A Comptroller´s View of the Problems Encountered in Adapting to Automation

The automation experiences of GE´s Light Military Electronic Equipment Department are outlined. Military job-shop assembly quantities are established at 200 units. In balancing direct-labor savings against machine costs, it is emphasized that indirect and intangeble savings should be properly evaluated. Examples are given. The five basic problem areas of obsolence, depreciation, factory overhead ratios, cost ratios, and capital investment are discussed. The automation of clerical areas is described and answers are given to some of the associated perplexing questions. These questions are outlined as having to do with people, lack of flexibility, overuse of data processing information, and conversion. Encouragement for the future is voiced.