Industrial Automation and its Role in Generating Revenues
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Added on 2021-06-15
Industrial Automation and its Role in Generating Revenues
Added on 2021-06-15
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INDUSTRIAL AUTOMATION 1Industrial Automation and its role in generating revenuesStudents NameInstitutional Affiliation
INDUSTRIAL AUTOMATION 2IntroductionDue to technological advancement, many industries have shifted from relying fully onhuman labour to industrial automation where human labour is not required. There are variousindustries that have implemented this technology. One of them is the automobile manufacturingindustry such as Ford. Apart from Ford automobile manufacturing industry, there are also otherautomobile manufacturing industries like General Motors, Toyota and Honda which have alsoimplemented industrial automation in their production. Implementation of this technology hasresulted in an increase in revenue generated by these industries (Noble, 2017). Increase inrevenue is as a result of an increase in the production level which eventually has led to theincreased sales level of these products. Since industrial automation has helped in generating revenues in various automobilemanufacturing industries like Ford, it is very essential to establish how industrial automation hashelped these industries in generating revenue. The study will focus on how Ford which is anautomobile industry has generated revenue due to the implementation of industrial automation intheir manufacturing process. Therefore the study aims at establishing how Ford automobileindustry has been able to generate revenues as a result of the implementation of industrialautomation.The objective of the studyTo establish how the implementation of industrial automation by Ford automobilemanufacturing Industry has helped them in generating revenue.To determine how the implementation of industrial automation by Ford automobileindustry has enhanced the increase in the output level of the company.
INDUSTRIAL AUTOMATION 3To establish how the implementation of industrial automation by Ford automobileindustry resulted in a reduction of cost of production.Research QuestionsWhat is the effect of implementation of industrial automation on Ford’s revenuegeneration?What is the effect of implementation of industrial automation on Ford’s outputlevel?What is the effect of implementation of industrial automation by Ford automobileon the cost of output? Literature reviewOverview of industrial automationAs a result of technological advancement, various industries especially automobilemanufacturing industry like Ford have implemented the industrial automation in theirmanufacturing process which has greatly impacted their revenue generation. The idea ofautomation begun during the second world war in 1961 (Jammes, & Smit, 2005). It was firstadopted by General Motors facilities. The robots were used to replace human and they did notperform every task. They used to perform spot welding successfully leading to an increase inoutput to cater for the high demand thus resulting to increase in revenue, which attracted variousautomobile industries including Ford to adopt this technology in their production. Globally, almost all the automobile industries have implemented Industrial Automation.In the United States of America (USA) for example, Ford Motors Company which came intoexistence in 1928 has implemented industrial automation which has resulted to increase in
INDUSTRIAL AUTOMATION 4automobile output that caters for the high demand of this product and eventually enabling thecompany to generate more revenue. As a result of Industrial automation, Ford ManufacturingCompany has been able to manufacture quality vehicles for several years. The output has alsoincreased significantly and as a result, the revenue has also increased. The revenues from thesales of vehicles in the year 2017 raised from $152 billion in 2016 to $156.8billion in 2017 in theUSA. There are also other companies in the USA that manufactured an automobile. Some ofthem include Toyota, Honda, and General Motors which has posted a very great challenge toFord globally by reducing its market share (Groover, Weiss, Nagel, & Odrey, 1986). In Asia Continent, there is also a Ford automobile company. It has also experienced asignificant increase in revenue as a result of the increase in demand for the automobile. Theincrease in demand has been facilitated by the improved quality of the product. Both India andChina have experienced the increase in revenue (Klepper, 2002). This is due to the increase inoutput since the robots used in car manufacturing can do a very huge amount of job in a minutewhich can be done by humans in an entire month or so. There are also Ford automobilecompanies in Africa in various countries such as Kenya and South Africa. They also experiencean increase in revenue due to industrial automation. In Australia, Ford automobile manufacturing company deals in manufacturing anddistributing automobiles as well as automotive parts. The use of robots in the manufacturingprocess has also been implemented in Australia. The use of robots has a result to decrease in costof production and increase in output since robots are capable of working very fast (Hounshell,1985). Research Methods
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