General Motors wants its major suppliers to become highly automated. Some fear that not meeting GM's demands could impact future business.
The company is asking suppliers to rank their level of automation on a 5-point scale.
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Several GM suppliers could lose out on future business if they do not meet the requirements of a new automation policy announced by the manufacturer.
The novel program leans heavily on robotics and artificial intelligence to overhaul how parts get built.
GM says it will create a resilient, world-class supply chain, though it may come at the expense of human jobs.
In March, GM started sending out a survey to its suppliers as part of the launch of its Overall Automation Maturity Index (OAMI).
The premise is simple: suppliers have been asked to audit their manufacturing operations and score their level of automation using a list of criteria from GM.
The assessment covers the entire manufacturing process, from raw material purchasing through production and final delivery. In some cases, GM is also auditing supplier plants.
Five Levels, One High Bar
There are five different levels of automation. They start with manual and extend to basic mechanization, semiautomation, integrated automation, and smart factory/adaptive automation.
According to Crain's Detroit, GM is asking a lot from its suppliers, setting them a target of 4.5 out of 5.
Several supplier executives told Crain's they believe the expectation is to work toward that target or risk missing future business, even though GM says there is no single deadline for achieving it.
