What’s in Your Future?
Today, we hear a lot about the advent of automation in our business operations, especially with the introduction of Artificial Intelligence and other new technology. I find it interesting that Warren Bennis, professor of business at U.S.C., offered the following thought back in the early 1980’s:
“The factory of the future will have only two employees, a man and a dog. The man will be there to feed the dog. The dog will be there to keep the man from touching the equipment.”
This sounds like a fully automated system. Are we approaching this point with the introduction of more and more automation & technological advances? Quite possibly.
My first Client to automate a major task was through using a robotic machine to push up feed throughout the day. I believe at the time it cost about $40,000. However, it replaced one full-time employee, paying for itself in less than one year. More significantly, it enabled them to complete a task that was not being completed consistently. As a result, the Client’s milk production per cow has climbed by ten pounds per cow per day, offering an even bigger payback.
Comparing the Labor costs on dairies with robotic milkers vs. conventional milking setups is eye-opening. Our experience is that it is 1/3 of the cost of the conventional setup. Additionally, there is little cost for the robot’s time, there is no overtime pay and they don’t require Worker’s Comp or Benefits coverage. I estimate that the payback on these units is easily within 5-6 years, to say nothing of the improved production, herd health and other benefits.
The point is this. Automation is becoming more and more available. Fortunately, it is surfacing where I hear the most common complaints from Clients – in the challenges of Labor.
My advice? Take positive action today and check out the payback on these automation options. Warren Bennis alluded to their benefits 40 years ago, and now we are there.
Are you prepared for this challenge? Do you have a plan for overcoming its obstacles?
I’d love to visit with you more about my work with other Clients on these areas and how you, too, can achieve an improved outcome. Please let me know if you would like some assistance at john@success-strategies.com.
Let’s take your business to the Next Level!
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