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THE ROLE OF AUTOMATION ON PRODUCTION, A CASE STUDY OF GLORY GENERAL INVESTMENTS

BY KISAKYE REBECCA 10/2/212/D/089

A RESEARCH PROPOSAL TO BE SUBMITTED TO THE FACULTY OF BUSINESS ADMINISTRATION IN PARTIAL FULFILLMENT FOR THE REQUIREMENT OF THE AWARD OF A DIPLOMA IN PROCUREMENT AND LOGISTICS MANAGEMENT OF NDEJJE UNIVERSITY

DECLARATION I----------------------------------- declare that the work submitted in this proposal titled, The role of automation on production is original and far as I am concerned it has never been submitted to any other university or similar institution of higher learning for any academic award. Name of student :

Registration number: Signature Date : :

Supervisors approval I----------------------------------- have supervised the research proposal titled, The role of automation on production, submitted to Ndejje University by, Students name :

Registration number: Date :

Name of supervisor : Signature :

Table of Contents
Table of Contents..........................................................................................................................ii 1.0 INTRODUCTION This proposal covers the background, statement of the problem, problem, purpose the study, research questions, and significance of the study, literature review, methodology, budget and the work plan. 2.0 BACKGROUND (Kenneth C. Laudon and Jane P. Laudon, 2002) define automation as the using of the computer to speed up the performance of existing tasks. (William J. Stevenson, 1986) defines automation as machinery that has control devices that enable it to operate automatically. William classifies automation in three types which include; 1. Fixed automation, this is the most rigid of the three types, it uses high cost specialized equipment for a fixed sequence of production 2. Programmable automation, this one involves the use of high cost general purpose equipment controlled by a computer program that provides both the sequence of operation. 3. Computer Aided Manufacturing (CAM) refers to the use of computers in Process control ranging from robots to automated quality control (William J Stevenson, 1986) in his second edition defines production as the creation of goods and services. The goal of most manufacturing firms is to produce on a large scale, however this becomes sometimes hard to accomplish because of the use of labour intensive techniques of production which result in producing small volumes of output, this is because it is difficult for a human to perform a task in exactly the same way, in the same amount of time and on a repetitive basis just as a machine can do. The use of labour intensive techniques of production has also resulted into production of poor quality products like in glory general investments. ii

High labour costs have also been experienced by the use of labour intensive techniques of production in manufacturing firms. Automation is being carried out in glory general investments. They manufacture products such as toilet seat covers, saviettes, toilet papers, facial tissues. However there are more problems being faced in glory general investments such as low efficiency due to differences in power phases, they also face problems in fabrication. Therefore the use of automation in manufacturing firms will solve such problems. 3.0 PROBLEM STATEMENT The goal of glory general investments is to produce on a large scale so as to gain a big market share and meet customer demand adequately. A number of firms employ labour intensive techniques of production which result in producing small volumes of output, production of poor quality products and it is also expensive in terms of wages and workers fringe benefits. However the use of capital intensive techniques of production in glory general investments which are initially costly in terms of the cost of the machines, the amount of money that will be used to employ skilled personnel or to train workers, will in the long run prove to be beneficial in terms of increase in output and improvement in the quality of output compared to the manual system of production. So it is from the above that the researcher has found it necessary to examine the role of automation on production. 4.0 PURPOSE OF THE STUDY The purpose of the study is to examine the role of automation on production in a manufacturing firm using the case study of glory general investments. 4.1 OBJECTIVES To examine the process of automation in glory general investments To asses the effective implementation of an automating production system. To find out the relationship between automation and increase in production.

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To find out the challenges faced by glory general investments when carrying out automation

5.0 RESEARCH QUESTIONS What is the process of automation in glory general investments? Has automation been effectively implemented? What are the challenges faced by glory general investments while implementing automation? What is the relationship between automation and production?

