The deployment of automation technology has its own unique set of potential failures and risks—here’s how to plan ahead.

Automation is an integral part of the modern manufacturing environment and with it comes increased efficiency and productivity. However, as more industries embrace Industry 4.0 technologies, there is a substantial increase in risk from cost overruns, project delays, workflow disruption and security threats.

Understanding the Risks

Automation projects need to be assessed for risks at the design stage and reassessed during build and deployment. The key to creating a good risk-based decision-making process is to identify the potential risks involved—this risk identification can be divided into five categories. These categories are flexible and can be modified to suit a particular industry. Grouping risks can help define specification strategies, as one solution could affect more than one risk.

Operational Risks:  System malfunctions or underperformance can be disruptive to throughput, effect production quality and lead to output delays. These risks are inherent in the deployment of any new technology, and automation is no exception.

Financial Risks:  Automation technology typically requires substantial upfront investment. Any failure or underperformance can lead to significant financial loss. This can also be coupled with technical risks if there are application errors or misapplied technology that leads to re-engineering and replacement of components.

Technical Risks:  Technical glitches, software bugs and inadequate system integration pose a significant threat. This includes failures to properly interlock between different systems or take into account data handling and integrity. Cybersecurity risks are a major concern because the connected nature of automation systems makes them vulnerable to data breaches and other cyber threats.

Strategic Risks:  Misalignment between automation deployment and the organization’s long-term business strategy can lead to inefficiencies and suboptimal outcomes. It is critically important to understand the link between business goals and the technical architecture chosen to meet them.

Change Management Risks:  Automation deployment invariably involves change, which could face resistance from employees. Inadequate training or preparation can also lead to bottlenecks, impacting the overall effectiveness of the deployment.

Accidents are Unavoidable

It should also be noted that, in complex systems, an action or series of actions that can cause failures may not be obvious. Mapping based on Perrow’s Normal Accident Theory may be a necessary step during the risk planning stage. Normal Accident Theory suggests that complex systems have an intrinsic property that drives toward an eventual catastrophic conclusion. It is therefore important to take a systems or holistic approach that encompasses not only equipment, but the human element as well. Interactions and the coupling or path between these events can be mapped while looking for patterns and paths to failure. Paths can be linear or complex depending on the system.  Strategic risks can more easily be recognized by the interaction of causal links.

De-risking Strategies and Risk Management Framework

It is important to implement any tool as part of a comprehensive risk management framework. Identifying risk is one of the first step, however this framework should encompass risk identification, risk assessment, risk response planning, risk monitoring and control. Regular reviews can ensure the risk management strategies are effective and updated as needed. Here are some strategies that can be used to de-risk an automation deployment.

·         FMEA:  Failure Mode and Effect Analysis is a popular tool set used throughout many industries. These can be done at the design stage (D-FMEA), the build or production stage (P-FMEA) and even look at the systems involved (S-FMEA). A FMEA analyzes not only identifies the potential effect of the failure but also assign probabilities for occurrence of the potential failure, the ability to detect the failure and then seeks ways reduce any of the three. FMEA session are done by groups of experienced professionals due to their subjective nature. FMEA is a tool that lends itself nicely to the idea that incident probabilities can not be reduced to zero but can be mitigated with proper control strategies.

·         Pilot Testing:  Pilot testing is a valuable strategy that allows organizations to test ideas before committing too many resources. By implementing automation on a smaller scale or in a simulated environment initially, organizations can identify unforeseen issues, assess the system’s effectiveness and make necessary adjustments. This approach helps organizations avoid the disruption and costs associated with a full-scale rollout that might encounter issues.

·         Phased Implementation:  Phased implementation is a strategy that emphasizes gradual deployment but at a higher level than pilot testing. By moving the project forward in increments engineers learn, adjust and improve as they move along the automation journey. The benefit is that issues only affect a small part of the operation, minimizing overall operational and financial risk.

·         Leveraging Data and Analytics:  Data is a powerful tool for de-risking automation. Real-time monitoring of automation systems through analytics provides valuable insights into system performance and help identify and address issues early. Predictive analytics can also be used to forecast potential future issues, allowing for proactive problem-solving. Current software employs AI technologies to deal with large data at a scale previously impossible to achieve.  AI tools can now predict critical maintenance activities with high levels of confidence. Containment event trees, for example, have become so complex the analysis can only be accomplished by embracing AI technology.

·         Cybersecurity Measures:  Modern automation systems, due to their interconnectedness, are vulnerable to cybersecurity threats. Implementing robust cybersecurity measures is crucial. These could include intrusion detection and prevention systems, firewalls, secure system design, regular vulnerability assessments and employee training on cybersecurity best practices.

·         Vendor Due Diligence:  The selection of the right technology and vendor is a significant factor in a successful automation deployment. Conducting thorough due diligence ensures the chosen vendor has the experience, expertise, reputation and support capabilities. Reviewing their previous project outcomes and getting feedback from their past clients can provide valuable insights.

·         Thorough Planning and Forecasting:  Planning and forecasting can significantly reduce the strategic and financial risks associated with automation deployment. Organizations should carefully analyze the impact of automation on their existing processes, personnel and systems. Detailed cost-benefit analyses provide a clear view of expected return on investment. Scenario planning can prepare organizations for all the possible outcomes.

·         Training and Communication:  Effective change management strategies, including comprehensive training and clear communication, can mitigate the risks associated with employee resistance and inadequate preparation. It’s essential to communicate the objectives and benefits of automation clearly to all stakeholders, addressing any concerns and instilling a sense of ownership and acceptance. Additionally, a well-designed training program can equip employees with the skills needed to operate the new automation systems effectively.

·         Continuous Improvement and Support:  Risk reduction is not an activity that is only completed once. It’s an ongoing process that must be revisited and updated throughout all phases of a project. Continuous support, maintenance and system improvement are critical to the long-term success of an automation deployment. Regular system audits identify potential issues early and a strong support team can resolve them promptly to minimize disruption. Additionally, a continuous improvement approach can keep the automation up to date with evolving business needs and technological advancements.

While automation brings immense potential for efficiency gains and cost savings, it also comes with inherent risks. However, with a strategic approach these risks can be effectively managed. This comprehensive approach to de-risking will not only safeguard businesses against potential pitfalls but also set them on a path to sustained growth and competitive advantage in the digital era.