Automation (AQA A Level Business): Revision Note

What is automation?

• Automation means using machinery, robotics or software to perform tasks that would otherwise be carried out by human workers, with little or no direct human involvement once it is set up

  • It can range from simple mechanical processes, such as a conveyor belt, to advanced robotics and artificial intelligence capable of making decisions or adapting to changing conditions

• Businesses automate tasks that are repetitive, predictable, physically demanding or require high precision

  • In these situations, a machine can often perform more consistently, quickly or cheaply than a person

Examples of automation in operations

Manufacturing robotics

• Robotic arms assemble, weld or paint products on a production line with high speed and precision

  • E.g. Car manufacturers use robotic arms to weld and paint vehicle bodies

    • These tasks would be slower, less consistent and more hazardous if carried out entirely by hand

Automated checkouts

• Self-service tills allow customers to scan and pay for their own shopping without needing a staff member for every transaction

  • E.g. Supermarkets such as Tesco have widely installed self-checkout machines in recent years

    • The number of staffed tills needed during quieter periods is significantly reduced, lowering wage costs

Warehouse automation

• Robots and automated systems sort, store and retrieve inventory without manual handling

  • E.g. Online retailers such as Amazon use automated conveyor systems and robots to sort parcels by destination before they're loaded for delivery

Automated customer service

• Chatbots and automated phone systems handle routine customer queries without needing a human adviser

  • E.g. Banks use chatbots on their websites and apps to answer common questions, such as checking a balance

    • This frees up staff to deal with more complex enquiries

Automated quality control

• Machine vision and sensors inspect products for faults far more quickly and consistently than a person

  • E.g. Coca-Cola uses automated cameras to check that every bottle is filled to the correct level, rejecting any that don't meet the standard

Automation and competitiveness

• Automation can improve a business's competitive position in a range of ways

• Businesses that fail to automate where competitors do risk falling behind on cost, speed or quality, weakening their market position

Example

A clothing manufacturer that automates its cutting and sewing processes can produce garments faster and more cheaply than a rival still relying entirely on manual labour, allowing it to undercut competitors on price while maintaining consistent quality

Problems of automation

• It requires a significant upfront investment in machinery, robotics or software

  • This may be particularly unaffordable for smaller businesses

• It can lead to job losses

  • This can damage staff morale, harm a business's reputation or create conflict with trade unions

• It reduces flexibility

  • Automated systems can be costly or slow to reprogram if a business needs to change its product or process

• Technical faults or breakdowns can halt production entirely

  • A workforce can often adapt or find alternative ways to continue

• It requires specialist staff to install, maintain and repair automated systems

  • This adds to ongoing costs and makes a business dependent on staff with technical expertise