Course title: Developing English Skills Laboratory

Course no: HUM 272

Level: 2, Term: 1

Submitted To:

Dr. Mizanur Rahman

Assistant Professor,
Department of Humanities, BUET
&
Mosammat Fariha
Lecturer,
Department of Humanities, BUET

Prepared By:
Suhala Rabab Saba – 1606184
MD. Rayhan Al Mahmud Rifat - 1606185
Rafid Umayer Murshed - 1606186
Sandip Kollol Dhruba – 1606187
Azmain Seyam – 1606188
MD. Rohan Islam - 1606189

Date of submission: 15th July, 2018

 Forwarding letter

15th July, 2018

Dr. Mizanur Rahman and Mosammat Fariha
Department of Humanities,
Bangladesh University of Engineering and Technology,
Dhaka-1000.

Subject: Letter for submission of report on “Automation: Accelerating Industrialization in

Bangladesh”.

Dear Teachers,

With due respect we would like to express our gratitude for providing us the opportunity to
prepare and submit a report on the highly discussed topic “Automation”. It has been a wonderful
journey from the day we were instructed to write the report to the day of submission under your
sincere and dedicated supervision. We have truly learned a lot through this process.
In this report we tried to explore the term ‘automation’ in the context of Bangladesh relative to
the rest of the world. We have discussed how automation will affect our economy and
employment in the main industries of Bangladesh. We illustrated present scenario and the future
prospects of industrial automation in Bangladesh.

The report has been made according to the structure provided by you, and we tried to maintain it
almost precisely in explaining details about the system. We sincerely apologize for any mistake
or obscurity that may be in the report and thank you for the tremendous support you have
provided us. We would also want to thank our fellow classmates for their kind help and support.
Lastly, we want to express our acknowledgement to the writers of the papers, journals and
admins of web pages from which we collected the data and information to write this report.

Sincerely yours,
Suhala Rabab Saba 1606184
MD. Rayhan Al Mahmud Rifat 1606185
Rafid Umayer Murshed 1606186
Sandip Kollol Dhruba 1606187
Azmain Seyam 1606188
MD. Rohan Islam 1606189
CONTENTS
Summary: ....................................................................................................................................................................................................... 1
1.Introduction: .................................................................................................................................................................................................. 2
2. Discussion: ..................................................................................................................................................................................................... 3
2.1 What is Automation? ......................................................................................................................................................................... 3
2.2 Bangladesh Labor Force: ................................................................................................................................................................. 3
Skill Gap: .................................................................................................................................................................................................... 5
2.3 Automation in Our Industries: ...................................................................................................................................................... 6
2.3.1 Textile Industry: ......................................................................................................................................................................... 6
2.3.2 Pharmaceutical Industry: ....................................................................................................................................................... 7
2.3.3 Shipbuilding Industry: ............................................................................................................................................................. 8
2.3.4 Leather and Tanning Industry: ............................................................................................................................................ 9
2.3.5 Ceramics Industry:...................................................................................................................................................................10
2.3.6 Other Industries: ......................................................................................................................................................................11
2.4 Growth of New Industrial Sectors: ............................................................................................................................................11
2.5 Competitiveness with abroad: ....................................................................................................................................................12
2.6 Advantages of Automation: ..........................................................................................................................................................14
2.6.1 Reduction in production cost: ............................................................................................................................................14
2.6.2 Creation of high quality products: ....................................................................................................................................14
2.6.3 Workers safety: .........................................................................................................................................................................14
2.6.4 Reduction of working hours: ..............................................................................................................................................15
2.6.5 Increased competitiveness, sales and profit: ...............................................................................................................15
2.6.6. Working ability in dangerous environment: ...............................................................................................................15
2.6.7 Provide higher level jobs: .....................................................................................................................................................15
2.7 Disadvantages of Automation: ....................................................................................................................................................16
2.7.1 Worker Displacement: ...........................................................................................................................................................16
2.7.2 High Capital Expenditure: ....................................................................................................................................................16
2.7.3 Less versatility: .........................................................................................................................................................................16
2.7.4 Environmental Pollution: .....................................................................................................................................................16
2.8 Challenges of Industrial Automation: ......................................................................................................................................17
3. Conclusion: ..................................................................................................................................................................................................18
4. Recommendations: ..................................................................................................................................................................................18
4.1 Vocational Education: .....................................................................................................................................................................18
4.2 Investing in research:......................................................................................................................................................................18
4.3 Recreating jobs: .................................................................................................................................................................................19
 4.4 Sharing Knowledge: .........................................................................................................................................................................19
4.5 Pollution check: .................................................................................................................................................................................19
4.6 Robot taxing: .......................................................................................................................................................................................19
4.7 Bank-loans for automating industries:....................................................................................................................................19
Appendix: .....................................................................................................................................................................................................20
References: ..................................................................................................................................................................................................21
Glossary: .......................................................................................................................................................................................................21

List of images and illustrations:

