Impact Of Automation On Human Labour In Pharmaceutical Industry In India

Background of the research

Discuss about the Impact of automation on human labour in pharmaceutical industry in India.

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Indian pharmaceutical sector has been receiving regulatory warnings and the top executives of different companies in India have been coming together to draw the attention to provide excessive strong quality service. Domestic drug manufacturers in India are trying to improve the quality of the system of manufacturing the medicines using the automation like robotics. The companies in Indian pharmaceuticals are trying to improve the communication at various levels to develop the quality and stop investing old plants. In this research proposal, the topic is selected as the impact of automation in the pharmaceutical sector in India. In the first section, the background of the research, research problem, aim and objectives are given to propose the concept in a precise way.

As stated by Froloya and Razumoya (2017), automation is the technique of creating a process, an apparatus or a system to operate the machine automatically. In other words, automation is the creation of technology and this technology can be applied to monitor the system must operate automatically. In recent time, in almost all business sectors, the employers are trying to impose automation to operate equipment, machines and process to control the system automatically. The modern pharmaceutical industry is using the automation in the manufacturing of the drugs as the process of sorting; dispensing, kit assembly and light machine tending can be done easily with the use of automation technology. Das et al. (2015) observed that the pharmaceutical companies get the advantage of more flexibility, greater speed, accuracy and reliability of using robotics. The utilisation of robotics in the pharmaceutical industry has been increasing in a rapid way as it provides significant benefits of using latest technologies to research and development the drugs and manufacturing of the medicines in an easy way.

Pharmaceutical manufacturing mainly relies on many processes that can be partially or fully automated. In the pharmaceutical industry, automation is used in inspection of the drugs, filling of the tablets and bottles and packaging before shipping to the distributors. These pharmaceutical works were previously done by the human labours; therefore, the needs of human labour in the pharmaceutical industry are reducing. In many of the developed countries, ward cabinets are installed in the health care homes to overcome the dosage and delays of doses to the patients (Chui et al. 2015). In a previous time, the human labours were used in the pharmaceutical industry at filling station; therefore, the pharmaceutical industry is redesigning the workflow process towards automation and they are using more machines and technologies to the process of making and shipping medicines. The result is not a blessing for the human labour as they are receding in numbers and this automation brings additional stress for the employees who are working with these latest machines (Schaber et al. 2015).

Background of the pharmaceutical industry in India

Background of the pharmaceutical industry in India

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Indian pharmaceutical industry is ranked 3rd across the globe in terms of volume. The total turnover of the Indian pharmaceutical industry reached the figure of US$30 billion in the year 2016. Indian pharmaceutical industry is estimated to account for 3.6% of the global pharmaceutical industry. Ahmedabad, Mumbai, Hyderabad and Bengaluru are major pharmaceutical hubs in India. The domestic market of India in the pharmaceutical industry was US$19 billion in the year 2015 (Ibef.org 2018). The pharmaceutical giants in the Indian market of the pharmaceutical industry are Dr Reddy’s Laboratories, Cipla, Zydus Cadila Healthcare and Aurobindo Pharma. The pharmaceutical companies are making them strong by recruiting more employees to strengthen the technology and system backbone of the organisation to go forward towards the automation.

Indian pharmaceutical industry is rapidly developing towards automation technology as the companies are allowing towards using software to carry out many of the repetitive and supportive works. In the pharmaceutical industry, the automation technologies are using at filling station, packaging and inspecting the drugs. In recent times, the pharmaceutical companies in India are selecting the employees on contract basis to improve the technologies of automation that can use in future usage (Kale and Little 2017). The people in pharmaceutical companies are used to monitor the automation machines to work properly. These people are stressed out and the scope of bulk recruitment in getting lower in pharmaceutical companies in India. The companies are using the personalised medicines to make identical medical treatment mainly on age gender, genetics. In laboratories of Dr Reddy’s organisation, the robotics is using to develop the drugs at specific processes including anti-counterfeiting, drug screening and manufacturing tasks (Bharathi Kamath 2018).

