation integrator, provides a comprehensive overview of your current manufacturing processes. It identifies pain points, inefficiencies, and potential industrial automation opportunities where technology could be beneficial.
At DEVELOP, we believe that your deep understanding of your business is the key to identifying the most valuable industrial automation opportunities in your factory. This article is going to walk you through a proven process—the same one our team uses—to pinpoint areas where manufacturing automation can make a real difference.
By combining your insider knowledge with our systematic approach to opportunity analysis, you’ll be able to uncover hidden potential for growth, efficiency, and cost savings. Whether you’re looking to optimize existing processes, address specific challenges, or explore new avenues for expansion, this guide will equip you with the tools and insights you need to make informed decisions about your industrial automation journey.
Not sure if automation is right for your business? Take our free Automation Assessment Questionnaire and get expert insights into your unique automation potential.
Understanding the Opportunity Analysis Process
An opportunity analysis is a granular evaluation of your manufacturing processes aimed at pinpointing specific areas ripe for industrial automation. It’s not simply about finding tasks that robots can do. It’s about aligning automation with your broader business goals to maximize the industrial automation opportunities available to you. That’s important because it paves the way for:
- Strategic Decision-Making: Opportunity analysis helps you make informed decisions about where to invest in industrial automation, ensuring that your efforts align with your long-term objectives and create a clear roadmap for the future of manufacturing automation in your company.
- Resource Optimization: By identifying the most promising automation opportunities, you can allocate your budget, time, and personnel effectively, maximizing the return on your investment in industrial automation.
- Holistic Approach: Opportunity analysis considers the technical feasibility of manufacturing automation and its potential impact on your overall business performance, including factors like quality improvement, increased throughput, and reduced risk, all of which are key benefits of industrial automation.
Related eBook: Boosting the Bottom Line:
The Transformative Impact of Automation for Manufacturers
The DEVELOP Opportunity Analysis Form – Your Practical Tool
The DEVELOP Opportunity Analysis Form is your hands-on companion for uncovering industrial automation opportunities within your facility. It’s designed to guide you through a systematic walkthrough of your operations, helping you identify areas where manufacturing automation can make a significant impact. Here’s how it works:
- Walkthrough: Grab your form and take a tour of your facility. Take a close look at each area, paying particular attention to the five key focus areas we’ll discuss in the next section.
- Document Observations: For each potential automation opportunity, take a picture and jot down your observations on the form. Note the task being performed, the number of employees involved, any challenges or bottlenecks you notice, and any initial thoughts on how automation might improve the situation.
- Prioritize Opportunities: The form includes a section for prioritizing industrial automation projects based on their potential impact, feasibility, and alignment with your business goals. This will help you create a strategy for implementing the automation solutions that deliver the greatest value.
Ready to Transform Your Operations?
Take the first step towards unlocking the full potential of industrial automation within your facility. Download the DEVELOP Opportunity Analysis Form now and begin your journey to identify areas ripe for automation. It’s a simple yet powerful tool to kickstart your assessment process.
Want a deeper dive?
Download our free eBook, Automate to Elevate: Your Automation Assessments Guide. Inside, you’ll find comprehensive insights into each phase of a successful automation assessment, complete with additional assessment tools, process breakdowns, and expert tips and strategies. Don’t miss out on the opportunity to revolutionize your manufacturing processes.
Top Tip: Tap into the Frontline for Automation Success
The most valuable insights into your automation potential often come from the people closest to the work itself — your frontline employees. They’re the ones who experience firsthand the challenges, bottlenecks, and inefficiencies that can be addressed through automation.
Engaging your team in the opportunity analysis process not only uncovers hidden opportunities but also creates a sense of ownership and enthusiasm for the changes ahead. It’s a crucial step for getting your workforce on board for change.
As you conduct your walkthrough, take the time to talk to your team. Ask open-ended questions like:
- “What are the most repetitive or time-consuming tasks in your daily routine?”
- “Are there any processes that you feel could be streamlined or improved?”
- “What safety concerns do you have about your current work environment?”
- “What aspects of your job would you like to spend more time on if you could automate certain tasks?”
By actively listening to their feedback, you can gain valuable insights into pain points that may not be immediately apparent during your observations.
Highlight the Benefits for Employees
Make sure your employees understand how automation can benefit them personally. Emphasize that automation isn’t about replacing jobs but about enhancing them. By automating repetitive or dangerous tasks, employees can focus on more engaging, higher-value activities that use their unique skills and expertise. This can lead to increased job satisfaction, career development opportunities, and a safer work environment.
Related Reading: Comprehensive Guide to the Industrial Automation Process
5 Key Areas of Focus in Your Opportunity Analysis
Let’s go through five key areas to assess during your opportunity analysis, helping you pinpoint prime targets for your manufacturing automation.
1. Clusters of People and Labor
When conducting your walkthrough, be on the lookout for the following:
- Repetitive Task Clusters: Areas where two or more employees are performing the same repetitive task repeatedly throughout their shift are ideal targets for automation. Automating these tasks can streamline your manufacturing processes, resulting in increased efficiency, reduced errors, and improved workplace safety.
