Eindhoven University of Technology

MASTER

Computerized automation of the metal industry of Costa Rica and its effect onemployment and education

Krott, M.W.F.M.

Award date:1998

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________ _!_T.=.EC~L!JHN!...!.:O~L~O~G=W...Y AND DEVELOPMENT STUDIES

Faculty of Technology Management

Eindhoven University of Technology

M.Sc. Theses Series TDS 1998. 98.12

Supervisors:

• Drs. H.C.J.J. Gaillard • Dr. Ir. C.W.A.M. van Overveld • Prof. Dr. A. Szirmai

Michel Krott ld. Nr. 349023 Tuesday, 01 December 1998

Faculty of Technology Management Faculty of Mathernaties and Computer Science Faculty of Technology Management

Computerized automation of the metal industry of Costa Rica and its effect on employment and education

APPENDIX

1 Questionnaire for industrial organizations

tû) Universidad Tecnológica de Eindhoven Holanda

Proyecto:

ASOMET AL Asociación de Fabricantes Metalmecánicos y Metalûrgicos de Costa Rica

Automatización: su efecto sobre el empleo y la educación en la industria metálica de Costa Rica

1: INFORMACIÓN GENERAL

1. ~ Cómo se !lama la empresa?

2. ~Cuál es el nombre del duerïo de la empresa?

3. La empresa es:

[ ] Propiedad local [ ] Propiedad extranjera [ ] Am bas, ~ Cuál es la proporción de la propriedad la cal (porcentaje )? ...

4. ~Qué produce la empresa? (tipo de productos)

5. ~Desde hace cuánto tiempo existe la empresa?

19 ..

6. ~Cuántos empleados tiene la empresa?

Ahora (1998): .. . Hace 2 arïos: .. . Hace 5 arïos: .. . Hace 1 0 arïos: .. .

11: INFORMACIÓN SOBRE LA ORGANIZACIÓN

1. l,Cuál es la estructura de la empresa? (ORGANIGRAMA)

2. l,Cuántos trabajadores de producción tiene la empresa?

l,Cuántos empleados en la parte administrativa?

3. l,Cuántos empleados tienen las siguientes especialidades?

• Operarios: .. . • Soldadores: .. . • Montaje: ... • lnstaladores: .. . • Electrónica: .. . • Mantenimiento y reparación: ... • Disene de productos: ... • Control de calidad: ... • lnstrucción de trabajadores: • Administración y contabilidad: ... • Dirección genera!: ... • Otras: ... , a saber:

4. l,Hay especialidades especificas las cuales están siendo hechas por personas de otras organizaciones?

] Si, l,Cuáles especialidades? ... ] No

5. ~Cree usted que esta estructura es la más apropiada para la empresa?

] Si ] No, ~ Cómo se puede mejorarla?

111: INFORMACIÓN SOBRE LA TECNOLOGJA

1. ~Está automatizado el proceso de producción?

] Muy automatizado ] Medio automatizado ] Poco automatizado ] No automatizado

2. ~Se usan máquinas de control numérico?

[ ] Si,

[ ] No

~Cuántas? ... ~ Cuáles ti pos?

~Cuándo se compraron? 19 .. ~Para cuál parte de la producción se usan?

3. ~Se usan robots industriales?

[ ] Si,

[ ] No

~Cuántos? ... ~ Cuáles ti pos?

~ Cuándo se compraron? 19 .. ~Para qué se usan?

4. ~Se usa un sistema de diserïo asistido por computadora? (Computer Aided Design: CAD)

] Si, ~Cuál sistema? ... ~Desde hace cuánto tiempo se usa? 19 ..

] No

5. l,Se usa un sistema flexible de manufactura?

] Si, i-Cuál sistema? ... l,Desde hace cuánto tiempo se usa? 19 ..

] No

6. i, POr qué se usa o na se usa teenclog ia de automatización?

IV: INFORMACIÓN SOBRE CAMBIOS EN EL EMPLEO

1. i-Cuál es el mode la de crecimiento del personal? (vea los siguientes cuadros)

Numero de Operarios empleados (total)

Al principio Cinco aiios después Diez aiios después Quince aiios después Hace diez aiios Hace cinco aiios Hace dos aiios Hace un aiio Aha ra

lnstaladores Electrónica

Al principio Cinco aiios después Diez aiios después Quince aiios después Hace diez aiios Hace cinco aiios Hace dos aiios Hace un aiio Aha ra

Soldaderes

Mantenimiento y reparación

Montaje

Diseiio de productos

Control de calidad lnstrucción Administración Dirección de y contabilidad general trabajadores

Al principio Cinco arïos después Diez arïos después Quince arïos después Hace diez arïos Hace cinco arïos Hace dos arïos Hace un arïo Ahora

2. i,Cómo ha cambiadoel volumen de producción? (el siguiente cuadro se usapara comparar el crecimiento del empleo con el crecimiento de la producción)

Suma Al principio Cinco arïos después Diez arïos después Quince arïos después Hace diez arïos Hace cinco arïos Hace dos arïos Hace un arïo Ahora

3. ~Se cambiaren las relaGiones con otras empresas e institutos (por ejemplo con institutos tecnológicos o gubernamentales?

[ ] Si,

[ ] No

~Con cuáles empresas? ... ~ Cuál es el ti po de relación? ... ~Con cuáles institutos? ... ~ Cuál es el ti po de relación? ...

4. ~ Cuáles piensa usted que son los principales efectos de la automatización sobre el empleo en la empresa?

V: INFORMACIÓN SOBRE EL NIVEL DE EDUCACIÓN DE LOS EMPLEADOS

1. ~Cuáles niveles de educación tienen los empleados? ~Cuántos empleados de cada especialidad tienen este nivel? (vea el cuadro)

Numero de Soldaderes Montaje lnstaladore operarios s

Ninguna educación Escuela (educación general básica) Colegio cientifico Colegio académico Colegio técnico-vocacional lnstitutos para-universitarios Universidad

Electrónica Mantenimiento Diserïo de Control y reparación productos de

calidad Ninguna educación Escuela (educación general básica) Colegio cientffico Colegio académico Colegio técnico-vocacional lnstitutos para-universitarios Universidad

1nstrucción de Administración Dirección Otras trabajadores y contabilidad general

Ninguna educación Escuela (educación general básica) Colegio cientifico Colegio académico Colegio técnico-vocacional lnstitutos para-universitarios Universidad

2. ("ES suficiente el nivel de educación de los empleados?

] Si ] No, ("Cuáles empleados tienen un nivel insuficiente?

(" Cuál nivel necesitan es tos empleados?

3. ("Es suficiente el nivel de capacitación de los empleados?

] Si ] No, ("Cuáles empleados tienen un nivel insuficiente?

("Cuál nivel necesitan estos empleados?

4. ("Se usa un sistema de capacitación en la empresa?

[ ] Si, (" Cómo se realiza la capacitación?

[ ] No

5. ("Cuáles piensa usted que son los principales efectos de la automatización sobre la educación en la empresa?

VI: INFORMACIÓN CONCLUYENTE

1. l,Cuáles piensa usted que son los ventajas y desventajas del uso de la automatización en genera!?

2. l. Cuáles piensa usted que son las ventajas y desventajas del uso de la automatización con respecto al empleo y a la educación?

3. l,Cómo se pueden evitar las desventajas del uso de la automatización?

4. l. Ti ene comentarios adieionales o recomendaciones?

Muchas gracias para su cooperación.

2 Questionnaire for educational institutes

t(j} Universidad Tecnológica de Eindhoven Holanda

Proyecto:

ASOMET AL Asociación de Fabricantes Metalmecánicos y Metalûrgicos de Costa Rica

Automatización: su efecto sobre el empleo y la educación en la industria metálica de Costa Rica

Entrevista con:

1: LA EDUCACIÓN TÉCNICA EN COSTA RICA

1. ~Cuáles institutos en Costa Rica brindan educación técnica? ~Qué enserïan estos institutos? (estudios, materias)

Colegios técnicos

lnstituto Nacional de Aprendizaje

(I NA)

lnstituto Tecnológico de Costa Rica

(ITCR)

Universidad de Costa Rica

(UCR)

~Otros?

2. ~Cuáles institutos brindan capacitación técnica? ~Cómo se realiza la capacitación en estos institutos? (instructores, máquinas, equipo)

Col eg i os técnicos

lnstituto Nacional de Aprendizaje

(I NA)

lnstituto Tecnológico de Costa Rica

(ITCR)

Universidad de Costa Rica

(UCR)

~Otros?

