LOVELY PROFESSIONAL UNIVERSITY

DEPARTMENT OF MANAGEMENT

TERM PAPER

ON

USE OF AUTOMATION IN INDIAN INDUSTRY

SUBMITTED TO:

MS. SWETA SINGH

INSTRUCTOR OF OPERATION MANAGEMENT

In partial fulfilment of the

Requirements for the award of Degree of

Master of Business Administration

SUBMITTED BY:

Ashwani Kumar

MBA-IB, SEP 2010

ROLL NO. - RR1906 A06

REG. NO. - 10905626

DEPARTMENT OF MANAGEMENT

LOVELY PROFESSIONAL UNIVERSITY

PHAGWARA (PUNJAB)
 DECLARATION

I hereby declare that the work, which is being presented in this term paper, entitled “USE OF
AUTOMATION IN INDIAN INDUSTRY" in this term paper I record my own work carried
out from the given period, under the supervision of Ms. Sweta Singh, Instructor of
Operation Management, Lovely Professional University, Punjab.

ASHWANI KUMAR

MBA-IB
LOVELY PROFESSIONAL
UNIVERSITY, PHAGWARA
(PUNJAB)
 ACKNOWLEDGEMENT

I wish to express deep sense of indebtedness and sincerest gratitude to Ms. Sweta
Singh, Instructor of Operation Management, for her valuable guidance, discussion and
constructive criticism, throughout the given period. She has displayed unique tolerance and
understanding at every step of progress.

I express my sincere thanks to all respected person who have graciously applied
themselves to the task of helping me with ample moral support and valuable suggestions.

I am also grateful to all the staff of the Lovely Professional University, Phagwara,
(Punjab) for the constant encouragement and all those who helped me directly or indirectly in
the completion of my term paper.

ASHWANI KUMAR

MBA-IB
LOVELY PROFESSIONAL
UNIVERSITY, PHAGWARA
(PUNJAB)
 PREFACE

As we all aware that use of automation in any industry is the key of success. If the automation
is used in any industry then the industry’s efficiency, utilization and quality of product
and services are up to the mark and fulfill the need of the customer than organization can
achieve all the step of success. That is why in my term paper I study the use of
automation in Indian industry and tries to grasp and understand the value of automation in
industries.
 INDEX

RESEARCH METHODOLOGY

LITERATURE REVIEW

INTRODUCTION

ADVANTAGE AND DISADVANTAGE

VARIOUS SECTORS

OTHER GOALS OF AUTOMOBILE

CONCLUSION

REFERENCESS
Research Methodology

My term paper are based on-

 Secondary Data

Secondary Data:

Secondary data is data collected by someone other than the user. Common
sources of secondary data for social science include censuses, surveys, organizational
records and data collected through qualitative methodologies or qualitative research.

Why based on secondary data? because I toke some data from the website
and other sources.

Nature of Term Paper:

Nature of term paper is “Descriptive”.

LITERATURE REVIEW:-

1. India: The next big thing?

Aug 29, 2001
Indian software services companies feel the pressure from firms in China, Mexico, Russia, and
the Philippines. For these and other reasons, Indian software services companies are moving
up the value chain. This can mean entering a number of new areas: communications-related
R&D, which often includes software and hardware, services and
products. In short, Indian software companies are moving beyond the IT budgets of their
clients. R&D budgets are a natural target. Services related to embedded software command a
higher premium in the market; there is also the possibility of a multiplier effect through the
creation of intellectual properties. Indian companies can contribute to the development of
embedded software for smart hand-held devices, set-top-boxes, and for the
automotive industry - all of which are expected to grow a lot in the next couple of
years. In terms of work, it would involve the porting of an operating system, developing
device drivers for various interfaces, writing various access protocol stack sand developing
applications to run on the embedded devices."

2. BI market in India to bloom, says Nasscom

Jul 7, 2003

In this article the BI is an umbrella term for a set of tools and applications that allow corporate
decision makers to gather, organise, distribute, and act on critical business information. It
comprises applications and technologies used for accumulating, amassing, analysing, and
providing access to data that facilitate better, quick, and efficient decision-making. The BI
applications include the activities of online analytical processing report generation, decision
support systems, query and reporting, statistical analysis, forecasting, data warehousing, and
data mining.

