Posts Tagged wikipedia

Employees vs. Robots

I was reading an article that appeared in Tuesday’s USAToday with the headline – “Amazon puts 15,000 robots to work on Cyber Monday”. 15,000?!?! The Kiva Systems robots do tasks that historically have been done by some number of Amazons 88,400 employees. Robots picking products that are purchased online by consumers that then need to be shipped to them from Amazon fulfillment centers across the globe cost some number of people jobs. Using Kiva robots obviously provides great value to Amazon shareholders since they don’t require a human resource department to oversee payroll, other benefits such as medical and dental plans, vacation days, sick days, etc.. But this can’t be good for union and hourly workers.

Automation Robots vs People

 

Robots are obviously taking over or facilitating any number of manual jobs that historically have been done by employees. Amazon’s use of robots brings the product(s) ordered online and stored in shelf bins to a packer for shipping. Once the purchased item is delivered to the packer the robot returns the shelf bin back to where it belongs awaiting the next task. These robots have certainly saved Amazon the cost of workers who provided this service. The article says that Amazon spent $ 775 million for the Kiva robots and that, “The robots are part of a complex software and hardware system that simplifies picking and packing at warehouses that contain literally millions of items.” The article doesn’t mention that each robot, and the systems that supports them, cost an average of $ 51,667. Payscale.com estimates that the average Amazon employee salary cost is in a range of $ 50,098 – $ 122,195. After Amazon’s initial investment in the Kiva robots there would be ongoing costs for maintenance, repairs, replacements and of course those whose job it is to manage the 15,000 robots, but Amazon obviously did all the internal analysis and studies to see that the return on investment was well worth the $ 775 million.

The advent of using robots isn’t new, but with robots taking over responsibilities of human pickers at Amazon and the use of robots across countless industries and companies the potential loss of unskilled or low skill jobs could be devastating. Taking place at the same time is the strong push by some city and state governments to increase the minimum wage through legislation. Somehow there seems to be a potential disconnect.

Redwood.com compiled a report titled “The Top 10 Reasons Businesses Demand Enterprise-Level Automation”. Reason #2 in this report is:

“Happy and Productive Employees

Automated tasks keep people—who can get bored or irritated by doing repetitive tasks—free from drudgery. It also liberates them to do more strategic and valuable activities for the company. Automation lies at the core of all of our modern conveniences. Machines are made to do repetitive, boring tasks—without complaining.”

You can see where the use of robots and/or automation that is rapidly taking over or helping employees in their jobs providing cost reductions and greater shareholder value for companies who utilize them, but I’m guessing that most employees would prefer being “bored or irritated” and not “free from drudgery” versus not having a job. Certainly there are countless jobs that won’t be taken over by robots, but is your job completely safe from being replaced by a robot so that you can be freed to do something else? I’m guessing the Amazon employees that were picking products for packing at one time thought so.

If you’re a business owner or in management with responsibility for delivering shareholder value you have to continually be looking for ways to cut costs and increase value just as Amazon has done. There are countless jobs that aren’t going to be replaced by robots, but are there robots that can help you improve the productivity of your employees making their jobs easier and provide greater shareholder value? As companies compete against each other for business at a local, regional, national or international basis; looking for the slightest advantage against industry competitors the answer has to be yes. What are you doing to take any advantage available and ensure that you continue to grow and prosper in your industry?

Just sayin’.

 

 

 

 

Sources:

www.usatoday.com

http://www.usatoday.com/story/tech/2014/12/01/robots-amazon-kiva-fulfillment-centers-cyber-monday/19725229/

www.kivasystems.com

http://www.kivasystems.com/about-us-the-kiva-approach/

www.amazon.com

http://www.amazon.com/Locations-Careers/b?ie=UTF8&node=239366011

http://www.amazon.com/Inside-Careers-Homepage/b?node=239367011

www.payscale.com

http://www.payscale.com/research/US/Employer=Amazon.com_Inc/Salary#by_Yearly_Sales

www.wikipedia.com

http://en.wikipedia.org/wiki/Pick_and_pack

www.Redwood.com

“The Top 10 Reasons Businesses Demand Enterprise-Level Automation”

 

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Just Sayin’ Blog – The American Dream and Garages

