The Use of Technology in the Production of Goods & Services

Exam code: 7115

Written by: Ashika|Reviewed by: Caroline Carroll|Updated 2 July 2026

Technology has changed how businesses produce goods and services
It can make production faster, cheaper and more accurate, but also comes with some challenges

Advantages	Disadvantages
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

Advantages

Disadvantages

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

Computer-Aided Manufacture (CAM) is the use of computers to control and assist with production activities

CAM controls machinery such as cutters, drills or robotic arms, ensuring tasks are completed quickly, accurately, and with consistent quality

CAM software helps plan when and how products will be made, reducing delays and making sure resources are used efficiently

CAM systems can track the movement of materials and products, helping ensure they reach the right stage of production on time

CAM helps manage inventory by tracking how much stock is available, where it is stored, and when new materials need to be ordered

Digital designs are uploaded and the 3D printer produces the product with minimal labour costs
Digital printers have been used to print car engines, houses, food and replacement limbs

Impact	Explanation
Cost	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
Productivity	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
Quality	3D printing produces detailed, high-quality items with greater accuracy Traditional methods may struggle with complex designs
Flexibility	3D printing allows small, low-cost production runs tailored to specific customer needs Traditional production is less suited to customisation

The impact of technology on production methods