There have been multiple generations of industrial robots, beginning in the 1950s with Unimaton, the first company to exist specifically to manufacture such robots. The initial robots were called “Unimates.” These robots could perform a single task, such as removing die-cast parts in the automotive industry.
Today, we have industrial robots, collaborative or “co-bots,” and adaptive robots. These robots utilize cartesian coordinates to operate in three-dimensional space. They are programmable and capable of high-speed and precise work in multiple industries. The leading manufacturers of industrial robots are ABB, Yaskawa, Epson, and Kawasaki. Industrial robots present a number of benefits, challenges, and risks. In this article, we will discuss them on a high level, and how to mitigate the risks associated with their implementation in operations.
Robots derive their value from easing the burden of those who perform the specific task(s). Industrial, collaborative, and adaptive robots present a vast array of benefits to operations. Industrial robots handle materials and tasks that would traditionally expose workers to high temperatures, heavy loads, or other dangerous conditions.
Collaborative robots are designed to limit force and speed, creating safer working environments for human interaction. These systems help workers perform their task by handling non-value-added work in manufacturing or other types of production environments. Co-bots can be programmed to work with inputs from artificial intelligence (AI), machine learning (ML), and other sensor platforms such as LIDAR (Light Detection and Ranging).
Adaptive robots integrate AI, ML, and LIDAR to create a computer vision of the system, as opposed to a separate input. These robots are capable of real-time decision-making and work in uncertain environments using their system inputs. The Tesla Optimus robot is a great example of this emerging type of robotics.
Combined, all forms of robotic systems can provide improvements in quality. There is also improved safety with fewer exposures to hazards. Additionally, production can increase with near continuous operation and speed of systems. Robot systems can reduce the need for space within a facility through the performance of multiple tasks by a single robot versus multiple tasks by multiple workers. The delegation of work to robots allows human workers to take on more value.
While robots can deliver value to an organization, the drawbacks can be significant. The capital outlay for a robotic system is the most apparent. There is a wide range of costs for robotic systems, from as little as $5,000 to more than $250,000. These figures do not include transportation costs, installation, integration, programming, and training. The decision to invest in robotic systems should be based on a clear ROI analysis.
Inevitably, any mechanical system is subject to downtime, whether planned or not. Because robots are mechanical systems, downtime requirements should be planned for. Depending upon the sensitivity of the operation, downtime can quickly make an organization question its investment.
There are also hazard risks associated with robots. A story has emerged of a 2021 incident where an industrial robot pinned an engineer between objects, causing injuries to the engineer’s back and hands. Was this the result of a rogue robot or human error? Upon further reading, it appears this was the result of human error where improper energy isolation allowed one of three robots to remain energized during a software update.
This event illustrates one of several risks associated with the operation of robots in industrial settings. In addition to safety risks and exposures, there is the potential for property damage from improper installation. This can occur when industrial robots with significant weight are not correctly mounted to their foundation, risking foundation or slab damage or lack of clearance.
Robot systems should be implemented utilizing an integrator, which are third parties who take the responsibility of transporting, handling, installing, and operationalizing the system at a facility. There are associated third party exposures related to contracts and supply chain with the integration that can create delays, however.
Finally, there are staffing risks related to ensuring there are properly trained operators and maintenance staff of the system(s) being integrated. In many cases, staff are apprehensive of robots due to change and the uncertainty it brings. Additionally, change can expose gaps in knowledge, processes, and cyber security.
The decision to integrate robots into an operation is a significant magnitude of change. Management of that change is an imperative to the organization. There will be changes in staffing, training, operations, and maintenance with impacts that must be understood and anticipated. The integration of robots enhances the need for strong cybersecurity controls, especially with the risk in ransomware and other intrusions that could seize operations.
The robot integrator should work very closely with management, operations, engineering, IT, and those who do the work themselves. Because the integrator is responsible for the transportation, delivery, installation, and operationalization of the robot, it’s important to hold them accountable to their schedule and handover of the robot once in operation.
Engineers will typically serve as the project managers for the integration, overseeing the integrator. Engineering staff should pay close attention to the structural requirements of the robot systems to ensure there are no adverse impacts to foundations or other aspects.
Before allowing operators to work with, near, or on robots, hazard and risk assessments are imperative. The integrator has many responsibilities with providing the initial hazard assessment for the robot system as well as lockout tag points. Other responsibilities include the initial training of operators and maintenance staff. The Environment, Health and Safety department is responsible for subsequent assessment to mitigate other risks, such as guarding, lockout tag out, and other exposures. The Association for Advancing Automation, formerly the Robotic Industries Association, is an industry group providing resources for organizations seeking to implement robotic systems.
DISCLAIMER: This information is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Marsh & McLennan Agency LLC shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change.
George Harris
Risk Control Consultant
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