Image 1: https://www.robotics.org/blog-article.cfm/Fashionable-Robots-Automation-inClothing-
Factories/5
Image 2: http://softwearautomation.com/zdnet-made-in-the-usa-by-robots/
Image 3: https://www.indiamart.com/proddetail/tablet-compression-machine-1755030588.html
Image 4: https://www.kranendonk.com/blog/article-next-generation-robotic-welding-shipyard
Image 5: https://www.zdnet.com/article/automating-the-warehouse/

Illustration 1: Figure 2.2.1 Distribution of employment by economic sectors

Illustration 2: Table 2.2.1: Skill composition of the workers in the RMG sector
Illustration 3: Figure 2.2.2: Labour proportion by trades/occupations to construct an average size
building
Illustration 4: Table 2.3.3.1: Comparative labor cost in different countries in shipbuilding
Illustration 5: Figure 2.3.4.1 steps in production of leather products
SUMMARY:
Automation is not a new phenomenon, and questions about its promise and effects have
Long accompanied its advances. For Bangladesh, this phenomenon potentially has a lot of
unforeseen implications. The main strength of Bangladesh has always been its cheap labor which
is definitely threatened by the advent of automation. This report discusses in detail about the
labor force of our country and gives a methodical analysis of the manufacturing process of the
top industrial sectors of the country. It also looks into the effects of automation in these specific
industries. Automation might also be a contributing factor in the development completely new
industrial sectors. It might also help Bangladesh to gain an upper hand in the international market
by fending off competition from other countries. The report takes a look at these possibilities
along with the challenges Bangladesh faces in implementing automation on a broader scale. It
also factors in the advantages and disadvantages automation brings in general. Finally, some
recommendations are given based on the analysis. Automation might be a double edged sword
but if its pace and applications are controlled with proper prudence then definitely it will help
make the world a better place and Bangladesh a more developed nation which in turn will make
the people in it happier, healthier and more prosperous than ever before.

1
 1.INTRODUCTION:

Automation is an idea that has inspired and captivated science fiction writers and visionaries for
more than a century. Today it is no longer confined to the realms of literary prose nor is it any
fantasy. Technological advancements have ushered a new era in automating our workplaces as
industries are moving towards replacing the human workforce with ever-smarter and more
flexible machines. As a matter of fact, automation has been going on for a while now. What has
perhaps changed is the scope of what can be automated and to what extent. The implications of
such a revolutionary breakthrough in the industrial sector have given rise to more questions than
they answer. In spite of that more and more countries are converging towards automating their
workforce. Bangladesh is no exception. As our country gears up to enter into this new domain,
we must contemplate and reflect on the challenges our nation faces.
Whatever social, political or environmental problem Bangladesh faces year after year, one thing
doesn’t seem to disappoint: the growth rate of our economy. The story of Bangladesh is that of
amazing and unexpected success in terms of economic growth. An already poor country before
the 1971 liberation war, things were not good for many years even after the war. The war not
only took blood but completely destroyed the physical infrastructure of the country. Millions
were below the poverty line. Since then we have come far. The steady growth rate of GDP in the
last decade is nothing short of outstanding. As of 2016 the growth rate was 7.1% per year. It is
estimated this growth rate will eventually be over India and who knows maybe even China.
Although it might appear that Bangladesh is a very overpopulated country and indeed it is, things
could have been much worse. Without mass education and steps taken to control population, it is
estimated that we could easily be a country of 250 million souls.
The massive, young labor force in Bangladesh is often seen as a source of power and a sense of
optimism in the eyes of people here and abroad. Bangladesh often makes headlines about its
cheap labor force, not unlike other Asian countries. Human resource is, of course, an important
part of any economy. But times are changing. As technology rapidly progresses, more jobs are
being automated in every sector. For example ‘coal jobs’ in the USA are declining due to
machines replacing miners and the rise of renewable energy sources. In this age of automation,
what will be the fate of Bangladesh?

2
 2. DISCUSSION:

2.1 WHAT IS AUTOMATION?

Any technology by which a process or procedure is performed without human assistance or little
human assistance is automation. Automatic control is the use of various control systems for
operating equipment such as machineries or processes in factories. Examples include boilers and
heat-treating ovens, switching on telephone networks, steering and stabilization of ships, aircraft
and other applications. There are, of course, different levels of automation from little automation
(when maximum work is done manually or workers manually operating machines) to complete
automation (machines operating in a control loop automatically). The simplest form of an
automated system is a control loop that is driven by negative feedback. Sensors continuously
sense changes and send signals which are read and processed and an action against the change is
carried out to restore balance or the optimum condition. Automation in factories has been
achieved by various means including mechanical, hydraulic, pneumatic, electrically and
electronically, in creative combinations mostly. The term “lights out manufacturing” means a
system with no human intervention. Engineers always try to find ways processed can be
automated, thereby saving cost of labor and increasing efficiency and reducing production time .