Nasscom has identified a number of factors impacting the BI market in India. The increased
level of automation of different business processes has created a need for continuous tracking
of these processes and business functions. The Indian services industry has also matured very
rapidly over the past two decades.

3. Go with the current

Jul 10, 2002

A couple of years ago, most IT vendors planned their roadmaps based on reports, including
those of Nasscom-McKinsey, IDC and Gartner, which saw a rosy picture for
the Indian software sector. However, the dotcom bust, coupled with the downturn in the US
economy. The IT industry, which fuelled plans for Internet data centres (IDCs), e-commerce,
Internet services providers (ISPs) and telecom initiatives. IT vendors, including Numeric
Power, planned accordingly. However, not even 50 per cent of the plans have materialised.

4. Going up the ladder? Not yet!: Indian manufacturing firms are still using IT
only in bits and pieces, say experts. They haven't moved up the rung in terms of
competitiveness

Oct 9, 2002
A survey done by (KPMG-MDI) and find that supply chain processes, propelled by
management tools, enabled by technology and integrated with suppliers and customers
and have not yet been realized by most Indian manufacturing firms. Indian firms continue
to use IT in bits and pieces. There is no centralized IT solution across organizations for
free flow of information. Those in charge of decision making on business spending in
Indian manufacturing companies do not understand IT correctly.
It surveyed about 700 Indian manufacturing firms to understand the level of IT used in the
firms. It was found that only about one-third of the firms used IT across the
organisation. In about 1% there were islands of automation and half of the firms used IT only
for office automation.

5. Where do we go now?

Aug 22, 2005.

As software services get locked with IT-enabled services, clients and offshore vendors will
begin to leave their comfort zones and experiment with the transaction-pricing model. HCL
Technologies recently claimed that it is gradually moving towards value-based pricing.
Indian IT software industry has priced its offerings based on the effort and time it took. Now,
revenues based on a customer's success or business benefit will increase in proportion to
overall revenues. Niche positioning with scale Second- rung software companies, which have
focussed on one or two verticals, have realised that niche positioning alone will not help them
survive. Given the widening gap between the revenues of frontline and second-rung
companies, they are also working to enhance their scale or size to grow within their defined
niche. The flurry of consolidation that has recently happened within the third- rung companies
of the likes of Helios & Matheson-vMoksha, Mindtree- Linc Software, Valtech-Majoris,
Aztec Software-Disha Technologies is probably a precursor to a similar trend among second-
rung companies. Considering that a few third-rung companies have already raised the
competitive bar, the possibility of consolidation across the second-rung companies.

6. Research and Markets: Strategic Analysis of the Indian Manufacturing Execution

Systems (MES) Market - MES Enhances Plant Automation

Nov 12, 2010.

Any research service provides the market forecast for each end-user industry.
Plant Automation in India with intensifying competition in the manufacturing sector, MES is
seeing huge uptake. In this article the research service presents a comprehensive analysis of
the Indian MES market. The MES market has been further split into software license revenue
and software services revenue. Revenue analysis is provided for each product type and end-
user industries. Detailed end-user analysis covering major MES implementation drivers and
key MES functions has been provided. The objective of the research service is to assess the
market drivers and restraints and provide an understanding of the attributes that influence
MES vendor selection, besides giving insights on the competitive environment.
 INTRODUCTION