11: LA EDUCACIÓN CON RESPETO A LA AUTOMATJZACIÓN

1. ~Se enserïan materias sobre CAM (Máquinas de Control Numérico, Robots industriales, Sistemas Flexibles de Manufactura) en los institutos? ~ Cuáles materias -por ejemplo:

• configuración mecánica, • programmación, • aplicaciones, • mantenimiento, • reparación?

lnstitutos Educación CAM Materias

Colegios [ ] Si [ ] configuración mecánica técnicos [ ] No [ ] programmación

[ ] aplicaciones [ ] mantenimiento [ ] reparación [ ] otros, a saber: ...

lnstituto Nacional de [ ] Si [ ] configuración mecánica Aprendizaje [ ] No [ ] programmación

(IN A) [ ] aplicaciones [ ] mantenimiento [ ] reparación [ ] otros, a saber: ...

lnstituto Tecnológico [ ] Si [ ] configuración mecánica de Costa Rica [ ] No [ ] programmación

(ITCR) [ ] aplicaciones [ ] mantenimiento [ ] reparación [ ] otros, a saber: ...

Universidad [ ] Si [ ] configuración mecánica de Costa Rica [ ] No [ ] programmación

(UCR) [ ] aplicaciones [ ] mantenimiento [ ] reparación [ ] otros, a saber: ...

Otros [ ] Si [ ] configuración mecánica [ ] No [ ] programmación

[ ] aplicaciones [ ] mantenimiento [ ] reparación [ ] otros, a saber: ...

I

2. ïSe enseiian el funcionamiento, el uso y los aplicaciones de CAD (Computer Aided Design)? ïSe enseiia la conexión con CAM (Computer Aided Manufacturing), mantenimiento y reparación de CAD?

lnstitutos

11

Educación CAD

I Materias

Colegios [ ] Si [ ] funcionamiento y uso técnicos [ ] No [ ] aplicaciones

[ ] conexión con CAM [ ] mantenimiento [ ] reparación [ ] otros, a saber: ...

lnstituto Nacional de [ ] Si [ ] funcionamiento y uso Aprendizaje [ ] No [ ] aplicaciones

(I NA) [ ] conexión con CAM [ ] mantenimiento [ ] reparación [ ] otros, a saber: ...

lnstituto Tecnológico [ ] Si [ ] funcionamiento y uso de Costa Rica [ ] No [ ] aplicaciones

(ITCR) [ ] conexión con CAM [ ] mantenimiento [ ] reparación [ ] otros, a saber: ...

Universidad [ ] Si [ ] funcionamiento y uso de Costa Rica [ ] No [ ] aplicaciones

(UCR) [ ] conexión con CAM [ ] mantenimiento [ ] reparación [ ] otros, a saber: ...

Otros [ ] Si [ ] funcionamiento y uso [ ] No [ ] aplicaciones

[ ] conexión con CAM [ ] mantenimiento [ ] reparación [ ] otros, a saber: ...

Ll.

I

3. {,Se usan Máquinas de Control Numérico para la capacitación?

[ ] Si, {,En cuáles institutos? {,Cuántas?

[ ] No

4. {,Se usan Robots industriales para la capacitación?

[ ] Si, {,En cuáles institutos? {,Cuántos?

[ ] No

5. {,Se usan sistemas de CAD para la capacitación?

[ ] Si, {,En cuáles institutos? {,Cuántos?

[ ] No

4. {,Se usan Sistemas Flexibles de Manufactura para la capacitación?

[ ] Si, {,En cuáles institutos? {,Cuántos?

[ ] No

111: COOPERACIÓN CON LA INDUSTRIA

1. <.Hay cooperación entre los institutos educacionales y la industria en genera!?

[ ] Si, <. Cuáles institutos con cuáles industrias?

[ ] No

2. <.Hay cooperación entre los institutos educacionales y la industria metálica?

[ ] Si, <.Cuáles institutos cooperan con la industria metálica?

[ ] No

3. <.Cómo se realiza la cooperación entre los institutos educacionales y la industria metálica? (con cuáles empresas, en cuál forma)

4. <.Es suficiente la cooperación entre los institutos educacionales y la industria metálica?

[ ] Si, [ ] No, <. Cuáles obstáculos existen?

<. Cómo se puede mejorar la cooperación?

5. Segun la industria metálica, el nivel de educación y capacitación de los empleados es insuficiente. ~ Cómo se puede mejorar este nivel?

6. Segun la industria metálica, es neeesario el apoyo de los institutos educacionales para mejorar el nivel de educación y capacitación de los empleados. ~Cómo piensa usted pueden los institutos educacionales ayudar las empresas metálicas con respeto a la educación y capacitación de los empleados?

7. ~Piensa usted que cambian las necesidades de la industria metálica por el uso de automatización?

[ ] Si, ~ Cómo cambian las necesidades?

[ ] No

8. ~Es preparadoel sistema educacional de Costa Rica para brindar educación y capacitación en gran escala?

[ ] Si, [ ] No, ~Cómo se puede mejorar la capacidad del sistema educacional?

3 Case studies

Case studies

In this section, all case studies are presented. As an overview, the organizations are listed following the categorization given in Chapter 2. Also, the product types (ISIC code) ofthe organizations are given.

CAM level 0 CAM level! CAM level2 No CAD 1 2 . 3

CAD 5 6 7

Category 1:

• El Troquel Profesional S.A. • Industria Nacional de Acero S.A.

Category 5:

• Mecanizados Tecnicos S.A. • Termomecánica S.A.

Category 6:

• Disefios y Construcciones Termoeléctricas S.A. • Bananera El Prado S.A. • R & R Precision S.A. • Xeltron S.A. • Disefios Metalmecanicos S.A. • Olympic Fibers S.A.

Category 7:

• Saret de Costa Rica S.A. • Atlas Industrial S.A.

CAM level3 4 8

ISIC 381 ISIC 381

ISIC 381 ISIC 382

ISIC 382 ISIC 381 ISIC 385 ISIC 383 ISIC 381 ISIC 385

ISIC 381 ISIC 383

EL TROQUEL PROFESIONAL

El Troquel Profesional is a small scale metal factory, which produces tools fortheshoes and textile industries. In particular, it produces metal forms which can be used to cut leather and textile. The owner is Luis Gomez and the firm is local property. The factory was founded in 1984 and it employs 12 people, from which 9 are operators. With operators are meant operators of mechanized equipment, for example a milling machine and a boring machine, but not of automated equipment. Troquel does not use computerised automation. The operators also perform a lot ofmanual work and are said to be "multifunctional".

Troquel has the following structure:

Technica! department

General manager

Marketing department

( ... F=i~;~~i;i ... ·: Planning

department 1-----'------.' department :

: (subcontracted) : . . -··········D··-~

The following specializations are distinguished:

• Operators: 9 • Weiders: 21

• Maintenance and repair: 1 • Product design: 1 • Quality control: 1 • General management: 1

Note that the structure and the division oftasks do notmatch entirely or at least are somewhat unclear. This is aresult ofthe fact that there is no strict division oftasks in Troquel, its structure is more team-like and doesnotfit into a hierarchical form. For the financial administration an extemal person is hired. This structure is considered to be optima! for the firm.

1 W elders are also operators of mechanized equipment and perform other manual work. In fact, every worker must be able to perform every step in the production process.

Computerised automation ofthe production processis possible, and the knowledge ofthis kind of automation is available in the factory. For example, the designs ofthe forms which are supplied by the costumer, can be scanned by a computer with a dedicated device and the data obtained can be fed into a numerical control unit which controts the cutting process. Primary input (thin metal strips) is automatically inserted into the numerically controlled machine and the machine produces intermediate material of the required size. The actual production of the form has to be done manually; the welding takes place in this production phase.

Only ifthe the factory would expand drastically, automation ofthis kind would be worth considering. But the market for these products is small and therefore production scale remains small: the factory has not expanded during its existence. The main reason for not automating the production processis the absence of convincing reasons: the process which is being used (partly manual, partly mechanized) is appropriate for this type of production. The workers are artisans and automation would not lead to significant improvements in production. Investment in automation would exceed investment in manuallabour and would not contribute to expansion of production, because growth of the market is unlikely to occur.

Growth ofpersonnel and changes in specializations are as follows:

Growth of persennel

1984 1989 1994 1996 1997 1998

Year

11!1 Nurrber of errployees

• Nurrber of operators

Changes in specializations

5r-----------~~~ 4.5

4

3.5

3

2.5 2

1.5

1

0.5

0 1984 1989 1994 1996 1997 1998

Year

The volume of production has changedas follows:

300 ~~ê--4"+'

200

100

0

Volume of production

1984 1989 1994 1996 1997 1998

Year

Cl General managerrent

o Adninistration and accountancy

• Quality control

mWelders

I m Units per rronth I

Over time, relations with the Chamber oflndustry and CEGESTI (Centro de Gestión Tecnológica) have been established. These relations consist of consultations.

The majority of operators, including weiders, received primary education. The manager received tertiary education. It is stated that the production workers for doubling, welding and polishing have an insufficient level of education and should have received secondary technica! education. This lack of education is compensated by short courses given in the firm. An insufficient level of education apparently already exists before computerised automation is introduced on the workfloor.

