Technology in Production (OCR GCSE Business)

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Lisa Eades

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Business Content Creator

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**

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

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 Tip

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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