Introduction to Technology in Production
In the world of business, Operations Management is all about how we make things or provide services as efficiently as possible. One of the biggest "game-changers" in this area is technology. Whether it is a robot building a car or a customer tapping their phone to pay for a coffee, technology changes how businesses work. In this chapter, we will explore how technology is used in both manufacturing (making goods) and the service sector, and what this means for the people involved.
1. Automation and Mechanisation
To understand technology in production, we first need to look at how machines take over tasks that humans used to do.
Mechanisation
Mechanisation is when machines are used to help human workers do their jobs. The human is still in control, but the machine provides the power or precision.
Example: A construction worker using a power drill instead of a manual screwdriver. The human does the work, but the machine makes it faster.
Automation
Automation is when the production process is controlled by computers and equipment, with very little or no human input. The machines "think" and act for themselves based on a program.
Example: A robotic arm in a car factory that welds parts together without a person needing to hold the tools.
2. Modern Manufacturing Technology
The syllabus highlights two specific types of technology used in making goods today:
Computer-Aided Manufacture (CAM)
CAM involves using computers to control the machines, tools, and hardware used in the manufacturing process. The computer sends instructions directly to the machinery to ensure every product is exactly the same.
Analogy: Think of CAM like a digital "master chef" that controls all the ovens and mixers in a kitchen to ensure every cake comes out looking and tasting identical.
3D Printing
3D printing is a process where a digital file is used to create a solid, three-dimensional object by adding material layer by layer. It is often used for creating prototypes (test versions of a product) or highly customized items.
Why it is useful: It allows businesses to create complex shapes that traditional machines might struggle with, and it produces very little waste.
Quick Review: Mechanisation helps the worker; Automation replaces the worker's physical actions; CAM controls the machines; and 3D printing builds objects layer by layer.
3. Technology in the Service Sector
Technology isn't just for factories! It has also transformed the service sector (businesses like shops, banks, and hotels). A major example is contactless payments.
Contactless Payments
This includes using cards, smartphones, or wearable devices (like watches) to pay for goods and services via Radio Frequency Identification (RFID) or Near Field Communication (NFC) technology.
How it improves productivity:
1. Speed: Transactions are much faster than counting cash or typing in a PIN.
2. Efficiency: Shorter queues mean a business can serve more customers in one hour.
3. Data: It is easier for businesses to track sales automatically.
4. Advantages and Disadvantages of Technology
Using technology is a big decision. It isn't always "perfect" for everyone. Let’s look at the impact on the business and its employees.
For the Business
Advantages:
• Increased Productivity: Machines don't get tired and can work 24/7. This means the output per period (the number of goods made) usually goes up.
• Improved Accuracy/Quality: Robots don't make "human errors," so there is less waste and fewer mistakes.
• Lower Long-Term Costs: While machines are expensive to buy, they don't require a monthly wage or health insurance.
• Flexibility: CAM and 3D printing allow designs to be changed quickly by simply updating a computer file.
Disadvantages:
• High Initial Cost: Buying and installing advanced technology is very expensive.
• Maintenance Costs: If a machine breaks down, the whole production line might stop, and repairs can be costly.
• Becomes Obsolete: Technology changes fast. A machine bought today might be out-of-date in three years.
For the Employees
Advantages:
• Safety: Machines can do dangerous, heavy, or "dirty" jobs that might hurt humans.
• New Skills: Employees can be trained to operate and program complex machines, which can lead to higher pay and better job enrichment.
• Less Boredom: Machines take over repetitive, "boring" tasks.
Disadvantages:
• Job Losses (Redundancy): If a robot can do the job of five people, those people may lose their jobs.
• Lower Motivation: Some workers feel "de-skilled" or like they are just "minders" for a machine, which can make them feel less valued.
• Stress: Constant changes in technology mean employees must keep learning new systems, which can be overwhelming.
Summary: Key Takeaways
• Automation and CAM lead to high-speed, high-accuracy production.
• 3D Printing allows for easy prototyping and customization.
• Contactless payments make the service sector more efficient by speeding up sales.
• The big trade-off: Technology saves money and improves quality for the business, but it can lead to redundancy and stress for the employees.
Top Tip for Exams: If a question asks you to "recommend" whether a business should invest in technology, always look at the cost versus the benefit. If it's a small business with very little money, the "high initial cost" might be the most important factor!