The uses of human labours are reducing and the potential chance of recruiting human labours in the large pharmaceutical industry in near future is not showing high. The annual prediction of Nasscom provides the review that there is a high chance of 23% reduction of job in the Pharmaceutical industry in next five years due to automation (Basu and Bhattacharya 2018). Of late, the automation reduces the chances of a job in manual testers, packaging, in the laboratory and at filling station. World Bank estimates that 69% of today’s employment India is threatened by automation. The pharmaceutical sector provides 6.5% of India’s GDP and Pharmaceutical sector is trying to reduce the growth of employment by 20% (Ibef.org 2018).

Research rationale

Most importantly, India is a developing country and the labour force in India is at present 520 million and 31% of them are from the service industry. Automation process is expected to generate more than 58,000 additional job opportunities in the pharmaceutical industry by 2025 (Feinberg and Majumdar 2016). The human labours cannot compete with the automation technologies and robotics; therefore, the risk of human labour is there to lose the job, whereas the human labour is cheap in India. Therefore, this research is trying to shed light on the impact of automation on the labour force in Indian pharmaceutical industry. This research is trying to focus on both adverse and opportunities of automation on labour force in Indian pharmaceutical industry.

The aim of the research is to find out the impact of automation on human labour in Pharmaceutical industry in India.

The objectives of the research are:

  • To understand the effect of automation on human labour in the pharmaceutical industry in India
  • To examine the major advantages and disadvantages of automation in the manufacturing field
  • To explore the possible challenges faced by human labours in Indian pharmaceutical industry due to automation
  • To highlight the needs of automation in Indian pharmaceutical industry to evolve according to growing demands and profits

Primary research question

How does automation in production field in Indian pharmaceutical industries impact on human labour?

Secondary research questions

  1. What are the advantages and disadvantages of automation in the manufacturing field?
  2. What are the possible challenges faced by human labours in Indian pharmaceutical industry due to automation?
  3. What are the needs of automation in Indian pharmaceutical industry to evolve according to growing demands and profits?

Introduction 

In the literature review section, the scholarly articles are reviewed and literature review is comprised of secondary data. In the literature reviews section, the major themes are segregated into different headings. The prior works of different authors are delineated in this section to get the ideas of the effect of automation on human labours. The theoretical perspective of the automation in the pharmaceutical industry is described with examples taken across the globes. This literature tries to support the research question of the previous chapter. This literature review will provide assistance to add the supplementary resources to give the value on a specific topic. St the end of this section, the gap in existing literature will also be provided.

Concept of automation in pharmaceutical industry 

The automation is the process of making the whole technology to follow the process with automatic equipment. In production sector, the automation process can use robotics to increase rapidly in manufacturing. The benefit of the automation is to use the technology in research to use the possible advantage of science. The automation can help in the manufacturing process as well in the pharmaceutical sector. In addition, as stated by Chui et al. (2015), automation technology can help at filling station, packaging and inspection of the medicines. Pharmaceutical companies produce tablets and automation technology is used to scrutinise before shipping for delivery. The automation is also used for the pharmaceutical packaging as the packaging must be sustained in order to keep it in right phase before expiring. In recent time, according to Venkatraman (2014), Raman technology has been using in pharmaceutical to increase the interest in technology to ensure the chemical compound, energy changes in each of the tablets and correction before shipping. The automation is used to affix the labelling on the packets and bottles. Of late, the automation and robotics technologies are used to bring the personalised medicines that help to bring the healthcare industry closer to the individual patients. Robotics technologies are used in order to provide the specific understanding of genomics, genetics, disease prevention, safer drugs prescription and accurate diagnosis. In developed countries like the UK and the USA, automation has been using around-the-clock to contribute to become commercially viable. As pointed out by Parthasarthy and Sethi (2012), in the pharmaceutical sector, the automation process has been using in order to have Process Control System, Identification System, Sensor system, building technology and Manufacturing Execution System (MES).