Automation is considered an advantage only when economies of scale can be achieved. In that case automation increases productivity and improves the quality of products. However, as we will

see, automation also is suitable for smaller factories, in particular when high precision products are involved. In Troquel, where scale is very limited and every product made differs from the next one, and where workis basedon craft, automation is hardly suitable. Suppose that the abovementioned automation of design and cutting is introduced. According to management, this would not effect employment in a negative sense but increase skilis of the employed production workers. This may be true, because introduetion ofnew technology would broaden the scope of the workers and extend their skills. New workers, however, would be discouraged tomaster the first steps in the production process, because the machine would take over these tasks.

In short, Troquel states that computerised automation would not create major advantages for the firm, but would be a major financial burden.

INDUSTRIA NACIONAL DE ACERO (INASA)

Industria Nacional de Acero (INASA) is a medium scale factory producing metal sinks for kitchens. INASA was founded in 1976. It is a limited company, local property and it employs 58 people. INASA has the following structure:

Financial manager

(accountancy)

Secretaries

General manager

I Vice­

manager

Production manager

Operators

Mechanics

Stock control

The factory employs 43 people in the production sectien and 15 people have other tasks, for example administration, security, management. The distribution of specializations takes the following form:

• Operators: 35 • Weiders: 2 • Maintenance and repair: 3 • Administration and accountancy: 4 • General management: 4

There are no specializations which are performed by other organizations. This structure is considered optimal for INASA. However, it is stated that modem machinery is needed and that this machinery would change the structure of the firm and the di vision oftasks; in which manner remains unclear.

The production processis not automated. A large part ofthe processis mechanized and a lot of conventional machinery is used, but no NC machines, robots, CAD nor FMS. The reasen for not

automating the production process is an economie one: the investment costs in computerised automation are considered too high. In particular, the Costarican financial system is considered very unstable and the risks involved with loans from commercial banks are considered high. The incentive for investment is low, moreover because it is not clear to which extent computerised automation would improve production.

The pattem of growth ofpersonnel and changes in specializations are depicted below.

Number of operators

45~~~~~~~~~~~~~~~~ 40 -j-:,..,..-....;_".~~

35 -f-'-....,.,.-.,---.;..:._.,..;...

30 +-'-----'---'-

25 +-'--------'--

20 t--.:..c.:.-.:..c.:._:_c.:._

15 +----'---'-'--.,..;...

1 0 -t----'...,.....,.;.;;;:.;...,.,.;...

5 -f--'---.;.,;.-'-'---.;.,;.--

0 +-....;,;..;..---'""'+--

1988

1988 1993

lmseries11

1993 1996 1997 1998

Year

Changes in specializations

1996 1997 1998

Year

o General rranagerrent

o Adninistration and accountancy

• Maintenance and repair

•Weiders

The number of employees in the general management section lowered because the firm was initially a partnership: some ofthe partners still hold shares but no longer participate in management ofthe firm.

Growth of production

5000

4500

4000

3500

3000

2500 jm Units of production j 2000

1500

1000

500

0 1988 1993 1996 1997 1998

Year

Production grew while the number of employees more or less remairred stable. This could be ascribed to the gradual introduetion of conventional machinery on the production floor and to improverneut of production methods.

With respect to education, all operators received primary education, the employees in the rnainterrance andrepair section received secondary technica! education, employees in the administration and accountancy section secondary education, and the general managers tertiary education.

The operators have an insufficient level of education and training. They need more technica! education and specific knowledge ofthe production process, acquired by training and experience. A new operator in INASA is trained by the production manager or an experienced production worker.

The firm states that automation is needed to improve quality ofthe products and increase production. As mentioned, production is not automated because computerised automation is very expensive and it is not clear to which extent production can be improved. In this perspective, a feasibility study on the introduetion of computerised automation would be reeommendab Ie. As an advantage of automation with respect to employment is regarded: increase in skilis ofthe operators, because he will be able to operate modem machinery. In this case this could be true: observation leads to the condusion that the jobs of operators in INASA require very few skilis (very simple, repetitive and monotorrous operations). The firm states that automation ofits production process would certainly lead to substitution of operators. This could be compensated

by an increase of jobs in the administrational section. However, note that jobs in the administrational sectien require more education.

According to management, automated firms are able to compete with firms in other countries and the level of "preparation and knowledge" of production workers is higher, which facilitates the whole production process.

MECANIZADOS TECNICOS

Mecanizados Technicos is a small scale producer ofparts for machinery. The owners are Micazla Pefia and Juan Carlos Diazand the firm is local property. It was founded in 1986 and employs 6 people. The structure is very horizontal:

General manager

Head of production

I

I I I I

Operator Operator Operator Operator

The production section consists of 4 operators and the Head of production. The administration as wellas the design ofproducts (specification of designs supplied by clients) is performed by the general manager. Quality control is performed by the Head of production. Thus the distribution of specializations is very simple:

• Operators: 4 • Quality control: 1 • Product design, administration, general management: 1

A number of operations which cannot be performed with the available equipment is performed by other organizations. This structure is considered optima! for the firm.

Mecanizados Tecnicos states that its production processis hardly automated. It does not use NC machines, industrial robots nor a PMS. The manager uses a CAD system (AUTOCAD) to specify/modify the designs delivered by clients; this system makes the manager's job easier. The production processis not automated because "production is low and heterogeneous".

The pattem of growth ofpersonnel and changes in specializations are depicted below.

16

14

12

10

8

6

4

2

0 1986 1991

Year

Personnel

1996 1998

11 Nurrber of ef11Jioyees

• Nurrber of operators

o &rployees in quality control

o General rranagernent

The firm cooperates with INA and the Costa Rica Institute ofTechnology (ITCR) for training purposes and consultancy about measurement and metallurgy.

The operators received secondary technica! education, as well as the Head of production. The general manager received tertiary education. It is stated that the level of education of the employees suffices, as well as the level of training and experience. Th ere is no training system in the factory, but the Head of production and general manager assist the operators when needed.

In general terms, it is believed that automation impraves quality of products and increases production volume. Also, it is believed that automation displaces qualified manuallabor. In the end, automation increases the level of technica! education because more technica! knowledge_is needed. Automation "dehumanizes" work, meaning that the worker willlose a part ofhis autonomy on the production floor and that his work will be dictated by machines. It is believed that disadvantages of automation cannot be avoided.

TERMOMECÁNICA

Termomecánica is a medium scale producer of ovens, drying machines, equipment for intemal transport of products etc. The firm produces a variety of products; consequently it has a flexible production process.

The firm is a limited company, local property and it was founded in 1974. At this moment, 31 people are employed. The firm has the following structure:

Board of di rectors

I General manager

I

I I

Accountant Head of Assistant Secretary production

Painter Drawer

Electricians Laminators

Operators Warehouse employees

Weiders Supervisor ofassembly

28 workers are employed in the production section and 3 people are employed in the administrational section. Specializations are distributed as follows:

• Operators: 4 • Weiders: 16 • Assembly: 4

• Electronics: 2 • Pr-oduct design: 2 • Administration and accountancy: 2 • General management: 1

Some intermediate parts, requiring precision operations that cannot be performed with the machinery used by the firm, are produced by other firms. The firm's structure could be improved by assigning an assistant to the Head of production and by contracting a sales representative.

The firm considers itself to be non-automated. It uses no NC machines, no industrial robots and obviously no FMSs. However, a CAD system (AUTOCAD) is used for design ofthe products. This CAD system was purchased in 1998. The firm does not use CAM because the products are not "standard products"; a wide variety of products is produced. An automated production line would be an impravement if the products were equal or similar, but the products made by Termomecánica have very different structures, determined by the specifications given by the customers.

35

30

25

20

15

10

5

0 1996

Growth of persennel

1997 1998

Year

-+-- NuntJer of e~loyees

Changes in specializations

35

30

25

20

15

10

5

0 1996 1997 1998

Year

Volume of production

400000 -r--...,.-...,.-...,.---,--...",...,-...".--:-r...".---...,.-...,...,-,

350000

300000

250000

200000

150000

100000

50000

0 1994 1995 1996 1997

Year

11 General managerrent

m Adninistration and accountancy

11 A"oduct design

El Bectricians

o Assentliers

11 Welders

mOperators

Jm US dollars J

Ties withother firms, in particular supplying firms, have been strengthened in order to establish a "strategie alliance". Moreover, cooperation has been established with a number ofinstitutes (INA, CEGESTI, CEFOF). The firm states that the major effect ofthe CAD system on employment consists ofimprovement ofthe designers' work: high quality designs are made at higher speed.

Almost every worker in the production section received secondary education, except for 1 electrician, which received tertiary education, and the product designers, which also received

tertiary education. Employees in administration, accountancy and general management received tertiary education.

