Automation is the Future

“One machine can perform the work of a hundred human hands, but no machine can perform the work of one human brain”

In a country like India, where the population is very high there is a huge amount of uneducated man power. While the educated manpower get to reach the top positions, these uneducated manpower continue to remain as human machines. Infact, many of the  MNC are interested in capitalizing the potential of the uneducated manpower, available in these third world countries.

When I visited Finland, on the Rotary Group Study Exchange programme, I had the opportunity of visiting a number of industries. What was very striking to me the was the level of automation these companies have employed in the work place. When I looked at the production capacity of these units in relation to the manpower involved, I was thrilled. Big industries,  have just 20 to 30 employees. The simple reason is labour is not available. For instance, in a paper making factory, I saw robots at work. These manlike machines were carrying reels of paper from one point to another point and stacking it in allotted spaces. As simple as, the worker in the Indian factory who carries loads of material, from one point to another point.

For a moment I thought, what would be the fate of a country like India, if robots became so common that there will not be a need for uneducated man power.

What I then realized was that, as of today the economies of cost are not likely be in favour of these industries, but in the near future this may be the in thing. Let me explain. Assume, that the cost of a robot is 1 crore rupees. Now to make a investment of 1 crore in a robot, means that on a conservative basis the interest cost would be approx 12%, which means the cost of employing a robot will be Rs.12 lakhs per year. The uneducated manpower in India is roughly earning about Rs. 150/- per day which means it is just approx Rs.50,000/- per year. Where is Rs.50,000/- as compared to 12 lakhs. So, Robots are not a workable proposition.

Now assume that these robots are made available to industries by mass production at Rs. 5 lakhs per robot. Now the interest cost is Rs. 60,000/- per year. This would mean that the robot would become a more dependable work force for industries. They won’t get tired, they won’t form groups, they won’t fight for a increase in pay, they won’t talk and waste time, they will give you the maximum production you desire, there would be precision and therefore no quality problems, and endless benefits.

Today we talk about labour shortage everywhere. All of  a sudden we do not get labourers to perform the menial work like we got before. We see every industrialist brooding about this issue. In spite of the temptations, such as free food, free medical expenses, free education for children, free van pick up and drop, production linked incentive, in addition to the daily wages, there are no people to come and work.

The employers who once felt like kings are now feeling so helpless without this much sought after work force. What we need to understand is we have to invest in automation in a big way. Even a country like China, which has a higher population than India, seems to have realized the fact, much earlier. Their factories today have enormous production capacity, not owing to its labour force, but owing to the high level of automation.

Let us wake up to the fact that , in India the transition of the physical workers to knowledge workers is on the rise and the availability of uneducated manpower is in a steady decline and unless we bring in more automation at our workplace, it is going to be difficult.

Start looking at the bigger picture. Automation is the future.

Happy Reading,

D. Senthil Kannan 
Article dated Nov'07