6.0 AREA AND SCOPE OF THE STUDY The scope will cover the following dimensions 6.1 SUBJECT SCOPE The research will be carried out in the manufacturing field and the researcher will mainly look at production units which involve automation such as factories. The researcher will analyze how far automation has contributed to production in the manufacturing sector. 6.2 GEOGRAPHICAL SCOPE The research will be conducted at Glory general investments located in Rubaga division, Kampala district a manufacturing firm which produces toilet tissue, saviettes, toilet seat covers, facial tissue and it is located along kawaala road P.O box 9543, Tel no 0772427606. The choice of this case is based on the fact that it uses automation in production, information is easily accessible due to the respondents who are approachable and it is also near my place of residence at the moment. 6.3 PERIODIC SCOPE

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The research is to be carried out in a period of two years that is from 2009-2011, the research will consist of data about the products manufactured, the methods of production used and the advantages of automation in glory general investments. 7.0 SIGNIFICANCE OF THE STUDY The study will help the researcher in the fulfillment of the requirement of the award of a diploma in procurement and logistics management. The study will help to increase the researchers knowledge in the field of automation and how it goes hand in hand with production. The research aims at examining the role of automation on production in a manufacturing firm. The study is to help the manufacturer in ensuring efficiency and availability of products on the market. The study will also help glory general investments in ensuring production of good quality products.

LITERATURE REVIEW 8.0 DEFINITIONS OF TERMS Literature review deals with the review of existing literature about the role of automation on the improvement of production in a manufacturing firm with the objective of revealing the achievements and weaknesses revealed. (William J.Stevenson, 1986) Automation is machinery that has sensing and control devices that enable it to operate automatically. A key question is to process planning is to whether to automate. If a company decides to automate, the next step is how much to automate, automation can rance from factories that are completely automated to a single automated operation. (Kenneth C. Laudon and Jane P. Laudon 2002), Automation is the using of the computer to speed up the performance of existing tasks (Javed, O, and Shah, M, 2008). Automation is the use of control systems and information technologies to reduce the need for human work in the production of goods and services. (Article from Robotworx 26 may 2011), Automation in the manufacturing firm is the process of integrating industrial machinery to automatically perform tasks such as welding, material packing, palletizing, dispensing and cutting. (William J. Stevenson, 1986) Production is the creation of goods and services

8.1 FORMS OF AUTOMATING According to William J Stevenson, Automation is mainly of three kinds namely; Fixed automation, Programmable automation, Flexible automation. vi

Fixed automation; This is the most rigid of the three types, the concept was perfected by the ford motor company in the early 1900s and it has been the corner stone of mass production in the auto industry. It uses high specialized equipment for a fixed sequence of operations. Low cost and high volume are its primary advantages, minimal variety and the high cost of making major changes in either product or process are its primary limitations.

Programmable automation; This is the opposite end of the spectrum, it uses the high cost general purpose equipment controlled by a computer equipment controlled by a computer program that provides both the sequence of operations and specific details about each operation. Changing the process is as easy as changing the computer program and there is downtime while program changes are being made. This type of automation has the capability of economically producing a wide variety of low volume products in small batches. Numerically controlled (N/C) machines and some robots are applications of programmable automation

Computer Aided Manufacturing (CAM); This refers to the use of computers in process control, ranging from robots to automated quality control. N/C machines are programmed to follow a set of processing instructions based on mathematical relationships that tell the machine the details of the operations to be performed. The instructions are stored on a devise such as a floppy disk, magnetic tape or micro processor, individual machines may have their own computer referred to as Computerized

Numerical Control (CNC) or one computer may control a number of N/C machine, which is referred to as Direct Numerical Control (DNC), N/C machines are used in cases where parts are processed frequently and in small batches. 8.2 APPLICATIONS OF AUTOMATION

