Exploring benefits and challenges when implementing automation in a manufacturing company

Abstract

The manufacturing industry in South Africa is still experiencing the structural, infrastructural, and technological issues that have been affecting its competitiveness, productivity, and sustainability. With the acceleration of automation and Fourth Industrial Revolution (4IR) technologies reinventing global production norms, the slower uptake of advanced automation in South Africa has increased competition between local and international producers. This paper examines the correlation between increased automation and productivity in one of the large mining equipment manufacturing firms in the East Rand. The study employed a quantitative research design, with a structured questionnaire administered to employees across departments. One hundred sixty-nine accepted responses were analysed using descriptive statistics, composite scale scores, and correlation methods. The results indicate moderate scores in the adoption of automation and in overall awareness of productivity amongst the workers. Nevertheless, no statistically significant relationship was found between the automation measures and perceived productivity, suggesting that automation within the organisation may be poorly distributed, poorly integrated, or inadequately communicated. Other external factors, such as energy insecurity, infrastructural limitations, and intermittent digital access, also became potential moderating variables. The research can be used to learn about automation preparedness in the South African manufacturing industry and to emphasise a comprehensive approach that incorporates technology, skills training, change management, and infrastructure upgrades. Practical advice is provided to help organisations in the changing industrial environment to modernise their production systems, workforce, and productivity outcomes.