Archived Chinese Factory Replaces 90% Of Human Workers With Robots, Sees 250% Production Increase (monetarywatch.com)
submitted ago by daskapitalist
Posted by: daskapitalist
Posting time: 3.8 years ago on
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Archived on: 5/5/2017 10:00:00 AM
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Archived Chinese Factory Replaces 90% Of Human Workers With Robots, Sees 250% Production Increase (monetarywatch.com)
submitted ago by daskapitalist
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[–] daskapitalist [S] 1 point -1 points 0 points (+0|-1) ago
You're confusing lowering product quality to increase margins (e.g. selling smaller candy bars for the same price) with using automation to increase productivity without decreasing quality. Automation has actually dramatically increased product quality from US manufacturing by decreasing defects, particularly in industries that were once inferior quality when compared to foreign manufacturers (Korean automobiles come to mind). This is largely because Joe the welding guy is going to show higher quality variance than the Weldinator 9000, because automated machinery does it the same way every time instead of screwing around because "eff it it's Friday".
To further elaborate, automation doesn't necessarily reduce costs, but it does convert variable costs (Direct Labor $) to fixed cost (Plant and Equipment), which can provide an edge to businesses who want to make long term plans (automation is less flexible if demand drops, but machinery doesn't demand overtime and give your cost accountants an ulcer).