It is estimated that 80% ofthe employees has a sufficient level of education; these are employees in all production activities. The remairring 20 % lacks technica! education; their education is of a more general nature. With respect to training, the situation is worse: 80% ofthe employees has an insufficient level of training (again, in all production activities). These employeesneed technica! training. At the moment, this training could be provided by institutes like INA, CEFOF and the Chamber oflndustry. However, the firm states that these institutes would not be able to provide sufficient training for employees ifthe production process would be automated; automation would require training of employees in other countries (USA, Europe). In this perspective, automation would create a problem (because training abroad is very expensive) but in the end it would also create an advantage, because the employees would have received valuable training and thus the "quality ofthe employee" would have improved strongly.

As general advantages of automation are regarded: high speed ofproduction, high quality, high productivity (and consequently higher wages!). For the employer, the advantage with respect to education is that the employee is forced to take a greater number of technica! courses to be able to perform his job, in other words his educational background improves. An important question is of course: who is going to pay for these courses? It seems that taking courses is considered to be the responsibility ofthe employee and consequently he will have to pay for them.

DISENOS Y CONSTRUCCIONES TERMOELÉCTRICAS (DICTE}

DICTE is a medium scale factory which produces ovens for bakeries and occasionally other equipment like refridgerators. The owners are Ing. Eduardo Gazel López and Ing. José Alberto Salazar Ramirez. The firm is local property. It was founded in 1987 and it employs 26 people.

The structure ofthe firm is depicted below.

Board of directars

General manager

Auditor

Marketing Engineering Client

and sales service

Accountancy - - Electronica! e--- Instanation engineering

Supply f--- L__ Mechanica! L__ Maintenance engineering

Warehouse 1- '------ Production Prevenlive

I-'-Corrective

maintenance maintenance

I--Electrical

parts

Lamination Welding

L._ Mechanica! I I parts I I

Precision Assembly

There are 23 production workers and 5 employees in the administrational section. The distribution of functions takes the following farm:

• Operators: 15

• Weiders: 2

• Assemblers: 3

• Electronics: 2

• Maintenance and repair: 3

• Product design: 2

• Instruction ofworkers: 1

• Administration and accountancy: 2

• General_management: 1

Partsof ofthe production of electronica! parts (for example circuit boards) and some welding operations are subcontracted. The aforementioned structure is considered optima! for the firm.

DICTE uses 1 NC machine and 1 CNC machine on the work floor. They are used for doubling and cutting (lamination). The NC machines were bath purchased in 1993. Also, a CAD system (MiniCAD) is used for product design. This system was purchased in 1997. Design data are not automatically transferred to the NC machines. The firm does not use more automation because there are high casts involved with this technology.

1987 1993

Growth of persennel

1996 1997 1998

Year

m Nurrber of errployees

• Nurrber of operators

1987 1993

1987 1993

Changes in specializations

1996 1997

Year

Volume of production

1996 1997 1998

Year

1998

Gl General management

• Adninistration and accountancy

mlnstruction of warkers

• Product design

mllt1aintenance and repair

0 Sectronies

• Asserrolers

mWelders

!11 Units of production I

Cooperation is realized with DIMMSA ("strategie alliance"). For example, in order to select primary inputs of high quality and reasonable price DICTE and DIMMSA work together. Also, DICTE cooperates with the Costa Rica Institute ofTechnology (consulting activities).

According to management, automation allows "complex operations" on parts and products and consequently increases the complexity ofthe jobs. However, efficiency and productivity improve.

All operators received no education. Some production workers, for example weiders, received primary education. Employees in assembly and rnainterrance and repair received secondary technica! education. Employees in electronics, product design, administration and accountancy and general management received tertiary education (ITCR, other university or courses at university).

It is stated that employees in assembly have an insufficient level of education; they should have more technica! knowledge. Apparently, secondary education has not provided the required knowledge to these workers. Also, these workers lack training and experience. Workers are trained according to their function; the workers are trained by the Head of production.

As mentioned, advantages of automation are efficiency and productivity. Another advantage is that automation "organizes production", so that better control ofthe production processis possible. A disadvantage on the short run is that automation requires educated and trained personnel, which is very scarce in Costa Rica. This problem could be solved on the long run by improving the educational system and by intensive training ofthe personnel.

BANANERA EL PRADO

Bananera El Prado is a medium scale metal factory which produces equipment for the transport of bananas in plantations. The owner is José Rafael Quirós Villafranca and the factory is local property. It was founded in 1978. At present it employs 45 people.

Bananera has the following structure:

Operatiens manager

Head of maintenance

Head of precision

Head of stock and tools

'----- Head of production

Marketing manager

Production

workers

General manager

I

Vendors in the field

Vendors using phone

Financial manager

Assistant

Commerce and supply manager

Transport

Assistanti messenger

The structure seems to be more hierarchical than in other firms. In the production section 25 people are employed and 10 in the administrational section. Specializations are distributed as follows:

• Weiders: 4 • Assemblers: 5 • Maintenance and repair: 3 • Product design: 3 • Quality control: 1 • Instructien ofworkers: 1 • Accountancy and administration: 5 • General management: 3

Every step in the production process is performed within the firm; there is no subcontracting. The firm says that the structure could be improved by instructing the production workers to the extent that they can work independently. Dependenee on the Head of production is too high.

The firm says to be partly automated. Conventional machines and automatic machines co-exist on the workfloor and are used for different parts ofthe production process. Bananera uses 3 NC machines, specifically CNC lathes. They are used for the most difficult part ofthe production process: the production ofthe intemal rolling mechanism ofthe transport equipment. Also, the CAD system AUTOCAD is used. CAM and CAD are not connected, however. The CNC lathes were purchased respectively in 1992, 1995 and 1997. The CAD system was purchased in 1991.

The main reasons for using CNC are high productivity, high precision and flexibility. The basic operations on the intemal parts are produced with conventionallathes, but for optimalization of the intemal parts the CNC lathes are used. The CNC machines work quickly and deliver parts with stabie quality. Several programs (for different parts) are stored in the numerical control units, programmed by the Operatiens manager. According to management, the eperator's job is very simple and does not require training. A short introduetion course (of a coup Ie of days) to get acquainted with the basic control functions of the machines and tooi changing operations suffices.

Growth of personnel and changes in specializations take the following form:

45

40

35

30

25

20

15 10

5

0 a) (") a) ,.._ a) a) (J) (J) (J)

Growth of persennel

(") (0 ,.._ a) (J) (J) (J) (J) (J) (J) (J) (J)

Year

111 Nurrber of errployees

• Nurrber of operators

Changes in specializations

18~~~~----~~~~~~~~~---. • General

rmnagerrent/product design

16

14

12

10

8

6

4

2

0 a) ,.._ (J)

(") a) (J)

a) a) (J)

(") (J) (J)

Year

(0 (J) (J)

,.._ (J) (J)

a) (J) (J)

o Accountancy and adrrinistration

o Maintenance and repair

• Asserrtliers

&!I Weiders

The production volume in units in the period 1992-1998 has a fluctuating pattem of growth, partly as aresult of restructuring of production after the introduetion of automation technology.

Production volume

100000 90000 80000 70000 60000

.l!! 50000 ï:: ::l 40000

30000 20000 10000

0 1992 1993 1994 1995 1996 1997 1998

Year

Bananera has used services from the INA institute (lnstituto Nacional de Aprendizaje) for training of among others the Head of production. Also, it has participated in courses organized by the Chamber ofindustry (Cámara de Industria) and ASOMET AL.

According to management no important changes in employment have taken place as a result of automation. The only change worth mentioning is the change in skili requirements for the Head of production: he needed to leam how the CNC lathes are used and operated. Also, he has to leam about maintenance ofthe CNC lathes. In case ofan emergency (for example a breakdown) the Operatiens manager wili check the machine and ask the supplier for a new part. In some cases, however, a representative ofthe supplying firm has to diagnose the problem andrepair the machine.

All operators workingin Bananera received only primary education. New employees do nothave the skilis needed for eperating the machines (both conventional and automated) and basic instructien as well as leaming on-the-job is required. However, as mentioned before, the basic instructien takes only a coup Ie of days. Assembly of the intermediate parts is also a low-skili activity; all assemblers received only primary education. Welding, maintenance and repair, quality control and instructien of workers require more skilis. By consequence, all workers in these areas received secondary technica! education.

En general, the production workers have an insufficient level of education. Por example, some of them are even incapable of counting the intermediate parts. This reflects the poor basic skilis in rnathematics and science. The operators have an insufficient level of training with respect to use of machinery. Every adjustment to the machines has to be done by the Head of production, despite the fact that every operator is trained by the Head ofproduction.

The use of computerised automation has not created major problems for Bananera, but it is stated that there are few alternatives for training operators in Costa Rica. The national educational system should be improved to the extent that it prepares people for working with new technology.