2.2 BANGLADESH LABOR FORCE:

It is no secret Bangladesh has a huge labour force but exactly how big are we talking about? Is
being big necessarily means it’s a strong labour force? A well trained, educated labour force can
drastically change the outlook of a country and its economy in a matter of a couple of decades.
To understand the effect of automation, we need to take a look at the current condition of the
labour force.
Rapid population growth in the last few decades has clearly boomed the labour force. Growing
from 30.9 million people in 1985-86 to 56.0 million people in 1995-96, the labour force nearly
doubled. In fact, the growth of the economy has not been proportional to the growth of the labour
force. In 1995-96 only 12.4 percent of the labor force had formal employment, while 40 percent
were considered "employed in family-based" businesses, 29.6 percent were considered "self-
employed," and 17.9 percent had their jobs on a "daily basis.” So, clearly the competition for job
is was clearly high even back then.

3
Fast forward to 2013 this was the scenario 5 years back:
● Population: approximately: 156 million
● Working age population (15 or older): 106.3 million
● Employed: 58 million: 45% in agriculture, 34.1% in services and 20.8% in the industrial
sector.
● Unemployed: 2.6 million
Recent BBS (Bangladesh Bureau of Statistics) report:
The Ministry of Labor and
Employment (MOLE) report:
● 7,659 trade unions
covering 3 million workers
● 507 unions in the garment
sector, including 375 new unions
registered since 2013.
● 16 unions in the shrimp
sector
● 13 unions in the leather
and tannery sector.

Among many reasons why the

labour force increased in size, the
rise in women in the workplace is
certainly one that is important to
analyze. Clearly women are a big
part of Bangladesh. They have always been. Recently Bangladesh made headlines for all the
good reasons concerning women. The World Economic Forum recently ranked Bangladesh first
in gender equality among South Asian nations for the second consecutive year. Bangladesh’s
success in four key areas: education, economic participation, health, and political empowerment
is something to be proud of. Education, of course, has been the biggest contributor, because this
paves the way for economic independence. Women are now everywhere in the workplace
thankfully. Currently 3 million women are employed by the garments sector. Women in rural
areas are no different. They equally add to the GDP.

So clearly the labour force is huge and women are a big part of it now. But how SKILLED is this
young labour force. The skill gap is not just an issue in Bangladesh only. There is a worldwide
shortage of workers needed in certain sectors requiring a certain set of skills. This happens when
the education given does not necessary become applicable to the individual when he looks for a

4
job. This problem is observed in western countries as well. Perhaps one reason is that blue collar
jobs are often neglected by society.

SKILL GAP:

Here is some data from a study published by BIDS (Bangladesh Institute of Development
Studies) published on May 2017 on “LABOUR MARKET AND SKILL GAP IN
BANGLADESH”

Table 2.2.1: Skill composition of the workers in the RMG sector

Figure 2.2.2: Labour proportion by trades/occupations to construct an average size building

From these tables we can clearly see the huge percentage of ordinary physical laborers. These
people have very little education and since physical labour needs very little skill, this is perhaps
the only way of earning for them. How long can cheap unskilled labour in the construction sector
keep up with upcoming technology?
This report found skill gap and the high amount of unskilled labours in sectors as diverse as:
light engineering, ICT sector, shipbuilding, leather goods, hospitality and tourism sector, health
care, agro-food sector etc.

5
This is perhaps the greatest threat that automation brings to the table. No amount of automation
will help if our existing labour force is not equipped to handle machines needing high level skills
to operate.

2.3 AUTOMATION IN OUR INDUSTRIES:

Although Bangladesh is an agricultural country, its emergence as a developing country with one
of the fastest growing economies in the world can be accredited to its rapidly developing
industrial sector. The major industrial sectors in Bangladesh are garments and textiles,
infrastructure, pharmaceuticals, leather and tanning, natural gas, oil and petroleum, coal, etc. As
the world is welcoming new technologies so graciously and making quantum leaps, the industrial
sector has never dared to fall behind. The industries of our country have not been averse to these
recent technological breakthroughs as well.

2.3.1 TEXTILE INDUSTRY:

The export-oriented RMG sector has made crucial

contributions to the transformation of the
Bangladesh economy. When jute and jute goods
were losing their traditional markets, it is the RMG
sector which came in first to fill this vacuum.
Though backward and forward linkage economic
activities, the RMG sector contributed billions to
the economy. As of 2016 Bangladesh held the 2nd
place in producing garments just after China.
About 80% of all exports by Bangladesh is ready-
made garments. Despite many difficulties faced by
the sector over the past years, it continued to show
robust growth. It has empowered women and
brought economic prosperity to millions
previously in poverty.
What is the existing technology in Bangladesh?
Technology such as computerized cutting and
spread machinery, sewing machines, and barcode-
enable inventory management systems are seen at
the top level exporters.
First the raw material for different fabrics such as cotton, denim, wool, polyester, leather is
collected. Next, it is processed to make the fabric and then color/dye is added. Now this fabric is
6
cut and sewed and buttoned to produce clothes. Sewing machines are of course are manually
controlled. However fast workers are, a fully automated sewbot if properly programmed can beat
a human. What a robot can’t do however is produce a unique product as ordered on demand. It
needs to be programmed differently for different product and doing this with the same machines
is not easy at all. But it’s much easier to just demonstrate to a skilled workforce. It is unlikely
robots will replace sewing completely at least in the near future. Buttons can be made from
plastic or wood or some other material and this process is quite automated. As for inventory
management system, yes there’s scope for a lot of automation here but there’s a catch. Clothes
take time to make so there will be a system delay as one part of the cycle will be faster than the
other. So, it is unnecessary to automate inventory as there won’t be any major advantage.

