How to cut production costs in times of staff shortages - process robotisation or outsourcing?

Estimated reading time: 8 minutes

TL;DR:

• Staff shortages increase costs and cause delays in production.
• Robotising processes reduces monotonous tasks and increases quality.
• Outsourcing provides flexibility but involves less control over production.
• There is still little investment in robotisation in smaller companies - a huge opportunity for growth.
• Well-planned automation brings a quick return on investment and stabilises the supply chain.

Table of contents

• Introduction
• Impact of staff shortages on production costs
• Robotisation of processes - what it is in practice and why it can help
• Outsourcing of production - advantages and disadvantages
• Robotisation of processes in numbers - perspective of the Polish market
• Case study: when is process robotisation better than outsourcing?
• How to effectively implement process robotisation in a company?
• Where to look for support in process robotisation?
• When does the investment in process robotisation pay off?
• Service and maintenance - why is it so important?
• Prospects for the development of robotisation in Poland
• Practical conclusions and recommendations
• Summary
• FAQ

Introduction

Robotisation of processes is one of the fastest growing trends in modern industry. According to a study by the Polish Economic Institute, as many as 18% large companies in Poland (employing more than 250 people) are already using industrial robots. At the same time, only 4% of companies in the SME sector and 3% of micro companies have decided to take this step. These figures indicate that there is a growing awareness in large companies of the benefits of production automation, while smaller companies often wonder whether it might be cheaper or simpler to outsource selected areas.

In this article, we will answer the question of how to reduce production costs in times of staff shortages and whether robotisation of processes or outsourcing is a better option. We will also outline the benefits and risks associated with both strategies, and hint at the practicalities of implementing modern robotic solutions in a company.

Impact of staff shortages on production costs

Staff shortages are one of the most acute problems facing modern manufacturing companies. Employment costs are rising and, at the same time, finding qualified staff is becoming increasingly difficult. The situation is exacerbated by increasing market pressure to shorten the production cycle and increase productivity. As a result, many companies are struggling with:

• Delays in processing orders.
• The need to pay additional wages (e.g. overtime).
• Deterioration of product quality when replacing professionals with less experienced workers leads to more errors.

Problems faced by small and medium-sized companies

It is not uncommon for owners of small and medium-sized production facilities to face the dilemma of how to respond quickly to increasing orders and whether it is better to invest in people or in technology. According to statistics, the use of industrial robots among this group of companies is only 4%. Capital constraints and a shortage of technical staff mean that automation is seen as a challenge, although it is the smaller plants that stand to gain the most from it.

Situation of large enterprises

In contrast, large manufacturing companies (over 250 employees) are seeing a marked increase in investment in industrial robots. The benefits for such entities are particularly significant - they touch not only on efficiency or product quality, but also on the attractiveness of the company in the labour market. By implementing robotic workstations, corporations can better manage their human resources and allocate qualified personnel to more complex tasks, instead of burdening employees with monotonous and repetitive tasks.

Robotisation of processes - what it is in practice and why it can help

Robotisation of processes involves the introduction of integrated devices and machines into a production facility that operate autonomously or support personnel during repetitive, tedious or dangerous tasks. The use of robots reduces the risk of human error, leads to faster execution of orders and makes it possible to maintain or even increase the quality of products when skilled workers are in short supply.

Key areas in which to consider automation

• Packaging and palletising - in situations where precision and speed count.
• Welding of metal structures - especially where obtaining consistent weld quality in large batches is crucial.
• Sanding and polishing - processes that are tiring for humans and require repetitive movements with a constant force of pressure.
• Painting and protective coating - important in industries where uniformity of paint distribution and quality of surface finish are important.

Many entrepreneurs fear that robotisation will involve a gigantic initial expense. It is true that introducing a robot into a production line requires some investment. On the other hand, automated machines and lines can operate continuously, significantly reducing labour costs and improving the stability of the entire process.

Is robotisation the remedy for labour shortages?

Certainly. At a time when skilled staff are hard to come by and wage pressures are increasing, the introduction of industrial robots is becoming a strategic move. It is not just a matter of simply replacing humans with machines - robotisation often means moving people to more developmental and creative tasks. There is a shift in the employment model: fewer people are working on economically unprofitable activities and there is a much greater emphasis on quality control and the operation of high-value-added processes.

