The Impact of Technology in Production (Edexcel IGCSE Business)

• 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

In manufacturing and assembly lines robots can increase productivity and accuracy	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
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

• 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

• 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

Advantages	Disadvantages
Increased productivity as robots can work continuously without breaks or fatigue Improved consistency and accuracy as robots can perform tasks with a high level of precision and accuracy Robots can perform tasks that are dangerous or hazardous for humans, improving safety Robots can help reduce labour costs in the long run	High initial investment of purchasing and setting up robotic systems  Maintenance costs as robots require regular maintenance and repairs, which can add to the overall cost Lack of flexibility as robots are programmed for specific tasks and cannot adapt easily to new situations or tasks Increased use of robots can lead to job losses in some industries