This is considered to be a necessary condition for establishing a balance between operators, conventional machines and automated machines.

R & R PRECISION

R & R Precision is a medium scale factory which produces moulds, micro-precision and thermic treatment products, electre-erosion products. The factory is locally owned, the owner is Gilberth Reyes Rojas. It was founded in 1979 and nowadays about 40 people are employed. R & R Precision may be considered as a successful family business, being locally owned, of medium scale and producing high-tech products.

R & R Precision has the following structure:

Production management

Departments of

Quality control

Milling

Lathes

Materials

Cad/Cam

CNC

General management

I

I Accountancy

The amount of production workers is 18; only 2 people are employed in the accountancy sectien (accountancy and administration). The general management consists of2 people: Gilberth Reyes Roj as and his son.

All 18 production workers have been classified as operators of machines. A lot of machines are being used in the production process and every production werker must be able to control these machines. Distinctions between specializations are not very clear, although some can be determined.

Ofthe production werkers, 11 have certain specializations:

• Weiders: 2 • Assemblers/installers: 2 • Maintenance and repair: 2

• Product design: 2 • Quality control: 1 • Instructien ofworkers: 2

The other workers are trainees. The learning period in the factory is said to be 5 to 6 years, i.e. the time a new employee needs to learn from experienced workers until he is able to perferm the tasks needed for the production process. Not every part ofthe production processis performed by R & R Precision itself; in some cases the elient designs the product and supplies the factory with a detailed design. Also, some intermediate products are produced by clients; R & R Precision will finish these products. The last stageofthe processis o:ften the most difficult one and R & R Precision has the necessary expertise and technology to finish the products.

R & R Precision claims to be very automated on the nationallevel and half automated on the internationalleveL lndeed, it uses a relatively large number ofnumerically controlled machines (compared to its size) and it uses CAD. The NC machines are multi-purpose machines, which means it depends on the product type for which part ofthe production process they are used. They include CNC milling machines and WEDM/EDM machines.

The milling machines were purchased in 1983 and the remaining machines in the period 1990-1992. The CAD system being used is AUTOCAD, purchased in 1988.

The main reason for using computerized automation is the need for adequate service and high quality, because most ofthe clients are leading firms with respect to technology and demand high quality products. Another reason is the high productivity resulting from automation; it enables the company to produce more with the same amount of Iabour.

The pattem of growth ofthe personnel and quantitative changes in specializations are depicted below.

Growth of persennel

40r---~~~~~~~~~~~

35 -1--:-~8

30 +--..,.,.......,;

25

20

15

10 -~----,.~

5 -f-.'-,-"""----'-,--'-,---

0

1979 1984 1989

Year

1998

111 NuiTDer of elllJioyees

111 NuiTDer of operators

Changes in specializationS--"-------8 General managerrent

16~------------~--~----~----~ 111 Accountancy and adrrinistration 14

12

10

8

6

4

2

0

1979 1984 1989

Year

mlnstruction of workers

111 Quality control

El Ffoduct designers

o Maintenance and repair

• Assermiers/ins tallers

1998 1111Welders

The volume of production amounted to US$ 100.000 in 1979, US$ 200.000 in 1984 and US$ 700.000 in 1998.

Relations with govemmental organizations and educational institutes have changed to the better. They co-operate with R & R Precision by taking it as an example of a succesfull technology user and setting up training facilities. The management states that the need for workers with a high

degree of education and training (with more knowledge oftechnological matters) has been growing. It also states that the .educational system of Co sta Rica cannot educate workers to this degree. Key-persons in the factory (mostly experienced production workers or the production manager) are sent to the U.S.A. for training and their knowledge is diffused within the factory.

The majority ofthe workers only received primary education, although their job requires a basic degree oftechnical education. This lack of education is compensated by intensive training on-the­job during the first 3 to 6 years ofthe workers' employment. Some workers, however, already received technica! education (colegio técnico-vocacional) before they were employed by R & R Precision. These workers need less training on-the-job. Instructors, employees in the administrational section and managers all received tertiary education (mostly at university level).

In short, most workers have insufficient skilis when they begin their career in R & R Precision. According to management, they need a higher "level ofreasoning", knowledge ofnew technological developments and more discipline. Also, they need specific knowledge about the technology used in R & R Precision. This means they need intensive training. R & R Precision wili provide this training, but expects from the workers a high degree of dedication to the job, commitment with company goals and -last but not least-lifetime employment.

In this context, automation requires skilied labour. Management has to pay attention to the skiliedness of job applicants, in particular totheir degree oftechnical education and their willingness and capability to work in a new technological environment. However, automation may also be an incentive for workers to leam about new technology: this is considered an advantage of computerised automation.

XELTRON

Xeltron is a large scale producer of electrical machinery, specifically seed selectors using co lor detecting technology. The owner is Femando Castafieda Vecino and the firm is locally owned. The firm was founded in 1974. Nowadays it employs 71 people, soit may be classified as a large scale industrial organization.

The firm has the following structure:

General manager

R&D manager

President & Board

Legal advisor/ External auditor

Production manager

Sales manager

Mechanica! engineering Mechanica! engineering Vendors

Accountancy and Treasurer's office

Administrative manager

Human resources

Iaberatory department Representatives Medical services

Electronica! engineering Electronica! engineering Secretary General services

Iaberatory department Warehouse

lnternal transport

The factory employs 47 production workers and 24 people in the administrational section. Ofthe production workers, 20 are classified as operators, 4 as weiders, 17 as workers in the electronica! engineering department, 1 as employee for maintenance and repair, 2 for product design and 3 for quality controL Xeltron has a very clear division oflabour; every specialization is performed in a different location in the factory. For example, there are separated locations for machine operations (cutting, milling etc.), welding, painting, electronica! engineering, Research and Development, product design, administration. None ofthe specializations needed for the production process are performed by other organizations, because Xeltron cannot rely on the quality ofthe products delivered by these organizations. Xeltron is competing on an international level; its products and , by consequence, its intermediate parts, have to meet high quality (precision) standards.

The level of automation in the firm is said to be low. Only 1 NC machine is used: a CNC milling machine purchased in 1988. The machine is used for precision cutting ofintermediate parts, that have to meet high precision standards. The machine is used in combination with a CAD sytem (AUTOCAD- Mechanica! Desktop); data can be transferred automatically from the designer's desk to the machine.

The eperator's job consistsof putting the material in the machine, choosing and connecting the appropriate tooi and push the Start-button. After the operation, he takes the material out ofthe machine and he repeats the procedure. When the NC machine was purchased in 1988, employment changed in the sense that work ofthis kind (low skill) was created in addition to new jobs for operators of conventional machines ( skilied manuallmechanized Iabour). In general terms, the firm size increased considerably after integration ofthe NC machine in the production process.

If the operatien requirements change, the designer will -with help of the CAD system- input new data into the numerical control unit ofthe machine. The job ofthe designer has been simplified by the CAD system. Before this system was purchased, the (geometrical) data had to be derived from the original design and subsequently inserted into the numerical control unit. The computer has taken over this task. However, employment in the design department has not changed to the worse. Because high precision parts could be produced at high speed, production increased and consequently design activities of products and intermediate parts. Also, the new technique allowed the seed selecters to be modified considerably, implying new design requirements.

Quantitative changes in employment and specializations are depicted below.

Growth of personnel

80r---~--~~~~--~~ 70

50

30 20 10&.:.:..;~-:":1

o~~~~~~~~~~=q

1983 1988 1993 1998

Year

--+-- Nurroer of el'rployees

--Nurroer of operators

1983

Changes in specializations

1988 1993 1998

Year

m Accountancy and adninistration

• Quality control

c A'oduct design

o Maintenance and repair

• Sectronies

mWelders

Major changes have taken place in the administrational section and the electranies department In the administrational section because ofthe overall expansion of production activities (wider range ofmodels and modified products). In the electranies department because products were increasingly equiped with sophisticated electronica! detecting devices. Also, di vision oflabour increased after the introduetion ofNC. Por example, jobs of operators changed from multi-task (operating machines, welding, basic maintenance, quality control etc. performed on a team basis) to single-task (only operating, only welding etc. on an individual basis). Thus NC servedas an incentive for expansion and division oflabour.

As far as the educational background of the production workers is concemed, both operators and weiders have different backgrounds (primary and technica! secondary education), the majority in the electranies department received technica! secondary education (co legio técnico-vocacional), as well as designers and employees for quality controL Educational backgrounds in the administrational section range from primary to tertiary education.

The main reason for introducing automation was quality improvement. A side-effect that tumed out to be an important advantage on the long term was the increase of productivity: NC improved a delicate, time-consuming part ofthe production process, being the production of high precision intermediate parts, and lead on the long term to improved overall production.