Outsourcing of production - advantages and disadvantages

However, before a company bets on robotising its processes, outsourcing is often considered. This approach involves outsourcing some or all of the production to subcontractors who specialise in specific operations (e.g. assembly, welding or packaging).

Advantages of outsourcing

1. Flexibility - no need to purchase expensive machinery or employ staff.
2. Scalability - it is easier to increase production volumes by outsourcing additional work to an external company.
3. Reducing investment risk - you do not have to bear the full cost of implementing the new technology on site.

Disadvantages of outsourcing

1. Limited control - the company must rely on the subcontractor for quality and timeliness.
2. Risk of disclosure of know-how - some of the patents or production procedures may penetrate the business partner.
3. Potential increases in service costs - especially in an upturn when suppliers are raising rates or prioritising other customers.

While outsourcing in some cases can prove to be an advantageous and quick solution, in the current market situation many companies are beginning to value control over the entire supply chain. Hence, the growing popularity of roboticisation of processes, which allows independence from fluctuations in the availability of subcontracted services while guaranteeing stable quality and timeliness.

Robotisation of processes in numbers - perspective of the Polish market

It is worth looking at what robotisation looks like in numbers, as many of the doubts about integrating robots into the production line stem from a lack of sufficient knowledge about the actual costs and benefits.

• 18% of large companies in Poland use industrial robots.
• Only 4% SME companies have opted for similar implementations.
• According to experts at the Polish Economic Institute, the predominance of foreign capital in companies often favours investment in robotisation, due to greater resources and long-term planning.

It follows that smaller operators, especially those focusing mainly on the local market, may be in even greater need of support and optimisation. The solution is to take a holistic approach and select a trusted robotic solutions provider that can help you through the entire implementation process - from technology selection, to integration with existing systems, to service and maintenance.

Case study: when is process robotisation better than outsourcing?

To illustrate the advantages of automation, it is useful to look at the example of a medium-sized company that manufactures metal components. This company was facing rising costs due to:

• Additional overtime rates.
• Limited availability of workers in the region.
• High percentage of quality defects at the welding stage.

Initially, management considered outsourcing selected phases of production to an external company. However, a cost analysis showed that although the monthly service rates were attractive at the start, during peak demand periods (seasonal increase in orders) the rates could rise sharply.

After consultation with the integrator company, it was decided to robotise the welding process. Additional service support and training for the existing team enabled rapid implementation. As a result:

• Production costs have fallen by around 20%.
• The number of quality deficiencies was reduced by 35%.
• Fulfilling orders no longer required overtime and the associated costs.

The move from outsourcing to robotics has also improved supply chain stability and made the company less dependent on the whims of the subcontractor.

How to effectively implement process robotisation in a company?

The implementation of an investment in the area of robotisation requires careful planning and cooperation with an experienced partner. The process is usually divided into several stages:

Needs analysis and technology selection

The first step is to identify the areas that generate the greatest costs and are most prone to error. The cost-effectiveness of implementing robots needs to be assessed in terms of potential savings (e.g. labour, downtime, waste) and production quality.

• Look out for the possibility of integration with old production lines and production supervision systems (ERP/MES).
• Evaluate commercially available robots for their flexibility and ease of programming.

Design and simulation

At this stage, detailed blueprints and 3D models are created to show what an automated line could look like. Thanks to modern tools, it is possible to demonstrate in a virtual environment how the robot moves around the station, how long a cycle takes and where bottlenecks may occur.

Installation and commissioning

Once the project has been approved, the physical implementation of the system in the client's plant, testing and staff training follows. This is a key moment when specialists from the integrator company work together with the company's technical department.

Service and development

Robotisation of processes is an iterative approach - automation systems can be expanded over time to include further functions, such as an additional robotic packaging station or an integrated vision system. It is important that regular service and support is provided so that the equipment operates without downtime.

Where to look for support in process robotisation?

The implementation of modern technologies, such as SIASUN industrial robots, requires cooperation with an experienced integrator who knows the unusual challenges of manufacturing companies in Poland. Our company, Michale Automatyka, specialises in the construction of machines and production lines and the implementation of robotic workstations. As an official distributor of SIASUN robots in the country, we offer:

• Design and construction of turnkey workstations.
• Integration of robots with existing vision systems and ERP/MES software.
• Service and maintenance of implemented solutions.
• Training for staff to guarantee full use of the robots' capabilities.

