Use this technology-production page to explain benefits, costs and output effects when a business introduces new technology.
WMH is a business which operates in the secondary sector. It makes furniture including tables and chairs. WMH's employees are all members of a trade union. The Managing Director knows the business is likely to remain small. She is considering introducing new technology into WMH's factory. She also knows it is important for a manufacturing business to choose a suitable location for a factory.
Explain two possible effects of WMH introducing new technology.
Effect 1:
Explanation:
Effect 2:
Explanation:
Award 1 mark for identification of each relevant effect (max 2).
Award 1 mark for each relevant reference to this business (max 2).
Award 1 mark for each relevant explanation (max 2).
Points might include:
Positive effects:
- Improve quality / less waste / fewer mistakes [k] leading to a better reputation [an] for its furniture [app]
- Increases productivity / efficiency / quicker production [k] leading to lower (average) costs [an] for this small business [app]
- Improved communication [k] leading to fewer mistakes / better efficiency [an] in the factory [app]
- Can design new products [k] which may increase sales / access new markets [an]
- Greater job satisfaction/motivation [k] reducing absenteeism/lowering labour turnover [an]
- Employees may gain new skills [k] leading to higher pay/chances of promotion [an]
- Reduces time/costs to design new products [k]
- Increase output [k]
- Safer workplace [k]
To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made.
The following words are likely to be appropriate for this question:
- Furniture or related words such as tables/chairs
- Trade union
- Factory
- Small business
- Secondary sector/manufacturing
- Location is important
Other appropriate examples can be credited.
Some points can be [k] or [an] but do not award the same point twice.
Some analysis can be used for more than one point, but only award once.
1(d)
Negative effects:
- Purchasing new equipment / expensive to buy/set up [k] increasing cash outflows/debt [an]
- Need to train workers [k] which can increase costs [an]
- If technology is rapidly changing it will need to change often to remain competitive [k] which will increase costs [an]
- Some employees may lose their jobs/made redundant [k]
- May demotivate employees [k]
Other appropriate responses should be credited.
GAE is a multinational company. It manufactures steel. GAE has 2400 employees and has factories in 4 countries. The business regularly introduces new technology. Holding inventory is important. GAE's directors are planning to build a new factory and want to know how legal controls over location might affect this decision. The Managing Director said, 'The new factory will create many external benefits.'
Outline two advantages to GAE of introducing new technology.
Advantage 1:
Advantage 2:
Award 1 mark for each relevant advantage (max 2).
Award 1 mark for each relevant reference to this business (max 2).
Points might include:
- Motivate employees [k] as have 2400 workers [app]
- Fewer employees needed [k] in the 4 countries [app]
- Increases productivity / efficiency / quicker (rate of) production [k] in its factories [app]
- Improved quality / consistent quality / less waste / fewer mistakes [k] when making steel [app]
- Increase output [k] for this multinational company [app]
- Can work 24 / 7 / no need to have breaks in production [k]
- Help design / make new products [k]
- Improved communication [k]
Other appropriate responses should be credited.
To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made.
The following words are likely to be appropriate for this question:
- Steel
- Multinational company
- Factory/factories
- 4 countries
- 2400 employees
- Inventory is important
- External benefits
Other appropriate examples can be credited.
Allow 'lower cost' once, unless two clearly specific different costs.
HCB manufactures cars in country X. It has 200 employees working in its factory. The business has changed its method of production due to new technology. HCB's Managing Director is considering ways to become more ethical. She is aware that other businesses in country X have started to import cars. The interest rate in country X has increased due to rising inflation.
Identify two ways technology could change production methods.
Way 1 :
Way 2:
Award 1 mark for each relevant way (max 2).
Ways might include:
- Wide variety/new products can be designed/made
- High/faster output
- Fewer mistakes / better quality / more accurate / less waste
- Fewer employees / replace labour
- Automation / become capital intensive
- Mechanisation / use (more) machinery
- Computer-aided design (CAD) / 3D design
- Computer-aided manufacturing (CAM) / 3D printing/robotics
- Computer-integrated manufacturing (CIM)
Other appropriate responses should also be credited.
Only award the first two responses given.