2.3.2 PHARMACEUTICAL INDUSTRY:

The reason this industry is so important is simply because of the massive global market for
medical drugs. This is a 2 trillion-dollar industry and profit margins are high. Although research
is a huge investment but still the profits outweigh everything. With quality research and skilled
human resources, Bangladesh's pharmaceutical industry
can emerge as a world leader in producing off-patented
generics medicine. Healthcare providers are endorsing
generic drugs more and more and Bangladesh can try to
reach the markets in the US, Germany, France, the UK
and Japan. Global generics were valued at $168 billion in
2013, and are expected to reach $380 billion by 2021.
This is not only good for the businesses but also
beneficial for the public directly. This will mean import
of drugs will decrease which is always a good sign for an
economy. Bangladesh's pharmaceutical industry is
currently filled with local players. Square
Pharmaceuticals leads at 18.8 percent market share,
followed by Incepta at 10.2 percent, Beximco at 8.5
percent, Opsonin at 5.6 percent, Renata at 5.1 percent
and Eskayef at 4.5 percent. Exports have been made in
countries such as USA which is a very strictly monitored
market and so that speaks for the quality of product made here. However, one problem is that
almost all the raw materials has to be imported.
The production houses for medicine are largely automated. For example, tablets are made by
putting the ingredients such as bulking agent into a mixer which then mixes the ingredients
thoroughly and at one-point spits them out after they are shaped by a tablet press. This is known
as granulation. Then another machine puts on a color or coating which makes the tablet nicer.
And then finally of course comes the packaging part. Literally all of this is done by incredibly
7
fast and efficient machines engineered to sophistication. The same goes for liquid medicines.
This industry therefore hardly has any scope to employ low-skilled workers. Mostly everything
is operated by chemists and system operators. The system operators make sure every step of the
process from actually making the medicine to packaging runs smoothly. Chemists continuously
make sure the quality of the product is high. Medicines must have a high percentage purity,
otherwise it is not acceptable. Most of these expensive machines that are fully automated are
imported from abroad. The whole system is designed by industrial production engineers from
abroad or not. There’s also the need to maintain these production houses. High level maintenance
is crucial for such sophisticated machines.

2.3.3 SHIPBUILDING INDUSTRY:

Besides RMG, another industry that has been booming for some time now is the shipbuilding
industry. It has become an important economic sector for Bangladesh. Bangladesh is a
maritime nation with 9,000 square km of territorial waters, 720 km long coastline. 700 rivers that
come down from the surrounding countries provide a massive 24,000 km long inland waterway.
About 10,000 inland and coastal
ships are currently active all over the
country. 90% of total oil product,
70% of cargo and 35% of
passengers are carried by ships. This
labor-intensive industry currently
employs about 150,000 skilled and
semi-skilled workers. Two million
people are related directly or
indirectly with shipbuilding
industry. The European market for
ships is now within reach of
Bangladesh.
The quality of ships made by
Bangladesh is no different than that
produced by China or the European countries. However, Bangladesh has a very small percentage
of the 500-billion-dollar market. To get a larger piece of the market, the government needs to
help by decreasing interest on loans taken by shipbuilding companies. Also, import of raw
materials must also be facilitated. What’s interesting about this industry is that although
machines are used everywhere, there is no true automation like in the car industry. Unlike a car
body which is much smaller for robots to carry, a ship is gigantic and has to be manually made.
A lot of manual welding is involved as the iron parts need to be joined together. This job needs
highly skilled labors as the welding need to be precise. A lot of lifting heavy objects are also
involved and this is done by operating cranes manually by trained, skilled personnel. Since ships
8
are build according to a variety of designs and sizes, automation is difficult to apply in all parts
and may not be worth the complexity and money invested. Automation is better for repetitive
tasks. If a certain kind of vessel is made a lot in number and design doesn’t change, then
automation can come in handy. The innovation needed for automation is something very rarely
observed in Bangladeshi industries in general. In the shipbuilding industry, automation is
difficult to bring to the table. This is a good thing for Bangladesh in a way. Again, here as well,
the trump card for Bangladesh is cheap labor even for skilled jobs.

Table 2.3.3.1: Comparative labor cost in different countries in shipbuilding

2.3.4 LEATHER AND TANNING INDUSTRY:

Leather industry is a major industry of Bangladesh and is crucial to the country’s economy. It
has been declared as a priority sector by the government of Bangladesh. Due to the popularity of
leather products both inside the country and abroad, this industry has been flourishing in recent
times. In fact, this industry can potentially become the 2nd highest foreign currency earner behind
RMG sector. Recently, China, the largest leather exporting country has started suffering losses in
this sector and has decided to withdraw from the market. This has opened up a huge opportunity
for Bangladesh. Now would be a great time to strike the iron because it’s hot.
Although Leather and tanning industries primarily rely on traditional practices, new technologies
have definitely improved the production of these industries. Automation which astoundingly
enhanced and multiplied productions in other industrial sectors has not disappointed in leather
production at all. A lot of manufacturing processes in the leather and tanning industry can be
automated very easily and cost-effectively. For example, reliably and effectively detecting and
classifying leather surface defects. The manufacturing of leather products involves several steps.