Automation is the use of control systems and information technologies to reduce the need for
human work in the production of goods and services. In the scope of industrialization,
automation is a step beyond mechanization. Whereas mechanization provided human
operators with machinery to assist them with the muscular requirements of work, automation
greatly decreases the need for human sensory and mental requirements as well. Automation
plays an increasingly important role in the world economy and in daily experience.
The Indian markets are slowly beginning to feel the stimulus for the instrumentation,
control and automation industry. Today, the growing awareness among the Indian consumer
has ensured that process industry has the right mix of technologies that can generate the
growth opportunities, which the industry has been eyeing and seeking for a long time now.
Indian automation is advancing at a fast pace, yet it is one area that can never be achieved and
admired. It is something that needs a constant innovation and identification of trends in
technology and the innovations that thrust the implementation of automation in other
countries. As it is a development that will always impact the future of automation in India.
While everything may seem perfect at the face of it, India still has much to worry about the
state of innovation in the automation industry. Having comprehended the importance of
automation for the success and progress of the industrial set-up and thereby the country, today
many companies are making large investments in bringing the latest technologies for the
processes. Today, the manufacturers have also discovered the opportunity that awaits them in
almost all production facilities in vertical industries. The demand of technology and the
subsequent complying by the manufacturers has put India on a path of economic growth.
Today, the competition among manufacturers has created many advantages for the customers
as far as the use of automation is concerned. India, as one of the world’s fastest growing
economies, has to technologies at a rather quick pace. India’s growing foreign trade, rising
internal consumer demand, growth in infrastructure growth as well as the revival from the
economic slowdown has only given the entire financial set up a new lease of life.
. Automation is also needed to enhance the process safety and plant availability as well as
efficiently use the limited energy resources and try to be as sustainable as possible.
Automation is a single solution to achieving quality as well as the environmental balance.
Apart from this, the growing interface, optimization, quality control and product tracking are a
few advantages that India has now estimated to receive from higher automation controls.
Today, automation is gaining importance even in the medium and small units, unlike earlier
when its focus area was restricted to large manufacturing industries. Smaller industries and
manufacturing units are beginning to see automation in a new light because of their low
productivity. With the automation equipment becoming more usable and affordable, the cost-
benefit works in favour of these small industries.

Today, the Indian automation industry is estimated at about Rs 10,000-crore and is only
growing at a fast pace as much as 25 per cent per annum since 2008-09. Today, India needs
automation in almost every industry. Understanding this need for automation in the power
sector, the government has in the 2010 Union budget, set down a plan to creating and harness
alternative sources of power using automation. The global market for process automation has
grown to USD 94.2 billion in 2010. The growth rate for the decade is estimated to be at 4.4%.
And while many have always thought US as being the dominating force for technology, India
is fast catching up, aiming to achieve automated factories and processes. This has been in
India’s vision for a long time now that will enable customers to order online, with secured
electronic transactions and even allowing them to pick the best price, size and colour.
Intelligent robots and sophisticated machines that smoothly and rapidly complete a process are
no longer an alien concept in India. India has lived up to its promise of having remote-
controlled automation processes in manufacturing and maintenance applications. Today, India
has realized the power of communication in plants with powerful and unmanned super-robots
that work on networked intelligence being widely available and accepted. Today, the
automation industry in India has much communications support with sensors, fast networks,
quality diagnostic software and flexible interfaces that are reliability and have a wide reach in
diagnosing and error-correction advisories through centralized operations.

ADVANTAGE OF AUTOMATION

The main advantages of automation are:

 Replacing human operators in tasks that involve hard physical or monotonous work.
 Replacing humans in tasks done in dangerous environments (i.e. fire, space, volcanoes,
nuclear facilities, underwater, etc.)
 Performing tasks that are beyond human capabilities of size, weight, speed, endurance,
etc.
 Economy improvement. Automation may improve in economy of enterprises, society
or most of humanity. For example, when an enterprise invests in automation, technology
recovers its investment; or when a state or country increases its income due to automation
like Germany or Japan in the 20th Century.

DISADVANTAGE OF AUTOMATION
The main disadvantages of automation are:

 Technology limits. Current technology is unable to automate all the desired tasks.
  Unpredictable development costs. The research and development cost of automating a
process may exceed the cost saved by the automation itself.
 High initial cost. The automation of a new product or plant requires a huge initial
investment in comparison with the unit cost of the product, although the cost of
automation is spread in many product batches.