Employment increased with both skilied and unskilledjobs and the firm states that the level of education ofthe workers does not create problems ofany kind. The capacity for training within the firm is high enough to compensate any lack ofknowledge. On a regular basis key-persons are sent abroad for training. The leaming period for "fresh" production workers ranges from 3 to 6 months.

DIS EN OS MET ALMECANICOS (DIMMSA)

DIMMSA is a medium-scale factory which produces laminated metal products, the majority of which are boxes for electronic control units and telephone boxes. The owner is Eric Garcia and the factory is local property. It was founded in 1987 and today it employs 35 people; it has grown to this size in a relatively short time. DIMMSA has the following structure:

Administrative manager

'---

Sales manager

f--

'-----

Assistent

Vendor 1

Vendor 2

General manager

Financial manager

Operatiens manager

-

I--

'---

CNC lamination

Painting

Design department

Purchases department

Production department

1--

I--

Th ere are 15 production workers and 10 employees in the administrational part. Specializations are distributed as follows:

• Operators: 6

• Weiders: 3 • Assembly: 2 • Product design: 2 • Administration and accountancy: 2 • General management: 1 • Sales: 3

No specializations are performed by other organizations. The firm states that the structure ofthe firm could he improved by further specialization of the personnel, so that skilis can he improved.

DIMMSA uses 2 NC machines and CAD. However, it intends to buy 1 NC laser-cutting machine for high precision cutting of difficult forms. Because it has been expanding rapidly, it has the necessary capita! for investment in new machinery and it is expected that the new machine will improve quality toa large extent. A new production plant is projected in 1999. DIMMSA is furhermore trying to find new markets; the market in Central America is considered to he satisfied.

Of the 2 NC machines one is used for doubling and one is used for cutting. The machines are used in the first stage ofthe production process, for processing primary input. The machines were purchased in 1994. The CAD system used is MINICAD 7.1, which was purchased in 1998 and substituted another system. The main reason for using computerised automation is improved quality ofthe products. A second reason is high productivity.

The pattem of growth of the persennel and quantitative changes in specializations are depicted below.

1988 1993

Growth of persennel

1996 1998

Year

1111 Nurrber of errployees

1111 Nurrber of operators

Note that the absolute and relative number of operators has decreased. In 1993 (before automation) the proportion of operatorstototal employees was 55.6% and in 1998, after 4 years

of automation this proportion amounts to 20 %. The total number of employees has grown considerably; the displacement of operators has been largely compensated by new jobs in other sections ofthe firm (not measured in this study), for example transport, delivery, materials handling, purchases etc. The firm has expanded rapidly and in fact it has two separated production floers (two different locations). This creates problems with respect to logistics.

Changes in specializations

1988 1993 1996 1998

Year

• Generalrmnagement

o Adninistration and accountancy

o A"oduct design

•Asserrbly

mWelding

Changes in specializations seem not to be very significant, although the relative number of all measured specializations has decreased. This reflects the expansion of other activities than the measured ones.

The nature of relationships with other firms and with institutes has changed. In this study DIMMSA was the first to specify the firms it cooperates with; these are DICTE, Xeltron and Atlas lndustrial (all included in this study). This might indicate that firms using computerised automation are capable ofworking together, most probably because their production processes have similiraties and they are all pioneers of automation. The nature of cooperation is said to consist of"links in specializations", which have changed to the better. Soit becomes clear that some firms using computerised automation "share" specializations, which means that if some particular knowledge is needed but not available in a firm, it may to some extent rely on other firms to provide this knowledge. DIMMSA's relationship with institutes has changed in the sense that it receives more support from the Costa Rica Institute ofTechnology (ITCR) and the University of Costa Rica (U CR).

It is recognized that automation decreases the amount of manuallabour and that the remairring manuallabour requires more knowledge and specialization.

The majority of operators (55 %) received only primary education, 20% received no education, 15% received secondary education and 10% tertiary education. Data ofthe educational background of employees with certain specializations are not available. It is stated that

approximately 15 % of the total number of employees has an insufficient level of education. These employees need a hetter level oftechnical education, in order to be able to take "operational decisions". The reliance on others on the workfloor is too big. With respect to training, it is stated that 85% ofthe employees lack a sufficient level. They need more technica! practice and more specialization. The firm does not use a system for training. Training is realised through "transfer ofknowledge" on the production floor. According to management, computerised automation stimulates this transfer of knowiegde and thus has a positive effect on education in generaL

As advantages of automation are mentioned: high quality of products, high productivity and high competitiveness. As disadvantages are mentioned: difficulties in contracting trained/experienced persennel and specialized workers, the high costs involved and a "generallack of culture". (The latter means that a lot of employees have an impulsive disgust of automation and are hardly motivated to work with new techniques. Also, there is a lack of motivation to learn about new technology and to support innovation.) An advantage on the long term is said to be the eventual impravement of skilis and knowledge, when sufficient training has taken place. A specific disadvantage is that software for automation is only available in English. Finally, DIMMSA states that government should strengthen education and that the support from government to business should be more stable.

OL YMPIC FIBERS

Olympic Fibers has two divisions ofvery different nature: a textile division, with a long history, and a metal working division, founded in 1996/1997. In the following I only examine the metal working di vision of Olympic.

The metal working di vision of Olympic is foreign property and employs 50 people. It is best described as a turn-key plant. All machinery and organization has been supplied and installed by the foreign owner, but locallabour is employed. The factory produces parts for the aerospace industry and parts for motors.

Olympic has the following structure:

Manager of textile division

/--

President

Technica! superintendent

Development

Manager of metal werking

division

Quality control Iabaratory

Measurement

Superintendent of production

Operators

Warehouse

35 workers are employed in the production section and 15 in the so-called "technica! section". The administrational section is absent because administration and accountancy is shared with the textile division: administration is centralized. The distribution of specializations takes the following form:

• Operators: 37 • Product design: 2 • Quality control: 9 • General management: 2

When welding, assembly, instanation or electronics are needed, employees from the textile division willassist in the metal working division fora certain period of time. Maintenance and repair ofthe machines (CNC machines) can also be done by employees ofthe textile division. However, the metal working also heavily re lies on the supplying firm ( owner) when probieros occur. There is no subcontracting to other firms.

The structure is considered optima!, because it is simple, flexible and "horizon tal". Cooperation is not hindered by needless hierarchy.

The production process is very automated. Olympic uses 6 CNC machines: 3 milling machines and 3 lathes. They were installed in 1997, when the metal working di vision was founded. The CAD system, also used since the beginning, is AlphaCAD. Robots and FMS are not used because the batch sizes ofthe products are small (no mass production).

Automation is used because quality requirements are high and the products have complex geometrical forms (very detailed and precise), because ofits high productivity gains and because the production "regime" is very strict. The firm has to produce high quality products at high speed. Adequate quality control is necessary; measurement ofparts and quality control are important parts ofthe process.

Relationships with local institutes consist only of basic training of employees at INA; here employees follow introductory courses in CNC. If further training is needed, the firm will train employees intemally or the supplying firm is consulted. It is stated that automation leads to higher requirements on training ofthe employees and more "stress" of employees, resulting from a lack ofmastery ofthe techniques.

Every operator received secondary technica! education. The product designers and the majority of the employees in quality control received secondary technica! education. One employee in the quality controllaboratory received tertiary education, as well as general management.

It is stated that the "official level" oftechnical education ofthe employees is sufficient, but the quality and depth ofthe technica! knowledge acquired by this education is insufficient. Moreover, the operators have an insufficient level of training, as well as the technicians ofthe quality control laboratory (with respect to the interpretation of designs, norms etc.) They need specialized

training for the particular production process, which cannot be effered by local educational institutes. New employees in Olympic go through a learning period of23 w.eeks:

• 4 weeks in the quality controllaboratory • 4 weeksas an assistant-operator • 15 weeks as an operator under surveillance

Also, courses are given by general management to increase the technica! knowledge of the employees. In general terms, it is stated that employees need more discipline and motivation.

The products made by Olympic are too advanced for the educational system of Co sta Rica to provide the necessary education and training. Most problems occur at the "machine level", when tools are changed and the machine is set for a particular product. When tools are not placed in the machine accurately, safety on the work floor cannot be guaranteed. By contrast, design and programmation do not cause problems because the necessary skilis are available. These tasks are performed by general management.

SARET DE COSTA RICA

Saret de Co sta Rica incorporates several divisions. One of these divisions is the metal working division, called SARET METALMECANICA. Saret de Costa Rica, often called the "Saret Group", is a limited company and is local property. The Saret Group was founded in 1976, but the metal working division was founded in 1986. This division produces pipelines of different sizes, fortransport of gas, water etc. It employs approximately 250 people. The structure ofthe Saret Group and ofthe metal working division are depicted below.

