 "Low cost automation: A boon for auto component SMEs?")
Small and medium enterprises (SMEs) play a dominant role in the Indian auto component industry. However, when it comes to automation, SMEs face two major hurdles - initial capital investment and availability of skilled man power to handle automation & new technologies.
The access to adequate and timely credit at a reasonable cost required for automation is the most critical challenge before the SMEs. Without the incorporation of modern manufacturing technologies SMEs may become handicap when they face big players and OEMs offering them big volumes but with low cost. On the other hand, automation solution providers also find it difficult to convince SMEs for adopting modern technologies.
“Catering to SMEs is not an easy task. The challenges for us are quite different with SMEs, since they have a budget constrain and they do not have a complete assembly line up for the product. These SMEs produce individual parts which finally goes to another supplier’s assembly line,” opines Vishal Agarwal, President, Yudo Hot Runner India Pvt Ltd (Yudo India), which provides automation solutions to auto component manufacturers.
He adds, “For SMEs even an investment on simple robotic operation is a big chunk of investment. We wish to see government to support them which will boost SMEs production and quality standards to next level.”
However, things could change with the central government announcing its plans to introduce a new policy for the SME sector, which in turn will encourage the segment to use high technology productivity methods.
Though benefits of modernisation are known, SMEs are often reluctant to invest in automation as they feels it entails huge investment upfront. To solve this challenge, many auto component makers opt for low-cost automation (LCA), which enables them to automate to a certain degree by leveraging on the existing equipment, tools, methods and people and using easily available standard components that involves low investment.
“Auto component manufacturers in India prefer low-cost automation which essentially achieves some degree of automation around existing tools, processes and people by using standard components available in the market, along with mechatronics. LCA reduces manufacturing costs, increases productivity and improves quality as it is tailored to suit existing machines and people working on specific processes,” opines Vinnie Mehta, Director General, Automotive Component Manufacturers Association of India (ACMA).
As the apex body of component manufacturers in India, ACMA strongly supports low cost automation so that the industry can offer high precision products to our customers with desired quality and timely delivery,” adds Mehta.
Automation solution providers have realised this lacunae, and now offer tailor-made solutions to SMEs to meet their specific needs. Agarwal of Yudo says, “For SMEs, most of the time, we suggest them automation with human touch and, for a particular process, we offer them great level of flexibility in work.”
In addition to simplifying the process, low cost automation reduces the manual content without changing the basic setup. Besides, LCA offers major advantages such as low investment, increased labour productivity, ability to handle smaller batch sizes, better utilisation of material, reduction in product rejections, etc.
The access to adequate and timely credit at a reasonable cost required for automation is the most critical challenge before the SMEs. Without the incorporation of modern manufacturing technologies SMEs may become handicap when they face big players and OEMs offering them big volumes but with low cost. On the other hand, automation solution providers also find it difficult to convince SMEs for adopting modern technologies.
“Catering to SMEs is not an easy task. The challenges for us are quite different with SMEs, since they have a budget constrain and they do not have a complete assembly line up for the product. These SMEs produce individual parts which finally goes to another supplier’s assembly line,” opines Vishal Agarwal, President, Yudo Hot Runner India Pvt Ltd (Yudo India), which provides automation solutions to auto component manufacturers.
He adds, “For SMEs even an investment on simple robotic operation is a big chunk of investment. We wish to see government to support them which will boost SMEs production and quality standards to next level.”
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However, things could change with the central government announcing its plans to introduce a new policy for the SME sector, which in turn will encourage the segment to use high technology productivity methods.
Though benefits of modernisation are known, SMEs are often reluctant to invest in automation as they feels it entails huge investment upfront. To solve this challenge, many auto component makers opt for low-cost automation (LCA), which enables them to automate to a certain degree by leveraging on the existing equipment, tools, methods and people and using easily available standard components that involves low investment.
“Auto component manufacturers in India prefer low-cost automation which essentially achieves some degree of automation around existing tools, processes and people by using standard components available in the market, along with mechatronics. LCA reduces manufacturing costs, increases productivity and improves quality as it is tailored to suit existing machines and people working on specific processes,” opines Vinnie Mehta, Director General, Automotive Component Manufacturers Association of India (ACMA).
As the apex body of component manufacturers in India, ACMA strongly supports low cost automation so that the industry can offer high precision products to our customers with desired quality and timely delivery,” adds Mehta.
Automation solution providers have realised this lacunae, and now offer tailor-made solutions to SMEs to meet their specific needs. Agarwal of Yudo says, “For SMEs, most of the time, we suggest them automation with human touch and, for a particular process, we offer them great level of flexibility in work.”
In addition to simplifying the process, low cost automation reduces the manual content without changing the basic setup. Besides, LCA offers major advantages such as low investment, increased labour productivity, ability to handle smaller batch sizes, better utilisation of material, reduction in product rejections, etc.