9
The first step involves processes such as quality control (known as flaw marking & checking),
nesting, template marking and cutting. Central to all the processes in the first stage is the nesting
process. These processes are illustrated in the following figure.

Figure 2.3.4.1 steps in production of leather products

All these steps can be very easily automated which will result in massive increase in production.
Some of the renowned leather manufacturers of Bangladesh such as Helena Enterprise Ltd, Bata
Shoe Co. (Bangladesh) Ltd, All Right Leather Corporation, Dysin Chem. Ltd, Jamuna Group etc.
have moved to automate their industrial processes and are generating more profits than before.

2.3.5 CERAMICS INDUSTRY:

The ceramics industry is a booming sector in Bangladesh. 85% of local demand is met by this
industry. It has the potential to become one of the best earners of foreign currency. About 60
manufacturers are currently in the market. The local ceramics industry mainly produces tiles,
tableware and sanitary ware. Roughly half a million individuals are currently associated with the
industry. Again, there are challenges here as well. There is a shortage of raw materials and direct
natural gas. But there’s good news as well. Industry leaders believe that many of the tools and
machineries that are currently imported for manufacturing can be made here directly. In terms of
quality, Bangladesh can easily compete with India and China but it will take some time to catch
up with traditional manufacturers such as Italy and Spain. The scope for automation here is
massive. Since this is growing industry, automation is very likely to create a massive job market.
Last 5 years alone, 200% growth has been observed.

10
2.3.6 OTHER INDUSTRIES:

Besides the above-mentioned industries, Bangladesh can apply automation in these areas as well:
Agriculture - It is difficult to provide food security for such a huge population but it shouldn’t
be with advanced farming techniques that involve easy harvesting, controlled use of pesticides
and fertilizers by machines etc.
Glass - Glass production has a lot of steps that can be automated.
Automobiles - Bangladesh does a lot of assembling for top automobile companies but not a lot
of automation is involved. But here there is tremendous scope for automation.
Cement - Recently Bangladesh started exporting cement as well. This is good news for local
markets and economy as well.

Robot Workers in warehouse

2.4 GROWTH OF NEW INDUSTRIAL SECTORS:

Bangladesh has achieved tremendous economic growth over the past decade and it has
transformed itself from a struggling economy to a developing country. To maintain this high
economic growth, new industrial sectors must be established along with the prosperous current
ones. Bangladesh has no aerospace industries nor does it have any arms industry. Also, there is
no major automobile industry in our country except Progoti. As a result, a huge amount of
national currency is spent on importing arms, planes, helicopters, cars, motorbikes etc. Hence
such industries must be established to scale new heights of economic development. The lack of
trained workforce in these sectors seems to hinder the growth of these industries. Automation
provides an ideal solution to this problem. The developed countries like USA, China, Australia,
11
Japan, Russia etc. which are world's leading exporters of automobiles, aircrafts and arms have
successfully automated these industries and are ripping the benefits of it. Bangladesh can
definitely follow their lead and make necessary efforts to initialize the growth of new industries
based upon automated manufacturing and processing.

2.5 COMPETITIVENESS WITH ABROAD:

To maintain high levels of investment, income and employment, competitiveness is an absolute

necessity for any business. Bangladesh largely depends on a handful of products for its export
earnings. According to Michael E. Porter, Professor at Harvard, "the competitiveness of nations
depends on their economic creativity. Economic creativity is measured using technology index,
innovation index and transfer of technology index and a business start-up index.”

To export more diverse products abroad, Bangladesh needs to compete with Asian countries like
China, India and Vietnam. Product diversity will bring more stability to businesses and make
large investments less risky. The trump card Bangladesh has to compete with these countries is
cheap labour and that’s pretty much it. But things will not be the same. Pressure is rising due to
demand for rising wages and a drive to make working environments safer because of accidents in
factories in recent years.

The competitiveness is also expected in business environment and the sophistication of industrial
technology as well as in inter-sector cooperation. Due to globalization, the business environment
has become more global.

“According to a researcher, competitiveness attained with the increased productivity of a nation's

enterprises as well as through increases in value-addition. To achieve these enterprises must
transform their ways of competing. They must shift from comparative advantages (i.e. low-cost
labour, etc.) to competitive advantages, namely the ability to compete on cost and quality,
delivery and flexibility.” – The Financial Express, Jan 28, 2018

Let us look at the terms comparative advantages and competitive advantages more closely.

In simple terms, comparative advantage is when a business gets an advantage of location, low
cost of land, and cheap labour, etc. It is in a way lucky. For example, when huge oil fields were
discovered in Saudi Arabia, the economy boomed and the nation became rich in a matter of
years. But comparative advantages can only bring you short-term success.

Competitive advantage, on the other hand, is simply the advantage a business gets because of its
superior productivity in everything from production to transport to marketing to a skillful labour
force. Despite the high local costs of energy and land, Japanese organizations, for example, have
achieved unparalleled success in many industries by pioneering energy-saving and space-saving
innovations such as lean production. From being a failing economy during the world war to one
of the largest economies in the world, Japan has truly shown how innovation and creativity in the
business can lift a nation.