Research aim

Theoretical perspective of automation in business organisations 

The chaos theory of automation

Chaos theory provides emphasis on adaptive identities and this theory does not put emphasis on defined roles. Automation users within the organisation have different motivation and one chaos formula is about the organisational change that can produce the equal offsetting behavioural change of the individual (Scheer et al. 2014). Structures of the organisation can be altered; however, the energy of the individual cannot be changed. The chaos theory speaks about the connectedness. In this regard, a major failure of automation within the organisation largely occurs due to the design of the technology. The basic theorem of chaos talks about the small changes that cause a huge imbalance in the overall technological system (Das et al. 2015). Therefore, the small decision in automation must be taken seriously in order to solve the minor problems to generate the snowball effect. Chaos theory focuses on synthesising of the data, not the analysis.  

Types of automation in business

Robotic automation: Robotic Process of Automation (RPA) does not relate to any kinds of robots as the organisations can use robots software like Botkeeper. The programme is a bot that is trained to use the machine for performing high-volume and repetitive tasks. Therefore, the RPA system can be used in data entry, rekeying the interface and form the checking something streamlines.  

Database automation: The Company stores the data in the database and many companies have more than one branch those are geographically separated. Creating a robust database is the first step to make a strong workplace collaboration process (Kerns and Di 2015). The software developer needs to make the well-designed interface to keep the data on database management system.

Server automation: Server is a significant aspect of application of company that can manage consume of data in an IT administration. The server automation software can provide help to deployment of the software in inventory management, packaging, patching and compliance operations that can remove the human error (Felkey and Barker 2016).

Human workforce and automation  

Human labours are important for the companies and the value human resources cannot be avoided. However, in order to mitigate the error in working process, the companies are implementing the automation. The repetitive work process and the easy works that can be done without providing any brain effort, can be done using the automation technologies (Rostaing et al. 2018). Earlier in the month of May, Wendy announced to replace the counter assistant where ‘self-service touchscreen kiosk’ would provide the service to the customers. These works can be done through using human labours, however; latest innovation in the automation is allowing the companies to use the technologies and most of technologies are error free that make the works done at proper time. In India, the pharmaceutical giants are using automation and robotics technologies for managing labelling, bottle orientation and capping and collation systems. The automation has also been using in the system to monitor the low hopper levels, low-level suppliers and fallen bottles. In the developing countries, the skilled and able employees are waiting for the job to earn the livelihood, in such countries implementing the automation in the industry can snatch away many employment opportunity. The automation process has set of basic rules as it has definite work; therefore, it does not have any freethinking or autonomous intelligence. The scientists are trying to develop the artificial intelligence in the automation technologies to make it more error-free (Berridge 2015). The companies are spending many dollars to push more widespread automation throughout the companies to provide more customer satisfaction and error-free operational process. Liu and Fang (2017) supported this by saying that the employers need to provide human resources salaries to keep the process going, whereas, the management need to spend once to set the automation technology; it can provide services years after years. The speed and dependability of the quality services by automation are better than human labours.

Research objectives

Causes of unemployment of human labours due to automation  

In the developing countries, implementing the autonomy in the workforce can lead to cut down of the employment to the human labours. There is a drastic reduction of the job wherever there is the relation of the autonomy in the developing and developed countries as well. Automatic machineries need maintenance, repair works and services; these process lead to spending more money by the organisations. Some of the automation machines need human input in order to run in proper way. In developing countries, mainly in pharmaceutical industry, the companies want a balance of human labours and automation (Nica 2016). This balance needs to maintain in a proper way so that the production line and employment must not break down. Small and medium-size companies cannot opt to take automation as the whole automation technology needs a large amount of money and good training skill to operate this. In pharmaceutical industry, qualified workers are needed as well as some of the job roles cannot be done through only automation.

In developed countries like, Germany, Italy, Japan, The UK and France, there would be more than 5 million job lose due to the automation (Danaher 2017). Automation process in the workplace makes the work faster and the companies are making money due to this. The severe advantage of the automation is the speed of working and quality of work cannot be degraded that is impossible if human labours do the same work. As opined by Peters et al. (2018), Luddite fallacy is the term expresses the technological progress that can put long-term impact in the employment levels. Labour intensive service in pharmaceutical industry may face the issue of loss of job by human labours due to the automation. On the other side, job opportunity increases in different areas of activities and skills within the organisations where the automation eliminates the employment (Wladawsky-Berger 2015). Automation within an organisation creates job opportunity by building new machines, maintained and operated. In the recent survey, automation in the industry can kill 73 million job opportunities in the USA by 2030. Moreover, artificial intelligence can cause another threat to the market as the employees can lose the job.