Automation has had a notable impact in a wide range of highly visible industries beyond
manufacturing. Once-omnipresent telephone operators have been replaced largely by
automated telephone switchboards and answering machines. Medical processes such as
primary screening in electrocardiography or radiography and laboratory analysis of
human genes, sera, cells, and tissues are carried out at much greater speed and accuracy by
automated systems. Automated teller machines have reduced the need for bank visits to obtain
cash and carry out transactions. In general, automation has been responsible for the shift in the
world economy from industrial jobs to service jobs in the 20th and 21st centuries.
There are many sectors which are using automation and developed their product and services.
These sectors are-
1. Agriculture
2. Information technology
3. Pharmaceuticals
4. Telecommunication
5. Automobile

AGRICULTURE: -
Agriculture is a science and art of cultivating the soil, harvesting crops, and raising livestock.
Agriculture is related to all activities concerning plants and animals. Farming is an activity
that is focused on planting a variety of plants and crops. The staple food of our country like
rice, come from this activity.

Source of raw materials

The agricultural sector serves as a supplier of raw materials needed by the industries. The raw
materials help the industries in carrying out their activities. For example, the sugar is needed
in the manufacturing of consumer products like produced juice and chocolate drinks comes
from the agricultural sector.

Consumer of Industrial Products

It is agriculture that supplies the raw materials that are used in producing finished products.
The income of agriculture from supplying the raw materials is spent in buying the products of
the industries. Consumer products like clothes, shoes, soap, sugar, and processed foods are
some of the products of the industries.
In agricultural activities the use of automation is in raw materials and also used in finished
goods. So that if the raw material has good variety then the finished product will be better
variety and after that if any fault and error in the product then the automated machine would
be get rid of.

INFORMATION TECHNOLOGY

IT is the collection of computing systems used by an organization. Information technology in

its narrow definition, refers to the technological side of an information system it,
includes the hardware, software, databases, networks and other electronic devices, it can
be viewed as a subsystem of an information system sometimes though the term
information technology is also used interchangeably with information system.
The Indian Information Technology industry accounts for a 5.9% of the country's GDP and
export earnings as of 2009, while providing employment to a significant number of its tertiary
sector workforce. More than 2.3 million people are employed in the sector either directly or
indirectly, making it one of the biggest job creators in India and a mainstay of the national
economy. In March 2009, annual revenues from outsourcing operations in India amounted to
US$60 billion and this is expected to increase to US$225 billion by 2020.

In IT sector the automation change the prospect the IT industry. There are a number of
emerging trends that will have significant combined impact on the development of technology,
the nature of business and the way in which society interacts.

• Business and Economic factor

• Off shoring

• Technology

• Social factors

• skills

PHARMACEUITECLES
Automation has had a notable impact in a wide range of highly visible industries beyond
manufacturing. Once-omnipresent telephone operators have been replaced largely by
automated telephone switchboards and answering machines. Medical processes such as
primary screening in electrocardiography or radiography and laboratory analysis of
human genes, sera, cells, and tissues are carried out at much greater speed and accuracy by
automated systems. In this sector automation is very help full for the industry and also for the
customers.

TELICOMMUNICATION
Indian telecom continues to register a significant growth in the current fiscal year. This has
been due to the impact of economic reforms and pro-active policies of the government.
Today, India has become the second largest wireless network in the world by surpassing USA.
With the current pace, where about nine million telephones are being added every month, the
target of 500 million connections by 2010 is well within our reach. Handsets are being sold at
a price, which are within the reach of the common man who in turn has made India one of the
most sought after telecom manufacturing destinations.

The rapid growth in the telecom sector can be attributed to the various pro-active and positive
policy measures taken by the government as well as the dynamic and entrepreneurial spirit of
the various telecom service providers both in private and public sector. The government is
now looking forward to achieve the target of 600 million telephone subscribers by the end of
Eleventh Plan and to achieve rural tendency of 25% by means of 200 million rural connections
at the end of 11th Plan.
Growth of this sector after the automation and expansion of this sector is as follows-
• Network expansion
• Wireless services
• Broadband growth
• Increasing private sector
• Rural telephone
• Telecom equipment
• Tariff rebalancing