12
3 stages of competitiveness have been described by experts as
1. Catching up
2. Keeping up
3. Getting ahead

The ability to stay close to the frontier of technology and the flexibility to accommodate
according to changes in new and old industries is crucial. RMG sector in Bangladesh is still
making non-brand, traditional, low cost garments. Without the proper research & development
and innovation, how long can this sector compete with the ‘cheap labour’ advantage.

“The Global Innovation Index 2017 measures Bangladesh's ranking at 114 in the Global
Innovation Index (GII) in 2017 among 127 countries. Bangladesh was also ranked 99 out of 137
countries in the Global Competitiveness Index (GCI) 2017-18 by the World Economic Forum.” –
The Financial Express, Jan 28, 2018

To automate industries in creative ways to maximize efficiency and reduce production time,
Bangladesh needs to be on the frontiers of technology. Unfortunately, countries such as Japan
and USA are years ahead in this aspect. So, our next best options are partnerships and joint deals.
It is unlikely Bangladesh will invent technologies on its own at least not in the near future.

Management, technology and skill of labour are the main means of competitiveness. The image
of Bangladesh RMG sector to global buyers is however not shaped by these things. The
government is also happy with this image of Bangladesh being a source of cheap labour. Because
it shows that people are getting employed at least. For most of the general public this is all that
matters. After incidents such as the tragedy in Rana Plaza, worldwide growing concerns among
buyers over labour rights in this sector is alarming. Yes, millions are being employed by this
industry but only selling low cost garments to abroad is having a negative impact on wages,
working and human right conditions. Wages, for example, have risen over the years, but so have
inflation and the cost of living. The living condition of workers in cities is shocking. They walk
miles to work to avoid bus fares. They literally eat less to save money. House rents are rising
even in slums nowadays. These people have no or little savings and they are just surviving life
without any improvements.

13
2.6 ADVANTAGES OF AUTOMATION:

The modern world is progressing at a faster rate than ever before and it has automation to thank
for that. Automation brings many advantages when it is incorporated properly. The usage of
hardware and software increases production rates, more efficient use of materials, better quality
products. It also improves safety, provides shorter work weeks for labors and reduces factory
lead time.

2.6.1 REDUCTION IN PRODUCTION COST:

Automation in industrialization is often viewed as a long strategy worth investing. It may seem
that the input cost in setting up automation system in factories is huge but a quick return of
investment often outruns the initial cost. Automation decreases the term known as “Part Cycle
Time” which naturally creates a more efficient production line as the automated machines do not
have to take rest like regular labor. It triggers a continuous process of working and
manufacturing products in the same space of time. Also, the expenditure on the wages of labors
is minimized Thus it helps to reduce production cost.

2.6.2 CREATION OF HIGH QUALITY PRODUCTS:

There are many claims that higher quality products can be created by good workmanship of
human, but still it is safe to testify that in the process of automation-based production the
manufacturing process is less variable than human based process. It results in great control and
consistency in production quality. Products can easily be manufactured with far less tolerance
and exact same specifications, thus creating a more consistent product. Also, increased product
control makes more efficient use of materials and creates less scrap.

2.6.3 WORKERS SAFETY:

In manufacturing industry, work safety has been one of the biggest concerns of employees. There
is no doubt in saying that manufacturing is one of the most dangerous job sectors. In the past, job
injuries were quite common in industrial sectors. Nowadays, many industrially developed
countries are using automation for creating a safe environment for the workers. The toughest
jobs are often done by machines and as a result the workers feel less fatigue. In many countries,
several laws are enacted for creating a better workplace for workers. In the United States of
America, there is a law named Occupational Safety and Health Act with encourages manufacture
industries to use automation process for creating a safer workplace for the workers.

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2.6.4 REDUCTION OF WORKING HOURS:

Another huge advantage in using automation in manufacturing process is that it reduces working
hours. In the 1900s an average worker had to work almost 75-80 hours a week. In many
developed and developing countries the workweek hour has been reduced to 40 hours.
Mechanization and automation play a vital role on this matter.

2.6.5 INCREASED COMPETITIVENESS, SALES AND PROFIT:

Automation enable one to become more competitive in the market. As the production process
becomes more automated, human error is reduced, production quality become more consistent
and cost per part goes down due to increased production speeds and the reduction in resources
needed for producing the goods

2.6.6. WORKING ABILITY IN DANGEROUS ENVIRONMENT:

Automation process can replace human from doing jobs on dangerous environment such as-fire,
space, volcanoes, nuclear facilities, underwater etc. In many mines nowadays automated
machines are used for doing the hard jobs. Lifting up gas from underwater is no more an
impossible task nowadays. Working flawlessly for a long period and in a very high temperature
is impossible for humans, but automated machines can work in 2000/3000F temperature and
sometimes more than that.