Advantages and disadvantages of automation in business organisations 

Automation has coincided with lower unemployment rate in most of the countries as unemployment rate does not steadily increase since emerge of automation technology. In most of the internet based companies, the automation technology has increased the job opportunity, the example of such countries are Uber and Amazon. Automation has been increasing the job opportunity as these companies are setting the examples to recruit the employees in order to continue with the innovation. The autonomous using companies are hiring more employees even if they deploy or using robots. In manufacturing sector, robotic technologies are helping to facilitate to reduce the outsourcing and increase the chance of recruiting the employees. In manufacturing sector, the organisations are taking the re-shoring efforts. From the perspective of manufacturing companies, they are not able to keep the employees as rising labour costs as well as energy costs are getting higher with time. The developing countries like India and China, the labour costs are increasing; therefore, the organisations are trying to use cost-efficient robots to cooperate between robots and humans (Shaiken 2015). In order to improve the automotive technology, the companies are recruiting more employees. Example can be given to Uber that employed more employees to face the driverless cars technology. As stated by David (2015), automation leads to reduction of time and it can increase the accuracy and repeatability. Automated machines are programmed in way that can lead to accurate and less human error. Automation a also provide advantages of the less employees costs and it increases safety in the manufacturing sector. Most importantly, automation can lead to higher volume production to the organisation.

Research questions

Automation process has disadvantages also as it has less versatility and it is only good for repetitive tasks. Automation and robotic machines are used as they are programmes as they do not have employ intelligence. Automation process in the manufacturing sector can provide more pollution in the environment as the machines use more energy and emit harmful gas. In order to begin automation process, the organisation needs to spend large investment. Most importantly, as opined by Arntz et al. (2016), automation process can increase the unemployment rate as there are fewer staffs required causing high employment rates. The automation process is boring and it can lead to the unpredictable costs to exceed the actual costs. The organisations spend most of the money in Research and Development section to start the automation process and organisations also spend money on training and development process of the employees.

Uses of automation in pharmaceutical industry 

The pharmaceutical industry has been in under pressure to invent and develop the new medicines targeted to increasingly complex diseases that means the organisations should use the innovative technologies. The pharmaceuticals industries are using the automation technologies so that the production process must synthesise chemistries to provide value. Automation technologies are using in pharmaceuticals instead of human labours to operate and maintain high market share. Machines require attention time to time to repair and technologies provide help to communicate with the customers to deal with problems. According to Friedmann (2012), robotics technologies are used in the pharmaceuticals laboratories to process drug screening and robotic arms. Sample preparation needs to do in order to combine the drug discovery and it involves with the automated machine. Quality control and packaging are among the most significant automated processes in pharmaceuticals (Noe et al. 2013). The pharmaceuticals spend money on Research and Development process so that they can bring new drugs in the market and robotics technologies provide help in this scenario. On the other side, as commented by Schmillen and Umkehrer (2017), the growth of automation technology can serve the comfort to provide less effort so that the work can be done in a quicker way and cheaper way as possible. In the pharmaceutical industry in India, ethical and regulatory bodies are there to stop the process of automation to a certain degree.

Literature gap 

The existing literature published by scholars has been focused mainly on automation and benefits of automation. Moreover, in recent articles also focused on the disadvantages of the automation that can create an issue to the organisations in near future. This research focuses on establishing the factors of automation and human labours. The automation is replacing the human labours in manufacturing sectors as the employers find automation more lucrative than human labours as it is human error-free. In order to do the repetitive tasks, the automation technologies provide help to get the work done on right time. Human labours are facing issues in developing countries as their job opportunities are receding. The scholarly articles are missing that can describe the condition of human labours in developing countries in large multinational sectors in pharmaceutical companies. The objective of the study is to focus on the demand and profit of the pharmaceutical companies; however, this objective cannot be met in this literature review section. This literature review has been done focusing on the online data and academic article based data; however, a gap can be found to get the information of involvement of human labours in the pharmaceutical industry.

