Technology in Production (OCR GCSE Business)

Revision Note

Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

Computers and Automation

  • A range of computer-based technologies can be used to automate production and logistics processes

CAD, CAM, CIM, drones and artificial intelligence are ways in which computers can be used to automate operations
CAD, CAM, CIM, drones and artificial intelligence are ways in which computers can be used to automate operations
  • Computer-aided design (CAD)

    • The process of digitally creating design simulations of products in 2D or 3D

    • It can also include the use of computer software to create mapping processes for industrial machinery, e.g. the movements required by a robotic arm in a car factory

  • Computer-aided manufacturing (CAM)

    • The use of computers to assist in operations of a manufacturing plant, such as production processes, planning, management, transportation and storage

  • Computer-integrated manufacturing (CIM)

    • The complete automation of a manufacturing plant, with all processes functioning under computer control with digital information tying them together

  • Drones

    • Unpiloted aircraft used to carry out an increasing range of business tasks including package delivery, photography and security

      • E.g. Large agriculture businesses use drones to spot failing crops and areas of concern in large fields, mapping boundaries and even applying pesticides

  • Artificial intelligence (AI)

    • The use of computer systems able to perform tasks normally requiring human intelligence, such as visual perception, speech recognition, decision-making, and translation between languages

An Evaluation of Technology in Operations

Advantages

Disadvantages

  • High levels of productivity can be achieved as a result of increased output

  • Lower average costs as fewer workers need to be employed

  • Robots and production machinery are likely to produce output quicker than workers

  • Technology can operate for long periods without a break

  • Improved quality and less wastage, as the risk of human error is reduced

  • Workers are not required to carry out complex, repetitive or hazardous tasks

  • Technology may be capable of producing innovative new products, creating new markets

  • The installation and maintenance of technology in production is likely to incur significant costs, possibly requiring loans

  • Employees need training to safely and effectively operate technology

  • Down time, as technology is installed and workers trained, impacts output levels

  • Machines are vulnerable to breakdowns and require regular maintenance, halting production

  • Some workers may become redundant, if jobs are replaced by technology

    • Redundancy costs increase expenses in the short-term

Robots

  • Robots can be used to automate production processes and have an increasing range of specialist uses in business

    • They are programmed to collect information from their environment using sensors and use artificial intelligence (AI) to improve production performance

      • E.g. Hotel chain Yotel employs ‘robotic staff’ that can move around anywhere in the hotels, carrying guests' luggage, delivering laundry, cleaning rooms and making coffee

Business Uses of Robots

Assembly Lines

Logistics

Agriculture

  • On assembly lines in manufacturing, robots can increase productivity and accuracy

  • They can carry out hazardous and complex tasks

  • Warehouses and logistics businesses can use robots to move and transport goods

  • E.g. Quiet Logistics uses robots that ‘do all the walking’ in its distribution hubs

  • In agriculture, tasks such as planting, harvesting and spraying crops can be carried out by robots

  • E.g. Japanese food producer Spread’s robotic farm harvests 30,000 heads of lettuce every day

Medicine

Entertainment

Hazard Management

  • In medicine, robots can be used in surgical procedures to increase precision and reduce the risk of errors

  • Robots can be sold as toys or used in amusement parks to provide entertainment

  • Remote-controlled robots can be programmed to carry out hazardous testing and R&D processes

Examiner Tips and Tricks

You could be asked to evaluate how technology and automation affect stakeholder groups. When evaluating, you must consider both positive and negative impacts before making a judgement.

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Lisa Eades

Author: Lisa Eades

Expertise: Business Content Creator

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

Steve Vorster

Author: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.