Technology in production Edexcel International GCSE Business revision

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In plain words

Factories once needed hundreds of people on a line. Now many need a handful, watching machines. Computers design the product, control the equipment that makes it and check the result.

Technology can make goods cheaper and better, and it changes the jobs of everyone around it.

6 things to know

  1. Automation is the use of machines, controlled by computers, to do work with little human help. Robots are one form of it.
  2. Computer-aided design (CAD) is the use of computers to design products: designs can be changed quickly and seen in three dimensions.
  3. Computer-aided manufacture (CAM) is the use of computers to control the machines that make the product.
  4. Benefits: higher productivity, consistent quality, lower labour costs, and machines that can work all day and night.
  5. Drawbacks: equipment is expensive to buy and maintain, workers need retraining, and jobs are lost, which can damage morale.
  6. Capital-intensive production uses a lot of machinery compared with labour. Labour-intensive production uses a lot of labour. As technology gets cheaper, many businesses become more capital-intensive.

Tips and tricks

  • A business has to balance four things when it invests in technology: cost, productivity, quality and flexibility.
  • Technology is not always the answer. For small quantities of varied products, skilled people may be cheaper and more flexible than a robot.
5 questions, about 2 minutes.

It lands in your notebook with its questions as flashcards.

Technology in production: 5 questions and answers

These are the quiz’s questions. Do the quiz first, then come back here for the ones that got you.

  1. What does CAD stand for?
    • computer-assisted delivery
    • computer-aided design (the answer)
    • cost and distribution
    • controlled automatic development

    Computers are used to design products.

  2. Which is a benefit of automation?
    • higher labour costs
    • consistent quality (the answer)
    • low purchase cost
    • more workers are needed

    A machine repeats the task exactly.

  3. Which is a drawback of introducing robots?
    • higher productivity
    • lower cost per unit
    • high cost of buying and maintaining them (the answer)
    • machines can work at night

    The investment is large and repairs are costly.

  4. A capital-intensive business uses
    • mainly unskilled labour
    • a high proportion of machinery compared with labour (the answer)
    • no machinery
    • only part-time workers

    Capital means equipment.

  5. What is CAM used for?
    • recruiting workers
    • setting prices
    • controlling the machines that make the product (the answer)
    • researching the market

    Computers run the manufacturing equipment.

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