ENGINEERING

I Quality Control

COMMERCIAL ADMINISTRA TION

MET AL WORKING

I Production

SAR ET GROUP

Management of Metal Werking

Division

I

CONSTRUCTION

MACHINERY

1 1 Maintenance Administration

In the following I refer to the metal working division when I speak of"Saret". The administrational section of Saret is very small compared to the production section, because the central administration ofthe Saret Group takes care ofthe major part ofits administration. There are only 18 employees in the administrational section, against 250 employees in the production section. The distribution of specializations is as follows:

• Operators: 50 • Weiders: 45 • Assembly: 120 • Installers: 6 • Maintenance and repair: 6 • Quality control: 8 • Instruction ofworkers: 8 • Administration and accountancy: 6 • General management: 4

Quality control ofwelding by means of ultrasound checking and radiological interpretation are subcontracted to other firms.

According to management, the firm has a medium level of automation. However, relative to its size the firm is hardly automated, because the product type does not allow automation or automation would not lead to significant improvements. The factory uses one CNC machine for cutting metal sheets (primary input). This CNC machine is cormected to a CAD system (CADCAM); the design is transferred to the machine through a cable. In this marmer, the job of the operator is simplified. It is stated that the actual "operator" of the machine is the design engineer, because he is the one that controls the machine. With the CNC machine high speed precision cutting can be achieved. The CNC machine was purchased in 1996 and the CAD system in 1995.

Although the firm states not to use robots, two welding robots are used on the production floor. These robots are very simple with respect to their control units, since they allow only a very limited number of programmed routes. However, they automate welding of large parts of pipelines and can be considered robots. They are not reprogrammable, multifunctional machines, but rather match with D.J. Williams' description ofindustrial robots: manipulators configured for specific application areas. The control units consist of simple electronic cards, programmed for repetitive movements.

According to management, the product is not suited for automation. Only a limited part ofthe production process can be automated and it is believed that Saret now has the maximum level of automation which is possible for this type of production. Also, it is believed that factories which produce machinery are more suited for automation.

The pattem of growth of persarmei and quantitative changes in specializations are depicted below. Note the relatively high number afweiders and assemblers; these apparantly constitute a large part ofthe production process. There are no product designers, the designs are delivered by

clients and only have to be "digitalised" by the engineer who uses CADCAM to control the CNC machine.

Growth of persennel

1986 1988 1993 1996 1997 1998

Year

Changes in specializations

1986 1988 1993 1996 1997 1998

Year

11 Nurrber of ei'Tl'loyees

111 Nurrber of operators

o Nurrber of w elders

Cl Nurrber of asserrolers

El General rranagement

111 Adninistration and accountancy

mlnstruction of werkers

o Quality control

111 Maintenance and repair

IIIInstaiiers

The effect of automation is said to be an "increase in contracts" and higher productive capacity. It is stated that the volume of production has grown considerably from 1996 to 1998, although exact

figures are not given. Effects of automation on employment and education are considered to be neglectable.

The educational backgrounds of the employees are as follows.

Asserrolers

Weiders

Operators

0

General management

20

Educational background

40 60 80 100 120

Number of employees

Educational background

• Technica! secondary education

11 A"imary education

Adrrinistration 1==~$~33~$!:$$8$~ o Tertiary education and

Instructien of i~lii; workers

Quality control

0 2 3 4

Number of employees

5 6

o Technica! secondary education

• General secondary education

1111 A"imary education

Weiders and assemblers have an insufficient level of education; they should have received technica! secondary education. There is no training system in the firm, but every worker has to be trained fora short period (two months on average) by other workers.

Saret considers automation to be an advantage, because it increases quality and productivity, reduces costs and decreases the amount of manuallabour. However, the effects on employment and education ofthe specific applications in the firm (CNC machine, CAD and robots) are

considered negleetab Ie because the amount of manual and mechanized Iabour still is very high. Without doubt, ho wever, the number -of weiders would have been higher if no robots would be used. This substitution seems to be camouflaged by the exceptionally high number of weiders in the factory, and the number of substituted weiders cannot be determined.

ATLAS INDUSTRIAL

Atlas Industrial is a large-scale factory, which produces refrigerators of different types ( one-door, two-door- with, without frost) and stoves (electric, gas- 3 or 4 burners). Atlas is owned by Fred Aspinall (the president ofthe board) and by shareholders. It was founded in 1963 and it employs 801 employees. The factory is both local property (80%) and foreign property (20%). The ownership is changing into a joint-venture construction with Electrolux; this will be realised at the end of 1998.

Atlas has the following structure.

President of the board

T

General Auditor

manager

I-Human resources Purchases

manager manager

I-Financlal

I-- Engineering and manager R & D manager

I I

Accountant Quality

insurance

L- Marketing and '----- Production

sales manager manager

Localsales I--

Administrational Logistics manager services manager

International sales I-- '----- Production manager

I Mechanica!

Chemica! department Assembly Plastics (metal parts) covers

There are 577 production workers and 224 employees in the administrative part. Specializations are distributed as follows:

• Operators: 228 • Weiders: 38

• Assembly: 253 • Electronics: l • Maintenance and repair: 30 • Product design: 7 • Quality control: 11 • Instruction ofworkers: 34 • Administration and accountancy: 130 • General management: 46 • Others: 23

There are no specializations which are performed by other organizations.

The firm says to be partly automated. On a nationallevel, however, I would consider Atlas to be very automated. Atlas uses 2 NC machines for the production of intermediate parts of stoves. It uses 6 industrial robots for the production ofintermediate parts ofrefrigerators and for injection offoam into the refrigerators' frames. The CAD system used is AUTOCAD- Mechanica! Desktop. The factory claims to be using a Flexible Manufacturing System, and indeed a part of the production process could be considered a FMS (although not according its exact definition). Machines and robots are integrated with transport equipment, resulting in automation of a part of the production line ofthe refrigerators. Four different types ofrefrigerators are produced with this production line. The level of automation in Atlas clearly exceeds the level in other firms using NC machines and/or robots. However, on a whole the firm does not have a FMS. Transport and assembly are automated to a very limited extent.

The main reason for automating production is high productivity. In this case, high productivity supports the establishment of economies of scale. A second reason for automation is repeatability, which assures stabie quality. The NC machines were purchased in 1992 and the robots in 1995. The CAD system was purchased in 1992 and extended in 1997.

Growth ofpersonnel and changes in specializations are depicted below. (These data are approximations. Some workers have multiple specializations, others have one single specialization. The data for 1998 do not equal the data in the abovementioned distribution of specializations.)

Growth of persennel

Year

lil Nurrt>er of errployees

• Nurrt>er of operators

The number of operators in 1988 and 1993 is unknown. Note that in 1996, after the gradual introduetion of computerised automation, the number of operators has dropped drastically. The proportion of operatorstototal employees was 87.5% in 1978, against 45.8% in 1996. So there has been a large displacement of operators.

Some data about the quantitative changes in specializations are lacking.

Changes in specializations -+-Weiders

300 --Asserrtliers

-tr-lnstallers 250

"""'"*""" Sectronies 200

~ llttaintenance and repair 150

---.-- A"oduct design 100

--+-- Quality control

50 - Instructien of warkers

0 M co co co (J) (J)

co - Adrrinistration and (J)

m accountancy

Year --<>- General management

The number of weiders has grown steadily. The number of assemblers has grown more or less with the same rate as production grew during the last two years. The assemblers are active in the last part of the production process of refrigerators and in the greater part of the production process ofstoves. Numbers ofinstallers and maintenance andrepair employees have grown steadily. Numbers of product designers, administration and accountancy employees, instructors and general managers have been stabie over the years. Note that the number of quality control employees has decreased, as aresult ofthe higher quality ofthe intermediate parts produced by the NC machines and the robots: quality control on the assembly line is less needed.

In the period 1987-1997 production has grown as follows:

Volume of production

9000r---------~~~~~--~==~

8000 -t--'-~~~--:'--:c-

7000 i----'"'-'-...........

6000 +-..."---:::------'---:'--:c'--

5000 i----'-'-:...,-,."-:...,-,."-~

4000 -f-..,...-",_":

3000 +-~~;;;.;,.

2000 +----'-~,::.

1000

0 1987 1993 1995 1996 1997

Year

Eli Sales (in nillions of colones)

The use of computerised automation leads to more cooperation with INA (lnstituto Nacional de Aprendizaje) with respect to training ofthe workers. According to management, automation increases the level of skilis and insight ofthe workers. Taking into account that the large majority ofthe production workers received only primary education, this could be correct: the training involved with automation also increases basic skills. Por example, the operators must be able to read and interpret the data on the control panel display ofNC machines and robots. On the other hand, observation leads to the condusion that these displays are extremely user-friendly and require very little input. The operator must, however, understand which different operations the robot performs and oversee the process. The operator initiates the process and keeps watch over the robot's performance.

