Extra Credit -The March of Robots Into Chinese Factories

One of the growing industries in China is the manufacturing of robots. Countries like Japan and South are the leading countries after USA and Germany which import robots. Robot sale has been quadrupling from 2006 to 2011.

These robots are replacing human labor in the factory to carry out the jobs. Each robot only cost $50 thousand before installation. The payoff period for each robot is only 3 years in China, according to the survey. With the high rise of labor costs and inflation, robot is considered to be the perfect substitute for human labor. Factories do not need to employ as many workers as before the robotic automation. In addition, robot can run for twenty four hours and without any downtime unlike human who feel exhausted after twelve hours of working shift in the factory. Another factor that accelerates the switch to robotic automation is compliance with legislation maintaining the minimum wage rate. With the use of robots, company does not have to deal with the required minimum wages.

Industry like textile industry face narrower margins which force the industry facing shutting down. The only way to resolve the critical issue is to cut down cost by moving towards automation. It is even a convenient way to relocate the factory location to low wage country such as Cambodia and Vietnam. The company could save the relocation cost. General Motors, Honda and Volkswagen have been using robotic engineering for some period of times already.

From this article, implication for the manager is to weigh the cost and benefit from robotic automation. The benefits are being the cost saving and reliving the manager from dealing with the tedious issue of human resource policy. The cost to imply the automation is further cutting down the job in the markets which will lead to higher employment rates and worsen the social problem due from unemployment.

http://www.businessweek.com/articles/2012-11-29/the-march-of-robots-into-chinese-factories

http://singularityhub.com/2012/11/12/1-million-robots-to-replace-1-million-human-jobs-at-foxconn-   first-robots-have-arrived/

http://www.dailytech.com/Foxconn+Receives+10000+Robots+to+Replace+Human+Factory+Workers+/article29194.htm

http://io9.com/5939931/noodle+shaving-robots-are-replacing-human-cooks-and-look-evil-doing-it