2.6.7 PROVIDE HIGHER LEVEL JOBS:

Automated machines need development and maintenance. As a result, in an automated based

industry new job sectors are created for developing, deploying, maintaining and running the
automation sectors. This type of job needs engineers, tech experts etc. Thus automated process
can create high level jobs.

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2.7 DISADVANTAGES OF AUTOMATION:

There is no process in the world which does not have its own disadvantages. Automation process
has many also. Worker displacement, high capital expenditure, less versatility, more pollution,
etc. are the negativity automation has to offer.

2.7.1 WORKER DISPLACEMENT:

The World Bank President Jim Yong Kim recently said in a conference that about two-third of
jobs in developing worlds may be lost because of increasing usage of automation in industries.
Worker displacement is often be considered as the main disadvantages of industrial automation.
In most of the laborious jobs, machines are replacing humans. As a result of that, the rate of
unemployment is increasing at a high rate. This also creates mental stress among the workers
who have been fired. In addition to displacement from work, an individual may have to relocate
to find a better and stable job which also adds to their mental stress.

2.7.2 HIGH CAPITAL EXPENDITURE:

An automated system can cost millions of dollars to design, fabricate and install. Automated
machines can be one of the costliest operating system of a company. Also, a higher level of
maintenance is needed with a manually operated machine a generally lower degree of flexibility
in terms of the possible products as compared with a manual system. Also, there can be several
“unpredictable costs” that may exceed the original production cost. Some of these costs may
include the development and research cost of an automation process, preventive maintenance
costs and the cost of training the employees to operate the automated machines.

2.7.3 LESS VERSATILITY:

In a machine based industrial system, variety of tasks is limited. A machine is built for doing a
certain job. As a result, it is less flexible and variable than a person. Increasing flexibility and
variation takes a huge amount of production cost. Therefore, it is avoided in most industries.

2.7.4 ENVIRONMENTAL POLLUTION:

Industrial automation has a great impact on the environment. Automation system needs power
generation and to generate power we have to burn fossil fuels which create toxic mist. Most of
the industrial companies do not bother to filter this. As a result it paves the way of air pollution.
Also, there are many other toxic waste products that are created when manufacturing. But due to
poor waste management system they get mixed up with the environment and create pollution.

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2.8 CHALLENGES OF INDUSTRIAL AUTOMATION:

Here are some of the major challenges that Bangladesh will face if automation is to be
introduced:
 Job losses at initial level is inevitable. Only when the market grows will more new jobs
be created.
 Technology affordability is another major concern at least for startups. To compete with
large companies abroad, a lot of money is needed and can be only provided by banks
through loans. The only people who are given massive loans are rich ones.
 It is expensive to train the workforce properly and also time consuming sometimes for
complex jobs
 As shown before, there is a lack of skilled labour and that is a major challenge to
overcome.
 Machines are big investments upfront but in the long run they are more profitable. So,
keeping prices low in the short run will be difficult. Furthermore profits have to adjust to
inflation rate.
 Hand-made products will lose value.

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 3. CONCLUSION:

The trend in machines replacing humans is nothing new. It has been happening for the last 150
years. Increase in automation in all industries is inevitable throughout the world and industries
must adapt to this change as quickly as possible. As we have seen, most of our labour force is
unskilled or semi-skilled. The demand for skilled workers will rise in the near future sharply.
Bangladesh has already made a name for itself as one of the fastest growing economies in the
world. To stay on that path, our country must focus on industrialization and gleefully adjust to
the modern technological advancements.
The modern era is the age of science and technology. Mankind is striving to reach the peak of its
potential using the incredible power of science, and the recent inventions are nothing but mind-
boggling. That being said, automation has just taken the bar even higher. It is highly unlikely that
the world will turn backwards and move away from automation. In spite of its frailties,
automation has definitely opened up a wide door to a more prosperous world. The prospect of
Bangladesh reaching there soon is not one to laugh away and it hinges upon our nation’s ability
to adapt to automation. If Bangladesh can successfully overcome the challenges of implementing
automation and find ways to deal with its adverse implications then a certain very bright future
awaits us.

4. RECOMMENDATIONS:

Here are some recommendations based on thorough analysis of the situation:

4.1 VOCATIONAL EDUCATION:

By following the example of China, we should give more priority to vocational education. In
recent years many diploma institutes have opened in nursing, engineering (in areas such as civil,
electrical, IPE, mechanical) and so at least the government has realized the need for this. But
these institutes do not necessary always produce quality graduates. More initiative of this kind is
necessary with clear, concise goals.

4.2 INVESTING IN RESEARCH:

It may seem like research is very expensive and most of the time it is. So, small and mid-level
companies have this idea that research is only for large corporations. But this is not true entirely.
Yes, money is necessary but more importantly it’s the mindset that needs to be changed. Industry

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leaders have to ask themselves: are we really creating an environment where creativity thrives? It
is not possible to create another Silicon Valley overnight. But engineers should be given the
scope to actually design systems, rather than just maintaining them. Many brilliant engineering
graduates from the country feel like their talent remains unused.

4.3 RECREATING JOBS:

Firing people from jobs and replacing them by machines is not always a good idea. This
negatively affects the mentality of the workforce as they may fear for their jobs. This will reduce
efficiency. So, rather than simply firing workers, they should be trained for new jobs. Now this is
easily said than done but with effective training it is possible.

