Technology & Production
Business: Cambridge International GCSE (2027 Exams), topic 4.1.7
Technology & Production
Technology can influence the production process in several ways:
Production Costs
- Technology is also providing ways for firms to reduce production costs.
- Technology has a big impact on businesses.
- In terms of both updating existing products and finding new ways of manufacturing products.
- It benefits businesses as it allows them to produce higher quantities, make products more consistent, and be more cost-effective.
Advantages of technology
- Reduces production costs.
- Automated machinery can replace human labour (e.g. robot arms at Jaguar Land Rover).
- Improves communication within firms and with stakeholders.
- Increases efficiency and consistency in products.
- Helps businesses scale production to meet demand.
Robotics
- New, automated machinery is increasingly replacing humans in the workforce (e.g. robot arms are produced by companies like KUKA, to fix windscreens to cars at Jaguar Land Rover).
Ease of communication
- Technology is making it much easier for firms, particularly larger firms, to communicate within the firm and with stakeholders. This has important repercussions for the efficiency of business operations and can reduce average costs.
Disadvantages of technology
- High upfront investment costs for machinery and systems.
- Workers may lose jobs as automation replaces human labour.
- Constant updates and maintenance are required, adding ongoing costs.
- Smaller businesses may struggle to afford advanced technology.
Test yourself on Technology & Production
At Jaguar Land Rover, who or what fixes the windscreen to cars?
How can better communication (through technology) impact a company?