The Impact of Technology in Production (Edexcel IGCSE Business)

Use of Robotics

• 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
    

• Robots can perform various business tasks

Business uses of Robots

• Robots can be used alongside a range of technologies to fully automate production processes

  • 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 television factory
      
      

  • Computer-aided manufacturing (CAM)

    • The use of a 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

Technology Costs, Productivity, Quality & Flexibility

• The installation and maintenance of technology in production is likely to be incur significant costs
  

  • Purchasing robots and other technology may require external finance such as loans which will need to be repaid with interest

  • Employees will need training in order to safely and effectively operate technology

  • Down time as technology is installed and workers trained will impact output levels
    

• Businesses must be sure that this capital expenditure is outweighed by gains in productivity and improvements in quality and flexibility

  • Higher levels of productivity may only be achieved with high levels of output

  • Automation usually works best in the manufacture of standardised products

  • Flexibility in production refers to how easy it is to install machinery and switch to different machinery which is required to manufacture different products (known as retooling) 

    • The most flexible technology is also likely to be the most costly
       

• The use of robots in particular presents a range of advantages and disadvantages related to productivity, quality and flexibility

Advantages & Disadvantages of Using Robots in Business