automation

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Automation

The use of machinery, rather than persons, to complete a task. Automation has become increasingly common with leaps in technology that occurred in the 19th and 20th centuries. Automation is thought to have increased efficiency; for example, it made mass production of goods possible. Critics contend, however, that it renders jobs obsolete, undermining workers and reducing people's knowledge of how to "do" things. See also: Industrial Revolution.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

automation

the use of mechanical or electrical machines such as robots to undertake frequently-repeated PRODUCTION processes to make them self-regulating, thus avoiding human intervention in these processes. Automation often involves high initial capital investment but, by reducing labour costs, cuts VARIABLE COST per unit.

Automation can be applied to mass production, PRODUCTION-LINE operations which are performed in a fixed sequence with high volumes but in a relatively inflexible way, where changes in the process to accommodate product changes are difficult and costly to implement (fixed automation). Automation can also be applied to lower volume BATCH PRODUCTION type operations, allowing in this case for greater flexibility in accommodating product changes by reprogramming the numerically-controlled machine's/robot's instructions to facilitate rapid changeovers (flexible or programmable automation). See FLEXIBLE MANUFACTURING SYSTEM.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

automation

the use of mechanical or electrical machines, such as robots, to undertake frequently repeated production processes to make them self-regulating, thus minimizing or eliminating the use of labour in these processes. Automation often involves high initial capital investment but, by reducing labour costs, cuts VARIABLE COST per unit. See FLEXIBLE MANUFACTURING SYSTEM, PRODUCTIVITY, TECHNOLOGICAL PROGRESSIVENESS, CAPITAL-LABOUR RATIO, MASS PRODUCTION, COMPUTER.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
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