Question

Automobile companies improved their global competitiveness and achieved economic success with the use of computer-integrated manufacturing. Was the automation decision good for improving competitiveness? Was the automation decision defensible on ethical grounds (job losses)?

Answer 1

Yes, automation decision is good for improving competitiveness. The automotive industry is very competitive and to gain the competitive advantage flexibility and innovativeness is required to meet the growing demand and increase the efficiency in production. The smart production systems are required for the automotive manufacturers to produce energy-efficient vehicles to gain the competitive advantage and meet the expectations of the customers. Flexibility in the logistics system is required to deliver the products on time with safety and cost in mind. Automation thus is used by automotive companies for delivering quality vehicles at an economical pricing.

Based on the ethical grounds, the decision is defensible because it led to increase in job losses. The employees lost their jobs because the computer integrated manufacture reduced the job roles. However, this computer based production is required for the automotive companies to survive in the global market. One suggestion is to retain employees and provide them adequate skills to operate the computer-based production. This strategy reduces the job losses and encourages employees to work even harder.