Six levels of automation in component manufacturing
Component manufacturers are confronted with two pressing challenges that they must navigate to remain competitive: a landscape of complex customer demands and a diminishing skilled workforce due to post-COVID-19 retirements. In this critical moment, the key to their success lies in strategic automation and a commitment to upskilling employees. This approach will determine which companies will thrive, shaping the future of production in terms of efficiency and cost-effectiveness, particularly within the US and EU markets.
To tackle this, EY-Parthenon teams [AM1] and Sandvik Manufacturing Solutions developed a model based on the six levels of autonomous driving, detailed in a report inspired by the study Six levels of component manufacturing automation[AM2] . Borrowing from the Society of Automotive Engineers (SAE), this framework served as the basis for analysis to understand where component manufacturers currently stand in terms of automation maturity and to explore their ambitions for advancing toward a more automated and data-driven future.
In the report, we outline six levels of manufacturing automation, each representing a stage of technological integration:
- Level 1 represents companies that lean heavily on manual processes, with basic system support for their human workforce.
- Level 2 introduces assisted systems, where automation begins to support production, albeit at a limited cell level.
- Level 3 moves to semi-automated operations, with manufacturing software aiding in resource planning and optimization while operators maintain control.
- Level 4 represents highly automated processes, where automation extends across multiple cells, and digital twins provide optimization insights.
- Level 5 sees the widespread adoption of robotics, offering a fully automated and integrated system that adapts in real time.
- Level 6 envisions “lights-out” production, a fully autonomous factory environment driven by digital components that require no human presence on the production floor.
Where do manufacturers currently stand?
In the survey, manufacturers were asked to self-assess their production sites. The results show an industry in transition, with a significant number identifying with Levels 2 and 3 — signifying a move toward more automated systems, yet with many still on the cusp of deeper integration. Interestingly, a notable portion are at Level 3, where semi-automation is in place but full connectivity across production cells remains the next ambition