Have you seen the General Motors (GM) commercial selling the new electric 2014 Cadillac ELR? Interestingly you actually don’t know what the commercial is selling until the very end. When I started to watch it (click on this link to view) I recognized the voice of FX television show Justified bad guy Robert Quarles played by Neal McDonough. McDonough also appeared in the great film “Band of Brothers” portraying 1st Lieutenant Lynn “Buck” Compton who passed away in 2012. The commercial begins with our seeing from behind Mr. McDonough standing facing a swimming pool dressed in shorts and short-sleeved shirt in what could be a Southern California back yard. The actor starts out asking:

“Why do we work so hard? For what? For this? For stuff? Other countries that work stroll home; stop by the café and take August off. Off! Why aren’t you like that? Why aren’t we like that?“

Six quick questions and two statements set up the commercial. McDonough is then shown walking through his home pointing to his two daughters; then high-fiving one of the girls:

“Because we’re crazy hard working believers that’s why.”

“Those other countries think we’re nuts. Whatever…”

Next he’s seen walking down a hallway heading to the kitchen where he passes a newspaper off to his wife and continues his trek through his nice home.

“Were the Wright Brothers insane? Bill Gates? Les Paul? Ali? Were we nuts when we pointed to the moon? That’s right. We went up there and you know what we got? Bored. So we left. Got a car up there and left the keys in it. Do you know why? Because we’re the only ones going back up there that’s why.”

Mr. McDonough walks into an opening and then re-emerges dressed in a business suit and walks out of the house to his Cadillac ELR. He then delivers the overriding message, besides selling the ELR of course:

“But I digress. It’s pretty simple. You work hard, create your own luck and you gotta believe anything is possible.”

As for all the stuff. That’s the upside to only taking just two weeks off in August.”

“N’est pas?” (The French expression impossible n’est pas français is actually a proverb, equivalent to “there’s no such thing as can’t” or simply “nothing is impossible.”)

One heck of a great commercial in my opinion delivering the message of the American Dream being available to anyone and more importantly owning a Cadillac ELR of course. Wikipedia defines the American Dream as, “a national ethos of the United States, a set of ideals in which freedom includes the opportunity for prosperity and success, and an upward social mobility achieved through hard work.” Sounds right.

The commercial clearly points out that you’ve got to work hard to get all the “stuff” you see from the beginning to the end of the commercial. No one is going to give it to you. Pointing out in a very quintessential American way the commercial finishes with “N’est pas?” – a French proverb meaning “there is no such thing as can’t”. Words to live by. The owner of Cadillac is GM and as everyone remembers the company went into and out of bankruptcy protection during the summer of 2009. In a way the commercial was an analogy of all that GM and countless thousands of dedicated employees accomplished – “You work hard, create your own luck and you gotta believe anything is possible.” Granted they also did it with the help of $ 50.1 billion from U.S. taxpayers….

The commercial hasn’t necessarily been greeted all that well by the some in the media as they view it as American being arrogant, but the very simple message in the ad is that if you want you can own a Cadillac as long as you work hard and do what you do well. Simple message.

This commercial follows one aired earlier this year from Cadillac called “American Garages” (click here to view). The commercial is pointing out the value of Motor Trend’s Car of the Year – the 2014 Cadillac CTS. Mr. McDonough does the voiceover for this commercial telling us:

“The Wright Brothers started in a garage. Amazon started in a garage. Hewlett-Packard and Disney both started out in garages. Mattel started in a garage. The Ramones’s started in a garage. My point? Some of the most innovating things in the world come out of American garages.”

This commercial finishes with “Ain’t garages great!” Indeed they are. I know many auto glass repair and replacement (AGRR) companies that started out in a single garage.

It has been a long time since I’ve owned a GM product (a 1985 Chevrolet Station-wagon) and I don’t have plans on buying one anytime soon, but these two commercials celebrate what America is all about and why people from across the globe continually come to our shores. The opportunity to try like hell to catch the American Dream by working hard and then anything is possible, especially owning a Cadillac. Plenty of people work hard and then haven’t accomplished what they most wanted as their own American Dream, but it’s all about the opportunity. Nothing is guaranteed.

Don’t let any company or anyone keep you from whatever may be your American Dream.

You work hard, create your own luck and you gotta believe anything is possible.”

Just sayin’.

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