Identifying Changes in Manufacturing Process and Costs Due to Case Study

Identifying Changes in Manufacturing Process and be Due to Automation & Applying ABC to Small Businesses - Case Study Example2. This kind of the manufacturing forge reduces the employability of the rough take. The semi-skilled labor or the highly skilled labors demand grows as some noesis is required in operating the machineries of an engineering based manufacturing company. But the best part of the automated butt on is that the employees physical labor reduces but at the salary paid earlier or at an increased level of salary.3. Depending on the level of automation the impact on the company workforce travel on the employees of the company. Generally the existing employees take a lot of time in adapting to the changing works condition of the company. This may result in the employees losing their job and being replaced but such employees who have preceding knowledge about the automation process of the firm.4. The automation process of the company may result in the improved qual ity of product which can be made affordable at a cheaper monetary value than before. Automation process is both repeatable as well as precise which ensures the manufacturing of the product with alike(p) specification, thus leading to the high efficiency level of the company.5. The overhead costs related to the prepare material, direct labor and other manufacturing costs get affected subsequently the implementation of the automation process to the extent that initially there is a rise in the cost because of the conversion to the automated process. But after reaching the break-even point of the companys per unit cost of the product seems to decrease with time in terms of all manufacturing cost except labor. The labor cost is usually high because employing of skilled labor is essential for manufacturing companies with automated process. Moreover, with the further updating the machineries of the company cost in labor increases in the process of training as well.6. The automation aff ect may tend to increase the fixed and the variable likeness of the company. This rise may usually come