- Collaborative Work Cells: You should also look for work cells where five or more employees are collaborating on the same product or sub-assembly. These collaborative environments often involve complex workflows and manual handoffs, creating bottlenecks and opportunities for errors. Implementing robotics in manufacturing in these areas can streamline production, optimize workflows, and free up valuable human resources for more complex and creative tasks.
- Don’t Forget Multiple Shifts: When evaluating these clusters, remember to consider all shifts, not just the ones you happen to be observing. The labor costs and automation potential can add up significantly when you factor in second and third shifts. By automating tasks across all shifts, you can achieve consistent productivity, improve quality control, and maximize the return on your industrial automation investment.
Automation Potential
By automating tasks in these clusters, you can achieve:
- Increased productivity and efficiency
- Improved product quality and consistency
- Reduced labor costs
- Enhanced worker safety and morale
2. Growth Opportunities
Identifying opportunities for growth is a critical aspect of any industrial automation initiative. By strategically implementing manufacturing automation, you can overcome limitations, expand your capabilities, and unlock new avenues for success. Keep an eye out for these scenarios where industrial automation can unlock growth:
- High Outsourcing Costs: If you spend a significant amount on outsourcing (e.g., over $250,000 annually for a single part), consider bringing production in-house through automation. Doing so will reduce your reliance on external suppliers, improve lead times, and give you more control over cost, quality, and timelines.
- Idle Machines: Are any of your machines sitting idle due to labor shortages or skill gaps? Automating these machines can maximize their utilization, increase throughput, and allow you to take on more orders, ultimately driving business growth.
- Missed Market Potential: One of the most significant growth opportunities often lies in untapped market potential. Are there orders you’re unable to fulfill due to capacity constraints or production limitations? By automating key processes, you can increase your production capacity, reduce lead times, and expand into new markets that were previously out of reach.
Calculating the Upside
To fully understand the potential for growth through automation, it’s essential to gather data from your key decision-makers in sales, operations, and ownership. By understanding your current limitations and the potential demand in the market, you can quantify the financial upside of automation and make a compelling business case for investment.
Automation Potential
By automating in these areas, you can:
- Reduce outsourcing costs and gain more control over production
- Maximize machine utilization and increase throughput
- Expand production capacity and take on new business
3. New Product Challenges
Are you planning to launch a new product or a new product range? When launching new products, consider how industrial automation can address these challenges:
- High-Volume Production: If your new product requires high-volume production runs, automation can be a game-changer. Robots and automated systems can maintain consistent output and quality at a scale that’s difficult (if not impossible in a lot of cases) to achieve with manual labor.
- Complex Components: If your product involves intricate assembly or complex components, automated manufacturing can offer the precision and repeatability needed to ensure each unit is manufactured to exact specifications.
- Precise Requirements: If your product demands stringent quality standards, automation can help you meet those requirements consistently. Robots and automation systems can perform tasks with a high degree of accuracy, reducing defects and ensuring product uniformity.
Automation Potential
By automating tasks in new product production, you can:
- Achieve high-volume production with consistent quality
- Ensure precision and repeatability for complex components
- Meet stringent quality standards and reduce defects
4. Risk Reduction
Automation can play a significant role in reducing risks in your workplace. Use this opportunity to Identify areas where industrial automation can reduce risks, not just on the floor but for your entire business. By automating these tasks, you can create a safer work environment and reduce the risk of injuries:
- Aging Equipment: Just like you wouldn’t expect your sales team to drive outdated vehicles, relying on aging equipment in your manufacturing process can be a significant risk. Older machines are more prone to breakdowns, downtime, and costly repairs. Evaluate your equipment based on age, maintenance costs, and impact on production. Consider replacing or upgrading outdated machines with modern, automated solutions to improve reliability, efficiency, and overall performance.
- Dangerous Tasks: Manufacturing environments often involve tasks that pose risks to worker safety, such as heavy lifting, repetitive motions, or exposure to hazardous materials. Automating these tasks can significantly reduce the risk of workplace injuries, improve worker morale, and avoid costly workers’ compensation claims.
- Repetitive Strain Injuries (RSIs): RSIs are a common problem in manufacturing, leading to lost productivity, increased healthcare costs, and employee dissatisfaction. Ergonomic automation solutions can help reduce the risk of RSIs by minimizing repetitive motions and awkward postures.
Automation Potential
By automating in these areas, you can:
- Reduce the risk of equipment failure and downtime
- Improve worker safety and reduce the risk of injuries
- Minimize repetitive strain injuries and create a healthier workplace
5. High Scrap Rates
Identifying and quantifying waste in your operations is crucial for uncovering automation potential. Waste can take many forms, such as scrap material, excess inventory, or inefficient processes. By automating tasks that generate waste, you can streamline your manufacturing automation processes, reduce costs, and minimize your environmental impact.
