Commerce And Production: Production: Effects Of Digital Technology On Production (Copy)
Cheat Sheet: 1.2.5 Effects of Digital Technology on Production
| Aspect | Impact | Example |
|---|---|---|
| Automation (Robotics in Production) | Increases efficiency, reduces errors, lowers long-term costs, but may cause unemployment | Car assembly lines using robots for welding and painting |
| Digital Communication with Suppliers (EDI – Electronic Data Interchange) | Faster, accurate exchange of orders/invoices; reduces paperwork and delays | A retailer using EDI to send automatic orders to suppliers |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
| Advantages of Automation | Disadvantages of Automation |
|---|---|
| High accuracy and speed | High initial setup cost |
| Lower labour costs | Job losses for workers |
| Can work 24/7 | Technical failures may disrupt production |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
| Advantages of EDI (Digital Supplier Communication) | Disadvantages of EDI |
|---|---|
| Faster transactions with suppliers | Cost of setting up systems |
| Fewer errors than manual paperwork | Requires training and maintenance |
| Saves time and improves efficiency | Risk of cyberattacks/data breaches |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
| Overall Impact | Example |
|---|---|
| Improved productivity, reduced costs, faster supply chain coordination | A supermarket chain using automated warehouses and EDI to restock shelves efficiently |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course