Literature review

Literature conclusion  

In this section of the literature review, the major intention is to identify the theoretical framework of the automation to back up the research question. The secondary articles provide help to generate the information regarding the human labour and automation technologies. In the pharmaceutical industry, the automation technologies have been using for many years. The uniqueness of the topic is also established through the literature review as secondary data has not been able to meet all the objectives of the research.  

Research methodology is the systematic and scientific way of collecting data. Research methodology provides help the researcher help to gain knowledge about the data collection procedure. Research methodology is used to collect the data and it also helps to analyse the data.

Research philosophy 

Research philosophy is the process of data collection in which data about a phenomenon should be collected, used and analysed. Research philosophy is mainly three types, positivism, realism and interpretivism (Neuman 2014). In this research, the researcher will select the positivism research philosophy.

Positivism research philosophy can provide help to collect the data in a scientific way as it is depended on the idea that scientific data is the way to learn the truth. Positivism philosophy deals with factual knowledge and the data can collect through observation (Marczyk et al. 2015). In order to collect data about pharmaceutical industry in India, the researcher will be collecting the quantifiable observations; therefore, research philosophies will help the researcher to analyse the data in a statistical way. The knowledge of positivism philosophy stems from the human experience and this research deals with human participants also. Positivism philosophy tends to collect the data where the researcher needs to concentrate on facts.

Research approach 

The research approach is the pattern of collecting the data and it helps to develop the pattern of the meaning of the research based on the collected data. There are mainly two types of research approach, deductive approach and inductive approach. The researcher is going to select inductive approach in order to continue this research.

The inductive approach would be helpful for the researcher as inductive reasoning can move from specific observations to broader generalisation and theories. The inductive approach starts from the observation and the observation would be done from the primary data which would be collected in this research (Newman and Benz 2018). The observation would be set as the pattern and the researcher will test the pattern of the data with existing research questions. At last, the conclusion will be based on the premises and it may involve in a degree of uncertainty. Automation and human labour related data will be collected on the possible reasons to examine and a theory or concept will be developed from this data to explain the phenomenon.

Concept of automation

Research design 

The framework or planning of collection of data is called the research design. Research design can ensure the proper structure of the data that would be collected from either secondary data sources or primary data sources. Research designs are mainly three types, exploratory, explanatory and descriptive. The researcher is going to follow exploratory research design.

Exploratory research design will be selected as it would allow the researcher to collect the primary data through a questionnaire. There is very little information of Indian pharmaceutical industry regarding automation as India is a developing country. Therefore, primary data is very important to continue the research. Exploratory research design helps the researcher to gain the idea of the research (Kaplan 2017). The exploratory research design is unstructured and it is designed for formal research that can be undertaken to gain background information about the general nature of the research problem. In addition, exploratory research design is usually conducted when the researcher does not have much of the secondary data and needs additional information to collect the information. Exploratory research design will help the researcher to address the research problem collecting the survey data.

Research strategy 

The strategy of the research will be quantitative research method as the researcher aims to collect the primary data through a questionnaire. The research strategy is to collect the data from the online survey. Secondary data on the internet on Indian pharmaceutical industry are not effective and less amount of data are present over the internet on automation in Indian pharmaceutical industry. The data would be acquiring using questionnaire aiming to make questions on both dependent and independent variables. The quantitative research is going to descriptive as well as experimental. Exploratory research design will help the researcher to follow the quantitative research design avoiding the complexity.  

Data collection techniques  

There are two types of data collection techniques, primary and secondary data collections. In this research, the researcher is going to collect both primary and secondary data. Primary data will be collected through an online survey of the respondents. The researcher will use the instrument of close-ended multiple choice questionnaire to conduct the survey. The researcher will prepare 15 close-ended questions and the questionnaire will contain both demographic and subjective questions. The researcher will use Google survey form to prepare the questions and this questionnaire will send to the respondents of the survey. The major part of the research questions will contain the real effects of human labour due to automation. When the process of the survey will be finished, the results will be interpreted with the help of online survey website. This online survey method will be helpful to collect the data in less possible time. As stated by Flick (2015), primary data are useful in the research in order to collect the raw data directly from the respondents.

