Automation key to post-pandemic production

MUMBAI: In the months before the pandemic, Cairn Oil’s Barmer plant was managed by over 7,500 personnel on site. After the lockdown was announced, this number dipped to just over 1,500. Despite this, the oil and gas major recovered 1.6 lakh barrels of oil every day, as against 1.8 lakh barrels earlier. This marginal dip too, according to Cairn, is because of lower demand and not because of depleted workforce.

Cairn has been keeping up production solely due to its investment in automation and digitisation over the past two years. “In the post Covid-19 world, focus has shifted to cost optimisation; the only place companies are willing to invest is in automation,” says Anand Laxshmivarahan, chief digital officer, Cairn.

Several others such as Tata Steel, Ceat Tyres, Maruti, Mahindra, Toyota, Tata Motors, VE Commercial Vehicles and Shriram Pistons, among others, have big plans to automate their production lines.

Massive requirement of resources to employ workmen — companies have to take personnel’s body temperature, meet social distancing norms, provide them with protective gear, provide additional medical insurance and other government-imposed liabilities – will increasingly prompt “employing” machines.

“Rise of robots in automobile manufacturing was inevitable,” says Rajeshwar Tripathi, chief human resources officer, Mahindra & Mahindra. “We have automated the body shop, most of the paint shop and parts of the final assembly line. Touch points need to get automated.”

Tata Steel employs thousands of contract manpower for machinery maintenance — work that can be automated through use of sensors that can predict breakdown well in advance. “Once we restart production we have to minimise people coming together…work can be done by someone where distancing is not required,” says Suresh Tripathi, vice-president, HR, Tata Steel.

“We need to go full blown on digitisation and automation,” says Milind Apte, head, HR, Ceat, which is hiring data scientists and engineers.

For ancillary companies too, automation will accelerate. “Foundry and machine shop areas are getting automated,” says Ashok Taneja, managing director, Shriram Pistons.

Automation is the road ahead for Indian manufacturers if it has to prevent shutdowns, say experts. “Intelligent supply chain planning tools and production automation can improve productivity,” says Vinay Raghunath, auto practice leader, EY.

However, the financial position of the companies is a crucial factor in this shift. “Investment in new technology is going to be huge,” says Vinod Aggarwal, managing director, VE Commercial Vehicles.

Experts, though point out that return will be many fold in terms of increased productivity and preparedness for future calamities.

Also, automation may mean lesser number of manpower but it will require a new set of skilled people.