The majority of operators, weiders, assemblers, maintenance andrepair employees, quality control employees and instructors received only primary education. Por maintenance andrepair employees, quality control employees and instructors this appears to be strange, because the expectation was that forthese jobs educated technicians would be employed. Quality control,

however, consists of simple machine-aided checks, looking for leaks in tubes, measurement of temperature: tasks which can be performed afterbasic instruction. Maintenance and repair of products can be performed by production workers, but unsatisfactorily. Maintenance andrepair of machinery must be perforrned by technicians (engineers) employed by Atlas. These engineers received their education in Costa Rica. Instructors are experienced production workers who diffuse their knowledge on the work floor.

Designers and managers received tertiary education, as well as the majority of employees in the administrational section.

All employees in the rnainterrance and repair section and so-called supervisors of production should have received tertiary education. They should be technica! specialists, with an educational background offor example the Costa Rica Institute ofTechnology (ITCR). The supervisors of production have also a lack of training, as wellas the Heads of warehouse and storage. They should receive more intemal training.

Intemal training is realized by immediate instructions on the work floor, when there exists an obvious lack ofknowledge about a certain part ofthe process. Moreover training is realized by presentations by the Heads of departments, managers and supervisors. The latter training is different for each specialization (for example welding, foam injection, leak detecting etc.).

In short, automation increases the need for managers, supervisors and technicians with a higher degree oftechnical education. In general terms, management states that computerised automation substitutes dependenee on people for dependenee on machines. As advantages of automation are regarded: better control ofprocesses, reliable technology, higherand stabie quality, increased level of education ofthe employee, employee is more autonomous in taking decisions. Major disadvantages are: need for qualified rnainterrance technicians, expensive employees. These disadvantages could be avoided by employing workers with better educational backgrounds and by changing the traditional focus of maintenance. An interesting final remark is that "computerised automation speaks English" and therefore it increases the need for employees which master this language.

4 Skill assessment ( tables)

Table 1 Education Extension Degree The ability to read and write and The ability to read and interpret

1 perform simple numerical operations, symbo/s on computer screens, as like sum and difference. This degree wel/ as the abi/ity to input simple corresponds with the third year of numerical data into a computer. primary education.

Degree The ability to use knowledge of simple The abi/ity to use the computer for 2 arithmetic like sum and difference, simp Ie calculations and for simp/e

decimals, division and understanding of drawings. The ability to interpret simple drawings and designs. Also, the rough designs made with CAD. The ability to handle measuring instruments ability to read and interpret data like compass and ruler. This degree from a NC machine display. corresponds to the second year of secondary education.

Degree The use and interpretation of more The ability to interpret more 3 complicated drawings and designs, use detailed designs made with CAD,

of formulas of manuals and the ability as wel/ as the ability to make to handle a variety of instruments for designs with help of CAD. precision measurement. Also, some Knowledge of the basic Junelions technica! knowledge of an industrial of CAD and of the various specialization. Conversion and possibilities of CAD. Basic interpretation oftables of conversion knowledge of CAM: Junelions and (pressure, screws, welding) and basic use. Knowledge ofNC machines: knowledge ofEnglish. This degree concept of computer contra/, corresponds to the fourth year of geometry, computer language, technica! secondary education or three applications. years of special technica! education, plus some preparation for work in industry.

Degree Interpretation of drawings, designs and The ability to interpret complicated 4 complicated specifications and ability to designs made with CAD, as wel/ as

use Design Software for precision the abi/ity to use CAD to make designs. Also, the use of advanced comp/icated designs. Detailed rnathematics applied in the field, ability knowledge of CAD systems and to handle measuring equipment and their possibilities. Know/edge of precision machinery. In addition, solid CAM: different types of NC technicallindustrial training (3 years in machines, abi/ity to interpret INA or finished secondary education in simple control a/gorithms. Basic the metal working field). Ability to knowledge ofindustrial robots: analyze problems. Having participated mechanica/ configuration, control in courses about welding, adjustments, algorithms. tolerances and other job-related topics. Full understanding ofEnglish literature about design and specifications.

Degree Advanced technica! education, resulting Advanced knowledge of CAD and 5 in the ability to solve complicated CAM. Knowledge of the

problems in mechanica!, electronic or connections between CAD and industrial engineering or some other CAM Ability to diagnose problems similar field. This degree corresponds to occurring when using CAD/CAM university, level of bachelor. Solid technology, as wel/ as the ability to knowledge about handling computing set up a maintenance and repair equipment and intermediate level of system for CAD/CAM equipment. technica! English. Use of international systems for normalization (ISO, DIN, ASTM).

Table 2 Experience Extension Degree Minimum of six months in basic metal Basic experience in a Jactory

1 working, as an assistant of materials where CAD/CAM technology is handling and transport, polishing of applied in the production process. intermediate parts and cleaning parts, lubrication of equipment in visible parts and other elemental tasks related to the job.

Degree Minimum of one year in basic handling Experience as a NC machine 2 of equipment ( welding machines, spot operator, ability to operate NC

welding, manual bores and others), machine under supervision. necessary for work of medium Experience with computer aided complexity. drawing.

Degree One or two year experience in some The ability to operate a NC 3 specific technique (welding, precision, machine without supervision; the

electronics, CNC and others). The ability to distinguish different types ability to prepare, use and maintain the of primary input, start the equipment required for the job. Also, automatic operation of the machine the ability to differentiate between and check its progress. Ability to materials (primary input, intermediate detect abnormalities and stop the parts, auxiliary material), like screws, operation on time. Ability to use sheets, welding and others. In addition, CAD made designs as input experience in writing reports and filling information for the NC operation. in forms. Solid knowledge of industrial maintenance.

Degree Minimum oftwo years of experience in Experience in design: background 4 some specific technique. Should be of CAD product design in some

trained to solve problems conceming industry, abilîty to make a detailed handling of equipment and application design which can be used as input ofthe technique. Ability to suggest for the production process. Ability improvements ofthe production to diagnose problems w.r.t. the process. Solid knowledge ofuse of operation of NC machines and materials, preparation and CAD. Ability to modify CAD when transformation. necessary.

Degree Minimum of four years of experience in Experience in problem-solving 5 the field, handling of equipment, use of with respect to CAD/CAM

materials etc. Soliel theoretica! technology, diagnosing problems knowledge oftechniques. Ability to on the work ft oor and the design analyze complex situations and solve floor. Ability to coordinate all difficult problems. Ability to identify, activities related to the use of measure and inform about any variabie CAD/CAM technology and influencing the production process. In maintenance andrepair of addition, ability to assimilate new CAD/CAM. techniques.

Table 3 lnitiative and lngenuity Extension Degree Understanding ofthe value oftaking Initialive to suggest simpte

1 initiative and motivation to search basic modifications of the application of improvements in all activities that need CAD/CAM in the production modification but no fundamental process. For example, suggestions changes. For example, activities about the organisation of input: involving the use of tools, equipment how could raw materfals and and machinery. Initiative to repair intermediale produels be organized manual tools, clean the exterior of efficiently around the machine? equipment and machines and maintain infrastructure and buildings.

Degree Initiative to search variables that Initialive to search for efficiency 2 determine the quality ofthe product. and quality improvements in the

Also, the ability to assemble, adjust and direct environment of the set equipment. Ingenuity to improve machines, and the initialive to methods ofwork in a sustainable form, make these improvements possible ability to reconstruct, repair and through intensive discussion with perform basic maintenance of the responsible superiors. equipment and machines.

Degree Initiative oftaking decisions Initiative to search for 3 corresponding to the function, that may improvements in the direct and

effect the productîon process, products indirect environment of the and services to a certain extent, both on machines, making suggestions intemal and externalleveL Ability to a bout quality impravement of raw perfarm tasks that imprave methods in materials and intermediate parts in some activity, like optimizing transport correspondence with the routes, better distribution of parts, performance of the machines. equipment and products. Ability to Oversee the partial process in search weaknesses that cannot be which the machine is used and assigned to the production process, but organize this process optimally. to extemalities like low quality of primary inputs and equipment.

Degree Clear initiative in adequate supervision Oversee both the partial process 4 of activities undertaken in the area of and the larger process in which the

work, establishing links to other areas partial process occurs; initiative to or persons that contribute to the process. establish links to other parts and Ability to attend problems ranging from discuss opportunities for design of the product to the actual optimization of the larger process. production. Sufficient authority to realize radical changes in the production process.

Degree Sufficient knowledge and tools to take Initiative to organize the 5 the initiative in any fundamental production process as efficient as

modification of the production process possible with help of CAD/CAM (materials, equipment, human resources, technology. Sufficient knowledge of methods ofwork and other variables). the technology to use it for optima! Ability to attend technica! and efficiency impravement and quality organizational problems. Ingenuity to improvement. Search for find an optimal solution in a short opportunities to make the process period of time, specify and analyze all less dependent on external variables that influence the solution. maintenance and repair skills. Ability to interpret and verify causes and effects ofproblems.