Automation is an opportunity to be more competitive: Andreas Wolf

Our main challenge is how to make Bosch in India fit for the future, says Bosch India's Andreas Wolf

Bosch has been focusing on automation and Industry 4.0. In automation, aren’t we losing on improvements which may be visible to humans and not visible to machines?

Industry 4.0 is one of my passions. It is important for the industry to implement smart automations. This means we need to understand what the role of the operator will be in future. 

In Industry 1.0 and Industry 2.0, the operator was like a commander, giving commands to the machine. In Industry 3.0, the operator is kind of a captain, telling the machine via a software or program on what it has to do. In Industry 4.0, he is like a conductor, who is talking to the machine and the machine talks to him. My understanding is, when machines talk to each other via Internet of Things (IoT), we also have to bring people talking to each other. We want to be a leading service provider for IoT solutions and a leader in the manufacturing realm.

There is a lot of debate  on how automation will affect jobs...

This is similar to looking into a crystal ball. Some international studies, not just the United States or Japan or China, say automation will lead to some sort of job losses. My independent view is that surely in the future there will be a reduction in lower skill jobs. But the need for higher skill jobs will go up. I am convinced that if we implement Industry 4.0 in India, it might lead to some job losses in the country. But if we don’t do it, this will definitely lead to job losses because then we will no more be competitive. We must use it effectively to improve competitiveness in terms of productivity, quality, flexibility, and agility…. and make our product more attractive. That is why I believe Industry 4.0 will help the industry.

How do you see Indian market when it comes to automation?

I am convinced it is an opportunity for India. India has a very young population. It is the biggest smart phone hub, except China. It may even exceed China in a couple of years. In India, people love to stay connected. That’s an opportunity. In India, people are curious. Automation and IT will be more successful in India. That’s what we at Bosch have tried to do. We want to come up with solutions developed in India, for India.

How important is India in Bosch’s scheme of things?

We have more than 31,000 employees in India. Outside of Germany, we have the biggest R&D happening in India with more than 17,000 people. We have 18 manufacturing plants. We have 15,000 people, outside of developing and engineering. India is both a manufacturing and IT hub for us. But I am looking into manufacturing. We have a wide range of products in India, including mobility solutions, IT solutions, industrial solutions, braking systems, electrical drives, drive and control, power tools, among others. We have a very interesting product portfolio. We have more than 7,500 sales offices and 1,500 local suppliers.

How much of what you manufacture in India is sourced in India and how much is sourced from outside?

More than 80 per cent (of what we manufacture) is bought in India, for India. We buy local from local. This is the standard that makes us strong in manufacturing. Our International Product Network (IPN) is a network which helps collaboration on same product in different region and this allows us to collaborate and utilise our resources efficiently. We work on an issue and then share it with each other very efficiently. The manufacturing techniques are thus very efficient.

Have you conceptualised or made a product exclusively for India?

Yes, we have conceptualised many such products. For example, we have special injectors in diesel that have been developed in India, for India. We produce it in Nasik, Maharashtra.

We also have multiple special solutions in sectors beyond mobility, such as packaging. When we have special customer requests, we develop the machine according to his needs or requirements. In India, we have special machinery which allows us to produce special products and assembly line for the customers in or outside the country. Going forward, our main challenge is how to make Bosch in India fit for the future. It’s easy, if you invest in new machines. What we have to do is change the mindset of the people. This includes everyone. The change being — I want you to come up with one improvement every day. It could even be a small improvement. 

In 2015, we had made 800 such improvements. All these improvements require huge investment - investment not in terms of money, but the mind set and the educational qualifications for training people. Leadership is the most important amongst them. Employees can do one change per day and it has brought about a change in the company.