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(Dunlop, John. T, 1962), 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: dishwashing being one of the obvious examples. The transformation of the communications industry is another example of how automation has enhanced the lives of people world wide. 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 communication 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 Engineers now can have numerical control over automated devices. The result has been a rapidly expanding range of human activities. Computer aided technologies (CAx) now serve the basis for mathematical and organizational tools used to create complex systems. Notable examples of CAx include; Computer aided design (CAD) software, and Computer aided manufacturing (CAM) software. The improved design, analysis and manufacture of products enabled by CAx have been beneficial for industry. Information technology together with industrial machinery and processes can assist in design, implementation and monitoring of control systems. One example of an industrial control system is a Programmable logic controller (PLC). PLCs are specialized hardened computers which are frequently used to synchronize the flow of inputs from physical sensors and events with the flow of output to actuators and events. An automated online assistant on a website with an avatar for enhanced human-computer interaction. Human machine interfaces (HMI) or Computer human interfaces (CHI) formally known as man-machine interfaces, are usually employed to communicate with PLCs and other computers. Industrial process and manufacturing environments, they are also called operators. In boiler houses and central utilities departments they are called stationary engineers. viii

8.3 OTHER TOOLS OF AUTOMATION ANN- Artificial neural network DCS- Distributed control system HMI- Human machine interface SCADA- Supervisory control and data acquisition PLC- Programmable logic controller Instrumentation Motion Robotics

8.4 ADVANTAGES OF AUTOMATION Decrease in part cycle time- A lean manufacturing line is crucial for increasing efficiency. Robotics can work longer and faster which increases production rate. Improved quality and reliability- Automation is precise and repeatable. It ensures the product is manufactured with the same specifications and process every time. Repairs are few and far between. Better floor space utilization- By decreasing a footprint of a work area by automating parts of your production line; you can utilize the floor space for other operations and make the process flow more efficient.

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Reduce waste- Robots are so accurate that the amount of raw material used can be reduced, decreasing costs on waste. Saves local jobs- Instead of moving your company to a location with lower costs, incorporate automation in few key areas. This will increase your product through-put and increase your profit so you can keep your company in the current location Stay competitive- Reduction in schedule and cost attracts customers. Automation helps provide the highest through-put with least amount of spending. Economic improvement- Automation has also improved in economy of enterprises, society or most of humanity. For example, when an enterprise invests in automation, technology recovers its investment. Replacing human operators in tasks that involve hard physical of monotonous work for example in building. Automation has also helped in replacing humans in tasks done in dangerous environments for example fire, space, volcanoes, and nuclear facilities and also under water. Automation has helped in performing tasks that are beyond human capabilities of size, weight, speed and endurance. Improved product features, the ability to make things that could not be made by hand for example micro- processors have all been made by automation. Reduction in material costs, using existing materials more efficiently or enabling the use of high volume tolerance materials.

8.5 DISADVANTAGES OF AUTOMATION Unemployment rate increases due to machines replacing humans and putting those humans out of their jobs which makes some of them to resort to stealing and if not killed they end up in jail.

Technical limitation, current technology is unable to automate all the desired tasks and need for more technology to enable all aspects of production to be performed by automation. Security threats/vulnerability, an automated system may have limited level of intelligence, hence it is more likely susceptible to commit error. Unpredictable development costs, the research and development cost of automating a process may exceed the cost served 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 of things. 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 of automation.

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METHODOLOGY

9.0 RESEARCH DESIGN The research will employ a case design aimed at examining the role of automation on production and it will consist of both qualitative and quantitative data, the qualitative methods will consist of information relating to the quality of output produced while the quantitative research is all about quantifying relationships between variables, variables are things like weight or amount of output, the performance made by the machines and time it takes to produce the given units of output. The researcher will use other methods of data collection other than the ones stated above because they will enable easy acquisition of depth information about the impact of automation on production. 9.1 POPULATION OF THE STUDY The study population will consist of 1manager, 7 production operators and 10 employees of glory general investments who will make up a total of 30 respondents. 9.2 SAMPLE SIZE The study will involve 18 respondents out of 30 respondents characterized of employees, managers and production operators. The formula that is to be used is

N n= 1 + (e) 2 N n =a p s m le e = vl le e s e iz o ac r c f c ua y N = o u tio P p la n

3 0 n= 1 + 0 (0.0 1 ) 2 3 0

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Table 1; showing sample size of respondents Respondents Managers Production operators Employees Total Source; primary data Number 1 7 10 18 Percentage 6% 38% 56% 100%

9.2.1 SAMPLING PROCEDURES The study will consider non probability sampling method, the type of non probability sampling method that will be used will be called convenience sampling, this is because it consists of convenient samples of weight or the amount of units produced, the performance of the machines, and the time it takes for the machines to produce a given amount of output. 9.3 SOURCES OF DATA The data involves primary and secondary sources. 9.3.1 PRIMARY SOURCE Information will be collected on the field involving methods such as self administered questions that will be used which include oral and written interviews as well as observation. 9.3.2 SECONDARY SOURCE This information will be sourced from the available literature were similar problems where experienced in the past and their solutions got of which solutions could be applied in the situations today and such sources include the library and internet surfing.