We encourage you to visit the page with our range of services: Check out the robotics offering at Michale Automation

When does the investment in process robotisation pay off?

Many companies are concerned that the cost of purchasing advanced technology will be high. However, properly planned robotisation has a relatively quick return on investment (ROI). Here are some factors that affect the rate of return:

1. Scale of production - The higher the volume, the faster we will gain from automation.
2. Cost of human labour - a robot can work continuously and hourly rates for humans are rising in times of staff shortages.
3. Elimination of errors - fewer corrections and quality deficiencies translate into savings in raw materials and time.
4. Consistent speed and precision - In welding or packaging processes, for example, the robot maintains a stable working speed so that lead times and costs can be better forecast.

If you want to quickly analyse the potential return on investment in robotisation, use our ROI calculator - welding robotisation

Service and maintenance - why is it so important?

Investing in industrial robots is not a one-off expense, but also a long-term commitment to maintaining them properly. Regular servicing guarantees:

• Longer equipment life and operational safety.
• Process stability - minimised risk of downtime and failure.
• Upgrading the software and increasing the robot's capabilities in the future.

On our website you will find more information about service and maintenance: Service and maintenance of robot workstations

Prospects for the development of robotisation in Poland

Robotisation density (number of robots per 10,000 employees) in our country is still lower than in many Western European countries. However, Polish companies are increasingly realising that automation is a way not only to reduce costs, but also to:

• Streamlining logistics processes through integration with ERP/MES systems.
• Improving occupational safety and reducing harmful factors for workers.
• Increase competitiveness, especially when short lead times are important.

In the coming years, with the development of EU regulations and the proliferation of AI technologies, the robotisation process will gain even more momentum. Industrial robots will also become an important part of the integration with vision and analytics systems, allowing even more precise real-time control of production.

Practical conclusions and recommendations

• Decent cost analysis. Before you choose robotisation or outsourcing, carefully identify the processes that generate the most costs and require the most labour.
• Choosing a partner with experience. Robot implementation requires design expertise and side skills (e.g. in software integration). Look for companies with references and an extensive portfolio.
• Go one step further in quality. Robotisation of processes should go hand in hand with quality control - the integration of vision systems, force sensors or measurements allows deviations to be detected immediately.
• Regularity of service and upgrades. Maintaining high reliability requires cyclical maintenance and possible repairs even before a major failure occurs.
• Also consider line extensions and AI technologies. Automation does not have to end with welding or packaging - in the future you can extend a recently implemented system with additional vision or analytics functionality.

Summary

Staff shortages and the need to reduce production costs are affecting an increasing number of companies in Poland. The dilemma of whether to opt for outsourcing or robotisation of processes is justified - both solutions have their advantages and disadvantages. However, in the long term, it is automation that allows for full control over the production process, reduction of mistakes and maintenance of reproducible, high quality products.

If you would like to find out more and plan your company's robotisation process, take a look at our wider offering: Robotisation services

All indications are that the use of industrial robots in Polish factories will become even more widespread in the coming years. There is no denying that investment in robotic workstations is not only a way to cut costs in times of a shortage of skilled workers, but also an effective method of strengthening competitive advantage, improving product quality and increasing production stability.

We encourage you to follow our blog, where you will find further articles on modern industrial solutions, the benefits of automation and practical tips for implementing robotisation. If you have questions or are planning an investment, please contact us - our specialists will help you choose the best solutions tailored to your needs.

FAQ

How long does it take to implement automation in a company?
The implementation time depends on the complexity of the processes and available resources. It can range from a few weeks for simple solutions to several months for extensive projects and large integrations.

Does automation mean redundancies?
Usually no. Automation allows employees to focus on more creative and strategic tasks, while freeing them from monotonous tasks. Many companies use this to retrain and develop their team professionally.

Does robotisation only pay off for large companies?
Today, advances in technology are leading more and more small and medium-sized companies to turn to robotisation. Costs are coming down and flexible solutions can deliver a favourable return on investment even for smaller operations.