Idea in Brief
The Problem
Despite advances in automation technology, the promise of productive and flexible automation, with minimal involvement of human workers, is far from reality.
The Cause
The adoption of automation technology has been limited. And when firms do automate, what they gain in productivity they tend to lose in process flexibility, a zero-sum outcome.
The Solution
Positive-sum automation measures success across three levels: the machine, the system, and the team. You’ll know you’ve succeeded when the automation makes your human teams happier and better at their jobs.
In 1982, General Motors announced it was building a “factory of the future.” The Saginaw, Michigan, facility would automate production, revitalizing GM’s business at a time of intense competition from Japanese automakers Toyota and Nissan. GM had posted a loss of $763 million two years earlier—only the second losing year in its 72-year history. When CEO Roger Smith returned from visiting a Toyota factory, he resolved that GM must automate to compete.