- Improved Precision and Consistency: Automated systems can perform tasks with greater precision and consistency than manual labor, reducing the likelihood of errors and defects. This can lead to a significant decrease in scrap material and lower production costs.
Start by calculating the cost of your scrap material per week or month. Then, estimate how much of that scrap could be avoided through automation, such as by reducing errors, optimizing material usage, or improving quality control.
Automation Potential
By automating processes with high scrap rates, you can:
- Reduce material waste and lower production costs
- Improve product quality and consistency
Related Reading: 7 Ways Automation Improves Efficiency and Reduces Costs
Tips for Effective Opportunity Analysis
As you carry out your opportunity analysis walkthrough, keep these tips in mind to maximize your chances of discovering valuable industrial manufacturing automation opportunities.
Start Simple
Don’t feel overwhelmed by the prospect of analyzing your entire operation at once. Begin with a single area or department, identifying automation opportunities that align with your most pressing business needs. This focused approach will help you build momentum and gain confidence as you move on to other areas of your facility.
Take Photos
A picture is worth a thousand words, especially when it comes to documenting manufacturing automation potential. Use your smartphone or tablet to take clear, well-lit photos of each potential opportunity you identify. These photos will serve as valuable references as you prioritize and plan your automation projects.
Note Multiple Categories
Remember that some industrial automation opportunities may fall into multiple categories. For example, a task that involves repetitive motions and poses a risk of injury could be categorized under both “Clusters of People and Labor” and “Risk Reduction.” Noting these overlaps can help you prioritize opportunities with the greatest potential for positive impact.
Prioritize
Not all automation opportunities are created equal. Some may offer a higher return on investment (ROI) or align more closely with your strategic goals. Use the DEVELOP Reverse ROI Calculator (discussed later in this guide) to assess the financial viability of each project and prioritize those that offer the greatest potential value for your business.
Related Reading: Opportunity Over ROI
The Next Step: ROI Calculation
Once you’ve identified and documented potential industrial automation opportunities within your facility, the next crucial step is to determine the financial viability of each project. This is where a Reverse ROI Calculator comes into play.
This useful tool allows you to estimate the return on investment (ROI) for each automation project you’re considering. The Reverse ROI Calculator takes into account a variety of factors, including:
- Estimated labor savings
- Increased production output
- Reduced material waste
- Improved quality and consistency
- Reduced downtime and maintenance costs
By analyzing these factors, the calculator provides a clear picture of the financial benefits you can expect from each manufacturing automation project. This allows you to prioritize projects based on their potential ROI and make informed decisions about where to invest your resources.
Additional Resources
Ready to dive deeper into the world of automation? DEVELOP offers a wealth of resources to guide you on your journey:
- Insights: Our Insights section features articles on the latest automation trends and expert insights to help you stay informed and make the best decisions for your business.
- Knowledge Base: The Knowledge Base is your go-to resource for in-depth guides on all things automation. Learn about different automation technologies, discover best practices, and find answers to common questions.
- eBooks: Our comprehensive eBooks provide detailed information on specific automation topics, such as Automation Assessments and technology selection. Download our free eBooks to gain a deeper understanding of how automation can transform your operations.
By exploring these resources, you can equip yourself with the knowledge and tools you need to make informed decisions about your industrial automation investments.
Related Reading: How to Maximize Automation ROI: A Manufacturer’s Guide
Move to a Smarter, More Competitive Manufacturing Operation
Identifying and prioritizing industrial automation opportunities is a critical step in your journey toward a more efficient, productive, and profitable future. By conducting a thorough opportunity analysis, you can gain a clear understanding of where manufacturing automation can make the biggest impact on your business.
Remember, opportunity analysis isn’t just about finding tasks that robots can do. It’s about aligning automation with your broader business ambitions, optimizing your resources, and reducing risks. By taking a strategic, data-driven approach, you can ensure that your automation investments deliver maximum ROI and drive your business forward.
If you’re ready to access the full potential of industrial automation for your company, DEVELOP is here to help. Contact us today to learn more about our Automation Assessment services and how we can assist you in identifying and implementing the right automation solutions for your unique needs.
Alternatively, take the first step towards transforming your operations right here, right now. Take our free Automation Assessment Questionnaire and kickstart a more automated future today.
About the Authors:
Matt Moseman leads as President of DEVELOP, with a strong foundation from the Milwaukee School of Engineering, where he earned both a Bachelor’s and a Master’s in New Product Management. Moseman’s career highlights include his pivotal role in founding NodeUDesign, innovating in automation hardware, and driving DEVELOP LLC to the forefront of industrial robotics with a focus on enhancing productivity and efficiency.
Sean McKittrick, as Project Program Coordinator at DEVELOP LLC, brings a multifaceted background from Knox College. McKittrick’s first year at DEVELOP LLC has been marked by significant team growth and zero turnover, showcasing his ability to build a collaborative and effective work environment. His experience spans quality management in healthcare software to managing production for a million pounds of material monthly, highlighting his diverse expertise in project coordination and manufacturing excellence.