Benefits

 

The first obvious benefit for these automation technologies is a reduction in labor cost because robots don't strike and seldom need "sick leave." As a result, GM hoped to avoid costly conflict with the militant workers of the Union of Automobile Workers (UAW). More importantly, with the gradual development of CIM, GM aimed at reducing indirect cost resulting from middle management and quality control. If information can flow smoothly from one computer (used in design) to another (used to control machines), there will be less need for humans to oversee and manage the whole process. The cost of human controls can be cut by 45% of total production cost (Port, 1986). Since robots make fewer mistakes than humans do, quality control costs should also drop to an insignificant level from around 30% of the total cost nowadays ("Automation," 1986; Port, 1986). Furthermore, widespread use of robots and AGVs allows "just-in-time" delivery of components within the factories, cutting the cost of stocking inventories and make the production process more flexible. With greater flexibility, factories can operate at a lower break-even point (Port, 1986).