OM in the News: Building a Humanoid Robot

Armies of humanoid robots are poised to march into the world’s factories. But before they’re ready to turn a wrench, they must solve what Elon Musk calls “the hands problem.”

Creating the mechanical equivalent of the human hand is a challenge that has been stumping researchers for years, writes The Wall Street Journal (Oct. 27, 2025) . Replacing muscle and skin with motors and sensors is a critical step in making humanoids a versatile source of labor, potentially unlocking a global market that could reach $5 trillion by 2050.

The robotic hand of the future will need many sensors to emulate a human hand. Holding a pencil, for example, would require sensors along the sides of several fingers.

Tesla’s humanoid robot—called Optimus—is good at walking, but making hands that can match a human’s has been a far tougher job. “In order to have a useful generalized robot, you do need this,” Musk said. “You do need an incredible hand.”

Boston Dynamics has equipped its Atlas humanoids with hands that have only three fingers. They can form a palm that allows the robot to lift boxes or brace itself. One digit also can rotate to serve as a thumb, letting the robot grasp objects. The humanoid can pick up auto parts, pump a dumbbell and pluck a tissue from a box. But a robotic hand must make trade-offs between strength, dexterity, slenderness and ruggedness. Increasing one attribute can diminish another.

Industrial robots have relied on pincerlike hands for decades, and are still the most cost-effective form. MicroFactory (in San Francisco) produces a $5,000 robot that has two arms, one of which typically is equipped with a tool, the other with a 2-digit gripper that holds an object in place. That setup can perform most of the functions needed for electronics assembly, such as soldering, inserting screws or peeling off protective films.

The difficulties of re-creating the human hand lead to questions about why it is being done, given that the real thing already exists in humans.  The answer: the shortage of workers for factory and caregiving jobs is driving the need for alternatives.

Classroom discussion questions:

  1. There are almost a half-million open factory jobs in the U.S. Given the tight job market, will your students be willing to take them?
  2. Why are humanoid robots so sought after?

OM in the News: America is Desperate for Supply-Chain Wizards

When the U. of South Carolina started its supply-chain program in 2007, there were 30 business-school students in it. Today, the program has grown to over 800.  That’s a function of how logistics has changed the world, especially since the pandemic. Package-delivery trucks constantly weave through neighborhood streets. Porches and mailrooms are crowded with deliveries from Amazon, Target, Walmart, Temu and Shein. DoorDash and Uber Eats drivers ferry burritos, pizza, and sushi. Uber and Lyft have largely displaced yellow taxis. Instacart does your grocery shopping for you.

That explosive growth is likely to continue, as logistics is expected to be one of the fastest-growing sectors over the next decade, with an estimated market size of $22 trillion by 2033 — nearly triple what it was last year, reports Sherwood News (Oct. 18, 2024).

There’s already a shortage of highly qualified talent in the industry, and colleges have been bulking up their programs to ensure there’s a steady supply of workers. A recent survey found that 37% of 1,000 supply-chain decision-makers across North America and Europe said they were experiencing workforce shortages. More than half of respondents said positions for knowledge workers and managers have been “hard or extremely hard” to fill. Transportation and warehouse operations have been most affected by the workforce shortage.

The jobs are also lucrative: pay has increased along with demand. Supply-chain and logistics roles in manufacturing often have the highest salaries, averaging over $120,000 annually.

“The pandemic exposed vulnerabilities in global supply chains, leading to a growing demand for professionals who can manage the complexities of logistics, inventory, and distribution systems,” said a Cal Poly prof. AI is also at the forefront of top candidates’ resumes. “We’ve seen that many retailers need professionals who understand both logistics and advanced technologies like AI and data analytics. These skills allow them to predict inventory needs more accurately and respond to market demands faster,” added an industry CEO.

Still, it’s not all about technology. Workers need to be able to not just handle tech, but also customer relationships. For example, the team might need to work closely with suppliers on the common goal of streamlining processes to make things run more efficiently.

Classroom discussion questions:

  1. What would be the job titles for a new grad entering the SCM field?
  2. Why has this field taken off in popularity?

OM in the News: Easing Worker Shortages with Automation

We used to ask whether robots will take over the jobs of humans. But that’s not quite the right question in 2022, as finding workers to fill the large number of jobs currently open in manufacturing is almost impossible. “There aren’t enough workers,” says a 3M exec. “And it’s not just large factories with low mix and high volume that are seeing this, it’s also medium-sized and small companies. Everyone is looking to automation to bridge the worker shortage.”

Operations managers are getting the message and in 2021, factories and other industrial users ordered 39,708 robots (valued at over $2 billion), a 28% increase from 2020. While robots have been in auto plants for a long time, orders from non-automotive companies now represent 58% of the North American totals.

A breakdown of industry orders is as follows:

  •  Food and Consumer Goods:  up 29%
  •  Semiconductors and Electronics/Photonics: up 2%
  • Plastics and Rubber: up 4%
  • Life Sciences/Pharma/Biomed: up 4%
  • All Other Industries:  up 65%

“There is a process we use to engage the operators and manufacturing employees to get them ready for automation,” says 3M. “It’s never about a 1-1 replacement of a worker.  We explain that if someone was doing a certain job and now the robot will do the job, the employee can learn how to operate them and troubleshoot them. This leads to a higher pay grade. It can be a real win-win situation.”

The skills of the workforce have been changing over the past few years, reports Industry Week (March 10, 2022). Manufacturing has tended to pay higher wages than the service sector and is seeing an increasing portion of operators having either associate degrees, technical degrees, or even bachelors degrees. The upskilling of talent was underscored by a 2021 study from the World Economic Forum that predicted that automation would result in an increase of 58 million jobs. And two-thirds of the jobs transformed by automation will become higher-skilled.

These differing degrees of education are going to be essential as U.S. manufacturing will grow. Given the recent supply chain problems, we will see an increase of more companies producing products in the U.S. and automation will play a key role. So it’s an important tool for companies. Contrary to the belief that automation is taking jobs away, it’s automation that will keep companies competitive, and stay in business and protect jobs.

Classroom discussion questions:

  1. Why does 3M say that robots will not replace workers? Is that true in all industries?
  2. Why are manufacturing companies looking for better educated employees?