The use of technology in operations, including automation and robotics in production, computer-aided design and manufacture, electronic stock control (EPOS) and online ordering, with the advantages and disadvantages.

What this key area is asking

Technology has transformed operations, from how products are designed and made to how stock and suppliers are managed. The SQA wants you to describe uses such as automation and robotics, computer-aided design and manufacture (CAD/CAM), electronic stock control and EPOS, and online ordering, and to discuss the advantages and disadvantages. Higher rewards you for weighing the gains in efficiency and quality against the high cost and impact on jobs.

Technology in production

Automation and robotics let production run 24 hours a day with consistent quality and fewer human errors, doing repetitive or dangerous tasks people cannot. CAD lets designers create and modify products quickly on screen and test them before any material is used, and CAM turns those designs into accurate output by controlling the machines, reducing mistakes and waste.

Technology in stock and supply

EPOS and electronic stock control track stock automatically and in real time, so the firm always knows what it has, reorders at the right moment, reduces both overstocking and stockouts, and gathers sales data. Online ordering with suppliers places orders electronically, speeding up the supply chain and supporting JIT, so materials arrive just in time.

The advantages and disadvantages

Advantages:

• higher output (machines run continuously);
• lower labour costs over the long term;
• better, more consistent quality and less waste (fewer human errors);
• real-time stock and sales information for better decisions;
• the ability to do dangerous or repetitive work.

Disadvantages:

• high initial cost to buy and install the technology;
• possible redundancies, poor staff morale and worse industrial relations;
• breakdowns can halt production;
• dependence on the technology and the skilled staff to maintain it.

Examples in context

Example 1. A supermarket using EPOS. A supermarket's EPOS tills scan barcodes at the checkout, automatically recording each sale, updating stock levels in real time and triggering re-orders so shelves stay stocked without overstocking. The system also generates sales data for marketing. This shows how technology links the checkout to stock control and reordering, reducing both stockouts and waste, the standard SQA operations example.

Example 2. A car plant automating its line. A car manufacturer replaces manual welding with robots (automation). Output and consistency rise and dangerous tasks are removed, but the upfront cost is huge and some workers are made redundant, harming morale and relations, and a robot breakdown can stop the line. This illustrates the central trade-off of automation: efficiency and quality gains against cost and the human impact on jobs.

Try this

Q1. Describe two ways technology could be used in the operations of a business. [2 marks]

• Cue. Automation/robotics in production; CAD to design products on screen; CAM to control machinery; EPOS to record sales and update stock; electronic stock control to reorder automatically; online ordering with suppliers (any two).

Q2. Explain one advantage and one disadvantage of using automation in production. [4 marks]

• Cue. Advantage: machines run continuously with consistent quality, raising output and cutting waste and long-term labour costs. Disadvantage: the technology is very expensive to buy and install, can cause redundancies and poor morale, and a breakdown can halt production.