The Use of Technology in the Production of Goods & Services (Cambridge (CIE) IGCSE Business): Revision Note

Increased speed and efficiency

• Machines and automation can produce goods faster than humans, especially in flow production

Lower labour costs

• Automation reduces the need for large numbers of workers, especially unskilled labour

Greater accuracy and consistency

• Technology improves product quality by reducing human error

Greater flexibility

• Modern technology allows quick changes between batches or designs

High initial costs

• Buying and installing new machinery or software can be expensive for small businesses

Training required

• Workers may need new skills to operate machines or software, which takes time and money

Risk of unemployment

• Replacing workers with machines may lead to job losses, especially in labour-intensive industries.

Dependence on technology

• A breakdown in machines or systems can stop production entirely and cause delays

Traditional methods need expensive tooling and machinery, which is a high upfront cost for small businesses

3D printing reduces costs as no special tools are required

Traditional production has long lead times due to set-up and tooling, causing delays

3D printing is faster with minimal lead times, allowing quicker response to customer demand and faster product launches

3D printing produces detailed, high-quality items with greater accuracy

Traditional methods may struggle with complex designs

3D printing allows small, low-cost production runs tailored to specific customer needs

Traditional production is less suited to customisation