Paper Example on Global Manufacturing: Its Role in Economic Growth and Development

Chapter 1 Introduction

1.1 Background

In many developing and the developed countries, the manufacturing sector contributes a huge chunk to the total gross domestic product. Evidence suggests that the size and strength of an economy is directly related to the level of development and sophistication of its manufacturing industry [1]. That trend started in the late 18th century when many Western countries started undergoing the process of industrialization. As various industries emerged and grew, so did their economies [2]. Historians argue that it is this first and second waves of industrialization that propelled major global economies like Japan, the United States, Germany, Britain, and France to world glory. The onset of the first World War further catalyzed the industrialization process in these countries as armies sought to develop better weapons [3]. The first and second industrial revolution were characterized by increase in economic output and improved standards of living. That trend continued until the mid-19th century whereby demand for more products led to increased mechanization of labor so as to increase production levels as well as to cut costs on wages which were on the rise [3]. During this period (early 1900s), production was manual-based and automation was almost a foreign concept. However, the events of the first World War, after the war, and the Second World War necessitated the production of equipment and tools at a high rate which in turn led to popularization of automation in industries across all sectors.

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Research into the evolution of industrialization in the past two centuries reveals that industrial automation was majorly propelled by the following factors:

• The need for higher production rate
• Intensified global competition
• Advancements in technology
• The need for better and safer working environments
• The need for control over the production process [4]

The end of the 19th century characterized by mechanization ushered in the 20th and the 21st centuries which are characterized by high demand of quality products with high levels of precision. The new complex environment required the manufacturing sector to adapt and institute several measures that create competitive advantage. Studies have shown that automation is the most popular strategy deployed by manufacturers to remain competitive in the fast changing global market [5]. Automation is mostly utilized to achieve computerized production facilities, automatic storage, retrieval systems, and automatic material handling equipment. Also, the need for reduction in space requirements, lower lead time, better quality, in process-inventory and productivity has led the management to adopt automatic manufacturing techniques. As well, the development of information technologies has resulted in adoption of automation in the service industries like data exchange and banking. Consequently, the adoption of automation has enhanced flexibility, improved quality of production, and increased efficiency [5]. While majority of the instances have noted positive yields, researchers argue that adoption of automation does not necessarily yield the expected outcomes. Statistical evidence shows that about 50%-75% of projects that implement advanced manufacturing techniques fail to yield their desired outcomes [6] [7]. Several scholars have examined the causes of the mismatch between actual and expected results and established that social factors are the primary agents [7]. The researchers noted that the main factor relates to how human beings involved in that industry of concern interact and perceive the technology and the changes instituted. Hence, successful implementation of automation requires consideration of both technical factors and social factors [8].

1.2 The Concept of Automation

By definition, automation refers to the creation of technology and then applying it to monitor and control the production and delivery of goods and services [9]. In heavy industries, automation is referred to as industrial automation (IA), a process that seeks to minimize human intervention in the manufacturing processes through the use of self-controlled machines. Typically, automation entails a wide range of control systems that facilitate the operating equipment to execute tasks on their own with high speed, consistency, accuracy, and minimal human intervention.

The concept of automation came into existence following the World War-II, with the increased demand of better quality goods and higher production rates. Since then, a lot of progress has been made especially in improving accuracy and detecting products with minor defects. That is made possible through the application of automated fault finding robots [10]. Overall, the concept of automation not only reduces the physical effort of the workers but also imparts relief to their mental work. Hence, automation also provides better working environment.

1.2.1 Traditional Automation vs Contemporary Automation (Robotic Process Automation (RPA)

Significant technological advancements in the past five decades have resulted in major changes in industrial automation. One of those changes is the emergence of a new type of automation called Robotic Process Automation (RPA). The emergence of this new technology has taken the industry by storm as noted by the Forrester Research that the RPA market will grow to $2.9billion by 2021 compared to its market size of $250million in 2016 [11]. This will be a huge leap considering that the technology is still unfamiliar with many people. The unpopularity of RPA is primarily because the technology is easily confused with traditional automation. Amidst the confusion, it is important to note that the two technologies have distinct characteristics as described below.

By definition, traditional automation refers or entails the automation of a repetitive task [11]. The technology is mainly installed in product workflows to execute the given task which could be a simple process like stamping. Madakam et al. noted that...