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How does technology change the way a business produces and runs its operations?

Technology in operations: the use of technology in production and operations (automation, robotics, stock management systems and design software), and its effects on productivity, costs, quality and jobs.

A focused answer to the Eduqas GCSE Business C510 content on technology in operations, covering automation, robotics, computerised stock systems and design software, and their effects on productivity, costs, quality and jobs.

Generated by Claude Opus 4.811 min answerUpdated 2026-06-02

Reviewed by: AI editorial process; not yet individually human-reviewed

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Technology has changed how businesses produce and run their operations. Automation and robotics carry out production tasks once done by people, working faster, for longer and more consistently, so they raise productivity and output, lower the cost per unit and improve quality, but they need heavy upfront investment and can cost jobs. Computerised stock management systems track stock in real time and reorder automatically, so a business holds the right amount, avoids stockouts and overstocking, cuts the cash tied up in stock and reduces waste. Computer-aided design (CAD) and design software let a business design and test products quickly and cheaply on screen before making them. The benefits of technology in operations are higher productivity, lower costs, better and more consistent quality, and tighter stock control. The drawbacks are the high cost of buying and installing it, the training needed, the loss of jobs and lower morale, the reliance on the technology working, and the risk of it becoming outdated. Whether to invest is a cost-benefit decision for the specific business.

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What this topic is asking
Technology in production: automation and robotics
Computerised stock management
Design technology
The effects on productivity, costs, quality and jobs
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What this topic is asking

Eduqas C510 wants you to explain how technology is used in production and operations, automation, robotics, computerised stock systems and design software, and its effects on productivity, costs, quality and jobs. This builds on the wider role of technology, but focused on the operations function. The exam often asks you to judge whether a particular operations technology is worth the investment.

Technology in production: automation and robotics

Computerised stock management

This lets a business hold the right amount of stock: enough to meet demand without overstocking. It avoids both stockouts (running out) and overstocking (cash tied up, waste), cutting costs and improving cash flow. It also gives managers accurate, instant data on what is selling.

Design technology

Design technology speeds up product development, cuts the cost of prototypes, and lets a business respond faster to changing customer tastes, an advantage in a fast-moving market.

The effects on productivity, costs, quality and jobs

Whether to invest is a cost-benefit decision: the firm weighs the upfront cost and the human impact against the productivity, cost and quality gains, for its own volumes and finances.

Judging an automation investment by output and cost per unit

Set out the figures

A factory's $10$ workers currently produce $5{,}000$ units a week at a total weekly wage cost of $6{,}000$ . A new automated line costs $156{,}000$ and lets $6$ workers (wage cost $3{,}600$ a week) produce $7{,}500$ units a week. Running the line costs $400$ a week.

Labour cost per unit before and after

\text{Before} = \frac{6{,}000}{5{,}000} = 1.20 \text{ per unit}.

\text{After (wages + running cost)} = \frac{3{,}600 + 400}{7{,}500} = \frac{4{,}000}{7{,}500} \approx 0.53 \text{ per unit}.

Weekly saving and payback

\text{Weekly cost before} = 6{,}000, \quad \text{after} = 4{,}000, \quad \text{saving} = 2{,}000 \text{ a week}.

\text{Payback} = \frac{156{,}000}{2{,}000} = 78 \text{ weeks} \approx 1.5 \text{ years}.

Interpret the result

Automation more than halves the labour cost per unit (from $1.20$ to about $0.53$ ) while raising weekly output by $50\%$ , and it pays back its $156{,}000$ cost in about $18$ months through a $2{,}000$ weekly saving. On the numbers it is a strong investment. But the decision is not only financial: it cuts four jobs (morale, reputation, redundancy costs), needs the higher volume to be sellable, and makes the firm reliant on the line working. A payback of around a year and a half usually justifies the investment if the firm can finance it and sell the extra output, which is the judgement an evaluate answer should reach.

Try this

Q1. State two effects of automation on a manufacturer's operations. [2 marks]

Cue. Higher productivity/output, lower unit costs, better consistency, job losses.

Q2. $6$ workers produce $4{,}800$ units a week. Calculate the output per worker. [2 marks]

Cue. $\frac{4{,}800}{6} = 800$ units per worker per week.

Exam-style practice questions

Practice questions written in the style of WJEC Eduqas exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.

Eduqas 20183 marksExplain one way using technology in production could benefit a manufacturer. (Component 1)

Show worked answer →

A 3-mark AO1 and AO2 question. Using technology such as automation or robotics in production lets a manufacturer produce faster and for longer than human workers, raising output and productivity, which lowers the cost per unit and lets the firm compete on price or raise its margin. It also improves consistency, so quality is more reliable. One mark for a valid benefit, up to two more for developing it (higher productivity leading to lower unit costs, or greater consistency leading to better quality). A common error is to state "it is faster" without linking the speed to lower unit costs or to the firm's competitiveness.

Eduqas 20216 marksA growing manufacturer is deciding whether to introduce a computerised stock management system. Analyse the effects this could have on the business. (Component 1)

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A 6-mark Analyse needing developed chains applied to the manufacturer. Effect one (better stock control and lower costs): a computerised system tracks stock in real time and reorders automatically, so the firm holds the right amount, avoids both stockouts and overstocking, cuts the cash tied up in stock and reduces waste, which lowers costs and improves cash flow. Effect two (cost and reliance on the system): the system needs investment to buy and install, and staff training, raising costs in the short term, and the business becomes reliant on it, so a fault or cyber-attack could disrupt operations. The chain to credit links each effect to a consequence for the manufacturer. Markers reward two developed effects (typically a stock-control or cost gain set against the cost or risk of the system) applied to the manufacturer, not a generic list.

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Sources & how we know this

WJEC Eduqas GCSE Business specification (C510) — WJEC Eduqas (2017)