10.0 DATA COLLECTION METHODS 10.1 ORAL INTERVIEWS xiii

This will be done face to face between the researcher and the respondent. They will be both closed and open ended questions. The researcher will skillfully ask questions in order to generate substantial data which is right from the source and hence do not raise suspicion. 10.2 OBSERVATION The researcher will also go down to the field of study to carry out observation this will be done by taking a number of visits on specific days at the factory so as to acquire information about the process of automation and the tools used while carrying out automation and in the end will enable the researcher to note relevant information in accordance to the research study. 10.2 QUESTIONAIRES These are a set of questions about the field of study, they include questions about the topic chosen, the case study and all that is needed in that particular field of study. Questionnaires will be self administered questions, they will be used so as to get detailed information of the firm, when it started, what it is producing, the methods of production used among others. 11.0 DATA PROCESSING AND ANALYSIS Data will then be processed and tabulated, data processing will be done by editing and coding. Editing will be done by going through the questionnaires to ensure competence and consistence.

12.0 LIMITATIONS OF THE STUDY

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Acquiring information from the respondents may not be easy because most organizations do not want to disclose information about their firms for fear of producing the same products that they are producing hence the fear of competition and also delay in answering the questionnaires, this can be controlled by being specific and clear when asking the questions. Some factories have a large managerial base where by it is hard to get to the person with the information, this will be solved by approaching the person with the correct information. Some research will be carried out on the internet and yet the vital information needed is not all displayed on the internet and some information is outdated, this problem may also be solved by getting to the source that is the factory itself and getting clear and true information. Money to use during the research may not be enough since a lot of money will be required to cater for studying yet the proposal needs to be typed, printed and finally binded, also money for transport may not be enough, this problem may be solved by using social capital like friends and relatives.

ESTIMATED BUDGET OF THE STUDY

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Table 2 ITEM DETAILS AMOUNT

Stationery Data collection Data analysis Communication Transport

Ream of paper, pens, flash disk Surfing on the internet, library. Typing, printing and binding Calls to be made To the different sites

52,000 26,000 70,000 20,000 90,000 Shs 258,000

Total

WORKPLAN

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ACTIVITY Proposal Writing Data collection

Dec 2011

Jan 2012

Feb 2012

Mar 2012

Apr 2012

May 2012

Data analysis

Codding

Submission

REFERENCES Adsit, Denis (February 21, 2011) Error, proofing strategies for managing call center fraud xvii

Allan G. Bluman(1998) Elementary statistics (Third edition) A step by step process by MC Graw hill companies. Dunlop, John. T (1962), Automation and Technological Change Report of the twenty first American Assembly, Englewood cliffs, NJ, USA: Prentice Hall. Javed, O & Shah, M (2008), Automated Multi- camera Surveillance Kenneth c. Laudon & Jane P (2002), Management information systems (second edition) Masembe Kabali (April 2007) Basic business statistics second edition Ouellette, Robert (1983), Automation impacts on industry, Ann, Arbor, MI, USA: Ann Arbor science publishers Richard B. Chase, Robert Jacobs & Nicholas J. Acquilano, Operations Management for competitive advantage (eleventh edition) Rifkin, Jeremy (1995) The end of work: The decline of the global labor force and the dawn of the post market era. Putnam publishing group. Robotworx (26 may 2011), Advantages of automation Trevathan, Vernoil (ed.) (2006) A guide to the automation body of knowledge William J. Stevenson (1986), Production Operations Management (sixth edition)

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