4.4 SHARING KNOWLEDGE:

Rather than directly competing with manufacturers abroad, these industries can pursue joint
ventures. This can bring wonders for the economy if the deals are made cleverly.

4.5 POLLUTION CHECK:

It’s alarming how the rivers of Bangladesh are becoming so overly polluted day by day. Now
this is not a new issue and there’s no one to blame but the government. Corrupt government
officials who are in charge of overseeing these issues simply accept bribes and don’t take action
against factories dumping rubbish, chemicals, warm waste water to the rivers. Rivers are taken
for granted as dumping grounds for industry waste. This is a very shameful act.

4.6 ROBOT TAXING:

This is an interesting concept proposed by Bill Gates. Robot taxing means imposing taxes on
companies for their usage of robots and advanced AI machines. Robot taxing will control the rate
of automation and will also generate national revenue. It will also serve as a decoy to open up
more job opportunities in different sectors.

4.7 BANK-LOANS FOR AUTOMATING INDUSTRIES:

Separate loans can be provided to the industries for automating their manufacturing. This will
accelerate automation and hence generate more profits. The main challenge of automation is its
primary input cost. This can easily be negated by providing loans at a normal interest rate.

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APPENDIX:
This section is intended to conduct a survey on readers as part of this report prepared as part of
HUM 272 Developing English Skills Laboratory.

Please answer to the following questions

1. Have you heard about Industrial automation before?
Yes No

2. Do you think that Automation in the workplace makes employees innovative and productive?

Yes No No Comments

3. Do you think that industrial Automation will take away jobs and increase unemployment problem?

yes No No Comments

4. Do you think our economy will sustain after implementing automation system?

Yes No No comments

5. What kind of impact automation will have in workplace?

positive impact negative impact No Comments

6. Do you think automation will help companies to be more competitive?

Yes No No comments

7. Do you think we have enough skill to implement automation system in Bangladesh?

Yes No No comments

8. Do you believe that automation will increase revenue?

Yes No No comments

9. Do you think automation will reduce human error?

Yes No No commens

10. If the repetitive aspects of work fields are automated, will workers get more time to do creative
works?

Yes No No commens

11. What is the future of automation in BD?

Very bright Not sure Not bright

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REFERENCES:

https://www.asiaticsociety.org.bd/journal/08MohammedHelal.pdf
https://www.britannica.com/technology/automation/Advantages-and-disadvantages-of-
automation
http://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/Bangladesh-WORKING-
CONDITIONS.html
http://www.theindependentbd.com/arcprint/details/96759/2017-05-29
http://seip-fd.gov.bd/wp-content/uploads/2017/07/20170529_BIDS-Study-Report-Final.pdf
https://thefinancialexpress.com.bd/views/reviews/attaining-competitiveness-in-rmg-1517152291
https://www.linkedin.com/pulse/comparative-advantage-vs-competitive-prof-rory-dunn
https://www.sciencedirect.com/science/article/pii/S0166361597000195
https://en.wikipedia.org/wiki/Leather_industry_in_Bangladesh
http://www.economywatch.com/world_economy/bangladesh/export-import.html
https://www.thedailystar.net/supplements/overview-bangladeshs-ceramics-industry-1498489
https://thefinancialexpress.com.bd/views/the-fourth-industrial-revolution-and-the-possibility-of-
automation-1513089284
https://en.wikipedia.org/wiki/Automation

GLOSSARY:

Agro food - Food that is produced by PVVD agriculture

BBS - Bangladesh Bureau of Statistics. It is the centralized official bureau in Bangladesh for
collecting statistics on demographics, the economy, and other facts about the country and
disseminating the information.
BIDS - The Bangladesh Institute of Development Studies is an autonomous multi-disciplinary public
research organization that conducts policy research on development issues for Bangladesh.
GCI - Since 2004, a report ranks the world's nations according to the Global Competitiveness Index
known as the Global Competitiveness Report
GDP - Gross Domestic Product. It is a measure of the total amount of goods and services produced
by a country in a fiscal year.
GII - The Global Innovation Index (GII) provides detailed metrics about the innovation performance
of 126 countries which represent 90.8% of the world’s population and 96.3% of global GDP. Its 80
indicators explore a broad vision of innovation, including political environment, education,
infrastructure and business sophistication.
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Generic drugs - Generic drugs are copies of brand-name drugs that have exactly the same dosage,
intended use, effects, side effects, route of administration, risks, safety, and strength as the original
drug.
Hydraulic - Scientific term related to storing fluids under pressure to generate energy
ICT - Information and Communication Technology
Maritime - Relating to human activity at sea
MOLE - The Ministry of Labour and Employment is the government ministry of Bangladesh
responsible for the employment, to protect and safeguard the interest of workers and human resource
development.
Part Cycle Time - The actual time a machine takes to complete all of its operations once.
Pneumatic - Containing or operated by air or gas under pressure.
Quantum leaps - Used in quantum physics. Here it is used to mean abrupt change, sudden advance.
RMG - Ready Made Garments

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