AUTOMOBILE

The evolution of the automotive industry has been influenced by various innovations in fuels,
vehicle components, societal infrastructure, and manufacturing practices, as well as changes in
markets, suppliers and business structures. Some historians cite examples as early as the year
1600 of sail-mounted carriages as the first vehicles to be propelled by something other than
animals or humans. However, it is believed by most historians that the key starting point for
the automobile was the development of the engine. The engine was developed as a result of
discovering new energy carrying mediums, such as steam in the 1700s, and new fuels, such as
gas and gasoline in the 1800s. India has a huge automobile industry. The country ranks 4thin
Asia and 9th in the world as the world's largest automobile Industry. India has an annual
production of approximately about 2.3 million units. Presently, India is the world's largest
manufacturer of tractors, second-largest manufacturer of two-wheelers, and fifth-largest
manufacturer of commercial vehicles.

The automobile sector in India has displayed great advances in relation to the utilization of
new technologies and being flexible in the wake of the changing business scenario.

The automotive sector is one of the core industries of the Indian economy, whose prospect is
reflective of the economic resilience of the country. Continuous economic liberalization over
the years by the government of India has resulted in making India as one of the prime business
destination for many global automotive players. The automotive sector in India is growing at
around 18 per cent per annum. Side by side with fresh vehicle sales growth, the automotive
components sector has witnessed big growth. The domestic auto components consumption has
crossed rupees 9000 crore and an export of one half size of this figure.

OTHER GOALS OF AUTOMATION

RELIABILITY AND PRECISION

Automation is now often applied primarily to increase quality in the manufacturing process,
where automation can increase quality substantially. For example, automobile and truck
pistons used to be installed into engines manually. This is rapidly being transitioned to
automated machine installation, because the error rate for manual instalment was around 1-
1.5%, but has been reduced to 0.00001% with automation.

HEALTH AND ENVIRONMENT

The costs of automation to the environment are different depending on the technology,
product or engine automated. There are automated engines that consume more energy
resources from the Earth in comparison with previous engines and those that do the opposite
too. Hazardous operations, such as oil refining, the manufacturing of industrial chemicals, and
all forms of metal working, were always early contenders for automation.

CONVERTIBILITY
Another major shift in automation is the increased demand for flexibility and convertibility in
manufacturing processes. Manufacturers are increasingly demanding the ability to easily
switch from manufacturing Product A to manufacturing Product B without having to
completely rebuild the production lines. Flexibility and distributed processes have led to the
introduction of Automated Guided Vehicles with Natural Features Navigation.
 CONCLUSION

The impact of automation on individuals and societies has been profound. On one level, many
otherwise unpleasant and time-consuming tasks are now being performed by machines. The
transformation of the communications industry is another example of how automation has
enhanced the lives of people worldwide. Today, millions of telephone calls that once would
have passed through human operators are now handled by automatic switching machines.
Other applications of automation in communications systems include local area networks
(LAN) and communications satellites. A LAN operates like an automated telephone company;
however, they can transmit not only voice, but also digital data between terminals in the
system. Satellites, necessary for transmitting telephone or video signals throughout the world,
depend on automated guidance systems to place and retain the satellites in predetermined
orbits.

For banking, automatic tellers are ubiquitous. The medical industry employs robots to aid the
doctor in analyzing and treating patients. Automatic reservation, navigation, and instrument
landing systems, not to mention automatic pilots have revolutionized the travel industry.

However, automation has also resulted in drastic dislocations in employment patterns. When
one machine can do the work of ten workers, most or all of those people must be relocated or
retrained to learn newer and higher skills. Whether or not this is a wholly negative impact has
been strongly debated. As population and consumer demand for the products of automation
increases, new jobs have been created.

Positive impacts on employment patterns include computerized programs that help designers
in many fields develop and test new concepts quickly, without ever building a physical
prototype. Automated systems also make it much easier for people to carry out the work they
do in non-traditional places. They may be able to stay home, for example, and do their jobs by
communicating with other individuals and machines by means of highly automated
communications systems. And side by side the automation is destructive for labour which is
work in the industry and the industries depend on their labour. But now days there are low
labour in the industry because of automation which is less the labour in the industries.
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