Tuesday, May 18, 2010

Impact Of Automation On Small And Medium Enterprises

Small and medium enterprises are companies whose headcount and even the turnover are below certain limits. Naturally the limitations of SME’s are low capital base, concentration of functions is on one or two persons, inadequate exposure to international environment. Apart from these, the main objectives of these SME’s are as follows. They are 1.high contribution towards domestic production, 2.capacities to develop appropriate technology, 3. Technology-oriented industries. They play a vital role in the growth of the nation. They become the substantial part of employment.

Not using these automated techniques will lead to the loss of savings on the operated costs of any industry. Development in the IT can support easy development of lower costs and systematic modules. Automation and integration of business processes have been instrumented in enabling enterprises to grow revenue while stream-lining operations.

Operational productivity is the direct measurement of automation. By decreasing the time required to execute various operations or functions, the software system frees up managers and staff. Automation in small scale industries can be measured in two ways:

1. Automation coefficient of the labour
2. Automation coefficient of the equipment.

Thus automation can be done in small and medium enterprises so as to increase their productivity and even to maintain the quality of the product. It can be done by using the devices which are not as effective as if there are used in big manufacturing industries. Governments of different nations are providing loans to implement the modern techniques for increasing their productivity at low interest rates. So, here also the advantages of automation will be same when compared with big manufacturing industries like mass production, labour safety, less time consumption etc.