Automation and competitiveness

an italian case study

Abstract

This paper describes the experience of an Italian medical device producing company, in its steps towards production automation for achieving better productivity and become more competitive on the reference market. A case study involving the automated process of producing a heparin valve is described, starting from the raw material to obtain and test the final product together with the consideration about the competitive advantages induced by adopting this automated approach. The firm so far succeeded in competing with other operators in countries where labour costs are much cheaper than in the Italian market. By adopting automated and semi-automated systems of production, the firm could cut costs on labour-intensive productions maintaining a high quality standard, which is, together with costs, the most crucial competitive advantage that a company in the medical sector has to guarantee. Automation brought significant financial returns to the company, and although the initial investments have been substantial, their payback is proceeding as expected and more investments are now being assessed, as the relocation to a bigger place for hosting the new machines that are under construction in this very moment.