In order to collect the secondary data regarding the framework of automation in the business and Indian pharmaceutical industry, the researcher will take help of online article, journals, books, websites, organisational reports and government report.  

Sampling technique

The target population of this research will be current employees who are working in the pharmaceutical industry in India. It is impossible to collect the data from a large amount of sample population. In India, a large amount of employees are working in the pharmaceutical industry. The population of the sample will be taken from large metropolitan cities in India. The sample population will be 400. Among all the sample population, the researcher has connected to sample population through social networking media. The researcher will send the questionnaire link to the sample population through social networking sites. The researcher will send the consent form of the survey. Among of all the sample population, the sample size of the research will be 50. The researcher will take the simple random sampling. Simple random sampling is the subset of the statistical population in which each member of the subset has an equal probability of getting selected (Smith 2015). This sampling technique is inexpensive as it is less time-consuming. The whole process will be done through online media, therefore, the chance of delays and threat of loss of information will not be there.

Sample population

Sample size

Percentage of population

Sampling technique

Sample frame to be used

Employees of Indian pharmaceutical companies

(400 employees are selected as sample population)

50

12.5%

Simple Random sampling

An online survey using Google survey form

Table 1: a Survey method

(Source: Created by the researcher)

Data analysis technique 

The researcher will collect the data through survey and the data will be the quantitative basis. The numerical data from the survey will be analysed and interpreted using SPSS software. SPSS software is helpful to find the relationship between two variables of the research. SPSS can be described as the statistical package to perform complex data analysis and manipulation of the data with simple instruction (Taylor et al. 2015). The online websites will be sued in order to analyse the data with pictorial presentation with charts and graphs. Correlation and regression analysis will be helpful to explain the collected data through a survey. Numerical statistics will be presented and analysis will be done linking with the secondary data to validate the primary data findings.

Research ethics

This research will be associated with the human participants; therefore, the ethical consideration is very important. The research will follow all the ethical rules, standards and norms. The ethics explain that the researcher will not follow any wrong practice during the research. The researcher will not breach the ethics and the researcher will strictly adhere to ethical norms. This research will collect the data from the respondents and the researcher will send the ‘consent form’ to the respondents. If the respondents agree with the ethical standards, then only, the researcher will then send the questionnaire link to the respondents. Anonymity is the main priority of the research and the researcher will not reveal the names of the respondents under any circumstances. The confidentiality will be maintained throughout of the research. The research data will not be modified and fabricated. Any kind of coercion or exchange of money will not be done during collection of data. The researcher will not force any respondents to provide the opinion. The researcher will collect the data only for the research purpose and the researcher will destroy the data when the research process is over. In case of secondary data, the researcher will provide proper citation.

Limitation of research methodology 

The research may face the limitation of the budgetary constant as the researcher may not be able to access some of the secondary data from the internet. Credible secondary sources need money to access from the internet. The researcher has to use free software and website to analyse the data. The researcher may face the issue of time constraint as the researcher has to finish the research on time. Most importantly, the main limitation of the research is sample size. The researcher is going to take data from only fifty respondents. Therefore, the research results may not be accurate, hence the researcher will be trying to collect the data in an error-free way. The research specifically focuses on the pharmaceutical industry in India; therefore, it would be tough to collect the data from the employees who are working in the pharmaceutical industry. The researcher will send messages to the pharmaceutical companies that are using automation to allow the researcher to collect the data through sampling.  

Activities

Week 1

Week 2

Week 5

Week 7

Week 19

Week 10

Week 12

Selection of research topic

?

Reviewing literature

?

Selecting research methods

?

Collecting of primary data through survey

?

Analysis of data

?

Drawing conclusion and recommendations

?

Final submission

?

Table 2: Gantt chart of the research timeline

(Source: Created by author)

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