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Economic Impact of Automation: The Case of Robotic Thermal Spraying

Abstract : There is growing interest in the application of robotics to manufacturing processes. The techniques developed to evaluate the economic impact of automation technology, however, are in their infant stage. During the process of automation, firms invest in new technology in the absence of analytical methods to determine whether or not they are making the best economic choice. The lack of analytic techniques to assess the productivity effects of automation technology prevents progress from being monitored in financial terms. Without defined economic objectives, any disruption in the production process can be used to abandon the new system. This paper is part of a research project to develop methodologies to assess the economic and productivity effects of new automation technology including robotic operations. In particular we explore the case of thermal spraying robots and provide a methodology to identify the most cost effective robot given the available alternatives of spraying specifications. The methodology can be applied also on other areas of manufacturing automation such as robotic assembly and robotics welding. (JG)